BILL ANALYSIS C.S.H.B. 1085 By: Reyna March 9, 1995 Committee Report (Substituted) BACKGROUND Currently, statutory authority allows for a county to establish a domestic relations office, a child support office, or allows for a county court administrator to collect child support. In addition, Section 152.1074, Human Resources Code, allows for Harris County to contract with a private entity for the collection of child support. Dallas County would like a private contractor to perform monitoring and initial automatic enforcement of child support, without relying on federal, state, or county funding. Other counties have expressed an interest in contracting with a private entity for the collection of child support. PURPOSE As proposed, C.S.H.B. 1085 authorizes a county to contract with a private entity for the collection of child support. 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 Subtitle B, Title 10, Human Resources Code, by adding Chapter 153 as follows: CHAPTER 153. CHILD SUPPORT COLLECTION BY PRIVATE ENTITY Sec. 153.001. AUTHORITY TO CONTRACT. Provides that a county commissioners court may contract with a private entity to enforce, collect, receive and disburse child support payments, other amounts due under a court order containing an order to pay child support, or fees. Also, provides that a county may contract with a private entity to conduct other services authorized by a commissioners court. Sec. 153.002. TERMS AND CONDITIONS OF CONTRACT. Provides that a commissioners court may include all appropriate terms and conditions in the contract that it determines are reasonable to secure the services of a private entity. These terms and conditions may include provisions specifying services, compensation, security of funds, records, inspection, and the disclosure or nondisclosure of information. Sec. 153.003. FUNDING. Provides methods that a commissioners court may use to recover the costs of providing services. Also, provides that the commissioners court may provide reasonable exemptions from the collection of fees, or require the payment of a fee annually and in advance. Provides that the fees may be collected by any means provided for the collection of child support. Sec. 153.004. CUMULATIVE EFFECT OF CHAPTER. Provides that this chapter is cumulative of the powers and duties created by other law, except that county action under this chapter precludes the exercise or performance of a power or duty created or conferred by other law as provided by order of a commissioners court. SECTION 2. Provides that the change in law made by this Act does not prevent a county from acting under a provision of Chapter 152, Human Resources Code, to enforce, collect, receive, or disburse child support or another amount due under a court order containing an order to pay child support. SECTION 3. Effective Date: September 1, 1995. SECTION 4. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The committee substitute drops the 1.5 million or more population bracket contained in the original bill. The original bill requires the private entity contracting with the county to execute a surety bond payable to the county. The committee substitute does not require a surety bond, but allows the commissioners court to include all appropriate terms and conditions in the contract with the private entity that it determines reasonable. The committee substitute provides additional funding methods to provide or recover the costs of providing such services and allows the commissioners court to provide by order reasonable exceptions from such fees. The committee substitute adds a cumulative effect provision providing that this chapter is cumulative of the powers and duties created by other law, except that county action under this chapter precludes the exercise or performance of a power or duty created or conferred by other law as provided by order of a commissioners court. SUMMARY OF COMMITTEE ACTION HB 1085 was considered by the Committee on County Affairs in a public hearing on March 8, 1995. Representative Reyna opened. Philip Scheps, representing himself, testified in favor of HB 1085. Tom Laramey, representing Maximus, Inc., testified in favor of HB 1085. Leonard Spearman, representing Harris County Judge Eckels, testified neutrally on HB 1085. Craig Pardue, representing Dallas County, testified in favor of the committee substitute for HB 1085. Representative Reyna closed. The Committee on County Affairs considered a complete committee substitute for HB 1085. The substitute was adopted without objection. HB 1085 was reported favorably, as substituted, with the recommendation that it do pass, by a record vote of 7 ayes, 2 nays, 0 pnv, 0 absent.