1-1 By: Holzheauser (Senate Sponsor - Armbrister) H.B. No. 1815
1-2 (In the Senate - Received from the House May 12, 1993;
1-3 May 13, 1993, read first time and referred to Committee on State
1-4 Affairs; May 22, 1993, reported favorably by the following vote:
1-5 Yeas 9, Nays 0; May 22, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Harris of Dallas x
1-9 Rosson x
1-10 Carriker x
1-11 Henderson x
1-12 Leedom x
1-13 Lucio x
1-14 Luna x
1-15 Nelson x
1-16 Patterson x
1-17 Shelley x
1-18 Sibley x
1-19 West x
1-20 Whitmire x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to payment of vendors by the state or by certain political
1-24 subdivisions.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Section 2(b), Chapter 82, Acts of the 69th
1-27 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
1-28 Civil Statutes), is amended to read as follows:
1-29 (b) After September 1, 1987, a payment owed by a political
1-30 subdivision based on a contract executed on or after September 1,
1-31 1987, is due not later than the 30th calendar day after the day on
1-32 which the political subdivision received supplies, materials, or
1-33 equipment, or the day on which the performance of services was
1-34 completed or the day on which the political subdivision received
1-35 the invoice for the supplies, materials, equipment, or services,
1-36 whichever is later; however, a payment under this subsection owed
1-37 by a political subdivision whose governing body meets only once a
1-38 month is due not later than the 45th calendar day after the date on
1-39 which the political subdivision received supplies, materials, or
1-40 equipment, or the date on which the performance of services was
1-41 completed, or the date on which the political subdivision received
1-42 the invoice for the supplies, materials, equipment, or services,
1-43 whichever is later.
1-44 SECTION 2. Section 7(a), Chapter 82, Acts of the 69th
1-45 Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
1-46 Civil Statutes), is amended to read as follows:
1-47 (a) This Act does not apply to payments made by a
1-48 governmental entity or a vendor in the event:
1-49 (1) there is a bona fide dispute between the political
1-50 subdivision and a vendor, contractor, subcontractor, or supplier
1-51 concerning the supplies, materials, or equipment delivered or the
1-52 services performed that causes the payment to be late <the terms of
1-53 a contract specify other times and methods of payment or methods of
1-54 resolving disputes or interest owed on delinquent payments>; or
1-55 (2) there is a bona fide dispute between a vendor and
1-56 a subcontractor or between a subcontractor and its supplier
1-57 concerning the supplies, materials, or equipment delivered or the
1-58 services performed which causes the payment to be late; or
1-59 (3) the terms of a federal contract, grant,
1-60 regulation, or statute prevent the governmental entity from making
1-61 a timely payment with federal funds; or
1-62 (4) the invoice is not mailed to the addressee in
1-63 strict accordance with instructions, if any, on the purchase order
1-64 covering said payment.
1-65 SECTION 3. This Act applies only to contracts entered into
1-66 after the effective date of this Act.
1-67 SECTION 4. This Act takes effect September 1, 1993.
1-68 SECTION 5. The importance of this legislation and the
2-1 crowded condition of the calendars in both houses create an
2-2 emergency and an imperative public necessity that the
2-3 constitutional rule requiring bills to be read on three several
2-4 days in each house be suspended, and this rule is hereby suspended.
2-5 * * * * *
2-6 Austin,
2-7 Texas
2-8 May 22, 1993
2-9 Hon. Bob Bullock
2-10 President of the Senate
2-11 Sir:
2-12 We, your Committee on State Affairs to which was referred H.B.
2-13 No. 1815, have had the same under consideration, and I am
2-14 instructed to report it back to the Senate with the recommendation
2-15 that it do pass and be printed.
2-16 Rosson,
2-17 Vice-Chairman
2-18 * * * * *
2-19 WITNESSES
2-20 FOR AGAINST ON
2-21 ___________________________________________________________________
2-22 Name: Raymond Risk x
2-23 Representing: American Subcontractors Assn
2-24 City: Austin
2-25 -------------------------------------------------------------------
2-26 Name: John Aimonette x
2-27 Representing: Austin Sheet Metal Assn
2-28 City: Austin
2-29 -------------------------------------------------------------------
2-30 Name: Roy Bohrer x
2-31 Representing: Mechanical Contractors Assn
2-32 City: Austin
2-33 -------------------------------------------------------------------
2-34 Name: Roy Bohrer x
2-35 Representing: Roofing Contractors Assn
2-36 City: Austin
2-37 -------------------------------------------------------------------
2-38 Name: Jerry Nevlud x
2-39 Representing: American Subcontractors Assn
2-40 City: Austin
2-41 -------------------------------------------------------------------