BILL ANALYSIS



C.S.H.B. 170
By: Thompson
04-26-95
Committee Report (Substituted)


BACKGROUND

     The state and many counties have used electronic transfer of
funds for many years, because of reduced paperwork, administrative
cost, postage savings, and convenience for the 
person receiving the funds. In 1991, as part of the original
Performance Audit Review, the state required that many payments
made by the state be transacted by electronic fund transfer as a
cost saving measure. Some counties in this state have already
implemented child support payments by electronic fund transfer and
experienced lower cost and greater client satisfaction.

PURPOSE

     To allow a child support obligor to make payments directly to
an obligee's bank account with the approval of the court entering
the order.  Also to require counties which make deposits into
personal banks by electronic funds transfer, as of April 1, 1995,
to submit child support payments to those persons owed such
payments by electronic transfer funds if that person maintains a
bank account.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 154.242(b), Family Code, as added by
H.B. 655, Acts of the 74th Legislature, Regular Session, 1995, to
allow a child support obligor, with court approval, to make
payments directly to an obligee's bank account by electronic
transfer.  Requires counties which make electronic transfer
deposits into personal bank accounts, as of April 1, 1995, to
transmit child support payments to an obligee with a personal bank
account by electronic funds transfer.

SECTION 2.  Effective Date:  January 1, 1996.

SECTION 3.  Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

CSHB 170 requires counties which make deposits as of April 1, 1995
into personal banks by electronic funds transfer to transmit child
support payments to an obligee with a personal bank account by
electronic funds transfer, while HB 170 as originally filed
required all counties with a population of 30,000 or more to do so.
The substitute also contains a provision that allows a child
support obligor to make payments directly to an obligee's bank
account with the court's approval.  CSHB 170 changes the effective
date of this Act from September 1 to January 1, 1995.

SUMMARY OF COMMITTEE ACTION

H.B. 170 was considered in a public hearing on 5 April 1995.

The following person testified in favor:
     Jack Tucker, Texas Fathers Alliance.

The committee considered a complete substitute to the bill.  Two
(2) amendments were offered to the substitute.  Two amendments were
adopted without objection.  The substitute as amended was adopted
without objection.  The chair directed the staff to incorporate the
amendments into the substitute.

H.B. 170 was reported favorably as substituted with the
recommendation that it do pass and be printed by a record vote of
6 ayes, 0 nays, 0 pnv, 3 absent.

A motion to reconsider the vote by which H.B. 170 was reported
favorably carried without objection.  The chair laid out H.B. 170. 
The committee considered a complete substitute to the bill.  Two
(2) amendments were offered to the substitute.  Two amendments were
adopted without objection.  The chair directed the staff to
incorporate the amendments into the substitute.

H.B. 170 was reported favorably as substituted by a record vote of
7 ayes, 0 nays, 0 pnv and 2 absent.