1 Colo. Code Regs. § 101-1-2-3
Current through Register Vol. 48, No. 1, January 10, 2025
Rule 1 CCR 101-1-2-3 - PAYMENT TERMS1.AUTHORITY§24-30-202 (1), C.R.S. (State Controller Authority to Determine Payment Processes)
§24-30-202.4 (3.5) C.R.S. (Vendor Offset)
2.DEFINITIONS2.1. Common Policy Payment - A payment made by a State Agency to another State Agency with an internal service fund, such as the Governor's Office of Information Technology, the Department of Personnel & Administration, or the Department of Law, for services provided by those State Agencies to multiple other State Agencies. The General Assembly provides spending authority to both the State Agency purchasing the services and the State Agency providing the services.2.2. Delinquent Payable - A Payable is delinquent if a disbursement is not made within forty-five days after a liability arises, unless the time of payment has been otherwise provided in the Commitment Voucher. A Payable being disputed by a contractor or State Agency or Institution of Higher Education shall become delinquent if a disbursement is not made within forty-five days after resolution of the dispute.2.3. Payable - A Payable is a liability incurred by the State. A liability shall arise upon receipt of supplies and services and a correct notice of the amount due. A liability shall not arise if a good faith dispute exists as to the State Agency's or Institution of Higher Education's obligation to pay all or a portion of the liability.2.4. Payment Terms - Contractual obligations between a State Agency or Institution of Higher Education and a contractor regarding timing, amount, and preconditions of payment, as evidenced in a Commitment Voucher or on an invoice.3.RULE3.1. Payment on Time 3.1.1. Payments shall be processed in a timely manner and made within the allowable discount period to ensure the State Agency or Institution of Higher Education takes advantage of purchase discounts, if economically beneficial to the State. All payment processing timelines shall begin upon the acceptance of a correct invoice by the State Agency or the Institution of Higher Education and the delivery of goods or completion of the services provided unless specifically stated otherwise in a Commitment Voucher.3.2. Interest Payment on Delinquent Payables 3.2.1. State Agencies and Institutions of Higher Education shall process invoices and other notices of liability as efficiently as possible in order to ensure payment in accordance with contractual or invoice terms, and in the absence of such terms, as soon as possible, or in accordance with statutory provisions. A Delinquent Payable shall be assessed interest at the 1% per month or such other amount as may be required by § 24-30-202(24), C.R.S. State Agencies and Institutions of Higher Education may pay other amounts as required by contract. All Commitment Vouchers shall provide for a reasonable time of payment considering the nature of the goods or services provided and review and approval required for payment. If no time for payment has been provided for in writing, interest on the unpaid balance shall be calculated beginning with the forty-fifth day after the liability for such payment arises under this Fiscal Rule. The liability arises when a State Agency or Institution of Higher Education has received and accepted a correct notice of the amount due.3.3. Interagency Purchases and Payments 3.3.1. A State Agency or Institution of Higher Education shall make payment for purchases of goods and services from another State Agency or Institution of Higher Education within 30 days after receipt of a valid invoice. Where possible and practical payments shall be made by an interagency document in lieu of a state warrant.3.4. Disputes Arising from Interagency Agreements See Fiscal Rule 3-5 Interagency Agreements, §7.
3.5. Vendor Intercepts 3.5.1. State Agencies and Institutions of Higher Education may direct the State Controller to withhold an amount, not to exceed the unpaid balance or debts owed to the State by a contractor prior to disbursement of payment in accordance with § 24-30-202.4 (3.5)(a)(I), C.R.S.3.5.2. For State Agencies that utilize the State Financial System, the State Financial System automatically withholds the unpaid balance of debts owed to the State, as identified by an intercepting State Agency prior to disbursement to a vendor as outlined in the statute. Payment is then transmitted to the intercepting State Agency. State Agencies and Institutions of Higher Education that do not use the State Financial System shall be responsible for ensuring compliance with § 24-30-202.4 (3.5)(a)(I), C.R.S. by creating their own internal withholding procedures.3.6. Unpaid Warrants and Payables3.6.1. A State Agency or Institution of Higher Education that has an unpaid warrant or check shall perform due diligence to identify if the payable is valid. If valid, the State Agency or Institution of Higher Education shall reissue payment to a contractor or vendor. A check or warrant that is presumed abandoned under § 38-13-201, C.R.S., shall be transferred to the unclaimed property trust fund as described in § 38-13-603, C.R.S.3.6.2. For State Agencies that utilize the State Financial System, transfer of unpaid warrants or checks to the unclaimed property trust fund and completion of reporting requirements is coordinated by the Office of the State Controller after State Agencies complete their due diligence. State Agencies and Institutions of Higher Education that do not use the State Financial System shall be responsible for ensuring compliance with the statute by creating their own internal procedures.41 CR 19, October 10, 2018, effective 11/1/201845 CR 11, June 10, 2022, effective 7/1/202246 CR 11, June 10, 2023, effective 7/1/202347 CR 08, April 25, 2024, effective 7/1/2024