1-1     By:  Maxey (Senate Sponsor - Ellis)                   H.B. No. 1209

 1-2           (In the Senate - Received from the House May 9, 1997;

 1-3     May 12, 1997, read first time and referred to Committee on Finance;

 1-4     May 16, 1997, reported favorably by the following vote:  Yeas 11,

 1-5     Nays 0; May 16, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to payments to vendors doing business with state

 1-9     government.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  (a) Section 403.016, Government Code, is amended

1-12     by amending Subsection (c) and adding Subsection (k) to read as

1-13     follows:

1-14           (c)  The comptroller shall use the electronic funds transfer

1-15     system to make:

1-16                 (1)  payments of more than $100 to annuitants by the

1-17     Employees Retirement System of Texas or the Teacher Retirement

1-18     System of Texas under either system's administrative jurisdiction;

1-19                 (2)  recurring payments to municipalities, counties,

1-20     political subdivisions, special districts, and other governmental

1-21     entities of this state; and

1-22                 (3)  payments to vendors [designated by the

1-23     comptroller].

1-24           (k)  Paragraphs (A) and (B) of Subsection (h)(1) do not apply

1-25     to a vendor.

1-26           (b)  This section takes effect September 1, 1998.

1-27           SECTION 2.  Section 2155.382, Government Code, is amended by

1-28     adding Subsections (c)-(e) to read as follows:

1-29           (c)  The comptroller may issue the warrant directly to the

1-30     vendor.  The comptroller, when appropriate, may combine into a

1-31     single warrant payments that the state owes to a vendor under more

1-32     than one invoice, including payments to the vendor made on behalf

1-33     of more than one state agency.

1-34           (d)  The comptroller may allow or require a state agency to

1-35     schedule  payments that the comptroller will make to a vendor. The

1-36     comptroller shall prescribe the circumstances under which advance

1-37     scheduling of payments is allowed or required. The comptroller

1-38     shall require advance scheduling of payments when it is

1-39     advantageous to the state.

1-40           (e)  The comptroller may require vendors to provide payment

1-41     addresses, vendor identification numbers, and other account

1-42     information directly to the comptroller.

1-43           SECTION 3.  (a)  Section 2251.026, Government Code, is

1-44     amended to read as follows:

1-45           Sec. 2251.026.  PAYMENT OF INTEREST BY STATE AGENCY.  (a)  If

1-46     the warrant for a payment the originating state agency owes is not

1-47     mailed or electronically transmitted before the payment is overdue,

1-48     the agency is liable for an interest payment that accrues under

1-49     this chapter.

1-50           (b)  The comptroller shall compute interest imposed on the

1-51     state agency under this chapter.

1-52           (c)  The comptroller shall pay the interest at the time

1-53     payment is made on the principal.

1-54           (d)  The comptroller shall submit the interest payment with

1-55     the net amount due for goods and services.

1-56           (e)  The comptroller and the state agency may not require a

1-57     vendor to petition, bill, or wait an additional day to receive the

1-58     interest due.

1-59           (f)  The comptroller may require necessary and timely

1-60     information and adopt rules to administer this section.

1-61           (b)  This section takes effect September 1, 1999. The change

1-62     in law made by this section applies only to interest on a payment

1-63     by a state agency that becomes overdue under Chapter 2251,

1-64     Government Code, on or after that date. Interest on a payment by a

 2-1     state agency that becomes overdue under Chapter 2251, Government

 2-2     Code, before that date is governed by Section 2251.026, Government

 2-3     Code, as it exists on the date the payment becomes overdue, and the

 2-4     prior law is continued in effect for that purpose.

 2-5           SECTION 4.  (a) Section 2251.041, Government Code, is

 2-6     repealed.

 2-7           (b)  This section takes effect September 1, 1999. The change

 2-8     in law made by this section applies only to interest on a payment

 2-9     by a state agency that becomes overdue under Chapter 2251,

2-10     Government Code, on or after that date. Interest on a payment by a

2-11     state agency that becomes overdue under Chapter 2251, Government

2-12     Code, before that date is governed by Section 2251.041, Government

2-13     Code, as it exists on the date the payment becomes overdue, and the

2-14     prior law is continued in effect for that purpose.

2-15           SECTION 5.  The importance of this legislation and the

2-16     crowded condition of the calendars in both houses create an

2-17     emergency and an imperative public necessity that the

2-18     constitutional rule requiring bills to be read on three several

2-19     days in each house be suspended, and this rule is hereby suspended.

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