Texas Administrative Code › Title 31 - NATURAL RESOURCES AND CONSERVATION › Part 10 - TEXAS WATER DEVELOPMENT BOARD › Chapter 353 - INTRODUCTORY PROVISIONS › Subchapter H - COLLECTING DELINQUENT OBLIGATIONS › Section 353.122 - Procedures For Collecting A Delinquent Obligation

Current through Reg. 49, No. 28; July 12, 2024
(a) When an
				  obligation has been determined to be delinquent, pursuant to §
										353.121 of this title (relating to
				  Procedures For Establishing A Delinquent Obligation), the board shall take the
				  following steps.
(1) Verify the debtor's
				  address and telephone number, to the extent possible.
(2) Use the comptroller of public account's
				  "Warrant Hold" procedures to prevent payment to a delinquent debtor.
(3) Within 30 days of the obligation being
				  determined to be delinquent, send the debtor a demand letter for the full
				  amount of the obligation.
(4) If
				  the debtor does not respond to the demand letter, send a second demand letter
				  no sooner than 30 days but not more than 60 days after the first demand letter
				  was mailed.
(5) Verify that the
				  obligation is not legally uncollectible or uncollectible as a practical matter.
(A) In cases of bankruptcy, the board shall
				  prepare and timely file a proof of claim, when appropriate, in the bankruptcy
				  case of each debtor. Copies of all such proofs of claims filed shall be sent to
				  the attorney general. The board shall maintain records of notices of bankruptcy
				  filings, dismissals, and discharge orders to enable it to ascertain whether the
				  collection of the claim is subject to automatic stay provisions or whether the
				  debt has been discharged.
(B) If
				  the obligation is subject to an applicable limitation provision that would
				  prevent suit as a matter of law, the obligation will not be referred to the
				  attorney general unless circumstances indicate the limitations provision has
				  been tolled or is otherwise inapplicable.
(C) If a corporation has been dissolved, has
				  been liquidated under Chapter 7 of the United States Bankruptcy Code, or has
				  forfeited its corporate privileges or charter, or, in the case of a foreign
				  corporation, had its certificate of authority revoked, the obligation shall be
				  referred to the attorney general unless circumstances indicate the account is
				  clearly uncollectible. These circumstances shall be documented in the
				  appropriate account file.
(D) If
				  the debtor is an individual and is located out-of-state, or outside the United
				  States, the matter shall not be referred to the attorney general unless a
				  determination is made that the domestication of a Texas judgment in the foreign
				  forum would more likely than not result in collection of the obligation, or
				  that the expenditure of board funds to retain foreign counsel to domesticate
				  the judgment and proceed with collection attempts is justified. The board shall
				  consult with the attorney general in making such determinations.
(E) If the debtor is deceased, the board
				  shall file a claim in each probate proceeding administering the decedent's
				  estate. If such probate proceeding has concluded and there are no remaining
				  assets of the decedent available for distribution, the delinquent obligation
				  shall be classified as uncollectible and not referred to the attorney general.
				  If probate administration is pending or if none has been opened, any referral
				  to the attorney general shall include an explanation of any circumstances
				  indicating that the decedent has assets available to apply towards satisfying
				  the obligation.
(6) If
				  the debtor does not respond to the second demand letter within 30 days of it
				  being mailed, and if the debt is not determined to be legally uncollectible or
				  uncollectible as a practical matter, the board shall report the uncollected and
				  delinquent obligation to the attorney general for further collection efforts.
				  However, delinquent obligations upon which a bond or other security is held
				  shall be referred to the attorney general no later than 60 days after becoming
				  delinquent. If the principal has filed for relief under federal bankruptcy
				  laws, the account shall be referred to the attorney general immediately upon
				  notice or as soon as the board knows of the filing.