COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 211
(By Senators Manchin, Helmick, Kimble and Walker)
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[Originating in the Committee on Government Organization;
reported February 23, 1995.]
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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 1995"; requiring counties,
municipalities and their agencies to pay for purchases of
services and commodities within sixty days; exception;
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, as
amended, 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. COUNTY COMMISSIONS AND OFFICERS.
ARTICLE 5. FISCAL AFFAIRS.
§7-5-7. Payment of legitimate uncontested invoices; interest
on late payments;
"Prompt Pay Act of 1995".
(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-five, a check shall be issued in payment thereof within sixty days after a legitimate uncontested invoice is received
by the county or agency receiving the services or commodities.
Any check issued after such 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, which interest shall
be calculated from the sixty-first day after the invoice was
received by the county or agency until the date on which the
check is mailed to the vendor:
Provided, That this section
shall not apply if payment cannot be made within the sixty-day
period because of unforeseen budgetary restraints.
(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 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 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 term "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
1995".
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 1995".
(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-five, a check shall be issued in payment thereof within
sixty days after a legitimate uncontested invoice is received
by the municipality or agency receiving the services or
commodities. Any check issued after the 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, which
interest shall be calculated from the sixty-first day after the
invoice was received by the municipality or agency until the
date on which the check is mailed to the vendor:
Provided,
That this section shall not apply if payment cannot be made
within the sixty day period because of unforeseen budgetary
restraints.
(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 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 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 for payment 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
1995".