Virginia Code 2.2-4352: Prompt payment of bills by localities
Every agency of local government that acquires goods or services, or conducts any other type of contractual business with a nongovernmental, privately owned enterprise, shall promptly pay for the completed delivered goods or services by the required payment date. The required payment date shall be either: (i) the date on which payment is due under the terms of the contract for the provision of the goods or services; or (ii) if a date is not established by contract, not more than forty-five days after goods or services are received or not more than forty-five days after the invoice is rendered, whichever is later.
Terms Used In Virginia Code 2.2-4352
- Business: means any type of corporation, partnership, limited liability company, association, or sole proprietorship operated for profit. See Virginia Code 2.2-4301
- Contract: A legal written agreement that becomes binding when signed.
- Goods: means all material, equipment, supplies, printing, and automated data processing hardware and software. See Virginia Code 2.2-4301
- Month: means a calendar month and "year" means a calendar year. See Virginia Code 1-223
- Payment date: means either (i) the date on which payment is due under the terms of a contract for provision of goods or services or (ii) if such date has not been established by contract, (a) 30 days after receipt of a proper invoice by the state agency or its agent or 45 days after receipt by the local government or its agent responsible under the contract for approval of such invoices for the amount of payment due or (b) 30 days after receipt of the goods or services by the state agency or 45 days after receipt by the local government, whichever is later. See Virginia Code 2.2-4347
- Services: means any work performed by an independent contractor wherein the service rendered does not consist primarily of acquisition of equipment or materials, or the rental of equipment, materials and supplies. See Virginia Code 2.2-4301
Separate payment dates may be specified for contracts under which goods or services are provided in a series of partial executions or deliveries to the extent that the contract provides for separate payment for partial execution or delivery.
Within twenty days after the receipt of the invoice or goods or services, the agency shall notify the supplier of any defect or impropriety that would prevent payment by the payment date.
Unless otherwise provided under the terms of the contract for the provision of goods or services, every agency that fails to pay by the payment date shall pay any finance charges assessed by the supplier that shall not exceed one percent per month.
The provisions of this section shall not apply to the late payment provisions in any public utility tariffs or public utility negotiated contracts.
1985, c. 454, § 11-62.10; 2001, c. 844.