Honorable Bill Ratliff, Chair, Senate Committee on State Affairs
FROM:
John Keel, Director, Legislative Budget Board
IN RE:
SB1720 by Williams (Relating to a vendor's or subcontractor's remedy for nonpayment of certain contracts.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend the Government Code by allowing a vendor to suspend performance of a contract if the governmental entity failed to pay an undisputed amount within the time limits provided. Any governmental entity that claims that there is a good faith dispute must notify the vendor with specificity and provide an opportunity to cure.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
302 Office of the Attorney General, 303 Building and Procurement Commission