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December 3, 1996

COMPTROLLER'S MEMORANDUM NO. 03 (1996-97)

SUBJECT: INTEREST RATE FOR 1997

Section 55.03(1), Florida Statutes, requires the Comptroller, on December 1 of each year beginning in 1994, to set the rate of interest that shall be payable on judgments and decrees for the year beginning the following January 1. Additionally, Sections 215.422(3)(a), 337.141(3) and 687.01, Florida Statutes, were amended to require the use of interest at the rate established in Section 55.03(1), Florida Statutes, for the payment of interest applicable to the late payments to vendors for goods and services purchased by the State, for late payments on applicable construction or maintenance contracts administered by the Department of Transportation, and for cases where a rate of interest is not specified in a contract. The interest rate for payments to health care providers pursuant to Section 215.422(13), Florida Statutes, remains at 1% per month or .03333% per day. Rule 3A-25, Florida Administrative Code, establishes the procedures for computing the interest rate on an annual basis.

The 1997 interest rate established pursuant to Section 55.03, Florida Statutes, has been set at 10.0% per annum or .02740% per day. The Prompt Payment System will be modified to begin using the new interest rate effective January 1, 1997.

Comptrollers Memorandums Nos. 09 and 10 (1994-95) contain suggested language for inclusion in purchase orders and contracts. Agencies are reminded to include an agency telephone number on all purchase orders issued, to ensure vendor accessability to purchasing offices.

As the annual certification process pursuant to section 215.422(9), F.S., approaches, it may be used as a mechanism to disseminate information to employees regarding prompt payment policy changes. The most recent amendments are provided in Chapters 96-310 and 96-410, Laws of Florida, relating to prompt payment requirements and should be included in the information certified by all employees subject to this requirement. In summary, payment of Class C travel subsistence is excluded from section 215.422, Florida Statutes. The amendment also specifies an administrative law judge rather than a hearing officer to resolve disputes in a formal administrative proceeding.

If additional information is needed, please call the Bureau of Accounting at 488-1951, Suncom 278-1951.