Relating to the provision of legal services for, and to the collection and deposit of, civil penalties imposed by and other obligations owed to the Texas Ethics Commission.

89(R) HB 5182 - House Committee Report version - Bill Text

89R27440 MZM-F

By: Zwiener

H.B. No. 5182

Substitute the following for H.B. No. 5182:

By: King

C.S.H.B. No. 5182

A BILL TO BE ENTITLED

AN ACT

relating to the provision of legal services for, and to the

collection and deposit of, civil penalties imposed by and other

obligations owed to the Texas Ethics Commission.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 402.0212, Government Code, is amended by

adding Subsection (g) to read as follows:

(g)

This section does not apply to the Texas Ethics

Commission.

SECTION 2. Subchapter C, Chapter 571, Government Code, is

amended by adding Sections 571.080 and 571.081 to read as follows:

Sec.

571.080.

USE OF APPROPRIATED MONEY TO RETAIN OUTSIDE

COUNSEL. Notwithstanding any other law, the commission:

(1)

may use appropriated money to contract with

outside legal counsel for the purpose of collecting a civil penalty

the commission imposes; and

(2)

is not required to request or obtain approval from

the attorney general before contracting with outside legal counsel

under Subdivision (1).

Sec.

571.081.

DEPOSIT OF CIVIL PENALTIES TO GENERAL REVENUE

FUND. (a) The comptroller shall deposit to the credit of the

general revenue fund the proceeds from a civil penalty collected

for a violation of a law the commission administers and enforces and

that is not paid voluntarily.

(b)

Money the comptroller deposits to the credit of the

general revenue fund under this section may only be appropriated to

the commission for the purpose of collecting civil penalties for a

violation of a law the commission administers and enforces.

SECTION 3. Section 2107.003, Government Code, is amended by

amending Subsections (a), (d), (e), (g), (h), and (i) and adding

Subsections (k) and (l) to read as follows:

(a) Except as provided by Subsection (c)
,
[
or
] (c-1),
(k),

or (l),
a state agency shall refer an uncollected and delinquent

obligation that meets the referral guidelines established by the

attorney general to the attorney general for further collection

efforts. The state agency must refer the obligation on or before

the 90th day after the date the obligation becomes past due or

delinquent.

(d) The agency contracting under Subsection (b)
,
[
or
] (c)
,

(k), or (l)
is entitled to recover from the obligor, in addition to

the amount of the obligation, reasonable costs incurred in

undertaking the collection, including the costs of a contract under

this section, in an amount not to exceed 30 percent of the total

amount of the obligation.

(e) A person awarded a contract under Subsection (b), (c),

[
or
] (c-1)
, (k), or (l)
may not file suit or otherwise pursue

judicial action to collect the obligation owed in a court of this

state or another state on behalf of the contracting state agency.

(g) The contracting state agency may provide a person

contracting under Subsection (b), (c), [
or
] (c-1)
, (k), or (l)
any

information, including confidential information, that the agency

is not prohibited from sharing with another state or with the United

States and that is:

(1) in the custody of the agency owed the obligation;

and

(2) necessary to the collection of the obligation.

(h) A person acting under a contract formed under Subsection

(b), (c), [
or
] (c-1)
, (k), or (l)
and each employee or agent of that

person is subject to all statutory prohibitions against the

wrongful disclosure of confidential information that the

contracting state agency and its employees are subject to. A

contractor's employee is subject to the same penalties for wrongful

disclosure of confidential information as would apply to the

employees of the contracting agency.

(i) The contracting agency shall require a person who

contracts under Subsection (b), (c), [
or
] (c-1)
, (k), or (l)
to

obtain and maintain insurance adequate to provide reasonable

coverage for damages negligently, recklessly, or intentionally

caused by the contractor or the contractor's employee or agent in

the course of collecting an obligation under the contract.

(k)

The Texas Ethics Commission may employ, retain, or

contract with a person other than a full-time state employee to

collect delinquent obligations owed to the commission in the

commission's official capacity. The commission may use money

appropriated to the commission for the purpose of enforcing laws

administered and enforced by the commission to employ, retain, or

contract with a person under this subsection. A person contracted

under this subsection is entitled to a collection fee, as provided

under the contract, in an amount not to exceed 30 percent of the

full amount of the obligation collected.

(l)

The Texas Ethics Commission may contract with one or

more persons to collect delinquent obligations that have been

referred to the attorney general if the attorney general has

returned the matter to the commission after exhausting all

reasonable efforts or has not taken action to collect the

obligation before the sixth month after the date the attorney

general received the referral. A person contracted under this

subsection is entitled to a collection fee equal to 30 percent of

the full amount of the obligation collected.

SECTION 4. This Act takes effect September 1, 2025.