House committee approves measure to allow electronic county vendor payments

The House Standing Committee on Local Government on May 20 voted to advance House Bill 744, a measure that would allow county treasurers to place routine vendors on standing payment orders and to pay those vendors electronically, while retaining required approvals from the judge/executive and county treasurer.

Supporters told the committee the measure responds to slow mail delivery and growing cases of “check washing,” where fraudsters alter mailed checks. State Rep. Richard White, the bill sponsor, said the change would allow counties to avoid late payments and cancellations that can harm small vendors.

"We do have the same problem everybody else has, mail delivery," said Harry Clark, identified in committee as a county judge/executive from Round County. Clark told members his county had to void more than 92 checks in the past fiscal year because checks were delayed or lost. "The other thing that we have is a issue that's is security ... is check washing. And that's where they take the name off and the the pay who they're gonna pay to and the amount. They change it."

Under the bill as presented, routine vendor payments could be handled electronically, but the judge/executive (or designee) and the county treasurer would still be required to sign or otherwise approve payments. Proponents told the committee the change was intended to preserve internal controls while improving reliability for small vendors who depend on timely payments.

The committee first adopted a committee substitute for the bill and then approved a title amendment. Representative Bray moved the title amendment and Representative Raittmer seconded it; the committee approved the amendment and then voted the bill out with a favorable recommendation that it "should pass" on the House floor.

Committee members asked procedural questions about the existing county payment system; Representative Neighbors asked what issues HB 744 was trying to address, and presenters described the change as allowing electronic payment rather than handwritten mailed checks. The committee did not specify additional technical implementation details or cite a specific statute that would be amended in committee testimony.

The committee vote as recorded on the transcript shows multiple members answering in the affirmative during roll call and Chair Patrick Flannery announcing, "Vote aye. Motion carries with favorable expression that the bill is amended should pass on the house floor." The transcript does not provide a complete, line-by-line roll call in the excerpt and some members later recorded or clarified their votes during the attendance-record period.

If approved by the full House, the bill would change county payment practice to allow standing electronic payments for routine vendors while preserving dual signatory approval; the transcript does not specify implementation dates, technical standards for electronic payments, or whether state law needs further amendment beyond the bill's text.

Committee discussion and the vote occurred during the committee's meeting on May 20; the bill was presented by Representative Richard White, accompanied by Judge Executive Harry Clark and County Treasurer Michelle Jesse of Round County.