Pennsylvania Code
Title 4 - ADMINISTRATION
Part I - GOVERNOR's OFFICE
Chapter 2 - OFFICES OF ADMINISTRATION AND THE BUDGET
Subchapter B - INTEREST PENALTIES FOR LATE PAYMENTS
Section 2.38 - Exclusions

(a) This subchapter does not apply to public contracts subject to the act of November 26, 1978 ( P. L. 1309, No. 317) (73 P. S. § § 1621-1631), referred to as the Public Works Contract Regulation Law.

(b) Interest penalties will not accrue on invoices remaining unpaid because the Commonwealth is setting off obligations receivable from a qualified small business concern.

(c) Accrual of an interest penalty will cease automatically 6 months from the date of the original invoice unless the qualified small business concern has notified the payment office or finance center in writing that the invoice was not paid by the required payment date.

(d) Interest penalties will not be paid if the total accrued amount is less than $1.00.

(e) This subchapter will not be construed to require interest penalties on a payment which is not made by the required payment date because of a dispute between a Commonwealth agency and a qualified small business concern over the amount of the payment or other allegations concerning compliance with a contract. Claims concerning any such dispute and any interest which may be payable with respect to the period while the dispute is being resolved may be filed with the Board of Claims, following the exhaustion of other appropriate administrative or contractual remedies, if the claim meets the jurisdictional requirements, other than those relating to amounts, of the Board of Claims. Interest penalties awarded by the Board, if any, will be computed as shown in § 2.35(b) (relating to policy governing payments of interest penalties).