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