H.B. No. 1476
 
 
 
 
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:
         (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.
         (d)  The governmental entity may withhold from payments
  required no more than 110 percent 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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1476 was passed by the House on May
  11, 2021, by the following vote:  Yeas 144, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1476 was passed by the Senate on May
  24, 2021, by the following vote:  Yeas 30, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor