The “Prompt Payment Law,” codified in Government Code, Section 2251, prescribes that a payment by a state governmental agency under a contract executed on or after September 1, 1987, is overdue on the 31st day after the later of:

the date the governmental entity receives the goods under the contract;
the date the performance of the service under the contract is completed; or
the date the governmental entity receives an invoice for the goods or service.

A payment begins to accrue interest on the date the payment becomes overdue.

Therefore, it is imperative that the ROW Program Office, Real Estate Services Section of ROW Division, and ROWAPs make every effort to process appraisal payments in a timely manner, and thereby avoid incursion of interest.