IMF C.S.H.B. 2600 75(R)BILL ANALYSIS


STATE AFFAIRS
C.S.H.B. 2600
By: King
4-20-97
Committee Report (Substituted)



BACKGROUND 

The Comptroller of Public Accounts Texas Performance Review in the
December 1996 report, "Disturbing the Peace," reported that the collection
of delinquent obligations to the state needed to be improved.  The Texas
Performance Review recommended that the comptroller and the attorney
general should study the state's receivables and report the results to the
76th Legislature. The report also recommends that the comptroller be
allowed to hire a private debt collector to collect on delinquent accounts
and be paid a percentage of the collection.  

PURPOSE

As proposed, H.B. 2600 would effectively place the comptroller's
recommendations into law. The bill would require the comptroller and the
attorney general to study the state's delinquent accounts and report to
the Legislature.  The bill would also allow the comptroller to hire a
private debt collector. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2107.003 of the Government Code by amending
Subsection (a) and adding Subsection (c) as follows: 

Section 2107.003 (a) makes a conforming change.

Section 2107.003 (c) allows the comptroller to employ, retain, or contract
with a person to collect delinquent obligations that are owed to the
comptroller, not allowed through normal collection procedures, and would
not be collected by the attorney general.  This subsection also allows a
collection fee to be assessed by a contractor collecting the delinquent
accounts, and requires the Attorney General to review proposed contracts. 

SECTION 2.  Amends Section 2107.004 of the Government Code with a
conforming change. 

SECTION 3.  Requires the comptroller and the attorney general to conduct a
joint study of collection of delinquent obligations.  The study group
should also include representatives from any agency owed money.  The study
group should identify the best procedures for collecting delinquent
obligations and submit its findings to the 76th Legislature by January 1,
1999. 

SECTION 4.  Emergency clause.  Effective date:  upon passage.
  

COMPARISON OF ORIGINAL TO SUBSTITUTE

In SECTION 1, Sec. 2107.003(c) is changed to include a provision requiring
review of proposed collection contracts by the Attorney General.