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.