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A BILL TO BE ENTITLED
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AN ACT
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relating to a vendor's remedies for nonpayment of a contract with |
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this state or a political subdivision of this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2251.042, Government Code, is amended by |
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amending Subsection (a) and adding Subsection (d) to read as |
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follows: |
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(a) A governmental entity shall notify a vendor of an error |
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or disputed amount in an invoice submitted for payment by the vendor |
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not later than the 21st day after the date the entity receives the |
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invoice, and shall include in such notice a detailed statement of |
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the amount of the invoice which is disputed. |
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(d) The governmental entity may withhold from payments |
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required no more than 110 percent of the disputed amount. |
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SECTION 2. Section 2251.042, Government Code, as amended by |
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this Act, applies only to a contract entered into on or after the |
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effective date of this Act. A contract entered into before that date |
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is governed by the law in effect on the date the contract was |
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entered into, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2021. |