Bill Text: TX HB1476 | 2021-2022 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to a vendor's remedies for nonpayment of a contract with this state or a political subdivision of this state.
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Passed) 2021-06-07 - Effective on 9/1/21 [HB1476 Detail]
Download: Texas-2021-HB1476-Introduced.html
Bill Title: Relating to a vendor's remedies for nonpayment of a contract with this state or a political subdivision of this state.
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Passed) 2021-06-07 - Effective on 9/1/21 [HB1476 Detail]
Download: Texas-2021-HB1476-Introduced.html
By: Bell of Kaufman | H.B. No. 1476 |
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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. |