SRC-JBJ S.B. 583 76(R)BILL ANALYSIS


Senate Research CenterS.B. 583
By: Ellis
State Affairs
6/21/1999
Enrolled


DIGEST 

Currently, a state agency may issue a contract to a provider of goods and
services without confirming with the comptroller if a prospective
contractor owes any debt or taxes to the state.  In an effort to make
agencies more accountable for their debts and to decrease overall the debt
owed to the state, the attorney general and the comptroller suggested that
vendors owing money to the state must have their debts subtracted from the
warrants they receive from state contract.  S.B. 583 will prohibit a state
agency from issuing a contract unless the proposed contractor agrees to
certain provisions regarding the contractor's debt or delinquent taxes owed
to the state. 

PURPOSE

As enrolled, S.B. 583 prohibits a state agency from issuing a contract
unless the contractor agrees to certain contractual provisions regarding
the contractor's debt or delinquent taxes. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the comptroller of public accounts in
SECTION 1 (Section 403.055(h), Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 403.055, Government Code, by adding Subsection
(h), to require a state agency, prior to issuing a contract to a provider,
to verify whether the comptroller is currently prohibited from issuing a
warrant to a person under this section.  Prohibits a state agency from
signing a contract if the comptroller is prohibited from issuing a warrant,
unless the person agrees to a contract clause under which any payments owed
to the person under the contract will be applied towards the debt or
delinquent taxes until the person's taxes are paid in full.  Authorizes the
comptroller to adopt rules to administer this subsection. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.Emergency clause.