1-1     By:  Dukes (Senate Sponsor - Ellis)                   H.B. No. 2506

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

 1-3     May 2, 1997, read first time and referred to Committee on

 1-4     Jurisprudence; May 15, 1997, reported favorably by the following

 1-5     vote:  Yeas 6, Nays 0; May 15, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to interest charged on late payment made by certain

 1-9     political subdivisions under a contract for goods or services.

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

1-11           SECTION 1.  Section 2251.027, Government Code, is amended by

1-12     adding Subsection (e) to read as follows:

1-13           (e)  The political subdivision may not require a vendor or

1-14     subcontractor to agree to waive the vendor's or subcontractor's

1-15     right to interest under this chapter as a condition of the contract

1-16     between the parties.

1-17           SECTION 2.  The change in law made by this Act applies only

1-18     to a contract entered into on or after the effective date of this

1-19     Act.  A contract entered into before the effective date of this Act

1-20     is governed by the law in effect when the contract was entered

1-21     into, and the former law remains in effect for that purpose.

1-22           SECTION 3.  The importance of this legislation and the

1-23     crowded condition of the calendars in both houses create an

1-24     emergency and an imperative public necessity that the

1-25     constitutional rule requiring bills to be read on three several

1-26     days in each house be suspended, and this rule is hereby suspended.

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