By Maxey                                              H.B. No. 1209

         75R2843 JRD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to payments to vendors doing business with state

 1-3     government.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  (a) Section 403.016, Government Code, is amended

 1-6     by amending Subsection (c) and adding Subsection (k) to read as

 1-7     follows:

 1-8           (c)  The comptroller shall use the electronic funds transfer

 1-9     system to make:

1-10                 (1)  payments of more than $100 to annuitants by the

1-11     Employees Retirement System of Texas or the Teacher Retirement

1-12     System of Texas under either system's administrative jurisdiction;

1-13                 (2)  recurring payments to municipalities, counties,

1-14     political subdivisions, special districts, and other governmental

1-15     entities of this state; and

1-16                 (3)  payments to vendors [designated by the

1-17     comptroller].

1-18           (k)  Paragraphs (A) and (B) of Subsection (h)(1) do not apply

1-19     to a vendor.

1-20           (b)  This section takes effect September 1, 1998.

1-21           SECTION 2.  Section 2155.382, Government Code, is amended by

1-22     adding Subsections (c)-(e) to read as follows:

1-23           (c)  The comptroller may issue the warrant directly to the

1-24     vendor.  The comptroller, when appropriate, may combine into a

 2-1     single warrant payments that the state owes to a vendor under more

 2-2     than one invoice, including payments to the vendor made on behalf

 2-3     of more than one state agency.

 2-4           (d)  The comptroller may allow or require a state agency to

 2-5     schedule  payments that the comptroller will make to a vendor. The

 2-6     comptroller shall prescribe the circumstances under which advance

 2-7     scheduling of payments is allowed or required. The comptroller

 2-8     shall require advance scheduling of payments when it is

 2-9     advantageous to the state.

2-10           (e)  The comptroller may require vendors to provide payment

2-11     addresses, vendor identification numbers, and other account

2-12     information directly to the comptroller.

2-13           SECTION 3.  (a)  Section 2251.026, Government Code, is

2-14     amended to read as follows:

2-15           Sec. 2251.026.  PAYMENT OF INTEREST BY STATE AGENCY.  (a)  If

2-16     the warrant for a payment the originating state agency owes is not

2-17     mailed or electronically transmitted before the payment is overdue,

2-18     the agency is liable for an interest payment that accrues under

2-19     this chapter.

2-20           (b)  The comptroller shall compute interest imposed on the

2-21     state agency under this chapter.

2-22           (c)  The comptroller shall pay the interest at the time

2-23     payment is made on the principal.

2-24           (d)  The comptroller shall submit the interest payment with

2-25     the net amount due for goods and services.

2-26           (e)  The comptroller and the state agency may not require a

2-27     vendor to petition, bill, or wait an additional day to receive the

 3-1     interest due.

 3-2           (f)  The comptroller may require necessary and timely

 3-3     information and adopt rules to administer this section.

 3-4           (b)  This section takes effect September 1, 1999. The change

 3-5     in law made by this section applies only to interest on a payment

 3-6     by a state agency that becomes overdue under Chapter 2251,

 3-7     Government Code, on or after that date. Interest on a payment by a

 3-8     state agency that becomes overdue under Chapter 2251, Government

 3-9     Code, before that date is governed by Section 2251.026, Government

3-10     Code, as it exists on the date the payment becomes overdue, and the

3-11     prior law is continued in effect for that purpose.

3-12           SECTION 4.  (a) Section 2251.041, Government Code, is

3-13     repealed.

3-14           (b)  This section takes effect September 1, 1999. The change

3-15     in law made by this section applies only to interest on a payment

3-16     by a state agency that becomes overdue under Chapter 2251,

3-17     Government Code, on or after that date. Interest on a payment by a

3-18     state agency that becomes overdue under Chapter 2251, Government

3-19     Code, before that date is governed by Section 2251.041, Government

3-20     Code, as it exists on the date the payment becomes overdue, and the

3-21     prior law is continued in effect for that purpose.

3-22           SECTION 5.  The importance of this legislation and the

3-23     crowded condition of the calendars in both houses create an

3-24     emergency and an imperative public necessity that the

3-25     constitutional rule requiring bills to be read on three several

3-26     days in each house be suspended, and this rule is hereby suspended.