Notice to Vendors

Beginning September 1, 1999, the Texas Comptroller of Public Accounts implemented two major legislative changes that significantly affect how vendors that do business with the State of Texas are paid.

First, the Texas Comptroller of Public Accounts automatically computes and pays interest owed to vendors for late payments that are covered by the prompt payment law. During the 75th Regular Session, the Texas legislature passed several key amendments to Chapter 2251, Government Code (the "prompt payment law"). Since September 1, 1999, the Comptroller's Office has been required to pay interest automatically to vendors at the same time the principal is paid. In situations where interest is paid, vendor payment amounts will be greater than the amount that the agency was invoiced for.

Second, vendor payments may be later than what you are accustomed to. The Texas Comptroller of Public Accounts requires most vendor payments to be scheduled so that you receive your payment 30 days after the date the invoice is received by the agency or the date that goods or services are received by the agency, whichever is later. Tex. Gov't. Code Ann. sec. 2155.382(d) (Vernon 1999) authorizes the Comptroller to prescribe the circumstances under which advance (< 30 days) scheduling of payments is allowed or required.

The Comptroller must require advance scheduling of payments when it is advantageous to the state. An agency may take an early payment discount that a vendor offers in writing if the agency makes a full payment within the discount period.

All in
quiries regarding these legislative changes should be directed to the following person listed for the specific TYC contract administration area:

Agency Contracts
Kenneth I. Ming (512) 490-7261,

Youth Services Contracts
Kenneth I. Ming (512) 490-7261,

General Payment Information
Christi Goods (512) 490-7210,

Construction Contracts (also Architects, Engineers)
Kenneth I. Ming (512) 490-7261,


Related Information on the Texas Statutes Website: Government Code, Table of Contents