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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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Sec. 2251.042. DISPUTED PAYMENT. (a) A governmental |
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entity shall notify a vendor of an error or disputed amount in an |
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invoice submitted for payment by the vendor not later than the 21st |
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day after the date the entity receives the invoice, and shall |
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include in such notice a detailed statement of the amount of the |
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invoice which is disputed. |
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(b) If a dispute is resolved in favor of the vendor, the |
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vendor is entitled to receive interest on the unpaid balance of the |
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invoice submitted by the vendor beginning on the date under Section |
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2251.021 that the payment for the invoice is overdue. |
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(c) If a dispute is resolved in favor of the governmental |
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entity, the vendor shall submit a corrected invoice that must be |
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paid in accordance with Section 2251.021. The unpaid balance |
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accrues interest as provided by this chapter if the corrected |
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invoice is not paid by the appropriate date. |
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(d) The governmental entity may withhold from payments |
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required no more than 110% 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. |