Counties: Shortening Procurement Payment Timeline Is Counter-Productive

MACo Policy Associate Alex Butler and Justin Fiore from the Maryland Municipal League testified before House (3/3/20) and Senate (2/27/20) Committees to oppose SB 933 (CF HB 747) – State and Local Procurement – Payment Practices. This bill mandates a series of timing and procedural requirements onto both state and local procurement units by reducing to 15 days the time allowed to issue payments – many of which are poor fits for local government practices.

From the MACo Testimony:

As the bill’s fiscal note indicates, local government expenditures are likely to increase significantly to adapt to the new mandate. Counties have necessary controls in place to ensure verification is complete and the correct payment is remitted to vendors. Often, invoices are reviewed by several different departments within the county. Counties may not be able to achieve invoice payment under the reduced timeframe, and many would have to add significant resources to their procurement divisions in the form of new employees to issue all payments within 15 days.

Follow MACo’s advocacy efforts during the 2020 legislative session on MACo’s Legislative Tracking Database.