BILL ANALYSIS



C.S.H.B. 1189
By: Van de Putte
May 1, 1995
Committee Report (Substituted)


BACKGROUND

Much publicity and press has been given to the inability and/or the
unwillingness of non-custodial parents to pay court ordered child
support.  Congress as well and many state legislatures have been
investigating the means through which to enforce these orders.

One method currently provided by the federal government is to allow
the reporting of delinquent child support to credit reporting
agencies.  Current state statute provide this method of enforcement
and the Texas Attorney General has been following federal
guidelines when this type of enforcement is necessary.  This
measure will strengthen the Attorney General's ability to perform
these reports and enforce collection of child support.

PURPOSE

CSHB 1189 requires the Attorney General to report delinquent child
support to credit reporting agencies when requested by a consumer
reporting agency.

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 Subchapter B, Chapter 231, Family Code, as added
by H.B. 655, Acts of the 74th Legislature, Regular Session, 1995,
by adding Section 231.113 as follows:

     Sec. 231.113.  REPORTS OF CHILD SUPPORT PAYMENTS TO CONSUMER 
     REPORTING AGENCIES.  (a)  Requires the Title IV-D agency to
provide relevant credit  information to consumer reporting agencies
on an obligor in a Title IV-D case regarding      child support
amounts owed and paid.

     (b) Requires the Title IV-D agency to send an obligor a notice
     to his or her last known address before disclosing information
     to a consumer reporting agency.  Specifies information that
     must be included in the notice.

     (c) Requires the Title IV-D agency to release the information
     to the consumer reporting agency if the obligor does not
     contest the disclosure within a specified period.

     (d) Requires the Title IV-D agency to regularly update the
information released to  consumer reporting agencies.

     (e)  Allows the Title-IV Agency to charge a consumer reporting
     agency a reasonable fee for providing information.

     (f)  Defines "consumer reporting agency", "obligor", and
     "Title IV-D case".

SECTION 2.  Amends Section 231.108(c), Family Code, as added by
H.B. 655, Acts of the 74th Legislature, Regular Session, 1995, to
authorize a Title IV-D agency to release credit information to
consumer reporting agencies according to Sec. 231.113.

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1189 incorporates current actions allowed by federal law
which the attorney general clarified in an effort to improve
current policy.  Conforms section numbers to the Family Code re-codification enacted by H.B. 655.

     Sec. 231.113. (a)  Allows the Title IV-D agency to report
relevant credit information of     obligor in Title IV-D cases to
a consumer credit agency as opposed to requiring a written  request
from the consumer agency.

     (b)  Eliminates the requirement of certified mail and extends
     the response time for the non-custodial parent to 30 days.

     (c)  Changes the required time for release of the credit
     information when no contest has been filed by the obligor from
     21 to 30 days.

     (d)  Includes the requirement that the Title IV-D agency
     update the credit information to ensure accuracy.

     (e)  Same as (d) in original version.

     (f)  Clarifies the definition of "consumer reporting agency"
     and "Title IV-D case," and includes definition of "obligor".

SUMMARY OF COMMITTEE ACTION

H.B. 1189 was considered in a public hearing on 26 April 1995.

The following persons testified in favor of the bill:
     Gregory D. Watson, representing himself.

The following person testified neutrally on the bill:
     Jonathan D. Bow, Office of the Attorney General.

The bill was left pending.

On 28 April 1995, in a formal meeting, the committee considered a
complete substitute which was adopted without objection. H.B. 1189
was reported favorably as substituted with the recommendation that
it do pass and be printed and be sent to the Committee on Local and
Consent Calendars by a record vote of 7 ayes, 0 nays, 0 pnv, 2
absent.