The proposed legislation, General Assembly Raised Bill No. 487, aims to establish requirements for state agency contracts with fiscal intermediaries that provide payroll services. Effective October 1, 2026, the bill defines "state agency" and "fiscal intermediary," and mandates that any contract entered into, amended, or renewed by a state agency with a fiscal intermediary must include provisions for timely wage payments. Additionally, the contracts must stipulate financial penalties for the fiscal intermediary if they fail to process payroll within the agreed timeframe, with the penalty amount set at fifty percent of the value of the unpaid wages.

Furthermore, the bill empowers the applicable state agency to impose these penalties, and if the fiscal intermediary does not comply, the Attorney General may take legal action in the Superior Court to recover the owed penalties. This legislation is designed to ensure accountability and timely payment of wages to employees serviced by fiscal intermediaries, thereby enhancing the efficiency and reliability of payroll processing within state agencies.