BILL ANALYSIS H.B. 170 By: Thompson (Armbrister) Jurisprudence 5-25-95 Senate Committee Report (Unamended) BACKGROUND Both the state and local governments have used electronic transfer of funds for many years because of reduced paperwork, administrative costs, and postage expenses and the 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 funds transfer as a cost saving measure. Some counties have already implemented child support payments by electronic fund transfer and experienced lower costs and greater client satisfaction. PURPOSE As proposed, H.B. 170 authorizes a child support obligor to make payments directly to an obligee's bank account through electronic funds transfer; requires counties which make deposits by electronic funds transfer to submit child support payments by electronic funds transfer. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 154.242(b), as added by H.B. 655, Acts of the 74th Legislature, Regular Session, 1995, to authorize an obligor to make payments directly to the bank account of the obligee by electronic transfer and provide verification of the deposit to the local registry. Requires a local registry in a county that makes deposits into personal bank accounts by electronic funds transfer as of April 1, 1995, to transmit a child support payment to an obligee by electronic funds transfer if the obligee maintains a bank account. SECTION 2. Effective date: January 1, 1996. SECTION 3. Emergency clause.