QBfficeof tfp !Zlttornep 0Seneral
dbtate of Qexas
DAN MORALES April 26.1993
ATTORNEY
CENERAL
Mr.MarvinJ.Titzman opinion No. DM-2 17
ExecutiveDirector
Texas Surplus Property Agency Re: Whether an entity or institution that owes service
P.O. Box 8120 and handling charges and fees to the Texas Surplus
San Antonio, Terms 78208-0120 Property Agency is “indebted to the state” for
purposes of section 403.055 of the Govemment
Code, and related questions (RQ-514)
Dear Mr. Tii:
On behalf of the Texas Surphrs Property Agency (the “agency”), you have asked
us to consider whether the agency may use section 403.055 of the Government Code to
cdlect semi= charges and fees owed to it. Pursuant to the agencyk enabling statute,
V.T.C.S. article 6252&b, the agency is authorized to acquire from the federal government
any surphts property allocated to the agency, to warehouse the property, and, uhimateiy,
to distriie the property to entities and insdtmions qualitkd under the FederaJ Property
and Administmtive Senices Act of 1949.40 U.S.C. section 471 through 544. V.T.C.S.
art. 6252-6b. 5 4(a). (b). Additionally, the enabling statute authoriaes the agency to
impose upon the entity or msthution receiving the property a setvice and handling charge
or fee to cover the aget@ costs of squiring warehousin& distriiuting or transfbrring
the properly. Id. 8 4(l); 1 TAC. g 143.1 (adopting by reference rules contained in Texas
Plan of Qperation); Texas Plan of operation pt. V, at 14; see id at 14 - 15 (describii
how agency sets service charge). The agency is to deposit the charges and fees it collects
into a special fimd in the state treasmy caged “the surphts propetty service charge tknd”
(the Vimd”). V.T.C.S. art. 6252-6b, 8 4(m); 1 T.A.C. 5 143.1; Texas Plan of operation
pt. V, at 16, 17 (discussing use of Service Chsrge Trust Fund). The agency may use
money in the fund only to carry out the agency’s statutory tknctions. V.T.C.S. art.
6252-6b. 8 4(m).
You advise that some of the entities and institutions to which you have mm&red
surphts property have not paid the service and handlmg charges or tbes that they owe.
You & therefore, whether the agency, pursuant to section 403.055 of the Government
Code, may request the comptroller to withhold wanmts to the entities or institutions
whose acwunts are in arrears. Section 403.055 states in pertinent part as follows:
(a) Thccompsrollamaynotissueawarmnttoapasonlifthe
personisindebted.. .tothestate.. .,untilthedebt.. [is]paid.
..
G7wrmmtcodcchaptcr311,ddincs”pasonmtoiacludcs
‘TkcadcCoostructionActoftbc
mganizaion,~~gwcmmmtal sldldiaonoragcncy,budncastNstestate,bust,
~~~aadanyotbcrlegalalti~. Gm+tcde§311.005m.
p. 1141
Mr.MarvinJ.Tii -Page 2 (DM-217)
(c) This section does not p&iii the comptroller fkomissuing a
warrant to pay the wmpematiotP of a state officer or emplo~ee.~
(d) When this section prohibits the comptroller fhm issuing a
warm& the wmptroller is also prohii fkom using an electronic
iimds tratlhr system. footnotes added.]
Inwnsmlingthestatutolypredecessor to section 403.055(a) of the Govemmaa
Code, V.T.C.S. article 4350, this office stated that the hnguage of the section assumes
exiance and the establhhment of a debt.” Lettex Advisory No. 57 (1973) at 1.
~thew~“~‘mryre&seto~ea~o~if”ad~plukca]
estabikhed either by ugreement between the state and the debtor. by the state’s proper
allegation of the existence of a debt by siatutq reference; or by some other @iMy
e&x% mums.” (Emphasis in original.) Attotney General Opinion MW-416 (1981) at
2-3; Letter Adviwry No. 57 at 4. The wmptroller lacks authority to withhold warrama
tmder section 403.055(a) of the GovanmentCodeifnoddxexistsintheusualand
ordinarysenseoftheword. AttonqGeneralOpinionMW-416at3.
As stated above, article 6252-6b. section 4(r), V.T.C.S., author&s the agency to
imposeuponandpientofrgmcygoodsa~~Mdhandlingchargeorfee. Failureto
pay the charge or fix creates a debt. See BLACK’LAW ~ DICI’IONARY363 (5th cd. 1979)
(deGng”debt”). Theissuebawmes,therefore~whetherapersonthatfhilstopaythe
saviceand~chargeorfeetotheagencyis~~tedtothe~forplrposesof
section 403.055 of the Govemment Code. Because the agency is a subdihion of the
state,weconchrdethatapaswindebtedtothersencyisliLewiseindebtedtothestllte.
conseqwntly, the agency, ptlmant to section 403.055 of the Gmemmea code, may
mpest the comptroller to withhold warmntstoapersonindebtedtotheagency~andthe
wmptroller is authorixed to withhold the wammts, provided that tha agency properly has
alleged the statutory basis of the debt-here, article 6252-6b. section 4(1), V.T.C.S. See
Letter Advisoty No. 57 (1973) at 4:
You also ask whether the wmptrokr is authorized to withhold any warrant that is
payable to any individual identiikd and ccrtihd as the principal 05cer or respomile
employee of the entity or htitution that is indebted to the agency. To answer your
question, WC would have to detumioe who, in each particular entity or insthtio~ is
legally responsibk for the debts of the entity or institution. Such a determhation requires
p. 1142
Mr.MarvinJ.Timnan - Page 3 (DM-217)
the resolution of facts and is the&ore outside the. scope of the opiaion prkss. We note
in refkamw to your question, howev~, that while section 403.055(a) expressly prohibits
thew~~a~missuinga~toapasonthatisindebtedtothestate,suboection
(c) expressly authorizes the wmptfolla to issue a warrant to pay a state 05&s or state
emp~oyee’swmpensation.
SUMMARY
The Texas Surplus Property Agency, pumuant to section
403.055 of the Governmmt code. tllay request the Wl+O~K to
withhold warmntstoanentityorinstitutiontbathasfhikdtopaythe
agencyaccruedserviceandhandhgcbargcsandfees. Thus
provided that the agency proparly al&es to the wmptrokr the
statutory basis of the debt, the WtltptdK is authorized to withhold
such wanants. %dlK the comptrou~ is authorized to withhold
auywarmntthatispayabletoanindividualidwtifiedandce&kdas
the principal officer or responsiile employee of tha entity or
inrtitutionthrtisindebtedtotheagencyisaquestionimrohringthe
resolution of facts; it is therefore outside the awpe of the opinion
process.
DAN MORALES
AttomcyGcnaalofTexas
WILL PRYOR
F~AsshntAttorneyGenaral
MARYKELLER
Deputy Attorney Chteral for Litigation
RENEAHKK!3
State Solicitor
MADELEINE B. JOHNSON
Chair, Opiion Committee
p. 1143