Sec. 2252.903. CONTRACTING WITH PERSONS WHO HAVE CERTAIN DEBTS OR DELINQUENCIES    


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  • (a) Each state agency shall determine whether a payment law prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to a person before the agency enters into a written contract with that person. The agency shall make this determination not earlier than the seventh day before and not later than the date of entering into the contract. The determination must be made in accordance with the comptroller's requirements.

    (b) This subsection applies if the agency determines that a payment law prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to the person. The agency may not enter into a written contract with the person unless:

    (1) the contract requires the agency's payments under the contract to be applied directly toward eliminating the person's debt or delinquency; and

    (2) the requirement described in Subdivision (1) specifically applies to any debt or delinquency, regardless of when it arises.

    (c) The comptroller may determine the order in which a person's multiple types of debts or delinquencies are reduced or eliminated under this section.

    (d) The comptroller may adopt rules and establish procedures to administer this section.

    (e) In this section:

    (1) "Debt or delinquency" means a debt, tax delinquency, student loan delinquency, or child support delinquency that results in a payment law prohibiting the comptroller from issuing a warrant or initiating an electronic funds transfer.

    (2) "Payment law" means:

    (A) Section 57.48, Education Code;

    (B) Section 231.007, Family Code;

    (C) Section 403.055; or

    (D) any similar law that prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to a person.

    (3) "State agency" has the meaning assigned by Section 403.055.

    (4) "Written contract" does not include a contract the payments for which must be made through the comptroller's issuance of warrants or initiation of electronic funds transfers under Section 404.046, 404.069, or 2103.003.

Added by Acts 2001, 77th Leg., ch. 1158, Sec. 71, eff. June 15, 2001. Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 62, eff. Sept. 1, 2003.