Bill Text: PA HR324 | 2011-2012 | Regular Session | Introduced

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Bill Title: Memorializing the President and the Congress of the United States to enact legislation that will require companies who engage in trade credit to remit full payment to the supplier for any services or products within 30 days of receipt of the itemized invoice from the supplier.

Spectrum: Strong Partisan Bill (Democrat 14-1)

Status: (Introduced - Dead) 2011-06-06 - Referred to FINANCE [HR324 Detail]

Download: Pennsylvania-2011-HR324-Introduced.html

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PRINTER'S NO. 2010
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No. 324 Session of2011
INTRODUCED BY DAVIDSON, D. COSTA, DAVIS, DONATUCCI, GIBBONS, CALTAGIRONE, HORNAMAN, JOSEPHS, SWANGER, WATERS, PASHINSKI, PAYTON, READSHAW, YOUNGBLOOD AND DALEY, JUNE 6, 2011
REFERRED TO COMMITTEE ON FINANCE, JUNE 6, 2011
A RESOLUTION
Memorializing the President and the Congress of the United
States to enact legislation that will require companies who
engage in trade credit to remit full payment to the supplier
for any services or products within 30 days of receipt of the
itemized invoice from the supplier.
WHEREAS, A small business is defined by the United States
Small Business Administration as a company that employs fewer
than 500 employees; and
WHEREAS, According to the United States Small Business
Administration, there are approximately 240,000 small businesses
in the Commonwealth of Pennsylvania; and
WHEREAS, Small businesses comprise a large component that
helps to fuel the engine of Pennsylvania's economy; and
WHEREAS, Small businesses have been adversely affected by the
recent economic downturn; and
WHEREAS, Research studies indicate that three out of five
small businesses indulge in the practice known as "trade credit"
- a financing mechanism whereby businesses arrange to purchase
services or products without making an immediate cash payment;
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and
WHEREAS, The practice of trade credit is essential to the
economic stability and growth of many businesses as bank credit
has become increasingly more difficult to attain; and
WHEREAS, Businesses that act as the lender in trade credit
transactions typically require that payment is made in full
within 30 days from the date of the itemized invoice; and
WHEREAS, Recent data indicate that some multibillion dollar
companies withhold payment to their suppliers at upwards of 120
days; and
WHEREAS, Small businesses have been forced to scale back on
hiring and training new employees as a result of receiving
untimely payment from corporate customers; therefore be it
RESOLVED, That the House of Representatives of Pennsylvania
urge the President and the Congress of the United States to
enact legislation that will require companies who engage in
trade credit to remit full payment to the supplier for any
services or products within 30 days of receipt of the itemized
invoice from the supplier; and be it further
RESOLVED, That a copy of this resolution be transmitted to
the President of the United States, the presiding members of
each chamber of Congress, the Pennsylvania Congressional
Delegation and the United States Small Business Administration.
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