§5A-3-10a. Prohibition for awarding contracts to vendors which owe a debt to the state or its political subdivisions


Published: 2015

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WEST VIRGINIA CODE











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WVC 5 A- 3 - 10 A

§5A-3-10a. Prohibition for awarding contracts to vendors which owe

a debt to the state or its political subdivisions.

(a) Unless the context clearly requires a different meaning,

for the purposes of this section, the terms:

(1) "Debt" means any assessment, premium, penalty, fine, tax

or other amount of money owed to the state or any of its political

subdivisions because of a judgment, fine, permit violation, license

assessment, amounts owed to the Workers' Compensation Funds as

defined in article two-c, chapter twenty-three of this code,

penalty or other assessment or surcharge presently delinquent or

due and required to be paid to the state or any of its political

subdivisions, including any interest or additional penalties

accrued thereon.

(2) "Debtor" means any individual, corporation, partnership,

association, limited liability company or any other form or

business association owing a debt to the state or any of its

political subdivisions, and includes any person or entity that is

in employer default.

(3) "Employer default" means having an outstanding balance or

liability to the old fund or to the uninsured employers' fund or

being in policy default, as defined in section two, article two-c,

chapter twenty-three, of this code, failure to maintain mandatory

workers' compensation coverage, or failure to fully meet its

obligations as a workers' compensation self-insured employer. An

employer is not in employer default if it has entered into a repayment agreement with the Insurance Commissioner and remains in

compliance with the obligations under the repayment agreement.

(4) "Political subdivision" means any county commission;

municipality; county board of education; any instrumentality

established by a county or municipality; any separate corporation

or instrumentality established by one or more counties or

municipalities, as permitted by law; or any public body charged by

law with the performance of a government function and whose

jurisdiction is coextensive with one or more counties or

municipalities.

(5) "Related party" means a party, whether an individual,

corporation, partnership, association, limited liability company or

any other form or business association or other entity whatsoever,

related to any vendor by blood, marriage, ownership or contract

through which the party has a relationship of ownership or other

interest with the vendor so that the party will actually or by

effect receive or control a portion of the benefit, profit or other

consideration from performance of a vendor contract with the party

receiving an amount that meets or exceeds five percent of the total

contract amount.

(b) No contract or renewal of any contract may be awarded by

the state or any of its political subdivisions to any vendor or

prospective vendor when the vendor or prospective vendor or a

related party to the vendor or prospective vendor is a debtor and:

(1) The debt owed is an amount greater than one thousand dollars in the aggregate; or

(2) The debtor is in employer default.

(c) The prohibition of this section does not apply where a

vendor has contested any tax administered pursuant to chapter

eleven of this code, amount owed to the Workers' Compensation Funds

as defined in article two-c, chapter twenty-three of this code,

permit fee or environmental fee or assessment and the matter has

not become final or where the vendor has entered into a payment

plan or agreement and the vendor is not in default of any of the

provisions of such plan or agreement.

(d) All bids, contract proposals or contracts with the state

or any of its political subdivisions submitted or approved under

the provisions of this code shall include an affidavit that the

vendor, prospective vendor or a related party to the vendor or

prospective vendor is not in employer default and does not owe any

debt in an amount in excess of one thousand dollars or, if a debt

is owed, that the provisions of subsection (c) of this section

apply.





Note: WV Code updated with legislation passed through the 2015 Regular Session

The WV Code Online is an unofficial copy of the annotated WV Code, provided as a convenience. It has NOT been edited for publication, and is not in any way official or authoritative.