Senate Bill No. 462
(By Senators Unger and Kessler (Acting President))
[Originating in the Committee on Government Organization;
reported February 17, 2011.]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §12-3-5a, relating to creating the Prompt Pay Act of 2011; requiring invoices to state agencies be paid within sixty days; clarifying when invoices are considered received by a state agency; providing exceptions to three specific agencies whose invoices must be processed within fifteen days; requiring interest be paid on invoices not paid within the prescribed time period; providing exceptions for contested invoices; providing that no agency owes another agency interest on an unpaid invoice; defining the term “state agency”; and clarifying what invoices are subject to this section.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §12-3-5a, to read as follows:
ARTICLE 3. APPROPRIATIONS, EXPENDITURES AND DEDUCTIONS.
§12-3-5A. Payment of legitimate uncontested invoices; interest on late payments.
(a) Any properly registered and qualified vendor who supplies services or commodities to any state agency is entitled to prompt payment upon presentation to that agency of a legitimate uncontested invoice.
(b) For purchases of services or commodities made on or after July 1, 2011, payment shall be issued within sixty days after a legitimate uncontested invoice is received by the state agency receiving the services or commodities. Any payment issued after sixty days shall include interest at the current rate, as determined by the State Tax Commissioner under the provisions of section seventeen-a, article ten, chapter eleven of this code. That interest shall be calculated for the sixty-first day after such invoice was received by the state agency until the date the payment is made.
(c) For purposes of this section, an invoice is deemed to be received by a state agency on the date the invoice is marked as received by the agency, or three days after the date of the postmark made by the United States Postal Service as evidenced on the envelope in which the invoice is mailed, whichever is earlier. However, in the event an invoice is received by a state agency prior to the date on which the commodities or services covered by the invoice were actually delivered and accepted or fully performed and accepted, the invoice is deemed to be received on the date on which the commodities or services covered by the invoice were actually delivered and accepted or fully performed and accepted.
(d) The State Auditor shall deduct the amount of any interest due for late payment of an invoice from any appropriate account of the state agency responsible for the late payment upon request from the vendor and appropriate documentation therewith. If two or more state agencies are responsible for the late payment, the State Auditor shall deduct the amount of interest due on a pro rata basis.
(e) The state agency initially receiving a legitimate uncontested invoice shall process such invoice for payment within ten days from its receipt: Provided, That invoices to the Department of Health and Human Resources, the Division of Highways and the Public Employees Insurance Agency shall be processed within fifteen days of their receipt. No state agency is liable for payment of interest owed by another state agency under this section.
(f) Any other state agency charged by law with processing a state agency’s requisition for payment of a legitimate uncontested invoice shall either process the claim or reject it for good cause within ten days after such state agency receives it. Failure to comply with the requirements of this subsection renders that state agency liable for payment of the interest mandated by this section when there is a failure to promptly pay a legitimate uncontested invoice: Provided, That no such state agency is liable for payment of interest owed by another state agency under this section.
(g) For purposes of this section, the phrase “state agency” means any agency, department, board, office, bureau, commission, authority or any other entity of state government.
(h) This section applies to, without exception, to any and all payments made between the repeal of “The Prompt Pay Act of 1990,” section fifty-four, article three, chapter five-a of this code on March 13, 2010 and the effective date of this section.
(i) This section may be cited as “The Prompt Pay Act of 2011.”