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.