CHAPTER 666. RECOVERING EXCESS COMPENSATION PAID TO A STATE OFFICER OR EMPLOYEE

GOVERNMENT CODE

TITLE 6. PUBLIC OFFICERS AND EMPLOYEES

SUBTITLE B. STATE OFFICERS AND EMPLOYEES

CHAPTER 666. RECOVERING EXCESS COMPENSATION PAID TO A STATE

OFFICER OR EMPLOYEE

Sec. 666.001. DEFINITIONS. In this chapter:

(1) "Compensation" includes:

(A) base salary or wages;

(B) longevity or hazardous duty pay;

(C) benefit replacement pay;

(D) a payment for the balance of vacation and sick leave under

Subchapter B, Chapter 661;

(E) a payment for the accrued balance of vacation time under

Subchapter C, Chapter 661; and

(F) an emolument provided in lieu of base salary or wages.

(2) "Indebtedness" means the amount of compensation paid to a

state employee that exceeds the amount the employee is eligible

to receive under law because at the time the compensation was

paid:

(A) the employee was ineligible to receive the entire amount

paid; or

(B) the employee's eligibility to receive the entire amount paid

was conditioned on:

(i) the occurrence of an event that did not occur; or

(ii) the employee's fulfillment of a promise that the employee

did not fulfill.

(3) "State agency" means a board, commission, council,

committee, department, office, agency, or other governmental

entity in the executive, legislative, or judicial branch of state

government. The term includes:

(A) the Texas Guaranteed Student Loan Corporation; and

(B) an institution of higher education as defined by Section

61.003, Education Code, other than a public junior or community

college.

(4) "State employee" means an officer or employee of a state

agency.

(5) "Successor" means:

(A) the estate of a deceased state employee;

(B) the surviving spouse of a deceased state employee; or

(C) the distributees of the estate of a deceased state employee.

Added by Acts 1999, 76th Leg., ch. 1467, Sec. 1.27, eff. Jan. 1,

2000. Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 39, eff.

Sept. 1, 2001.

Sec. 666.002. RECOVERY AUTHORIZATION. (a) A state agency may

recover in accordance with this chapter the amount of a state

employee's indebtedness to the agency if:

(1) the agency provides a notice to the employee or successor

that complies with Section 666.003;

(2) the agency provides the employee or successor with an

opportunity to exercise any due process or other constitutional

or statutory protection that must be accommodated before the

agency may begin a collection action or procedure;

(3) the agency determines that the recovery would not violate

any applicable law or rule of this state or the United States;

and

(4) the comptroller is not responsible under Section 404.046,

404.069, or 2103.003 for paying the amount owed by the agency to

the employee or successor through the issuance of a warrant or

initiation of an electronic funds transfer.

(b) The comptroller may recover in accordance with this chapter

the amount of a state employee's indebtedness to a state agency

if:

(1) the agency provides a notice to the employee or successor

that complies with Section 666.003;

(2) the agency's request for the comptroller to recover the

indebtedness complies with Section 666.005; and

(3) the comptroller is responsible under Section 404.046,

404.069, or 2103.003 for paying the amount owed by the agency to

the employee or the successor through the issuance of a warrant

or initiation of an electronic funds transfer.

(c) A state agency may recover the amount of a state employee's

indebtedness to the agency under this chapter by:

(1) deducting the amount of the indebtedness from any amount of

compensation the agency owes the employee or the employee's

successor; or

(2) reducing the gross amount of base salary or wages that the

agency owes the employee or the employee's successor for services

provided by the employee during any pay period after the pay

period in which the indebtedness was incurred.

(d) The comptroller may recover the amount of a state employee's

indebtedness to a state agency under this chapter by:

(1) deducting the amount of the indebtedness from any amount of

compensation the agency owes the employee or the employee's

successor; or

(2) reducing the gross amount of base salary or wages that the

agency owes the employee or the employee's successor for services

provided by the employee during any pay period after the pay

period in which the indebtedness was incurred.

(e) For the purposes of Subsections (c)(2) and (d)(2), an

indebtedness is incurred during the pay period the compensation

is earned by the employee. For purposes of this subsection,

compensation is earned without regard to whether the amount of

that compensation exceeds the amount the employee was eligible to

receive.

Added by Acts 1999, 76th Leg., ch. 1467, Sec. 1.27, eff. Jan. 1,

2000. Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 39, eff.

Sept. 1, 2001.

Sec. 666.003. NOTICE. (a) A state agency shall provide notice

to a state employee or the employee's successor before the

agency:

(1) recovers the amount of the employee's indebtedness to the

agency under Section 666.002(a); or

(2) requests the comptroller to recover the amount of the

employee's indebtedness to the agency under Section 666.002(b).

(b) The notice must:

(1) be given in a manner reasonably calculated to give actual

notice to the employee or successor;

(2) state the:

(A) amount of the indebtedness; and

(B) name of the indebted employee;

(3) specify the date by which the indebtedness must be paid; and

(4) inform the employee or successor that unless the

indebtedness is paid on or before the date specified, the amount

of the indebtedness may be recovered by:

(A) deducting it from any amount of compensation the agency owes

the employee or successor; or

(B) reducing the gross amount of base salary or wages that the

agency owes the employee or successor for services provided by

the employee during any pay period after the pay period in which

the indebtedness was incurred.

(c) For purposes of Subsection (b)(4)(B), an indebtedness is

incurred during the pay period the compensation is earned by the

employee. For purposes of this subsection, compensation is earned

without regard to whether the amount of that compensation exceeds

the amount the employee was eligible to receive.

Added by Acts 1999, 76th Leg., ch. 1467, Sec. 1.27, eff. Jan. 1,

2000. Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 39, eff.

Sept. 1, 2001.

Sec. 666.004. PAYMENT OF AMOUNT REMAINING. Any amount that

remains owed after a recovery under Section 666.002 shall be paid

to the state employee or successor.

Added by Acts 1999, 76th Leg., ch. 1467, Sec. 1.27, eff. Jan. 1,

2000. Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 39, eff.

Sept. 1, 2001.

Sec. 666.005. RECOVERY REQUESTS TO THE COMPTROLLER. (a) A

state agency may not request the comptroller to make a recovery

under Section 666.002(b) before the agency:

(1) provides the employee or successor the opportunity to

exercise any due process or other constitutional or statutory

protection that must be accommodated before a collection action

or procedure may begin; and

(2) determines that the recovery would not violate any

applicable law or rule of this state or the United States.

(b) The comptroller may not investigate or determine whether the

agency has complied with Subsection (a)(1). The comptroller may

rely on a determination made under Subsection (a)(2).

(c) A state agency's request to the comptroller to make a

recovery under Section 666.002(b) must comply with the

comptroller's requirements for format, content, and frequency.

Added by Acts 1999, 76th Leg., ch. 1467, Sec. 1.27, eff. Jan. 1,

2000. Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 39, eff.

Sept. 1, 2001.

Sec. 666.006. ASSIGNEES. (a) The assignee of a state employee

or the employee's successor is considered to be a successor for

the purposes of this chapter, except that a recovery under this

chapter from the compensation or base salary or wages owed to the

assignee of a state employee or the employee's successor may not

be made if the assignment became effective before the employee

incurred the indebtedness.

(b) For purposes of Subsection (a), an indebtedness is incurred

on:

(1) the date the compensation is paid, if eligibility to receive

the entire amount of the compensation was not conditioned on a

state employee fulfilling a promise; or

(2) the day after the deadline for a state employee to fulfill a

promise, if eligibility to receive the entire amount of the

compensation was conditioned on the employee fulfilling the

promise.

(c) This chapter neither authorizes nor prohibits a state

employee or the employee's successor from assigning the

employee's or successor's right or eligibility to receive

compensation.

Added by Acts 1999, 76th Leg., ch. 1467, Sec. 1.27, eff. Jan. 1,

2000. Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 39, eff.

Sept. 1, 2001.

Sec. 666.007. OTHER METHODS OF RECOVERY NOT PROHIBITED. This

chapter does not prohibit the comptroller or a state agency from

recovering an indebtedness in any manner authorized by a law

other than this chapter.

Added by Acts 2001, 77th Leg., ch. 1158, Sec. 39, eff. Sept. 1,

2001.

Sec. 666.008. ADMINISTRATION. The comptroller may adopt rules

and establish procedures to administer this chapter.

Added by Acts 1999, 76th Leg., ch. 1467, Sec. 1.27, eff. Jan 1,

2000. Renumbered from Government Code Sec. 666.007 by Acts 2001,

77th Leg., ch. 1158, Sec. 39, eff. Sept. 1, 2001.