By Holzheauser H.B. No. 1815
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to payment of vendors by the state or by certain political
1-3 subdivisions.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2(b), Chapter 82, Acts of the 69th
1-6 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
1-7 Civil Statutes), is amended to read as follows:
1-8 (b) After September 1, 1987, a payment owed by a political
1-9 subdivision based on a contract executed on or after September 1,
1-10 1987, is due not later than the 30th calendar day after the day on
1-11 which the political subdivision received supplies, materials, or
1-12 equipment, or the day on which the performance of services was
1-13 completed or the day on which the political subdivision received
1-14 the invoice for the supplies, materials, equipment, or services,
1-15 whichever is later; however, a payment under this subsection owed
1-16 by a political subdivision whose governing body meets only once a
1-17 month is due not later than the 45th calendar day after the date on
1-18 which the political subdivision received supplies, materials, or
1-19 equipment, or the date on which the performance of services was
1-20 completed, or the date on which the political subdivision received
1-21 the invoice for the supplies, materials, equipment, or services,
1-22 whichever is later.
1-23 SECTION 2. Section 7(a), Chapter 82, Acts of the 69th
2-1 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
2-2 Civil Statutes), is amended to read as follows:
2-3 (a) This Act does not apply to payments made by a
2-4 governmental entity or a vendor in the event:
2-5 (1) there is a bona fide dispute between the political
2-6 subdivision and a vendor, contractor, subcontractor, or supplier
2-7 concerning the supplies, materials, or equipment delivered or the
2-8 services performed that causes the payment to be late <the terms of
2-9 a contract specify other times and methods of payment or methods of
2-10 resolving disputes or interest owed on delinquent payments>; or
2-11 (2) there is a bona fide dispute between a vendor and
2-12 a subcontractor or between a subcontractor and its supplier
2-13 concerning the supplies, materials, or equipment delivered or the
2-14 services performed which causes the payment to be late; or
2-15 (3) the terms of a federal contract, grant,
2-16 regulation, or statute prevent the governmental entity from making
2-17 a timely payment with federal funds; or
2-18 (4) the invoice is not mailed to the addressee in
2-19 strict accordance with instructions, if any, on the purchase order
2-20 covering said payment.
2-21 SECTION 3. This Act applies only to contracts entered into
2-22 after the effective date of this Act.
2-23 SECTION 4. This Act takes effect September 1, 1993.
2-24 SECTION 5. The importance of this legislation and the
2-25 crowded condition of the calendars in both houses create an
3-1 emergency and an imperative public necessity that the
3-2 constitutional rule requiring bills to be read on three several
3-3 days in each house be suspended, and this rule is hereby suspended.