COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 700
(By Senators Love, Dempsey, Sharpe and Minear)
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[Originating in the Committee on Finance;
reported March 3, 2004.]
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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
requiring all spending units make timely payments on invoices
for telecommunications services; specifying when an invoice is
determined to be received; requiring spending units to budget
the costs of their telecommunications services; establishing
a special revenue fund under the custody of the state
treasurer for the purpose of making payments for
telecommunications services and providing for payments in and
out of the special fund; empowering the information services
and communications division to discontinue telecommunications
services to any spending unit or units which fail to comply
with the requirements of this section; creating a dispute
resolution procedure; empowering the secretary of
administration to resolve disputes; authorizing legislative
rules for the imposition of reasonable handling fees by the
information services and communications division to spending units in order to recover the information services and
communications division's cost of administration under this
section; prohibiting the encumbrance of expenditure of funds
for the salary of the head of spending units until the
secretary of administration determines that payments or
transfers are being made on a timely basis; and authorizing
further legislative rules in order to effectuate the purpose
of achieving timely and efficient payment for
telecommunications services.
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 DIVISION.
§5A-7-4a. Payment of legitimate uncontested invoices for
telecommunications services; procedures and powers of
the information and communications division and
secretary of administration.
(a) Notwithstanding any other provision of this code to the
contrary, any properly registered and qualified vendor who supplies
telecommunications services to any spending unit is entitled to
prompt payment upon presentation of a legitimate uncontested
invoice for telecommunications services to the information services
and communications division. The information services and
communications division shall pay the legitimate uncontested
invoice on behalf of the spending unit. The information services and communications division shall forward each spending unit a
statement of the spending unit's proportionate share of the
invoice, as determined by the information services and
communications division, within thirty days of receipt of an
invoice from a qualified vendor to the information services and
communications division for telecommunications services.
(b) The state treasurer shall issue a state check for payment
within ninety days after a legitimate uncontested invoice for
telecommunications services is received by the information services
and communications division.
(c) Notwithstanding any other provision of this code to the
contrary, for purposes of this section, an invoice is considered
received by the information services and communications division on
the date on which the invoice is marked as received by the
information services and communications division, or three business
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 information services and communications division
prior to the date on which the telecommunications 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 telecommunications services covered by the invoice were
actually delivered and accepted or fully performed and accepted.
(d) All spending units shall budget their costs of
telecommunications service. All spending units shall transfer funds to a special revenue fund in the state treasury, of which the
state treasurer is the custodian, in amounts sufficient to cover
those costs as determined by the information services and
communications division. The treasurer shall administer the fund
as the information services and communications division may direct,
from time to time, in accordance with the provisions of this
section. The treasurer shall pay all warrants issued by the state
auditor against the fund as the information services and
communications division may direct, from time to time, in
accordance with the provisions of this section. Interest on the
moneys in special revenue fund established by this section is to
accrue and remain in that fund.
(e) The information services and communications division may
direct the discontinuance of telecommunications services to any
spending unit that fails to comply with the provisions of this
section and the vendor supplying telecommunication services shall
comply with the written direction of the information services and
communications division on discontinuance of services.
(f) If a spending unit contests any portion of its
proportionate share of an invoice, it shall notify the information
services and communications division in writing within thirty days
after receipt by the spending unit of the statement of its share of
the invoice. If any portion of a bill for telecommunications
services is contested, including any dispute by a spending unit,
the information services and communications division shall pay the
uncontested portion of the bill within sixty days in accordance with the provisions of this section and at the same time shall
bring the contested matter to the attention of the vendor. The
information services and communications division and the vendor
shall attempt to resolve the matter in good faith within the then
current fiscal year. Prior to the end of the then current fiscal
year, the secretary of administrative shall make the final decision
as to the legitimacy of the portion of the contested invoice and
decide if payment is warranted. The vendor may proceed with any
contested matter that remains unresolved after the end of the then
current fiscal year in accordance with the provisions of article
two, chapter fourteen of this code. The information services and
communications division may propose legislative rules governing
dispute resolution under this section in accordance with article
three, chapter twenty-nine-a of this code. The first rules
proposed for this purpose may be emergency rules.
(g) The information services and communications division may
propose legislative rules, in accordance with article three,
chapter twenty-nine-a of this code, for the imposition of
reasonable handling fees by the information services and
communications division to spending units in order to recover the
information services and communications division's cost of
administration under this section. Those rules shall allow the
information services and communications division to add its fees to
the statements for telecommunications services that it provides to
spending units under this section. The first rules proposed for
this purpose may be emergency rules.
(h) Within fifteen days after the end of each month of the
fiscal year, the head of every spending unit shall certify to the
secretary of administration the status of obligations and payments
of the spending unit for telecommunications services, including the
fees of the information services and communications division. The
spending officer shall, within thirty days, transmit a copy of the
expenditure schedule to the secretary of administration and the
joint committee on government and finance or its designee. If a
spending officer of a spending unit fails to transmit that copy to
the secretary of administration on or before the beginning of the
fiscal year, the secretary of administration shall notify the state
auditor and treasurer of the failure. Thereafter, no funds
appropriated to the spending unit may be encumbered or expended
until the spending officer of the spending unit has transmitted the
copy of the expenditure schedule to the secretary of
administration. In the event the secretary of administration
determines from certified reports or from other sources that any
spending unit is not making all payments and transfers for
telecommunications services from funds appropriated for that
purpose, the secretary of administration shall notify the state
auditor and treasurer of that determination. Thereafter, no funds
appropriated to the spending unit may be encumbered or expended for
the salary or compensation to the head of the spending unit until
the secretary of administration determines that the payments or
transfers are being made on a timely basis.
(i) Prior to purchasing new telecommunications services, all spending units shall certify that they are not in arrears in their
payments for telecommunications services under this section,
including the fees of the information services and communications
division. No spending unit in arrears may procure additional
telecommunications services without the written authorization of
the secretary of administration.
(j) In addition to the legislative rules explicitly authorized
elsewhere in this section, the information services and
communications division may propose legislative rules, in
accordance with article three, chapter twenty-nine-a of this code,
in order to effectuate the purpose of this section to achieve
timely and efficient payment for telecommunications services. The
first rules proposed for this purpose may be emergency rules.
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