Summary as Introduced
Amends the Court of Claims Act. Creates an administrative process for uncontested claims for vendors arising from contracts with the State. Requires a State agency to confirm or reject an uncontested claim that is from a lapsed appropriation and valued at less than $2,500 within 30 days after being notified in writing by the Attorney General. Provides that if the State agency does not confirm or reject the claim within that 30-day period, then the State agency forfeits the right to reject or contest the claim. Requires the Comptroller, subject to appropriation, then issue payment to the vendor within 30 days of the court entering such an award. Provides that if the court determines that it is unable to process such an uncontested claim because the bill or invoice contains a defect, the court must notify the vendor in writing of the defect no later than 30 days after the bill or invoice was first submitted. Provides that if one or more items on a bill or invoice are disapproved, but not the entire bill or invoice, then the portion that is not disapproved must be transmitted to the Comptroller for payment. Changes the filing fees required under the Act as follows: a fee of $15 for a petition seeking more than $500 but less than $10,000; and $35 for a petition seeking more than $10,000 or more. Requires that the court must allow claimants to submit documentation to amend and cure defects. Makes other changes. Authorizes the Court of Claims to adopt rules to implement the Act.
Staff Analysis
Bill as Introduced (No Position)
Amends the Court of Claims Act. Creates an administrative process for uncontested claims for vendors arising from contracts with the State. Requires a State agency to confirm or reject an uncontested claim that is from a lapsed appropriation and valued at less than $2,500 within 30 days after being notified in writing by the Attorney General. Provides that if the State agency does not confirm or reject the claim within that 30-day period, then the State agency forfeits the right to reject or contest the claim. Requires the Comptroller, subject to appropriation, then issue payment to the vendor within 30 days of the court entering such an award. Provides that if the court determines that it is unable to process such an uncontested claim because the bill or invoice contains a defect, the court must notify the vendor in writing of the defect no later than 30 days after the bill or invoice was first submitted. Provides that if one or more items on a bill or invoice are disapproved, but not the entire bill or invoice, then the portion that is not disapproved must be transmitted to the Comptroller for payment. Changes the filing fees required under the Act as follows: a fee of $15 for a petition seeking more than $500 but less than $10,000; and $35 for a petition seeking more than $10,000 or more. Requires that the court must allow claimants to submit documentation to amend and cure defects. Makes other changes. Authorizes the Court of Claims to adopt rules to implement the Act.
Senate Committee Amendment 1 (Support)
The amendment would make several significant changes to how State agencies process vendor invoices, grant payments and claims tied to lapsed appropriations. The proposal establishes firm timelines for State agencies to review, confirm, reject or identify defects in claims filed under the Court of Claims Act, including a 60-day deadline for smaller claims under $2,500 and additional review requirements for larger claims. The amendment also shifts greater administrative responsibility to State agencies and the Attorney General’s Office by requiring agencies to identify billing defects directly and allowing vendors to submit corrected documentation through the Attorney General rather than the court system. In addition, the legislation amends the State Prompt Payment Act by requiring State agencies to review invoices within 30 calendar days and confirm receipt of bills within 15 business days, creating more clearly defined payment-processing standards for State contracts.
From a county government perspective, the legislation could improve predictability and accountability in State payment and grant administration. Counties and county-related entities that provide services under State contracts or receive State grant funding could benefit from more structured timelines for invoice review, grant agreement issuance and payment determinations. The changes to the Grant Accountability and Transparency Act are particularly noteworthy because State grant agreements would now be required to specify whether payments will be made through advance payments, reimbursements or working capital advances, while also requiring agencies to explain why advance payments are not being used when another payment structure is selected. For counties that rely on State reimbursements for public health, transportation, public safety or human services programs, the additional clarity and timelines could help improve budgeting, cash-flow planning and administrative coordination with State agencies.