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Budget would lower MPA fee cap, expand fee to all state contracts and move risk management to controller

2322264 · February 6, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The governor's budget would cut the cap on procurement assessments from 1% to 0.33% and expand the fee across all state contracts while shifting enterprise risk management to the state controller's office, officials told the House Committee on Finance.

Committee members heard administration testimony describing a proposed restructuring of procurement fees and a reorganization of risk management.

Sharon described the procurement proposal: a 2017-authorized assessment on master purchase agreement (MPA) vendors capped at 1% has helped fund e-procurement and related functions. "Article 3 section 14 proposes to lower the cap on that fee to 1 third of a percent. But it expands it to all contracts not just MPAs," she said, and added the proposal would expand allowable uses of the…

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