1-1 AN ACT 1-2 relating to interest charged on late payment made by certain 1-3 political subdivisions under a contract for goods or services. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 2251.027, Government Code, is amended by 1-6 adding Subsection (e) to read as follows: 1-7 (e) The political subdivision may not require a vendor or 1-8 subcontractor to agree to waive the vendor's or subcontractor's 1-9 right to interest under this chapter as a condition of the contract 1-10 between the parties. 1-11 SECTION 2. The change in law made by this Act applies only 1-12 to a contract entered into on or after the effective date of this 1-13 Act. A contract entered into before the effective date of this Act 1-14 is governed by the law in effect when the contract was entered 1-15 into, and the former law remains in effect for that purpose. 1-16 SECTION 3. The importance of this legislation and the 1-17 crowded condition of the calendars in both houses create an 1-18 emergency and an imperative public necessity that the 1-19 constitutional rule requiring bills to be read on three several 1-20 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2506 was passed by the House on April 30, 1997, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 2506 was passed by the Senate on May 26, 1997, by the following vote: Yeas 31, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor