By: Bell of Kaufman H.B. No. 1476
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a vendor's remedies for nonpayment of a contract with
  this state or a political subdivision of this state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2251.042, Government Code, is amended by
  amending Subsection (a) and adding Subsection (d) to read as
  follows:
         Sec. 2251.042.  DISPUTED PAYMENT. (a) A governmental
  entity shall notify a vendor of an error or disputed amount in an
  invoice submitted for payment by the vendor not later than the 21st
  day after the date the entity receives the invoice, and shall
  include in such notice a detailed statement of the amount of the
  invoice which is disputed.
         (b)  If a dispute is resolved in favor of the vendor, the
  vendor is entitled to receive interest on the unpaid balance of the
  invoice submitted by the vendor beginning on the date under Section
  2251.021 that the payment for the invoice is overdue.
         (c)  If a dispute is resolved in favor of the governmental
  entity, the vendor shall submit a corrected invoice that must be
  paid in accordance with Section 2251.021. The unpaid balance
  accrues interest as provided by this chapter if the corrected
  invoice is not paid by the appropriate date.
         (d)  The governmental entity may withhold from payments
  required no more than 110% of the disputed amount.
         SECTION 2.  Section 2251.042, Government Code, as amended by
  this Act , applies only to a contract entered into on or after the
  effective date of this Act. A contract entered into before that date
  is governed by the law in effect on the date the contract was
  entered into, and the former law is continued in effect for that
  purpose.
         SECTION 3.  This Act takes effect September 1, 2021.