| 1 | 1 | | 81R4376 EAH-D |
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| 2 | 2 | | By: Hinojosa S.B. No. 1689 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to governmental liability for interest resulting from a |
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| 8 | 8 | | claim for payment for goods or services. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 2251.002(a), Government Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (a) Except as provided by Subchapter D, Subchapter B does |
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| 13 | 13 | | not apply to a payment made by a governmental entity, vendor, or |
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| 14 | 14 | | subcontractor if: |
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| 15 | 15 | | (1) there is a bona fide dispute between the |
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| 16 | 16 | | governmental entity [political subdivision] and a vendor, |
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| 17 | 17 | | contractor, subcontractor, or supplier about the goods delivered or |
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| 18 | 18 | | the service performed that causes the payment to be late; |
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| 19 | 19 | | (2) there is a bona fide dispute between a vendor and a |
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| 20 | 20 | | subcontractor or between a subcontractor and its supplier about the |
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| 21 | 21 | | goods delivered or the service performed that causes the payment to |
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| 22 | 22 | | be late; |
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| 23 | 23 | | (3) the terms of a federal contract, grant, |
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| 24 | 24 | | regulation, or statute prevent the governmental entity from making |
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| 25 | 25 | | a timely payment with federal funds; or |
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| 26 | 26 | | (4) the invoice is not mailed to the person to whom it |
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| 27 | 27 | | is addressed in strict accordance with any instruction on the |
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| 28 | 28 | | purchase order relating to the payment. |
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| 29 | 29 | | SECTION 2. Section 2251.042, Government Code, is amended by |
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| 30 | 30 | | adding Subsection (d) to read as follows: |
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| 31 | 31 | | (d) A governmental entity is not liable for interest under |
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| 32 | 32 | | this section if the governmental entity's invoice payment is late |
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| 33 | 33 | | because of a bona fide dispute between the governmental entity and a |
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| 34 | 34 | | vendor, contractor, subcontractor, or supplier concerning the |
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| 35 | 35 | | goods delivered or the service performed. |
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| 36 | 36 | | SECTION 3. The changes in law made by this Act apply only to |
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| 37 | 37 | | a contract entered into or renewed on or after the effective date of |
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| 38 | 38 | | this Act. A contract entered into or renewed before the effective |
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| 39 | 39 | | date of this Act is governed by the law as it existed on the date the |
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| 40 | 40 | | contract was entered into or renewed, and that law is continued in |
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| 41 | 41 | | effect for that purpose. |
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| 42 | 42 | | SECTION 4. This Act takes effect immediately if it receives |
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| 43 | 43 | | a vote of two-thirds of all the members elected to each house, as |
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| 44 | 44 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 45 | 45 | | Act does not receive the vote necessary for immediate effect, this |
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| 46 | 46 | | Act takes effect September 1, 2009. |
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