By Dukes                                        H.B. No. 2506

      75R8536 PAM-D                           

                                A BILL TO BE ENTITLED

 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.