Title
Consider a memorandum/resolution approving an Interlocal Agreement with the Texas Department of Motor Vehicles authorizing participation with the Scofflaw Program.
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DATE: August 4, 2026
TO: Kent Cagle, Interim City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Interlocal Agreement with TxDMV for the Scofflaw Program
BACKGROUND AND FINDINGS:
The Texas Scofflaw Program is a statewide initiative designed to assist local courts in enforcing delinquent fines and fees by restricting vehicle registration renewals for individuals with overdue balances. Under this program, the Texas Department of Motor Vehicles (TxDMV) can place holds on vehicle registrations when a person owes delinquent court fines or fees, thereby incentivizing compliance. Once the outstanding amounts are resolved, TxDMV removes the registration hold, facilitating the renewal process.
Participation in the Scofflaw Program requires the execution of an Interlocal Agreement between the City of Killeen Municipal Court and TxDMV. This agreement authorizes the Court to engage in the program and enables TxDMV to process inquiries, place registration flags on eligible vehicle records, and lift those flags when accounts are brought into compliance.
Currently, the Killeen Municipal Court contracts with McCreary, Veselka, Bragg & Allen, P.C. (MVBA) for delinquent account collection services. As part of this arrangement, MVBA will administer the Scofflaw Program on behalf of the Court, in accordance with the existing collection contract previously approved by City Council.
Participation in the Scofflaw Program enhances the Court’s ability to enforce delinquent fines and fees, encouraging greater compliance and improving collection rates through an additional enforcement tool.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
Yes, the interlocal agreement between the City of Killeen and TxDMV conforms to City Policy and Texas Local Government Code, Chapter 791 and Chapter 271 Subchapter F.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
There is no anticipated fiscal impact to the City of Killeen. Pursuant to the existing agreement with McCreary, Veselka, Bragg & Allen, P.C. (MVBA), MVBA will be responsible for all costs associated with participation in the Texas Department of Motor Vehicles Scofflaw Program, including the required $500 deposit and any applicable transaction or processing fees. No additional City funds are required to implement this agreement.
Is this a one-time or recurring revenue/expenditure?
n/a
Is this revenue/expenditure budgeted?
n/a
If not, where will the money come from?
n/a
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
n/a
RECOMMENDATION:
Approve the Interlocal Agreement between the City of Killeen and the Texas Department of Motor Vehicles (TxDMV) for participation in the Scofflaw Program and authorize the City Manager to execute the agreement.
DEPARTMENTAL CLEARANCES:
Finance
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Interlocal Agreement with TxDMV
McCreary Veselka Bragg & Allen Agreement
Presentation