The TCEQ's stricter policy on delinquent fees and penalties
produced results during the first year of implementation.
The TCEQ's get-tough stance on delinquent fees and penalties
resulted in a boost in the agency's overall collection rate the
first year of implementation. In fiscal 2007, the agency's
collection rate was 98.1 percent of the $139 million in invoices
issued that year.
By comparison, the collection rate in fiscal 2006 was just under
97.9 percent of the $137 million invoiced.
The new collections protocol was enacted in September 2006, the
beginning of the 2007 fiscal year, after the commissioners agreed
that the agency would no longer issue, amend, or review permits,
registrations, or certifications for any person or entity with
overdue penalties or fees.
Under the delinquent fee and penalty protocol, the agency will
not declare an application to be administratively complete if the
applicant is delinquent in any payments.
Also the agency will withhold final action on any application
that was ruled administratively complete before staff knew about
the late payments. The protocol allows certain exceptions, such as
with applicants who agree to a TCEQ-approved payment plan or are
engaged in bankruptcy proceedings.
"The delinquent fee and penalty protocol has proved to be an
effective collections tool," says John Racanelli, revenue section
manager at the TCEQ. "The biggest impact has been to speed up
collections, which then reduced the number of delinquent accounts
referred to our collection agency. This resulted in additional
savings by reducing collection commissions."
Racanelli said that 3,588 accounts were referred to the
collection agency in fiscal 2007, representing a total of $870,000
in overdue payments. In fiscal 2006, the agency referred 3,635
accounts, for a total of $1.5 million in late payments.
For more information, see the agency's
protocol for delinquent fees and penalties used by agency
staff.
