|(a) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Debtor--Any person or entity liable or potentially
liable for a charitable bingo related obligation owed to the Commission
or against whom a claim or demand for payment has been made.
(2) Delinquent--Payment is past due by law or by customary
business practice, and all conditions precedent to payment have occurred
or been performed.
(3) Demand letter--A writing mailed to a debtor setting
forth the nature and amount of the obligation owed to the Commission
and demanding payment of that obligation.
(4) Obligation--Any debt, judgment, claim, account,
fee, fine, tax, penalty, or interest.
(5) OAG--Office of the Attorney General of Texas.
(b) Upon a determination by the Charitable Bingo Operations
Director, or their designee, that a charitable bingo related obligation
to the Commission is delinquent, the Charitable Bingo Operations Director
or designee will:
(1) Attempt to determine the liability of each individual
or entity responsible for the obligation and whether that liability
can be established by statute or common law;
(2) Transmit demand letters to the debtor(s) in conformance
with subsection (c) of this section;
(3) To the extent practicable, maintain individual
collection histories of each obligation in order to document attempted
contacts with the debtor, the substance of communications with the
debtor, efforts to locate the debtor and its assets, and other information
pertinent to collection of the delinquent obligation; and
(4) Utilize warrant hold procedures as provided in
subsection (d) of this section.
(c) The Commission will generally transmit two demand
letters to a debtor's verified address. The first demand letter will
be sent no later than 30 days after the obligation becomes delinquent.
If the obligation remains uncollected, a second demand letter should
be sent no sooner than 30 days, but not more than 60 days, after the
first demand letter. However, if the Charitable Bingo Operations Director
or their designee determines that the amount of a delinquent obligation
is minimal, the Director or designee may delay the transmission of
the second demand letter. Demand letters will be mailed in an envelope
bearing the notation "Return Service Requested" in conformity with
applicable United States Postal Service regulations. If an address
correction is provided by the United States Postal Service, the demand
letter will be re-sent to the correct address prior to referral to
the OAG. The second demand letter will include a statement that the
obligation, if not paid, may be referred to the OAG for collection.
(d) As authorized in §403.055 of the Government
Code, the Commission will utilize the Comptroller of Public Accounts'
warrant hold procedures to ensure that no treasury warrants will be
issued to a debtor until the delinquent obligation is paid.
(e) The Commission will refer uncollected and delinquent
obligations to the OAG as provided by this subsection and the OAG's
uniform guidelines, which are found at Title 1, §59.2, of the
(1) If the debtor is an entity, the Commission will
provide the OAG with the name of the entity's registered agent and
any principal officers and/or directors of the entity. If the debtor
is an individual, the Commission will provide the OAG with the name
and last known business address and residence address of the individual.
(2) Prior to referral of the obligation to the OAG,
the Commission will (except in the case where a jeopardy determination
has been made under paragraph (5) of this subsection):
(A) verify the debtor's address and telephone number;
(B) transmit no more than two demand letters as provided
in subsection (c) of this section; and
(C) verify that the obligation is not legally or practically
(3) After considering the relevant factors listed in
the OAG's uniform guidelines, the Charitable Bingo Operations Director
or designee shall determine whether an uncollected obligation will
be referred to the OAG for collection. Generally, the Commission will
not refer an uncollected obligation if the amount to be collected
would be less than the total sum of expenses to the Commission and
the OAG required for collection of the obligation. The Charitable
Bingo Operations Director or designee may establish a minimum dollar
amount for obligations to be referred to the OAG. However, the Commission
may, for policy reasons or other good cause, refer an obligation to
the OAG even if the amount to be collected is less than the minimum
amount established by the Director or designee.
(4) Generally, an uncollected obligation should be
referred to the OAG not later than the 90th day after the date the
obligation becomes delinquent, but after the second demand letter
(5) If the Charitable Bingo Operations Director or
designee reasonably believes that the collection of an obligation
is jeopardized, the Director or Designee may issue a jeopardy determination
to the debtor stating that the collection of the obligation is in
jeopardy and that the amount due is immediately due and payable. In
the case of a jeopardy determination, the obligation may be referred
to the OAG after the expiration of 20 days after service by personal
service or by mail.
(6) When referring an uncollected obligation to the
OAG, and to the extent practicable, the Commission will provide the
(A) copies of all correspondence between the Commission
and the debtor;
(B) a log sheet documenting all attempted contacts
with the debtor and the result of such attempts;
(C) a record of all payments made by the debtor and
copies of all checks tendered as payment;
(D) any information pertaining to the debtor's residence
and his assets; and
(E) copies of any license application, security, final
orders, contracts, grants, or instrument giving rise to the obligation.
(7) Delinquent obligations that warrant referral to
the OAG, and upon which an uncollected bond or other security is held,
shall be referred to the OAG no later than 60 days after becoming
delinquent. All such accounts where the principal has filed for relief
under federal bankruptcy laws will be referred to the OAG immediately.
(f) The Commission will not issue a license to, renew
a license for, or list on the bingo worker registry any debtor until
the delinquent obligation is paid.