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Wednesday, March 26, 2025

Bill proposes mandatory electronic payment system for construction fees

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Senator Anthony M. Bucco, Republican Leader - District 25 | Official U.S. Senate headshot

Senator Anthony M. Bucco, Republican Leader - District 25 | Official U.S. Senate headshot

The Senate Community and Urban Affairs Committee has advanced a bill aimed at updating the payment methods for construction-related fees to local governments. The legislation, introduced by Senator Owen Henry (R-12), seeks to mandate the acceptance of electronic payments by municipalities.

Senator Henry emphasized the practicality of the proposal, stating, “Modernizing our payment systems is just common sense. By requiring municipalities to accept electronic payments for construction-related fees, this bill would provide more flexible payment options for contractors and reduce their administrative burden.” He further described it as "a simple, yet efficient way to improve government operations and support our construction industry."

Under current regulations, municipalities have the option but are not obligated to implement card payment systems or electronic funds transfer systems for receiving payments from construction contractors. These payments may include taxes, fees, assessments, fines, or other charges.

If passed into law, Senator Henry’s bill S3323/A4436 will make it mandatory for local governments to accept electronic payments from construction contractors.

The full text of the bill is available online.

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