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Committee approves form to vet third-party vendors managing federal funds
Summary
House Bill 2590 requires OMES to create a vendor-information form state agencies must use when contracting with third parties to manage federal funds; the committee advanced the bill unanimously and sponsors cited growing federal funds under state management.
House Bill 2590 passed the Retirement and Government Affairs Committee after the sponsor told members the measure would require the Office of Management and Enterprise Services (OMES) to create a standardized form for agencies to collect specific information on prospective third-party vendors who will manage federal funds.
Senator Guthrie, the bill sponsor, said the required form must ask for the vendor’s legal name, state of incorporation, principal officers, description of prior experience managing federal funds, copies of financial audits and any pending litigation naming the vendor as a defendant. He said the change responds to the growth of federal funds managed by state agencies—citing $14,000,000,000 managed in 2024 and $11,000,000,000 in 2021—and that the form information must be provided to the governor, legislative leaders and appropriations committee chairs and vice chairs.
Committee members asked why the form was necessary and whether similar contract information is already available in state procurement records; the sponsor said the specific questions are not currently required and the form centralizes that information for oversight purposes.
The committee recorded a do-pass motion with a second; the chair announced the result as 8 ayes, 0 nays. The committee recessed for a joint session after completing this and other items.
