Honorable Burt R. Solomons, Chair, House Committee on State Affairs
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB2670 by Thibaut (Relating to governmental liability for interest resulting from a claim for payment for goods or services.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend statute and make a governmental entity not liable for interest on a late payment if the governmental entity is involved in a bona fide dispute with a vendor, contractor, subcontractor, or supplier concerning the goods delivered or the service performed. The provisions of the bill could reduce spending by state and local governments for interest on overdue payments to vendors; however, the fiscal impact is not expected to be significant.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.