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.