H. B. 2793
(By Delegates Varner and Tribett)
[Introduced March 31, 1993; referred to the
Committee on Government Organization then Finance.]
A BILL to amend and reenact section seven, article five, chapter
seven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; and to amend article
thirteen, chapter eight of said code by adding thereto a new
section, designated section twenty-two-c, all relating to
the prompt pay act of 1993; requiring counties,
municipalities and their agencies to pay for purchases of
services and commodities within forty-five days; requiring
payment of interest in event of late payment; specifying
effective date of said requirements; specifying method of
calculating interest; requiring amount of interest to be
deducted from account of agency responsible for late
payment; and requiring processing of invoices and
requisitions within certain time periods.
Be it enacted by the Legislature of West Virginia:
That section seven, article five, chapter seven of the code
of West Virginia, one thousand nine hundred thirty-one, asamended, be amended, and reenacted; and that article thirteen
chapter eight of said code be amended by adding thereto a new
section, designated section twenty-two-c, all to read as follows:
CHAPTER 7. TRAINING PROGRAMS FOR COUNTY EMPLOYEES, ETC.;
COMPENSATION OF ELECTED COUNTY OFFICIALS; COUNTY ASSISTANTS,
DEPUTIES AND EMPLOYEES, THEIR NUMBER AND COMPENSATION.
ARTICLE 5. FISCAL AFFAIRS.
§7-5-7. Payment of legitimate uncontested invoices; interest on
late payments; prompt pay act of 1993.
If, when an order is presented to the sheriff, there are no
funds to pay the same, the person entitled to receive the sum of
money specified in such order may require the sheriff to endorse
thereon, or write across the face thereof, the words "presented
for payment," with the proper date, and sign the same; and the
order, if it was due at the time of presentment, shall in such
case be payable with legal interest from such date: Provided,
That any such order not paid when presented as aforesaid shall
again be presented to the sheriff for payment by the person
entitled to receive the money thereon not later than the first
day of December after such endorsement, and if not so presented,
no further interest shall be allowed or paid on such order
thereafter, unless such order shall be so presented and endorsed
as aforesaid a second time by the sheriff: Provided, however,
That in no event shall any such order issued subsequent to
January one, one thousand nine hundred thirty-three, bear
interest for a longer period than one year and six months fromthe date of its issue: And provided further, That as to all such
orders issued on or before January one, one thousand nine hundred
thirty-three, such interest-bearing period shall not exceed three
years six months from the date of the issue thereof. But if the
sheriff, having funds to pay the same, fail to pay any county
order properly endorsed, when presented to him during business
hours by a person entitled to receive the money therein
specified, if the same be then due and payable, he and his
sureties, and the personal representatives of such of them as are
dead, shall be liable to the person entitled to receive the money
due on such county order, for the whole amount due thereon at the
time of such presentation, with legal interest on such amount
from that time until payment, and ten percent on the same amount
as damages.
(a) Any properly registered and qualified vendor who
supplies services or commodities to any county, or agency
thereof, shall be entitled to prompt payment upon presentation to
that county or agency of a legitimate uncontested invoice.
(b) (1) Except as provided in subdivision (2) of this
subsection, for purchases of services or commodities made on or
after the first day of July, one thousand nine hundred ninety-
three, a check shall be issued in payment thereof within
forty-five days after a legitimate uncontested invoice is
received by the county or agency receiving the services or
commodities. Any check issued after such forty-five days shall
include interest at the current rate, as determined by the statetax commissioner under the provisions of section seventeen-a,
article ten, chapter eleven of this code, which interest shall be
calculated from the forty-sixth day after the invoice was
received by the county or agency until the date on which the
check is mailed to the vendor.
(2) For purposes of this subsection, an invoice shall be
deemed to be received by a county, or agency thereof, on the date
on which the invoice is marked as received by the county or
agency, or 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, unless the vendor can provide
sufficient evidence that the invoice was received by the county
or agency on an earlier date: Provided, That in the event an
invoice is received by a county, or agency thereof, prior to the
date on which the commodities or services covered by the invoice
are delivered and accepted or fully performed and accepted, the
invoice shall be 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.
(c) The sheriff shall deduct the amount of any interest due
for late payment of an invoice from any appropriate account of
the agency responsible for the late payment: Provided, That if
two or more agencies are responsible for the late payment the
sheriff shall deduct the amount of interest due on a pro-rata
basis.
(d) The county or agency initially receiving a legitimateuncontested invoice shall process the invoice for payment within
ten days form its receipt. Failure to comply with the
requirements of this subsection shall render the county or 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 a county agency shall not be liable for
payment of interest owed by another county agency under this
section.
(e) Any other county agency charged by law with processing
a county 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 the agency receives it.
Failure to comply with the requirements of this subsection shall
render the county 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 a county agency
shall not be liable for payment of interest owed by another
county agency under this section.
(f) For purposes of this section, the phrase "agency" means
any agency, department, board, office, bureau, commission,
authority or any other entity of county government.
(g) This section may be cited as the Prompt Pay Act of 1993.
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 13. TAXATION AND FINANCE.
§8-13-22c. Payment of legitimate uncontested invoices; interest
on late payments; prompt pay act of 1993.
(a) Any properly registered and qualified vendor who
supplies services or commodities to any municipality or agency
thereof, shall be entitled to prompt payment upon presentation to
that municipality or agency of a legitimate uncontested invoice.
(b) (1) Except as provided in subdivision (2) of this
subsection, for purchases of services or commodities made on or
after the first day of July, one thousand nine hundred ninety-
three, a check shall be issued in payment thereof within
forty-five days after a legitimate uncontested invoice is
received by the municipality or agency receiving the services or
commodities. Any check issued after the forty-five 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, which interest shall be
calculated from the forty-sixth day after the invoice was
received by the municipality or agency until the date on which
the check is mailed to the vendor.
(2) For purposes of this subsection, an invoice shall be
deemed to be received by a municipality or agency on the date on
which the invoice is marked as received by the municipality or
agency, or 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, unless the vendor can provide
sufficient evidence that the invoice was received by the
municipality or agency on an earlier date: Provided, That in the
event an invoice is received by a municipality or agency prior tothe date on which the commodities or services covered by the
invoice are delivered and accepted or fully performed and
accepted, the invoice shall be 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.
(c) The municipal treasurer shall deduct the amount of any
interest due for late payment of an invoice from any appropriate
account of the agency responsible for the late payment:
Provided,
That if two or more agencies are responsible for the
late payment the municipal treasurer shall deduct the amount of
interest due on a pro-rata basis.
(d) The municipality or agency initially receiving a
legitimate uncontested invoice shall process the invoice for
payment within ten days from its receipt. Failure to comply with
the requirements of this subsection shall render the municipality
or 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 a municipality or agency
shall not be liable for payment of interest owed by another state
agency under this section.
(e) Any other municipality or agency charged by law with
processing a municipal 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 municipality
or agency receives it. Failure to comply with the requirements
of this subsection shall render the municipal agency liable forpayment of the interest mandated by this section when there is a
failure to promptly pay a legitimate uncontested invoice:
Provided,
That a municipal agency shall not be liable for payment
of interest owed by another municipal agency under this section.
(f) For purposes of this section, the phrase "municipal
agency" means any agency, department, board, office, bureau,
commission, authority or any other entity of a municipal
corporation.
(g) This section may be cited as the Prompt Pay Act of 1993.
NOTE: The purpose of this bill is to establish the Prompt
Pay Act of 1993, requiring counties, municipalities, and agencies
thereof to pay for purchases of services and commodities within
certain time periods requiring:
(1) Payment of interest in event of late payment; specifying
effective date of said requirements;
(2) Specifying method of calculating interest;
(3) Amount of interest to be deducted from account of agency
responsible for late payment; and
(4) Processing of invoices and requisitions within certain
time periods.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
§8-13-22c is new; therefore, strike-throughs and
underscoring have been omitted.