TITLE: Relating to the authority of a municipality or county to contract with a vendor for the collection of certain debts.

SUMMARY: Relating to the authority of a municipality or county to contract with a vendor for the collection of certain debts.

FULL TEXT:
AN ACT relating to the authority of a municipality or county to contract with a vendor for the collection of certain debts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 140, Local Government Code, is amended by adding Section 140.009 to read as follows: Sec. 140.009. CONTRACT FOR COLLECTION OF DEBTS IN CIVIL CASES. (a) The governing body of a municipality or the commissioners court of a county may contract with a public or private vendor for the collection of a debt owed to the municipality or county relating to a civil case, including an unpaid fine, fee, or court cost, if the debt is more than 60 days overdue. (b) A municipality or county contracting with a vendor under Subsection (a) may authorize a collection fee of not more than 30 percent of the amount of the debt collected. The collection fee may be used only to compensate the vendor who collects the debt. (c) This section does not apply to the collection of commercial bail bonds. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution.