As used in this Section, the following words shall have the following meanings unless the context in which they are used in this Section clearly requires a different meaning or a different definition is prescribed for a particular provision. Contract document means any written agreement or change order for the purchase or disposal of supplies, services, construction, insurance, or any other item. This Section does not pertain to collective bargaining agreements with an employee organization, an agreement that creates an employer-employee relationship, or grants or similar contributions provided in support of an activity, project, or program. It includes, but is not limited to, contracts of a fixed price, cost reimbursement, cost plus a fixed fee, or incentive type; contracts providing for the issuance of job or task orders; letter contracts; and purchase orders. It also includes supplemental agreements with respect to any of the foregoing. Designated payment office means the person or place indicated in contract document(s) for delivery of invoice for payment or, in certain instances, for approval. Otherwise, it is the Accounts Payable Section of the Office of Finance. Due date means thirty (30) calendar days after receipt date. Payment date means the date of County check, electronic transfer, or other mutually agreeable payment vehicle. Proper invoice means a contractor's written invoice submitted in accordance with the contract document(s) requesting payment from the County for satisfactory performance in accordance with contract provisions that includes, but is not limited to, the following items: Contractor name and remittance address; Contractor tax identification number; Reference to contract number; Description, price, quantity of delivered goods or services; Shipping and payment terms; and Other substantiating documentation in the form and content that may be required by law, regulation, or contract document(s). No authorized representative of a unit of County government shall make a request for the delivery of goods or services from a contractor without first obtaining a purchase order or other invoiceable procurement authorization. Receipt date means the later of the recorded date on which proper invoice is received by the designated payment office or delivery of acceptable goods or services in accordance with the contract document(s). If the receipt of a proper invoice is not recorded by the designated payment office, then the receipt date shall be the later of the issue date indicated on the proper invoice or delivery of acceptable goods or services in accordance with the contract document(s). It is the policy of the County to make a payment under a procurement contract within thirty (30) calendar days after the receipt date. The County has an aspirational goal of making such a payment within fifteen (15) calendar days after the receipt date. Interest penalties shall accrue daily beginning thirty-one (31) calendar days after the receipt date and ending on, but excluding, the payment date, using the rate established in Subsection (e) calculated on a 30-day basis. Interest penalties shall not continue to accrue for more than one year after the due date. Interest penalties under this Section shall be automatically added to any payment made to a contractor for an invoice(s) which remains unpaid more than thirty (30) calendar days after the receipt date, unless the County is not liable to pay interest because of one of the exclusions provided for by Subsection (g). The rate of interest penalty shall be one percent (1%) per month on a pro rata basis. Written claims for interest penalties which the County has failed to pay in accordance with the requirements of Subsection (d) shall be time and date stamped by the Office of Finance when received. The County is not liable under this Section for an interest penalty under any of the following circumstances: Invoice payments made in advance or within thirty (30) calendar days after the receipt date; Contractor's written claim(s) for any unpaid interest penalty amounts owed not received by the Director of Finance prior to full payment being made by the County to the contractor for the proper invoice; Work subject to contract claim as provided by the contract document(s) or applicable County procedure(s); Amounts withheld consistent with payment terms, such as retainage; Payments made to a third party on behalf of the contractor for financing purposes; Amounts representing unpaid interest penalties; Interest penalties amounting to less than $10.00 per invoice; or, Contracts or other County obligations outside of the scope of this Subtitle. This Section does not authorize the appropriation of additional funds for the payment of any required interest penalty. The Director of Finance shall pay any interest penalty required by this Section consistent with County procedure(s). In the case that sufficient funds are unappropriated and/or unavailable to pay any interest penalty owed at the time a proper invoice is paid: The Director of Finance will pay the maximum amount of the interest penalty owed that can be paid with available, appropriated funds; and Within a one (1) year period after the payment date, the County will ensure that appropriate procedures are followed to identify (and, if needed, obtain an appropriation of) additional funding and make a payment for the remaining balance owed for the interest penalty. If a contractor offers a discount from the amount due under the contract in exchange for payment within a specified period of time, the County may make payment in an amount equal to the discounted price only if the payment date is within the specified period of time. Within thirty (30) calendar days after payment date, contractor's written claim(s) for discounts taken in error shall be received by the Director of Finance. Contractor Prompt Payment. For all procurement contracts authorized under this Subtitle, the prime contractor shall pay each of its subcontractors (including a material supplier) for satisfactory performance under the respective subcontract within seven (7) calendar days after receipt of such amounts that are paid to the prime contractor by the County for such work performed under the contract. In the event that there is a good faith dispute over all or any portion of the amount due on a payment from a prime contractor to a subcontractor, the prime contractor may withhold the disputed amount but shall pay the undisputed amount. A subcontractor who further subcontracts work on procurement projects authorized by this Subtitle is responsible for the same requirements and interest penalties for payment to its subcontractors (lower tier subcontractors) after receiving payment under this Subsection as applicable to a prime contractor. Interest penalties. Any contractor who violates Paragraph (1), above, shall pay to the subcontractor a penalty of one and a half percent (1.5%) of the amount due per month for every month to the subcontractor owed payment or portion thereof that payment is not made. Interest penalties shall accrue daily beginning eight (8) calendar days after payment is received by the prime contractor (or higher tier subcontractor) and ending on, but excluding, the payment date, using the rate established in this Paragraph calculated on a monthly (30-day) basis. This Subsection is enforceable in the Circuit Court of Prince George's County, and is not intended to create a private right of action against the County. Willful violations of this Subsection may also result in a contractor being suspended or debarred in accordance with Section 10A-148. Contract Clauses Required. For all procurement contracts authorized under this Subtitle, including at the time of any contract renewal or extension, the Purchasing Agent or the Purchasing Agent's designee shall include a clause requiring the prime contractor to include in each of its subcontracts a payment clause which obligates the prime contractor to pay the subcontractor for satisfactory performance under its subcontract within seven (7) days out of such amounts as are paid to the prime contractor by the County for such work performed under such contract; and an interest penalty clause which obligates the prime contractor to pay to the subcontractor an interest penalty on amounts due in the case of each payment not made in accordance with the payment clause included in the subcontract pursuant to Subparagraph (A), above for the period beginning on the day after the required payment date and ending on the date on which payment of the amount due is made; and computed at the rate specified in Paragraph (2) of this Subsection. For all procurement contracts authorized under this Subtitle, the Purchasing Agent or the Purchasing Agent's designee shall further require the prime contractor to include a clause in its subcontracts requiring the subcontractor to include a payment clause and an interest penalty clause conforming to the standards of Paragraph (3) of this Subsection in each of its subcontracts and to require each of its subcontractors to include such clauses in their subcontracts with each lower-tier subcontractor or supplier. With regard to this Section, the Director of Finance shall have the following specific authority and responsibilities: To establish, as deemed necessary, regulations and procedures enforcing the requirements of this Section; To resolve timely, written claims made by a contractor concerning unpaid interest penalties or pertaining to unearned discounts taken that are associated with invoice payments made by the County. This Subsection does not apply to any other contractor disputes or claims which shall be subject to the provisions of the contract document(s) or other applicable County procedure(s); and To require vendors to enroll in Automated Clearing House (ACH) or a similar electronic payment system with the County.