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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.
No significant fiscal implication to the State is anticipated.
HB 1476 would require a government entity to indicate in detail the amount they believe to be erroneous when they return an invoice to a vendor due to it having an error. A government entity that disputes an invoice from a vendor would only be permitted to withhold up to 110% of the disputed amount of money.
Texas Action supports HB 1476 because it would advance limited government. Existing law does not require a government entity to tell a vendor how much money they are disputing on an invoice, unfairly leaving vendors to figure it out by themselves. HB 1476 would increase government transparency and ensure that government entities do not withhold payment from vendors for arbitrary reasons, allowing for speedier resolution of disputes in a manner that is more fair to vendors.
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