AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO PAYMENTS TO GOVERNMENT VENDORS.

Plain English Breakdown

The official source states the bill aims to enhance efficiency and security but does not provide data on how much it will improve these areas.

New Rules for How Delaware Pays Government Vendors

This law requires the State of Delaware to pay most vendors using electronic methods instead of checks.

What This Bill Does

• Eliminates the use of checks and drafts for paying state vendors who provide goods or services.
• Requires payments to be made only through ACH direct deposit, Single Use Accounts (SUA), or Procurement Cards (PCARD).
• Allows exceptions only if both the Office of the State Treasurer and the Division of Accounting approve them.
• Excludes specific payment types from this rule, such as single vouchers, one-time suppliers, year-end forced payouts, and legal settlements.

Who It Names or Affects

• Vendors who sell goods or services to Delaware state departments, commissions, or boards.
• The Office of the State Treasurer and the Division of Accounting, which manage these payments and approve exceptions.
• State agencies that issue vouchers for payment.

Terms To Know

ACH Payment

A direct deposit electronic transfer between bank accounts.

SUA Payment

A Single Use Account payment used for a specific transaction.

PCARD Payment

Payment made using the State's official Procurement Card.

Limits and Unknowns

• The law does not specify an exact effective date in the provided text, though it was signed on July 14, 2025.
• The specific reasons that qualify for exceptions are not listed in this summary.

Official Summary Text

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO PAYMENTS TO GOVERNMENT VENDORS.
This Act amends Title 29 of the Delaware Code to eliminate the use of checks for vendor payments for goods or services provided to state departments, commissions, or boards. It mandates payments be made exclusively via ACH Payment, SUA Payment, or PCARD Payment. Exceptions to this requirement can only be approved by the Office of the State Treasurer and the Division of Accounting. Certain types of payments, such as single payment vouchers, one-time supplier payments, forced year-end payouts, and legal settlements, are excluded from this mandate. This Act aims to enhance payment efficiency and security while streamlining state financial operations.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Ortega & Sen. Paradee

Rep. Bolden

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 208

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO PAYMENTS TO GOVERNMENT VENDORS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 2707, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 2707. Payment of vouchers upon approval; method of payment.

(a)

All vouchers for the payment of money issued by any department, commission or board of the State, including those requiring the approval of the Governor, shall be paid by the State Treasurer upon the certification by the proper officers of the department, commission or board and the approval thereof by the Secretary of Finance. Methods of payments may include checks, drafts and electronic funds transfers.

(b) Notwithstanding subsection (a) of this section, the Office of the State Treasurer shall make payments to vendors for goods or services provided to any department, commission, or board of the State via direct deposit (ACH Payment), Single Use Account (SUA Payment), or the State’s Procurement Card (PCARD Payment) only, unless an exception is approved by the Office of the State Treasurer and the Division of Accounting. This section does not apply to single payment vouchers, one-time suppliers, forced payouts conducted at year end by the Division of Accounting, or legal settlements.

SYNOPSIS

This Act amends Title 29 of the Delaware Code to eliminate the use of checks for vendor payments for goods or services provided to state departments, commissions, or boards. It mandates payments be made exclusively via ACH Payment, SUA Payment, or PCARD Payment. Exceptions to this requirement can only be approved by the Office of the State Treasurer and the Division of Accounting. Certain types of payments, such as single payment vouchers, one-time supplier payments, forced year-end payouts, and legal settlements, are excluded from this mandate. This Act aims to enhance payment efficiency and security while streamlining state financial operations.