West Virginia Code § 5A-3-10a

Prohibition for awarding contracts to vendors which owe a debt to the
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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 §23-2C-1 et seq. of this code, penalty or other assessment or surcharge presently
delinquent or due and required to be paid to the state or any of iuts 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 outstsanding balance or liability to the old fund or to
the uninsured employers' fund or being in policy default, as defined in §23-2C-2 of this code,
failure to maintain mandatory workers' coimpensation coverage, or failure to fully meet its
obligations as a workers' compensatgion 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 $1,000 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 11 of this code, amount owed to the Workers'
Compensation Funds as defined in §23-2C-1 et seq. 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 perovisions of such
plan or agreement.
(d) By submitting a bid or contract proposal or entering into a contract with the state or any
of its political subdivisions, the vendor or prospective vendor is dueemed to be affirming that
the vendor or 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 amotunt in excess of $1,000 or, if a
debt is owed, that the provisions of subsection (c) of this section apply. This affirmation,
combined with verification of State tax compliance, will satisfy the public contracting
entities verification requirements contained in §5-22-1(j) of this code.

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