| similar terms as contained
in the proposed contract. If the attorney general declines or is unable
to perform the services requested, the attorney general may approve
the contract. If the attorney general decides that the agency has
not complied with this subsection, the attorney general may:
(I) decline to approve the contract; or
(II) require the agency to submit or resubmit a proposal
to the attorney general for collection of the obligation in accordance
with this subsection.
(ii) If the attorney general fails to act as set forth
in clause (i) of this subparagraph within 60 days of receipt of the
proposed contract or receipt of additional information requested,
the attorney general is deemed to have approved the contract in accordance
with this rule.
(B) Requirements of proposed contracts with private
persons presented for attorney general approval. In addition to information
required by other state laws, all contracts for collection of delinquent
obligations must contain or be supported by a proposal containing
the following:
(i) a description of the obligations to be collected
sufficient to enable the attorney general to determine what measures
are necessary to attempt to collect the obligation(s);
(ii) explicit terms of the basis of any fee or payment
for the collection of the obligation(s);
(iii) a description of the individual accounts to be
collected in the following respects:
(I) the total number of delinquent accounts;
(II) the dollar range;
(III) the total dollar amount;
(IV) a summary of the collection efforts previously
made by the agency; and
(V) the legal basis of the delinquent obligations to
be collected.
(C) Suggested requirements of proposed contracts with
private persons presented for attorney general approval. All contracts
for collection of delinquent obligations should contain provisions
stating the following:
(i) that litigation on the delinquent account is prohibited
unless the private person obtains specific written authorization from
the agency and the attorney general and complies with the requirements
of this rule;
(ii) that the person is required to place any funds
collected in an interest bearing account with amounts collected, plus
interest, less collections costs, payable to the agency on a monthly
basis or by direct deposit to the agency's account on a weekly basis
with the agency billing once a month; in either case a listing of
the accounts and amounts collected per account should be submitted
to the agency upon deposit of the funds;
(iii) that the person refer any bankruptcy notice to
the agency within three working days of receipt;
(iv) that the agency may recall any account without
charge;
(v) that the person may not settle or compromise the
account for less than the full amount owed (including collection costs
where authorized by statute or terms of the obligation) without written
authority from the agency;
(vi) that the person is not an agent of the agency
but is an independent contractor; and providing further that the person
will indemnify the agency for any loss incurred by his violation of
state and federal debt collection statutes or by the negligence of
the person, his employees or agents;
(vii) that any dispute arising under the contract be
submitted to a court of competent jurisdiction in Texas, unless any
other venue is statutorily mandated, in which case the specific venue
statute will apply, subject to any alternative dispute resolution
procedures adopted by the agency pursuant to Chapter 2009, Texas Government
Code.
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| Source Note: The provisions of this §59.2 adopted to be effective December 11, 1992, 17 TexReg 8283; amended to be effective October 23, 2001, 26 TexReg 8339; amended to be effective November 22, 2012, 37 TexReg 9085 |
