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HB 2152

Prompt Payment Act of 2025

2025 Regular Session Introduced by Adam Burkhammer and 2 co-sponsors

The Prompt Payment Act ensures West Virginia vendors and grantees receive payments within 45 days, boosting cash flow and accountability in state financial operations.

Chapter 137, Acts, Regular Session, 2025
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Bill Summary · HB 2152

Summary of HB 2152: Prompt Payment Act of 2025

Bill Number: HB 2152
Title: Prompt Payment Act of 2025
Status: Chapter 137, Acts, Regular Session, 2025
Introduced: January 29, 2025
Classification: Bill
Subject: Finance and Administration

Purpose and Intent

The Prompt Payment Act of 2025 aims to ensure timely payments to vendors and grantees by state agencies in West Virginia. The legislation establishes clear guidelines for the processing of payments related to state grants and services, thereby enhancing financial accountability and efficiency within state government operations.

Key Provisions

The bill introduces several important provisions:

  1. Entitlement to Prompt Payment:

    • Grantees and vendors are entitled to prompt payment upon presenting a legitimate claim for payment to a state agency.

  2. Definition of Legitimate Claims:

    • A legitimate claim includes:
      • Notifications of entitlement to state grant disbursements.
      • Uncontested invoices for commodities or services provided to state agencies.

  3. Payment Timeline:

    • Payments must be issued within 45 days of receipt of a legitimate claim.
    • The date of receipt is determined by:
      • The date marked as received by the agency.
      • The postmark date.
      • The date logged in an electronic system.

  4. Interest on Late Payments:

    • If payments are not made within the stipulated 45 days, interest at a rate of 3%, compounded weekly, will be applied from the 46th day until payment is made.

  5. Reporting Violations:

    • State agencies must notify the State Auditor if they fail to comply with payment timelines.
    • Vendors and grantees can also report violations, and the State Auditor is required to publish a list of noncompliant agencies on its website, updated monthly.

  6. Processing Requirements:

    • Agencies must process legitimate claims within 10 business days of receipt.
    • Other agencies involved in processing payments must also adhere to the same timeline.

  7. Exceptions:

    • The provisions do not apply to vendors or grantees who are debarred or otherwise ineligible for payment.

Impact

The Prompt Payment Act of 2025 is expected to:
- Improve cash flow for vendors and grantees by ensuring timely payments.
- Foster better relationships between state agencies and service providers.
- Increase accountability within state agencies regarding financial management.
- Provide a clear framework for addressing payment delays and disputes.

Procedural Aspects

  • The bill was introduced on January 29, 2025, and underwent several legislative actions before being approved by the Governor on April 25, 2025.
  • The effective date for the provisions of this act is set for July 1, 2025.

This legislation represents a significant step towards enhancing the efficiency of financial transactions within state government, ultimately benefiting both service providers and the state itself.

Compiled from official sources — confirm details with the bill’s official record.

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