The "Prompt Payment Act of 2025" amends the Code of West Virginia to ensure that state agencies promptly pay grantees and vendors for legitimate claims. The bill establishes definitions for key terms such as "grantee," "vendor," and "legitimate claim for payment," and outlines the conditions under which payments must be made. Specifically, it mandates that payments for grants awarded or services rendered after July 1, 2025, must be issued within 45 days of receipt of a legitimate claim. The bill also stipulates that state agencies must report any violations of this prompt payment requirement to the State Auditor, who is tasked with maintaining and publicly updating a list of noncompliant agencies.

Additionally, the legislation requires that the initial state agency receiving a legitimate claim for payment must process the payment within 10 business days. Other agencies involved in processing payments are also given a 10-day window to either process or reject claims. The bill includes provisions that exempt certain individuals and entities from its requirements, such as those who are debarred or ineligible for payment due to legal reasons. Overall, the act aims to enhance accountability and efficiency in the payment processes of state agencies.

Statutes affected:
Introduced Version: 12-10-1, 12-10-2
Committee Substitute: 12-10-1, 12-10-2, 12-10-3
Engrossed Committee Substitute: 12-10-1, 12-10-2, 12-10-3
Enrolled Committee Substitute: 12-10-1, 12-10-2, 12-10-3