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

Plain English Breakdown

Checked against official source text during the last sync.

Law for Changing How the State Pays Vendors

This law changes how Delaware pays vendors who provide goods or services to the state, requiring payments through specific electronic methods instead of checks.

What This Bill Does

• Changes the way the state pays vendors by removing the option to use checks for payments.
• Requires that all vendor payments be made using ACH Payment, SUA Payment, or PCARD Payment.
• Allows exceptions to these payment rules only if approved by the Office of the State Treasurer and the Division of Accounting.
• Excludes certain types of payments from needing approval, such as single payment vouchers, one-time supplier payments, forced year-end payouts, and legal settlements.

Who It Names or Affects

• State departments, commissions, or boards that pay vendors for goods or services.
• Vendors who receive payments from the state for providing goods or services.

Terms To Know

ACH Payment

A method of transferring money electronically between bank accounts.

SUA Payment

Single Use Account payment, a type of electronic payment for specific transactions.

PCARD Payment

Payment made using the State’s Procurement Card, similar to a credit card used by state employees.

Limits and Unknowns

• The law does not specify when it will become effective.
• It is unclear how existing contracts with vendors will be affected by this change.

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.