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, which includes state grant disbursements and uncontested invoices for commodities or services. The act specifies that payments must be issued within 45 days of receipt of a legitimate claim, with clear definitions provided for terms such as "grantee," "vendor," and "legitimate claim for payment." Additionally, the act outlines the responsibilities of state agencies in processing these payments and mandates that any agency failing to comply must notify the State Auditor.

To ensure accountability, the act requires the State Auditor to maintain and publicly update a list of noncompliant agencies on its website at least monthly. It also allows vendors and grantees to report violations directly to the State Auditor. The legislation includes provisions for exceptions, such as cases involving debarred individuals or those ineligible for payment due to legal reasons. Overall, the Prompt Payment Act aims to enhance the efficiency and transparency of financial transactions between state agencies and their service providers.

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