CHAPTER 622

HOUSE JOINT RESOLUTION NO. 7

PROVIDING FOR PRIORITY PAYMENT OF BILLS FROM VENDORS TO STATE AGENCIES OR TO SCHOOL BONDS WHICH OFFER CASH DISCOUNTS FOR EARLY PAYMENT.

WHEREAS, the State of Delaware can save substantial sums of money by following good business procedure; and

WHEREAS, the Office of Budget, the Department of Finance, and the State Treasurer have not taken the initiative to institute procedures for taking advantage of cash discounts available to the State of Delaware.

NOW, THEREFORE,

BE IT RESOLVED by the House of Representatives of the 127th General Assembly, the Senate concurring therein, that all State agencies and school districts establish such procedures as may be necessary to identify, segregate, mark or otherwise flag all vendors invoices which offer a cash discount for payment within a specified period of time.

BE IT FURTHER RESOLVED that all State agencies and school districts process all such invoices as soon as possible so as to allow sufficient time for reasonable processing by Central Accounting and the State Treasurer to pay within the term allowed.

BE IT FURTHER RESOLVED that all State agencies and school districts take any discount offered.

BE IT FURTHER RESOLVED that if a vendor claims a balance due as the result of payment not being made within the terms offered, then the State agency or the school district shall prepare a supplementary State invoice explaining in detail the circumstances and authorizing the payment of the discount taken but not earned.

BE IT FURTHER RESOLVED that the State Budget Director in cooperation with the State Treasurer and Secretary of Finance promulgate procedures for the prompt handling of discounted payments and instruct all agencies and school districts as to the method of identifying such invoices.

Approved May 24, 1973.