Counties: Help Nonprofits and Local Governments Avoid Service Disruptions, Financial Hardships

This week, MACo Legislative Director Kevin Kinnally testified before the Senate Budget and Taxation Committee in support of SB 542 – State Finance and Procurement – Grants – Prompt Payment Requirement. SB 542 would make necessary and timely changes to help local governments and nonprofits avoid service disruptions and financial hardships, enabling counties to better serve and react to community needs.

From the MACo testimony:

Current law requires the State to pay procurement contract invoices within 30 days of receiving a proper invoice. However, state grants are generally not subject to COMAR procurement rules. SB 542 would require the State to pay invoices to grant recipients within 30 days or be liable for interest on the delinquent payment.

Local governments regularly partner with nonprofits to deliver critical programs and services that support childcare, healthcare, workforce development, human services, environmental stewardship, and other critical services. When the State fails to pay invoices in a timely manner, nonprofits are forced to involuntarily bankroll the government services they provide. This, in turn, increases the cost of providing services, shortchanges the residents who are most in need, and effectively results in nonprofits providing the State zero-interest loans to float essential services for shared constituents.

The bill’s crossfile, HB 451, was heard on February 15 in the House Health and Government Operations Committee.

More on MACo’s Advocacy:

Follow MACo’s advocacy efforts during the 2022 legislative session on MACo’s Legislative Tracking Database.
Learn more about MACo’s 2022 Legislative Initiatives.
Read more General Assembly News on MACo’s Conduit Street blog.