Fiscal Rule Advance Payment Charitable Food Grants
HB23-1087
LAST ACTION: Governor Signed 03/31/2023
Concerning a requirement that the state controller promulgate fiscal rules governing advance payment for the purchase of state agricultural products by a charitable food organization using state grant money.
SESSION: 2023 Regular Session
SUBJECT: Fiscal Policy & Taxes
BILL SUMMARY
The state's fiscal rules (rules) generally prohibit payment prior to the receipt and acceptance of goods or the completion and acceptance of services (advance payment). However, the rules contain exceptions allowing advance payment for certain goods and services including but not limited to advertising services and related goods, construction permits, catering for events at both state and non-state facilities, formula-based federal grants for which the state acts as a fiscal agent managing the pass-through of the money, information technology service agreements, and purchases made with state commercial cards.
The bill creates an additional exception to the prohibition on advance payment by directing the controller to promulgate rules providing for advance payment for the purchase of state agricultural products by a charitable food organization using state grant money.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)