Monday, May 23, 2011

Fallin To Sign Vendor Pay System Law

Governor Fallin’s proposal to modernize the state’s vendor payment system will be signed into law on Tuesday, her office said today.

House Bill 1086 proposes to utilize electronic payments methods such as direct deposit to pay the state's thousands of vendor invoices. The bill is sponsored by state Reps. Jason Murphey, R-Guthrie, Josh Cockroft, R-McLoud, and state Sen. Clark Jolley, R-Edmond.

Fallin initially called on legislators to approve the reform during her State of the State address. Fallin proposed the change after the Office of State Finance indicated that the state could be spending up to $13.50 per vendor payment for each payment made using traditional paper conveyances such as payment warrants. This compares to electronic payments which cost the state approximately five cents per transfer.

Currently, approximately 230,000 checks are made with traditional paper payment conveyances. House Bill 1086 will require nearly all vendor payments to be made by electronic payment and could result in million dollars of taxpayer dollars being saved.

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