Primary Department: County Administration
Primary Department Head/Elected Official: Jesse Dickerman, Interim County Administrator
Secondary Department: Choose an item.
Secondary Department Head/Elected Official:
Regular or Supplemental RCA: Regular RCA
Type of Request: Policy
Project ID (if applicable):
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MWBE Contracted Goal (if applicable):
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Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
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Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
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Request for discussion and possible action on the Harris County Prompt Payment Act Policy.
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Background and Discussion:
On November 30, 2021, at the request of Harris County Commissioner Precinct 2, the Commissioners Court Analyst’s Office issued a memo identifying data limitations that made it difficult to determine when invoices were paid late. These limitations created challenges in ensuring compliance with the Texas Prompt Payment Act (PPA), which requires the calculation and payment of interest on qualifying late payments.
In 2022, the County Auditor’s Office issued a memo identifying three key requirements to support PPA compliance: (1) improving data capture for invoice tracking, (2) standardizing business processes across departments, and (3) automating interest calculation within the County’s financial system. The first two requirements have advanced through the County’s broader Procure-to-Pay (P2P) improvement efforts.
The Prompt Pay Project addresses the third requirement by implementing automated calculation and application of interest on late invoices. Together with the supporting policy, this effort will establish consistent standards for how the County applies the Prompt Payment Act, strengthens accountability for timely processing, and improves transparency into payment timelines. This policy is presented for Commissioners Court’s consideration and potential approval.
Expected Impact:
Implementation of the Prompt Payment Act (PPA) policy and automation is expected to:
• Ensure full compliance with the Texas Prompt Payment Act by applying interest automatically and consistently across all late payments.
• Increase transparency by providing Countywide visibility into invoice processing times and causes of delay.
• Reduce manual effort and administrative burden through system-driven calculations and standardized workflows.
• Enhance vendor trust and satisfaction by promoting predictable, timely payments and equitable treatment.
• Strengthen accountability by aligning departmental practices with statutory and policy requirements.
• Support economic equity by reducing payment delays that disproportionately impact small, minority, and women-owned businesses.
Alternative Options:
If the policy is not approved, Harris County would not establish a standardized approach to implementing the Texas Prompt Payment Act. Departments would continue existing practices without a Countywide policy to ensure compliance with State requirements.
County Strategic Plan Goal: 3. Make our economy more inclusive.
County Strategic Plan Objective: J: Grow the number and size of MWBEs.
Justice/Safety Initiative (Goal 1): Choose an item.
Infrastructure Initiative (Goal 2): Choose an item.
Economy Initiative (Goal 3): J3: Strengthen enabling support and processes for MWBE programming.
Health Initiative (Goal 4): Choose an item.
Climate/Resilience Initiative (Goal 5): Choose an item.
Housing Initiative (Goal 6): Choose an item.
Additional notes related to the Strategic Plan: This project is within the Procure to Pay portfolio, an Operational Imperative highlighted as a FY26 Budget Guidelines Priority.
Prior Court Action (if any):
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Date |
Agenda Item # |
Action Taken |
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9/8/2021 |
21-4943 |
Request for the Commissioners Court’s Analyst’s Office and Auditor’s Office to assess Harris County compliance with the Prompt Payments Act and assess payments processing times to vendors in the last five years. |
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11/17/2021 |
21-6572 |
Transmittal by the Commissioners Court’s Analyst’s Office of a memo responding to the Commissioner Precinct 2 request to assess Harris County compliance with the Prompt Payments Act and assess payments processing times to vendors over the last five years. |
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5/10/2022 |
22-2869 |
Transmittal by the Auditor of a Memo on Prompt Payment Act Policy Development. |
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Location:
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Anticipated Court Date: 10/30/2025
Anticipated Implementation Date (if different from Court date):
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department: Rachel O’Connell, Sr. Project Manager, Office of County Administration
Attachments (if applicable): Harris County Prompt Payment Act Policy; Harris County Prompt Payment Act implementation plan