Senate Bill No. 109

(By Senators Love, Rowe and McCabe)

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[Introduced January 14, 2004; referred to the Committee on Government Organization; and then to the Committee on Finance.]

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A BILL to amend the code of West Virginia, 1931, as amended, by adding thereto a new section, designated §5A-7-4a , relating to state agencies making timely payments on invoices for telephone services; requiring that late checks include interest; specifying when an invoice is determined to be received; and specifying which agency is responsible for the payment of interest.

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 §5A-7-4a
, to read as follows:
ARTICLE 7. INFORMATION SERVICES AND COMMUNICATIONS DIVISIONS.

§5A-7-4a. Payment of legitimate uncontested invoices for telephone services; interest on late payments.

(a) Any properly registered and qualified vendor who supplies telephone services to any state agency is entitled to prompt payment upon presentation of a legitimate uncontested invoice for telephone services to the division. It is the responsibility
of the division to pay the legitimate uncontested invoice.
(b) A state check shall be issued for payment within sixty days after a legitimate uncontested invoice for telephone services is received by the division. Any state check 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. The interest shall be calculated from the sixty-first day after the invoice was received by the division until the date on which the state check is mailed to the vendor.
(c) For purposes of this section, an invoice is considered received by the division on the date on which the invoice is marked as received by the division, 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: Provided, That if an invoice is received by the division prior to the date on which the telephone services covered by the invoice are delivered and accepted or fully performed and accepted, the invoice is considered received on the date on which the telephone 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 a legitimate uncontested invoice for telephone services from the division's account.
(e) The division shall seek reimbursement for a legitimate uncontested invoice payment or interest payment, or both reimbursement and interest payment, from the state agency receiving the telephone services.
(f) If a state agency makes a timely payment to the division for a legitimate uncontested invoice for telephone services and the division fails to make a timely payment to the vendor supplying the telephone services, then the division is responsible for the payment and the interest payment.
(g) If a late payment and interest payment are a result of a state agency not making a timely payment to the division for a legitimate uncontested invoice for telephone services and the agency still has not reimbursed the division within ninety days of the division paying the vendor supplying the telephone services, then the division may authorize the discontinuance of the telephone services to the state agency.


NOTE: The purpose of this bill is to require state agencies to make timely payments on invoices for telephone services. It requires payment of interest on late payments; specifies when an invoice is determined to be received; and which agency is responsible for the payment of interest.


§5A-7-4a
is new; therefore, strike-throughs and underscoring have been omitted.