Ensures Local Governments Pay Bills on Time

Governor Phil Murphy has signed bipartisan legislation sponsored by Senator Steve Oroho (R-24) that expands the New Jersey Prompt Payment Act to include local governments.

“When a family buys a product, they have to pay their bills on time,” Senator Oroho stated. “Vendors who do business with local governments must be paid just as quickly. There’s no reason municipalities should stall payments that could put small businesses at risk.”

Oroho’s legislation, S-2418, extends the law, which already applies to State entities, to local government contracting units, school boards and independent authorities.

Senator Oroho noted that the law would hold local governments accountable.

“Often municipalities are buying goods or services from a nearby employer,” Oroho said. “The consequences of a government lapsing on their bills can reach all New Jersey’s families, including our neighbors and friends. This law is a step in the right direction. By extending the New Jersey Prompt Payment Act to local governments, we can safeguard community businesses from delinquent payments.”