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eXpendit

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Contract Expenditures
Debt Collection

Referral of delinquent obligations to the attorney general

A state agency must refer uncollected and delinquent obligations to the attorney general for further collection efforts. The referral must meet the guidelines established by the attorney general. The agency must refer the obligation on or before the 90th day after the date the obligation becomes past due or delinquent. The attorney general may:

  • Provide legal services for collection of the obligation.
  • Authorize the requesting agency to employ, retain or contract with one or more person to collect the obligation.
  • Determine it to be economical and in the best interest of the State to contract on behalf of the agency with one or more persons to collect the obligation.

If the attorney general authorizes a state agency to contract with one or more persons to collect the obligation, the agency is entitled to recover from the debtor the total amount of the debt, as well as reasonable costs incurred in undertaking the collection. This includes the costs of the contract, in an amount not to exceed 30 percent of the total amount of the debt. The contractor may not file suit or otherwise pursue judicial action to collect the debt owed in a court of this state or another state on behalf of the agency.

Sources [+]

Texas Government Code Section 2107.003(a)–(b), (d)–(e).

Contracts entered into by the Comptroller's office to collect delinquent obligations

The Comptroller's office may employ, retain or contract with a person other than a full-time state employee to collect delinquent obligations owed the Comptroller's office, as long as they do not meet the guidelines adopted for collection by the attorney general.

Sources [+]

Texas Government Code Sections 2107.003(c-1); See 1 Texas Government Code Section 403.019.

Collection fees for the use and benefit of the attorney general

A debt reported to the attorney general for collection is subject to a collection fee for the use and benefit of the attorney general, as provided by legislative appropriation. The attorney general may keep the amount of the fee from the amount of the debt collected. A collection fee may not be kept from amounts collected for the unemployment compensation fund.

Sources [+]

Texas Government Code Section 2107.007. Rider 6 in the appropriations to the Office of the Attorney General in the General Appropriations Act. Additional source for this section: See 1 Texas Administrative Code Section 59.2(a)(5), (7), (c)(3) (2003).

Definitions:

Obligation
Includes a debt, judgment, claim, account, fee, fine, tax, penalty, interest, loan, charge or grant.
Person
Includes an individual, a corporation, an organization, a government or governmental subdivision or agency, a business trust, an estate, a trust, a partnership, an association and any other legal entity.
State agency
An agency, board, commission, institution or other unit of state government.

Sources for definitions [+]

Texas Government Code Section 2107.001; Code Construction Act, Texas Government Code Section 311.005(2).