By West                                          S.B. No. 779

      75R5307 MLS-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to payment of interest to vendors by a state agency.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 2251.026, Government Code, is amended to

 1-5     read as follows:

 1-6           Sec. 2251.026.  PAYMENT OF INTEREST BY STATE AGENCY.  (a)  If

 1-7     the warrant for a payment the originating state agency owes is not

 1-8     mailed or electronically transmitted before the payment is overdue,

 1-9     the agency is liable for an interest payment that accrues under

1-10     this chapter.

1-11           (b)  The comptroller shall automatically adjust a warrant for

1-12     a payment that is overdue to include the required amount of

1-13     interest on the payment, without first requiring the vendor to

1-14     comply with Section 2251.041, if:

1-15                 (1)  the comptroller receives the originating state

1-16     agency's request for a warrant more than 30 days after the latter

1-17     of the date the state agency received the goods or services or the

1-18     date the state agency received the invoice for the goods or

1-19     services; and

1-20                 (2)  the originating state agency does not include with

1-21     the delayed request for a warrant a statement that the request was

1-22     delayed because of a dispute between the originating state agency

1-23     and the vendor.

1-24           (c)  The originating state agency shall notify the

 2-1     comptroller in the manner prescribed by the comptroller of the date

 2-2     the state agency received the goods or services and of the date the

 2-3     state agency received the invoice for the goods or services.

 2-4           SECTION 2.  This Act takes effect September 1, 1997.

 2-5           SECTION 3.  The importance of this legislation and the

 2-6     crowded condition of the calendars in both houses create an

 2-7     emergency and an imperative public necessity that the

 2-8     constitutional rule requiring bills to be read on three several

 2-9     days in each house be suspended, and this rule is hereby suspended.