By Raymond H.B. No. 2299
75R2760 RJA-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to persons indebted to the state or delinquent in payment
1-3 of taxes to the state.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 57.48, Education Code, is amended to read
1-6 as follows:
1-7 Sec. 57.48. PAYMENTS BY THE COMPTROLLER [WARRANTS NOT TO BE
1-8 ISSUED] TO DEFAULTING PERSONS PROHIBITED [PARTIES]. (a) The
1-9 corporation shall report to the comptroller [of public accounts]
1-10 the name of any person who is in default on a loan guaranteed under
1-11 this chapter.
1-12 (b) Except as provided by Subsection (d), the [The]
1-13 comptroller, as a ministerial duty, [of public accounts] may not
1-14 issue a warrant or initiate an electronic funds transfer to any
1-15 person who has been reported under Subsection (a) [by the
1-16 corporation to be in default on a loan guaranteed under this
1-17 chapter].
1-18 (c) The comptroller may issue a warrant or initiate an
1-19 electronic funds transfer to the assignee of a person who has been
1-20 reported under Subsection (a) [is in default] only if the
1-21 assignment became effective before the person defaulted.
1-22 (d) This [When this] section does not prohibit [prohibits]
1-23 the comptroller from issuing a warrant or initiating an electronic
1-24 funds transfer to a person who has been reported under Subsection
2-1 (a) or to the person's assignee if the corporation subsequently
2-2 reports to [,] the comptroller that:
2-3 (1) the person is in compliance with an installment
2-4 payment or similar agreement between the corporation and that
2-5 person for elimination of the default;
2-6 (2) the default is in the process of being eliminated
2-7 through deduction of amounts from the person's compensation under
2-8 the garnishment provisions of 20 U.S.C. Section 1095a;
2-9 (3) the default has been eliminated; or
2-10 (4) the report of default was erroneous [is also
2-11 prohibited from using an electronic funds transfer system to pay
2-12 the person].
2-13 (e) A report by the corporation to the comptroller under
2-14 this section must contain the information and be submitted in the
2-15 manner and with the frequency required by the comptroller [This
2-16 section does not prohibit the comptroller from issuing a warrant to
2-17 pay the compensation of a state officer or employee].
2-18 (f) The corporation may not report a person under Subsection
2-19 (a) before the corporation has provided the person the opportunity
2-20 to exercise any due process or other constitutional or statutory
2-21 protection that must be accommodated before the corporation may
2-22 initiate collection actions or procedures. The comptroller may not
2-23 investigate or determine whether the corporation has complied with
2-24 this prohibition. [(1) This subsection applies when a payment is
2-25 made to a person other than through the comptroller's issuance of a
2-26 warrant or the comptroller's use of an electronic funds transfer
2-27 system.]
3-1 [(2) A state agency may not use funds inside or
3-2 outside the state treasury to pay a person if the person is in
3-3 default on a loan guaranteed under this chapter.]
3-4 [(3) This subsection does not prohibit a state agency
3-5 from paying the assignee of a person who is in default on a loan
3-6 guaranteed under this chapter if the assignment became effective
3-7 before the person defaulted.]
3-8 [(4) This subsection does not prohibit a state agency
3-9 from paying the compensation of a state officer or employee.]
3-10 [(5) The comptroller may not reimburse a state agency
3-11 for a payment that is made in violation of this subsection.]
3-12 [(g) In this section:]
3-13 [(1) "Compensation" includes wages, salaries,
3-14 longevity pay, hazardous duty pay, and emoluments that are provided
3-15 in lieu of wages or salaries. The term does not include expense
3-16 reimbursements.]
3-17 [(2) "State agency" means a board, commission,
3-18 council, committee, department, office, agency, or other
3-19 governmental entity in the executive, legislative, or judicial
3-20 branch of state government. The term includes an institution of
3-21 higher education as defined by Section 61.003, Education Code.]
3-22 [(3) "State officer or employee" means an officer or
3-23 employee of a state agency.]
3-24 SECTION 2. Subchapter C, Chapter 57, Education Code, is
3-25 amended by adding Section 57.482 to read as follows:
3-26 Sec. 57.482. PAYMENTS BY STATE AGENCY TO DEFAULTING PERSONS
3-27 PROHIBITED. (a) Except as provided by Subsection (c), a state
4-1 agency, as a ministerial duty, may not use funds inside or outside
4-2 the state treasury to pay a person who has been reported to the
4-3 comptroller under Section 57.48 as in default on a loan guaranteed
4-4 under this chapter.
4-5 (b) A state agency may pay the assignee of a person who has
4-6 been reported under Section 57.48(a) only if the assignment became
4-7 effective before the person defaulted.
4-8 (c) This section does not prohibit a state agency from
4-9 paying a person who has been reported under Section 57.48(a) or the
4-10 person's assignee if the corporation subsequently reports to the
4-11 comptroller that:
4-12 (1) the person is in compliance with an installment
4-13 payment or similar agreement between the corporation and that
4-14 person for elimination of the default;
4-15 (2) the default is in the process of being eliminated
4-16 through deduction of amounts from the person's compensation under
4-17 the garnishment provisions of 20 U.S.C. Section 1095a;
4-18 (3) the default has been eliminated; or
4-19 (4) the report of default was erroneous.
4-20 (d) The comptroller may not reimburse a state agency for a
4-21 payment that the comptroller determines was made in violation of
4-22 this section.
4-23 (e) In this section, "state agency" means a board,
4-24 commission, council, committee, department, office, agency, or
4-25 other governmental entity in the executive, legislative, or
4-26 judicial branch of state government. The term includes an
4-27 institution of higher education as defined by Section 61.003, other
5-1 than a public junior or community college.
5-2 SECTION 3. Sections 231.007(a), (h), and (i), Family Code,
5-3 are amended to read as follows:
5-4 (a) A person obligated to pay child support in a case in
5-5 which the Title IV-D agency is providing services under this
5-6 chapter who does not pay the required child support is in debt to
5-7 the state for the purposes of Sections [Section] 403.055 and
5-8 2107.008, Government Code, if the Title IV-D agency has reported
5-9 the person to the comptroller under Section 403.055, Government
5-10 Code.
5-11 (h) [Notwithstanding Sections 403.055(c) and (e)(4),
5-12 Government Code, the comptroller may not issue a warrant to a state
5-13 officer or employee who is in debt to the state as provided by this
5-14 section.]
5-15 [(i)] In this section, "compensation" has the meaning
5-16 assigned by Section 403.055(i) [403.055(f)(1)], Government Code,
5-17 and includes the payment of workers' compensation benefits.
5-18 SECTION 4. Section 403.055, Government Code, is amended to
5-19 read as follows:
5-20 Sec. 403.055. PAYMENTS [ISSUANCE] TO DEBTORS OR DELINQUENTS
5-21 PROHIBITED. (a) Except as provided by Subsection (d), the [The]
5-22 comptroller, as a ministerial duty, may not issue a warrant or
5-23 initiate an electronic funds transfer to a person who has been
5-24 reported under Subsection (e) [if the person is indebted or owes
5-25 delinquent taxes to the state, or owes delinquent taxes under a tax
5-26 that the comptroller administers or collects, until the debt or
5-27 taxes are paid].
6-1 (b) The comptroller may issue a warrant or initiate an
6-2 electronic funds transfer to the assignee of a person who has been
6-3 reported under Subsection (e) [is indebted or owes delinquent
6-4 taxes to the state] only if the assignment became effective before
6-5 the person became indebted to the state or delinquent in the
6-6 payment of taxes [to the state].
6-7 (c) Subsection (a) applies to [This section does not
6-8 prohibit the comptroller from issuing] a warrant that would be
6-9 issued or an electronic funds transfer that would be initiated to
6-10 pay the compensation of a state officer or employee unless a
6-11 deduction from that compensation is made under Chapter 666 toward
6-12 paying or eliminating the debt or delinquency.
6-13 (d) This [When this] section does not prohibit [prohibits]
6-14 the comptroller from issuing a warrant or initiating[, the
6-15 comptroller is also prohibited from using] an electronic funds
6-16 transfer to a person who has been reported under Subsection (e) or
6-17 to the person's assignee if the state agency responsible for
6-18 collecting the person's debt or delinquency subsequently reports
6-19 to the comptroller that:
6-20 (1) the person is in compliance with an installment
6-21 payment or similar agreement between the agency and that person for
6-22 payment or elimination of the debt or delinquency;
6-23 (2) the person's debt or delinquency has been paid or
6-24 otherwise eliminated; or
6-25 (3) the report of indebtedness or tax delinquency was
6-26 erroneous [system].
6-27 (e) Except as provided by Subsection (f), each state agency
7-1 shall report to the comptroller the information required by the
7-2 comptroller concerning each person who is indebted to the state or
7-3 who has a tax delinquency. The information must be reported in the
7-4 manner and with the frequency required by the comptroller [(1) This
7-5 subsection applies when a payment is made to a person other than
7-6 through the comptroller's issuance of a warrant or the
7-7 comptroller's use of an electronic funds transfer system.]
7-8 [(2) A state agency may not use funds inside or
7-9 outside the state treasury to pay a person if the person is
7-10 indebted or owes delinquent taxes to the state or owes delinquent
7-11 taxes under a tax that the comptroller administers or collects
7-12 until the debt or taxes are paid.]
7-13 [(3) This subsection does not prohibit a state agency
7-14 from paying the assignee of a person who is indebted or owes
7-15 delinquent taxes to the state if the assignment became effective
7-16 before the person became indebted to the state or delinquent in the
7-17 payment of taxes to the state.]
7-18 [(4) This subsection does not prohibit a state agency
7-19 from paying the compensation of a state officer or employee.]
7-20 [(5) The comptroller may not reimburse a state agency
7-21 for a payment that is made in violation of this subsection].
7-22 (f) A state agency may not report a person under Subsection
7-23 (e) before the agency has provided the person the opportunity to
7-24 exercise any due process or other constitutional or statutory
7-25 protections that must be accommodated before the agency or the
7-26 state may initiate collection actions or procedures. The
7-27 comptroller may not investigate or determine whether a state agency
8-1 has complied with this prohibition.
8-2 (g) This section does not apply:
8-3 (1) to the extent Section 57.48, Education Code, or
8-4 Section 481.0841 applies; or
8-5 (2) to the extent necessary to avoid conflict with
8-6 Section 231.007, Family Code.
8-7 (h) The comptroller may adopt rules and establish procedures
8-8 to administer this section.
8-9 (i) In this section:
8-10 (1) "Compensation" includes wages, salaries, longevity
8-11 pay, hazardous duty pay, benefit replacement pay, and emoluments
8-12 that are provided in lieu of wages or salaries. The term does not
8-13 include expense reimbursements.
8-14 (2) "State agency" means a board, commission, council,
8-15 committee, department, office, agency, or other governmental entity
8-16 in the executive, legislative, or judicial branch of state
8-17 government. The term includes an institution of higher education
8-18 as defined by Section 61.003, Education Code, other than a public
8-19 junior or community college.
8-20 (3) "Tax delinquency" means a delinquency in payment
8-21 of:
8-22 (A) a tax to the state; or
8-23 (B) a tax that the comptroller administers or
8-24 collects ["State officer or employee" means an officer or employee
8-25 of a state agency].
8-26 [(g) If a person owes delinquent taxes under a tax that the
8-27 comptroller administers or collects, the comptroller may subtract
9-1 the delinquent amount from the total amount due the person from the
9-2 state, except from amounts due that are deemed to be current wages,
9-3 and issue a warrant for the difference. The delinquent person is
9-4 entitled to written notice of at least 20 days before the date of
9-5 the offset. The notice must conform to the notice requirements
9-6 under Sections 111.018(b)(1) through (3), Tax Code. The
9-7 comptroller may promulgate rules for the administration of this
9-8 section.]
9-9 SECTION 5. Subchapter D, Chapter 403, Government Code, is
9-10 amended by adding Sections 403.0551 and 403.0552 to read as
9-11 follows:
9-12 Sec. 403.0551. OFFSETS OF DEBTS OR DELINQUENCIES. (a) The
9-13 comptroller may subtract the amount of a person's indebtedness to
9-14 the state or tax delinquency from an amount the state owes the
9-15 person. If any amount remains after the subtraction, the
9-16 comptroller shall issue a warrant or initiate an electronic funds
9-17 transfer to the person or the person's assignee for the remaining
9-18 amount.
9-19 (b) Subsection (a) applies to a person only if:
9-20 (1) a state agency has reported the person to the
9-21 comptroller under Section 403.055(e); and
9-22 (2) the comptroller is responsible under Section
9-23 404.046, 404.069, or 2103.003 for paying the amount owed by the
9-24 state to the person through the issuance of a warrant or initiation
9-25 of an electronic funds transfer.
9-26 (c) Before subtracting the amount of a person's indebtedness
9-27 to the state or tax delinquency under Subsection (a), the
10-1 comptroller shall provide notice to the person. The notice must:
10-2 (1) be given in a manner reasonably calculated to give
10-3 actual notice to the person;
10-4 (2) state the amount of the indebtedness or the amount
10-5 of the tax, penalties, interest, and costs due, as applicable;
10-6 (3) state the name of the indebted or delinquent
10-7 person; and
10-8 (4) inform the person that unless the amount due is
10-9 paid before the deadline, the comptroller will subtract the amount
10-10 of the indebtedness or delinquency from the amount the state owes
10-11 the person.
10-12 (d) This section does not authorize or require the
10-13 comptroller to subtract the amount of a person's indebtedness to
10-14 the state or tax delinquency from the amount of compensation the
10-15 state owes the person for services as a state officer or employee.
10-16 (e) The comptroller may determine the order that a person's
10-17 multiple types of indebtedness to the state or tax delinquencies
10-18 are subtracted from the amount the state owes the person.
10-19 (f) The comptroller may adopt rules and establish procedures
10-20 to administer this section.
10-21 (g) In this section:
10-22 (1) "Compensation" includes wages, salaries, longevity
10-23 pay, hazardous duty pay, benefit replacement pay, and emoluments
10-24 that are provided in lieu of wages or salaries. The term does not
10-25 include expense reimbursements.
10-26 (2) "Indebtedness" does not include a student loan
10-27 delinquency that is subject to the garnishment provisions of 20
11-1 U.S.C. Section 1095a.
11-2 (3) "Tax delinquency" means a delinquency in payment
11-3 of:
11-4 (A) a tax to the state; or
11-5 (B) a tax that the comptroller administers or
11-6 collects.
11-7 Sec. 403.0552. PREPARATION AND RETENTION OF CERTAIN
11-8 WARRANTS. (a) The comptroller may prepare and retain as provided
11-9 by this section a warrant that Section 57.48, Education Code,
11-10 Section 231.007, Family Code, or Section 403.055 or 481.0841
11-11 prohibits the comptroller from issuing.
11-12 (b) The comptroller may prepare a warrant to make a payment
11-13 that Section 57.48, Education Code, Section 231.007, Family Code,
11-14 or Section 403.055 or 481.0841 prohibits the comptroller from
11-15 initiating by electronic funds transfer.
11-16 (c) If the comptroller prepares a warrant under Subsection
11-17 (a) or (b), the comptroller shall:
11-18 (1) make the warrant payable to the appropriate
11-19 person; and
11-20 (2) retain the warrant until the earlier of:
11-21 (A) the first day the warrant may no longer be
11-22 paid by the comptroller under Section 404.046 or other applicable
11-23 law;
11-24 (B) the date the comptroller subtracts the
11-25 amount of the person's indebtedness to the state or tax delinquency
11-26 from the amount of the warrant under Section 403.0551 or other
11-27 applicable law; or
12-1 (C) the first day the comptroller is no longer
12-2 prohibited from issuing the warrant or initiating an electronic
12-3 funds transfer to that person.
12-4 (d) The comptroller may not cancel or destroy a warrant
12-5 prepared under Subsection (a) or (b) unless the comptroller
12-6 receives a request for the cancellation or destruction from the
12-7 state agency that submitted the voucher requesting issuance of the
12-8 warrant or electronic funds transfer and:
12-9 (1) the agency informs the comptroller that the
12-10 voucher was erroneous or was submitted erroneously;
12-11 (2) the agency is the only state agency responsible
12-12 for collecting the indebtedness or tax delinquency of the payee of
12-13 the warrant; or
12-14 (3) all the state agencies that are responsible for
12-15 collecting the indebtedness or tax delinquency of the payee of the
12-16 warrant consent to the cancellation or destruction.
12-17 (e) For purposes of Subsection (d)(1), a voucher is not
12-18 erroneous and is not submitted erroneously merely because the
12-19 comptroller is prohibited by Section 57.48, Education Code, Section
12-20 231.007, Family Code, or Section 403.055 or 481.0841 from issuing a
12-21 warrant or initiating an electronic funds transfer in accordance
12-22 with the voucher.
12-23 SECTION 6. Section 481.0841, Government Code, is amended to
12-24 read as follows:
12-25 Sec. 481.0841. PAYMENTS BY THE COMPTROLLER [NOT TO BE MADE]
12-26 TO DEFAULTING USERS PROHIBITED. (a) The department shall report
12-27 to the comptroller the name of any user who is in default on a
13-1 loan guaranteed under this subchapter and with respect to which the
13-2 department has been required to honor a guarantee.
13-3 (b) Except as provided by Subsection (d), the [The]
13-4 comptroller, as a ministerial duty, may not issue a warrant or
13-5 initiate an electronic funds transfer to any [the] user who has
13-6 been reported under Subsection (a) [while the user is in default].
13-7 (c) [(b)] The comptroller may issue a warrant or initiate an
13-8 electronic funds transfer to the assignee of a user who has been
13-9 reported under Subsection (a) [is in default] only if the
13-10 assignment became effective before the user defaulted.
13-11 (d) [(c)] This section does not prohibit the comptroller
13-12 from issuing a warrant or initiating an electronic funds transfer
13-13 to a user who has been reported under Subsection (a) or to the
13-14 user's assignee if the department subsequently reports to the
13-15 comptroller that:
13-16 (1) the user is in compliance with an installment
13-17 payment or similar agreement between the department and the user
13-18 for elimination of the default;
13-19 (2) the default has been eliminated; or
13-20 (3) the report of default was erroneous [pay the
13-21 compensation of a state officer or employee].
13-22 [(d)(1) This subsection applies when a payment is made to a
13-23 user other than through the comptroller's issuance of a warrant or
13-24 the comptroller's use of an electronic funds transfer system.]
13-25 [(2) A state agency may not use funds inside or
13-26 outside the state treasury to pay a user if the agency knows that
13-27 the user is in default on a loan guaranteed under this subchapter
14-1 and with respect to which the department has been required to honor
14-2 a guarantee.]
14-3 [(3) This subsection does not prohibit a state agency
14-4 from paying the assignee of a user who is in default if the
14-5 assignment became effective before the user defaulted.]
14-6 [(4) This subsection does not prohibit a state agency
14-7 from paying the compensation of a state officer or employee.]
14-8 [(5) The comptroller may not reimburse a state agency
14-9 for a payment that is made in violation of this subsection.]
14-10 (e) A report by the department to the comptroller under this
14-11 section must contain the information and be submitted in the manner
14-12 and with the frequency required by the comptroller [In this
14-13 section:]
14-14 [(1) "Compensation" includes wages, salaries,
14-15 longevity pay, hazardous duty pay, and emoluments that are provided
14-16 in lieu of wages or salaries. The term does not include expense
14-17 reimbursements.]
14-18 [(2) "State agency" means a board, commission,
14-19 council, committee, department, office, agency, or other
14-20 governmental entity in the executive, legislative, or judicial
14-21 branch of state government. The term includes an institution of
14-22 higher education as defined by Section 61.003, Education Code.]
14-23 [(3) "State officer or employee" means an officer or
14-24 employee of a state agency].
14-25 (f) The department may not report a user under Subsection
14-26 (a) before the department has provided the user the opportunity to
14-27 exercise any due process or other constitutional or statutory
15-1 protections that must be accommodated before the department may
15-2 initiate collection actions or procedures. The comptroller may not
15-3 investigate or determine whether the department has complied with
15-4 this prohibition.
15-5 SECTION 7. Subchapter F, Chapter 481, Government Code, is
15-6 amended by adding Section 481.0843 to read as follows:
15-7 Sec. 481.0843. PAYMENTS BY STATE AGENCIES TO DEFAULTING
15-8 USERS PROHIBITED. (a) Except as provided by Subsection (c), a
15-9 state agency, as a ministerial duty, may not use funds inside or
15-10 outside the state treasury to pay a user who has been reported to
15-11 the comptroller under Section 481.0841(a).
15-12 (b) A state agency may pay the assignee of a person who has
15-13 been reported under Section 481.0841(a) only if the assignment
15-14 became effective before the user defaulted.
15-15 (c) This section does not prohibit a state agency from
15-16 paying a user who has been reported under Section 481.0841(a) or
15-17 the user's assignee if the department subsequently reports to the
15-18 comptroller that:
15-19 (1) the user is in compliance with an installment
15-20 payment or similar agreement between the department and that user
15-21 for elimination of the default;
15-22 (2) the default has been eliminated; or
15-23 (3) the report of default was erroneous.
15-24 (d) The comptroller may not reimburse a state agency for a
15-25 payment that the comptroller determines was made in violation of
15-26 this section.
15-27 (e) In this section, "state agency" means a board,
16-1 commission, council, committee, department, office, agency, or
16-2 other governmental entity in the executive, legislative, or
16-3 judicial branch of state government. The term includes an
16-4 institution of higher education as defined by Section 61.003,
16-5 Education Code, other than a public junior or community college.
16-6 SECTION 8. Subtitle B, Title 6, Government Code, is amended
16-7 by adding Chapter 666 to read as follows:
16-8 CHAPTER 666. DEDUCTIONS FOR STATE INDEBTEDNESS AND
16-9 TAX DELINQUENCIES
16-10 Sec. 666.001. DEFINITIONS. In this chapter:
16-11 (1) "Compensation" includes wages, salaries, longevity
16-12 pay, hazardous duty pay, benefit replacement pay, and emoluments
16-13 that are provided in lieu of wages or salaries. The term does not
16-14 include expense reimbursements.
16-15 (2) "Indebtedness" does not include a student loan
16-16 delinquency that is subject to the garnishment provisions of 20
16-17 U.S.C. Section 1095a.
16-18 (3) "State agency" means a board, commission, council,
16-19 committee, department, office, agency, or other governmental entity
16-20 in the executive, legislative, or judicial branch of state
16-21 government. The term includes an institution of higher education
16-22 as defined by Section 61.003, Education Code, other than a public
16-23 junior or community college.
16-24 (4) "Tax delinquency" means a delinquency in payment
16-25 of:
16-26 (A) a tax to the state; or
16-27 (B) a tax that the comptroller administers or
17-1 collects.
17-2 Sec. 666.002. MANDATORY DEDUCTION. (a) A state agency, as
17-3 a ministerial duty, shall deduct the amount of a state officer's or
17-4 employee's indebtedness to the state or tax delinquency from the
17-5 amount of the officer's or employee's compensation. This
17-6 subsection applies only if the agency employs the officer or
17-7 employee.
17-8 (b) A state agency shall make a deduction from the
17-9 compensation of a state officer or employee under Subsection (a)
17-10 only if:
17-11 (1) the officer or employee has been reported to the
17-12 agency by another state agency as:
17-13 (A) indebted to the state; or
17-14 (B) having a tax delinquency; or
17-15 (2) the officer or employee is indebted to the state
17-16 or has a tax delinquency, and the employing state agency is
17-17 responsible for collecting that indebtedness or delinquency.
17-18 (c) This chapter does not authorize or require a state
17-19 agency to make or cause to be made a deduction from the
17-20 compensation of a state officer or employee if the state agency
17-21 responsible for collecting the officer's or employee's debt or
17-22 delinquency reports to the employing agency that:
17-23 (1) the officer or employee is in compliance with an
17-24 installment payment or similar agreement between the collecting
17-25 agency and that officer or employee for payment or elimination of
17-26 the debt or delinquency;
17-27 (2) the officer's or employee's debt or delinquency
18-1 has been paid or otherwise eliminated; or
18-2 (3) the report of indebtedness or delinquency was
18-3 erroneous.
18-4 Sec. 666.003. REPORTING OF DEBTS AND DELINQUENCIES TO
18-5 EMPLOYING STATE AGENCIES. (a) A state agency may not report a
18-6 state officer or employee as indebted to the state or having a tax
18-7 delinquency before the agency has:
18-8 (1) reported the officer or employee to the
18-9 comptroller under Section 403.055(e); and
18-10 (2) complied with the notice requirements of Section
18-11 666.004.
18-12 (b) A state agency shall report a state officer or employee
18-13 to the officer's or employee's employing state agency as indebted
18-14 to the state or having a tax delinquency not later than the 30th
18-15 day after the later of:
18-16 (1) the date the agency reports the officer or
18-17 employee to the comptroller under Section 403.055(e); or
18-18 (2) the 20th day after the date the agency places the
18-19 notice required by Section 666.004 in the United States mail.
18-20 (c) This subsection applies if the debt or tax delinquency
18-21 of a state officer or employee is paid or otherwise eliminated.
18-22 The state agency that reported the officer or employee to the
18-23 employing state agency under Subsection (b) shall report the
18-24 payment or elimination of the debt or delinquency to that agency
18-25 not later than the 10th day after the date of the payment or
18-26 elimination.
18-27 (d) This subsection applies if a state officer or employee
19-1 complies with an installment payment or similar agreement for
19-2 payment or elimination of an indebtedness to the state or a tax
19-3 delinquency. The state agency that reported the officer or
19-4 employee to the employing state agency under Subsection (b) shall
19-5 report the compliance to that agency. The report must be submitted
19-6 not later than the 10th day after the date the officer or employee
19-7 begins compliance with the agreement. The employing agency shall
19-8 rely on that report until the reporting agency provides a report of
19-9 noncompliance under Subsection (e).
19-10 (e) This subsection applies if a state officer or employee
19-11 does not comply with an installment payment or similar agreement
19-12 for payment or elimination of an indebtedness to the state or a tax
19-13 delinquency. If a state agency reported the officer or employee to
19-14 the employing state agency under Subsection (d), the reporting
19-15 agency shall report the noncompliance to the employing agency. The
19-16 report must be submitted not later than the 10th day after the date
19-17 the noncompliance with the agreement begins.
19-18 (f) A report under this section must contain the information
19-19 and be submitted in the manner required by the comptroller.
19-20 Sec. 666.004. NOTICE. (a) A state agency responsible for
19-21 collecting a state officer's or employee's indebtedness to the
19-22 state or tax delinquency shall provide written notice to the
19-23 officer or employee. The agency must place the notice in the
19-24 United States mail, postage prepaid.
19-25 (b) A notice provided under Subsection (a) must:
19-26 (1) state the amount of the indebtedness or the amount
19-27 of the tax, penalties, interest, and costs due, as applicable;
20-1 (2) state the name of the indebted or delinquent state
20-2 officer or employee; and
20-3 (3) inform the officer or employee that unless the
20-4 amount due is paid before the deadline, the amount of the
20-5 indebtedness or delinquency will be deducted from the officer's or
20-6 employee's compensation according to this chapter.
20-7 (c) A state agency that receives a report under Section
20-8 666.003(b) may not investigate or determine whether the reporting
20-9 state agency complied with Subsections (a) and (b) before
20-10 submitting the report.
20-11 Sec. 666.005. MAXIMUM AMOUNT OF DEDUCTIONS. The amount of a
20-12 deduction from compensation under this chapter may not exceed the
20-13 lesser of:
20-14 (1) 10 percent of the amount used to calculate the
20-15 amount of federal income tax deducted from that compensation;
20-16 (2) the maximum amount allowed by federal law; or
20-17 (3) the amount specified by the state agency that
20-18 reports to the employing state agency under Section 666.003(b).
20-19 Sec. 666.006. ADMINISTRATION. The comptroller may adopt
20-20 rules and establish procedures to administer this chapter.
20-21 SECTION 9. Chapter 2107, Government Code, is amended by
20-22 adding Section 2107.008 to read as follows:
20-23 Sec. 2107.008. PAYMENTS TO DEBTORS OR DELINQUENTS
20-24 PROHIBITED. (a) Except as provided by Subsection (d), a state
20-25 agency, as a ministerial duty, may not use funds inside or outside
20-26 the state treasury to pay a person if:
20-27 (1) the person has been reported by a state agency to
21-1 the comptroller under Section 403.055(e); or
21-2 (2) the person is indebted to the state or has a tax
21-3 delinquency, and the agency is responsible for collecting that
21-4 indebtedness or delinquency.
21-5 (b) A state agency may pay the assignee of a person
21-6 described by Subsection (a) only if the assignment became effective
21-7 before the person became indebted to the state or delinquent in the
21-8 payment of taxes.
21-9 (c) Subsection (a) applies to the payment of the
21-10 compensation of a state officer or employee unless a deduction from
21-11 that compensation is made under Chapter 666 toward paying or
21-12 eliminating the debt or delinquency.
21-13 (d) This section does not prohibit a state agency from
21-14 paying a person described by Subsection (a) or the person's
21-15 assignee if:
21-16 (1) the state agency responsible for collecting the
21-17 person's debt or delinquency subsequently reports to the
21-18 comptroller that:
21-19 (A) the person is in compliance with an
21-20 installment payment or similar agreement between the agency and
21-21 that person for payment or elimination of the debt or delinquency;
21-22 (B) the person's debt or delinquency has been
21-23 paid or otherwise eliminated; or
21-24 (C) the report of indebtedness or tax
21-25 delinquency was erroneous; or
21-26 (2) the paying state agency determines that the person
21-27 is in compliance with an installment payment or similar agreement
22-1 between the agency and that person for payment or elimination of
22-2 the debt or delinquency.
22-3 (e) A state agency may not refuse to make a payment under
22-4 Subsection (a)(2) before the agency has provided the person the
22-5 opportunity to exercise any due process or other constitutional or
22-6 statutory protections that must be accommodated before the agency
22-7 or the state may initiate collection actions or procedures.
22-8 (f) The comptroller may not reimburse a state agency for a
22-9 payment that the comptroller determines was made in violation of
22-10 this section.
22-11 (g) This section does not apply to the extent that Section
22-12 57.482, Education Code, or Section 481.0843 applies.
22-13 (h) In this section and notwithstanding Section 2107.001:
22-14 (1) "Compensation" includes wages, salaries, longevity
22-15 pay, hazardous duty pay, benefit replacement pay, and emoluments
22-16 that are provided in lieu of wages or salaries. The term does not
22-17 include expense reimbursements.
22-18 (2) "State agency" means a board, commission, council,
22-19 committee, department, office, agency, or other governmental entity
22-20 in the executive, legislative, or judicial branch of state
22-21 government. The term includes an institution of higher education
22-22 as defined by Section 61.003, Education Code, other than a public
22-23 junior or community college.
22-24 (3) "Tax delinquency" means a delinquency in payment
22-25 of:
22-26 (A) a tax to the state; or
22-27 (B) a tax that the comptroller administers or
23-1 collects.
23-2 SECTION 10. This Act takes effect September 1, 1997.
23-3 SECTION 11. An action taken or a proceeding initiated under
23-4 the law amended by this Act before the effective date of this Act
23-5 is covered by the law as it existed immediately before the
23-6 effective date of this Act, and the former law is continued in
23-7 effect for that purpose.
23-8 SECTION 12. The importance of this legislation and the
23-9 crowded condition of the calendars in both houses create an
23-10 emergency and an imperative public necessity that the
23-11 constitutional rule requiring bills to be read on three several
23-12 days in each house be suspended, and this rule is hereby suspended.