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.