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A BILL TO BE ENTITLED
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AN ACT
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relating to governmental liability for interest resulting from a |
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claim for payment for goods or services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2251.002(a), Government Code, is amended |
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to read as follows: |
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(a) Except as provided by Subchapter D, Subchapter B does |
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not apply to a payment made by a governmental entity, vendor, or |
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subcontractor if: |
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(1) there is a bona fide dispute between the |
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governmental entity [political subdivision] and a vendor, |
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contractor, subcontractor, or supplier about the goods delivered or |
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the service performed that causes the payment to be late; |
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(2) there is a bona fide dispute between a vendor and a |
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subcontractor or between a subcontractor and its supplier about the |
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goods delivered or the service performed that causes the payment to |
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be late; |
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(3) the terms of a federal contract, grant, |
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regulation, or statute prevent the governmental entity from making |
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a timely payment with federal funds; or |
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(4) the invoice is not mailed to the person to whom it |
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is addressed in strict accordance with any instruction on the |
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purchase order relating to the payment. |
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SECTION 2. Section 2251.042, Government Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) A governmental entity is not liable for interest under |
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this section if the governmental entity's invoice payment is late |
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because of a bona fide dispute between the governmental entity and a |
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vendor, contractor, subcontractor, or supplier concerning the |
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goods delivered or the service performed. |
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SECTION 3. The changes in law made by this Act apply only to |
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a contract entered into or renewed on or after the effective date of |
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this Act. A contract entered into or renewed before the effective |
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date of this Act is governed by the law as it existed on the date the |
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contract was entered into or renewed, and that law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |