HB 208 will prevent fraud and streamline state financial operations

Treasurer Colleen Davis applauded Delaware’s General Assembly and Gov. Matt Meyer on Tuesday for the unanimous passage and signing of House Bill 208, a measure that promises to make state transactions faster, safer, and more cost-effective. The new law will require payments issued by state agencies – including departments, commissions, and boards – to be made electronically, modernizing the state’s transaction processes and reducing reliance on paper checks.

The bill, sponsored by Rep. Josue Ortega (D-Wilmington) in the House and Sen. Trey Paradee (D-Dover) in the Senate, was signed by Gov. Meyer on Monday, July 14. It mandates the use of Automated Clearing House (ACH), Single Use Account (SUA), or State Procurement Card (PCARD) payments for vendors providing goods and services to the state. The legislation includes exceptions for single payment vouchers, one-time suppliers, forced payouts conducted at year end by the Division of Accounting, and legal settlements.

“This may seem like a small bill, but it’s a win for Delaware on multiple levels,” Treasurer Davis said. “It thwarts the potential for check fraud, saves money for the state, streamlines my office’s operations, and makes sure our vendors get paid promptly and efficiently. I’m grateful to our lawmakers on both sides of the aisle for recognizing the value our state stands to gain from modernizing this process.”

The Office of the State Treasurer facilitates $12 billion of transactions on behalf of state agencies every year. That process has traditionally included issuing thousands of paper checks, which carry the risk of being lost, intercepted, or otherwise mishandled – slowing vendor payments while diverting state resources to combating fraud attempts.

“I’m proud that we got this legislation passed with bipartisan support,” Rep. Ortega said. “This change to the Delaware Code will not only mitigate fraud when it comes to payment interception, but also save the state money by cutting the cost of check printing.”

With the bill’s signing, Delaware has become the first state to mandate electronic payments for all state vendors, regardless of contract size. The federal government has implemented a similar policy planned to take effect Sept. 30, 2025.

“HB 208 was a common-sense bill,” Sen. Paradee said. “Our state agencies made it clear to us in this process that they saw a real need to create a more secure vendor payment environment in Delaware. Whenever we see an opportunity to save money for the state while streamlining the way it operates, we’re going to seize that opportunity.”

For additional information about the Office of the State Treasurer’s transaction processes, visit treasurer.delaware.gov.

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