The "Prompt Payment Act of 2025" amends the Code of West Virginia by establishing a framework for the timely payment of obligations by state agencies to grantees and vendors. Under this new legislation, grantees and vendors are entitled to prompt payment upon presenting a legitimate claim for payment to a state agency. The bill defines key terms such as "grantee," "legitimate claim for payment," "payment," and "vendor," and outlines the specific timelines for processing payments. For claims related to grants or purchases made on or after July 1, 2025, state agencies are required to issue payments within 45 days of receiving a legitimate claim.

Additionally, the bill mandates that state agencies report any violations of the prompt payment requirements to the State Auditor, who is responsible for maintaining and publicly updating a list of noncompliant agencies on their website at least monthly. The legislation also stipulates that the initial agency receiving a legitimate claim must process the payment within 10 business days, while other agencies involved in the payment process must do so within the same timeframe. Exceptions to the provisions are included for certain ineligible grantees or vendors, and the act clarifies that it does not limit a state agency's right to refuse illegitimate or disputed claims.

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