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.