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.