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AN ACT
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relating to the collection of delinquent obligations owed to the |
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state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2107.003, Government Code, is amended to |
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read as follows: |
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Sec. 2107.003. COLLECTION BY ATTORNEY GENERAL OR OUTSIDE |
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AGENT. (a) Except as provided by Subsection (c) or (c-1), a state |
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agency shall refer an uncollected and delinquent obligation that |
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meets the referral guidelines established by the attorney general |
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to [request] the attorney general for further collection efforts. |
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The state agency must refer the obligation on or before the 90th day |
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after the date the obligation becomes past due or delinquent [to
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collect an obligation before the agency may employ, retain, or
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contract with a person other than a full-time employee of the state
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agency to collect the obligation]. |
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(b) The attorney general: |
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(1) may provide legal services for collection of the |
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obligation; |
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(2) may authorize the requesting state agency to |
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employ, retain, or contract with, subject to approval by the |
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attorney general and subject to the agency's compliance with |
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applicable guidelines established by the attorney general, one or |
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more persons to collect the obligation; or |
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(3) if the attorney general determines it to be |
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economical and in the best interest of the state, may contract on |
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behalf of the state agency with one or more persons [a person other
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than a full-time employee of the agency] to collect the [an] |
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obligation [that the attorney general cannot collect]. |
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(c) The comptroller may employ, retain, or contract with a |
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person other than a full-time state employee to collect delinquent |
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obligations that are owed the comptroller in the comptroller's |
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official capacity, are not collected through normal collection |
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procedures, and do not meet the referral guidelines adopted for |
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collection by the attorney general. A proposed contract under this |
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subsection shall be reviewed by the attorney general [and may
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include a collection fee computed on the amounts collected under
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the contract]. A person contracting with the comptroller under |
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this subsection is entitled to a collection fee, as provided under |
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the contract, in an amount not to exceed 30 percent of the full |
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amount of the obligation. |
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(c-1) The comptroller may also contract with one or more |
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persons to collect delinquent obligations that have been referred |
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to the attorney general and that the attorney general has returned |
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to the comptroller after exhausting all reasonable collection |
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efforts. A proposed contract under this subsection shall be |
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reviewed by the attorney general. A person contracting with the |
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comptroller under this subsection is entitled to a collection fee |
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equal to 30 percent of the full amount of the obligation collected. |
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(d) The agency contracting under Subsection (b) or (c) is |
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entitled to recover from the obligor, in addition to the amount of |
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the obligation, reasonable costs incurred in undertaking the |
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collection, including the costs of a contract under this section, |
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in an amount not to exceed 30 percent of the total amount of the |
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obligation. |
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(e) A person awarded a contract under Subsection (b), (c), |
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or (c-1) may not file suit or otherwise pursue judicial action to |
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collect the obligation owed in a court of this state or another |
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state on behalf of the contracting state agency. |
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(f) Except as provided by Subsection (b)(3), a state agency |
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may determine in its sole discretion which obligations to refer to a |
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private collection firm for collection. |
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(g) The contracting state agency may provide a person |
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contracting under Subsection (b), (c), or (c-1) any information, |
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including confidential information, that the agency is not |
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prohibited from sharing with another state or with the United |
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States and that is: |
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(1) in the custody of the agency owed the obligation; |
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and |
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(2) necessary to the collection of the obligation. |
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(h) A person acting under a contract formed under Subsection |
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(b), (c), or (c-1) and each employee or agent of that person is |
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subject to all statutory prohibitions against the wrongful |
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disclosure of confidential information that the contracting state |
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agency and its employees are subject to. A contractor's employee is |
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subject to the same penalties for wrongful disclosure of |
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confidential information as would apply to the employees of the |
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contracting agency. |
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(i) The contracting agency shall require a person who |
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contracts under Subsection (b), (c), or (c-1) to obtain and |
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maintain insurance adequate to provide reasonable coverage for |
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damages negligently, recklessly, or intentionally caused by the |
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contractor or the contractor's employee or agent in the course of |
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collecting an obligation under the contract. |
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(j) A person who contracts with a state agency under this |
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section is subject to Chapter 392, Finance Code. |
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SECTION 2. Section 2107.004, Government Code, is amended to |
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read as follows: |
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Sec. 2107.004. NOTICE BY COMPTROLLER TO ATTORNEY GENERAL |
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FOR FURTHER COLLECTION. Except as provided by Section |
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2107.003[(c)], not later than the [120th day after the date an
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obligation becomes delinquent or past due or the] 30th day after the |
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comptroller determines that its efforts to collect a delinquent |
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[an] obligation [owed the agency] have failed, the comptroller |
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[agency] shall report the uncollected and delinquent obligation to |
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the attorney general for further collection efforts. |
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SECTION 3. Subsection (c), Section 2254.102, Government |
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Code, is amended to read as follows: |
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(c) This subchapter does not apply to a contract: |
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(1) with a state agency to collect an obligation under |
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Section 2107.003(b), (c), or (c-1); or |
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(2) for legal services entered into by an institution |
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of higher education under Section 153.006, Education Code. |
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SECTION 4. The changes in law made by this Act to Sections |
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2107.003, 2107.004, and 2254.102, Government Code, apply only in |
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relation to a contract for the collection of delinquent taxes or |
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obligations that is entered into on or after the effective date of |
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this Act. A contract for the collection of delinquent taxes or |
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obligations entered into before the effective date of this Act is |
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governed by the law in effect on the date the contract was entered |
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into, and the former law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1615 passed the Senate on |
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May 3, 2007, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1615 passed the House on |
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May 15, 2007, by the following vote: Yeas 144, Nays 0, one |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |