Texas Government Code - Section 403.0551. Deductions For Repayment Of Certain Debts Or Tax Delinquencies
Legal Research Home >
Texas Laws > Government Code > Texas Government Code - Section 403.0551. Deductions For Repayment Of Certain Debts Or Tax Delinquencies
Section: 403.036 403.037 403.038 403.039 403.052 403.054 403.055 403.0551 403.0552 403.056 403.057 403.058 403.060 403.071 403.072
§ 403.0551. DEDUCTIONS FOR REPAYMENT OF CERTAIN DEBTS OR
TAX DELINQUENCIES. (a) Except as provided by Subsections (b) and
(d), the comptroller may deduct the amount of a person's
indebtedness to the state or tax delinquency from any amount the
state owes the person or the person's successor. The comptroller
shall issue a warrant or initiate an electronic funds transfer to
the person or successor for any remaining amount.
(b) Subsection (a) applies to a person or the person's
successor only if:
(1) the comptroller has provided notice to the person
or successor that complies with Subsection (c);
(2) Section 57.48, Education Code, or Section 403.055
prohibits the comptroller from issuing a warrant or initiating an
electronic funds transfer to the person or successor; and
(3) the comptroller is responsible under Section
404.046, 404.069, or 2103.003 for paying the amount owed by the
state to the person or successor through the issuance of a warrant
or initiation of an electronic funds transfer.
(c) The comptroller shall provide notice to a person or the
person's successor before deducting the amount of the person's
indebtedness to the state or tax delinquency under Subsection (a).
The notice must:
(1) be given in a manner reasonably calculated to give
actual notice to the person or successor;
(2) state the:
(A) amount of the indebtedness or the amount of
the tax, penalties, interest, and costs due, as applicable; and
(B) name of the indebted or delinquent person;
(3) specify the deadline for paying the amount due;
(4) inform the person or successor that unless the
amount due is paid before the deadline, the comptroller will deduct
the amount of the indebtedness or delinquency from the amount the
state owes the person or successor.
(d) This section does not authorize the comptroller to
deduct the amount of a state employee's indebtedness to a state
agency from any amount of compensation owed by the agency to the
employee, the employee's successor, or the assignee of the employee
or successor. In this subsection, "compensation," "indebtedness,"
"state agency," "state employee," and "successor" have the meanings
assigned by Section 666.001.
(e) The comptroller shall credit the appropriate fund or
account for any amount deducted under this section if the
comptroller is the custodian or trustee of that fund or account.
The comptroller shall remit any amount deducted under this section
to the custodian or trustee of the appropriate fund or account if
the comptroller is not its custodian or trustee.
(f) The comptroller may determine the order that a person's
multiple types of indebtedness to the state or tax delinquencies
are deducted from the amount the state owes the person or the
(g) The assignee of a person or the person's successor is
considered to be a successor of the person for the purposes of this
section, except that a deduction under this section from the amount
owed to the assignee of a person or the person's successor may not
be made if the assignment became effective before the person became
indebted to the state or incurred the tax delinquency.
(h) The comptroller may adopt rules and establish
procedures to administer this section.
(i) Except as provided by Subsection (d), in this section,
"successor" means a person's estate and the distributees of that
Added by Acts 1999, 76th Leg., ch. 1467, § 1.16, eff. Jan. 1,
Speak with a Lawyer in Texas
Last modified: August 11, 2007