By Romo                                               H.B. No. 1322
       74R4896 JMM-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the use of private and other entities for child support
    1-3  enforcement.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 76, Human Resources Code, is amended by
    1-6  adding Section 76.0011 to read as follows:
    1-7        Sec. 76.0011.  USE OF PRIVATE ENTITIES FOR CHILD SUPPORT
    1-8  ENFORCEMENT.  (a)  The attorney general may contract with a private
    1-9  attorney, other private entity, or political subdivision of the
   1-10  state to:
   1-11              (1)  establish or modify child support obligations;
   1-12              (2)  collect child support; or
   1-13              (3)  determine paternity under this chapter or federal
   1-14  law.
   1-15        (b)  A private attorney, other private entity, or political
   1-16  subdivision that contracts with the attorney general under this
   1-17  section may not retain as compensation for services rendered for an
   1-18  obligee a portion of a delinquent child support obligation that is
   1-19  awarded or collected.  The attorney general shall compensate the
   1-20  private attorney, other private entity, or political subdivision
   1-21  from late payment fees collected under Section 14.35, Family Code.
   1-22  To the extent that late payment fees collected under Section 14.35,
   1-23  Family Code, are insufficient to fully compensate a private
   1-24  attorney, other private entity, or political subdivision, the
    2-1  attorney general shall use for that purpose funds appropriated by
    2-2  the legislature or collected by the attorney general for use in
    2-3  child support enforcement.
    2-4        (c)  The attorney general shall contract with private
    2-5  attorneys or other private entities to represent child support
    2-6  obligees who receive financial assistance under Chapter 31 in not
    2-7  less than 10 percent of cases in which a child support payment is
    2-8  delinquent by 12 months or more.
    2-9        (d)  A private attorney, other private entity, or political
   2-10  subdivision that contracts with the attorney general under this
   2-11  section may use any means of enforcement available to the attorney
   2-12  general under state law.
   2-13        (e)  The attorney general shall provide copies of all
   2-14  contracts entered into under this section to the Legislative Budget
   2-15  Board and the Governor's Office of Budget and Planning, along with
   2-16  a written justification of the need for each contract, within 60
   2-17  days after the execution of the contract.
   2-18        (f)  The attorney general shall attempt to award to
   2-19  disadvantaged businesses at least 20 percent of the contracts
   2-20  awarded to private attorneys or private entities under this
   2-21  section.
   2-22        (g)  The attorney general shall submit to the governor and
   2-23  the legislature not later than August 31 of each year a report that
   2-24  indicates the:
   2-25              (1)  name of each disadvantaged business awarded a
   2-26  contract under this section; and
   2-27              (2)  percentage of the total amount of compensation
    3-1  paid by the attorney general to private attorneys and private
    3-2  entities under this section received by disadvantaged businesses.
    3-3        (h)  The attorney general shall give preference to a private
    3-4  entity with a principal place of business in this state in awarding
    3-5  contracts under this section when the cost and quality of services
    3-6  being offered are equal.
    3-7        (i)  In this section, "disadvantaged business" means:
    3-8              (1)  a corporation formed for the purpose of making a
    3-9  profit in which at least 51 percent of all classes of the shares of
   3-10  stock or other equitable securities are owned by one or more
   3-11  persons who are socially disadvantaged because of their
   3-12  identification as members of certain groups, including black
   3-13  Americans, Hispanic Americans, women, Asian Pacific Americans, and
   3-14  Native Americans, who have suffered the effects of discriminatory
   3-15  practices or similar invidious circumstances over which they have
   3-16  no control;
   3-17              (2)  a sole proprietorship created for the purpose of
   3-18  making a profit that is 100 percent owned, operated, and controlled
   3-19  by a person described by Subdivision (1);
   3-20              (3)  a partnership formed for the purpose of making a
   3-21  profit in which at least 51 percent of the assets and interest in
   3-22  the partnership is owned by one or more persons described by
   3-23  Subdivision (1), only if those persons have a proportionate
   3-24  interest in the control, operation, and management of the
   3-25  partnership affairs; or
   3-26              (4)  a joint venture in which each entity in the joint
   3-27  venture is a business described by Subdivision (1), (2), or (3).
    4-1        SECTION 2.  Sections 76.007(b)-(g), Human Resources Code, are
    4-2  amended to read as follows:
    4-3        (b)  <The attorney general may contract with private
    4-4  attorneys or political subdivisions of the state to represent this
    4-5  state or another state in an action brought under the authority of
    4-6  federal law and this chapter.>
    4-7        <(c)  The attorney general shall provide copies of all
    4-8  contracts entered into under this section to the Legislative Budget
    4-9  Board and the Governor's Office of Budget and Planning, along with
   4-10  a written justification of the need for each contract, within 60
   4-11  days after the execution of the contract.>
   4-12        <(d)>  An attorney employed by the attorney general or as
   4-13  otherwise provided by this chapter represents the interest of the
   4-14  state and not the interest of any other party.  The provision of
   4-15  services by an attorney under this chapter does not create an
   4-16  attorney-client relationship between the attorney and any other
   4-17  party.  The attorney general's office shall, at the time an
   4-18  application for child support services is made, inform the
   4-19  applicant that neither the attorney general's office nor any
   4-20  attorney who provides services under this chapter is the
   4-21  applicant's attorney and that the attorney providing services under
   4-22  this chapter does not provide legal representation to the
   4-23  applicant.
   4-24        (c) <(e)>  An attorney employed by the attorney general or as
   4-25  otherwise provided under this chapter may not be appointed or act
   4-26  as a guardian ad litem or attorney ad litem for a child or another
   4-27  party.
    5-1        (d) <(f)>  The provision of services by the attorney
    5-2  general's office under this chapter or Part D of Title IV of the
    5-3  federal Social Security Act (42 U.S.C.  Section 651 et seq.) does
    5-4  not authorize service on the attorney general's office of any legal
    5-5  notice that is required to be served on any party other than the
    5-6  attorney general.
    5-7        (e) <(g)>  A court shall not disqualify the attorney general
    5-8  in a legal action brought under this chapter or Part D of Title IV
    5-9  of the federal Social Security Act (42 U.S.C. Section 651 et seq.)
   5-10  on the basis that the attorney general has previously provided
   5-11  services to a party whose interests may now be adverse to the
   5-12  relief sought by the attorney general in providing services under
   5-13  this chapter.
   5-14        SECTION 3.  Sections 76.009(a) and (b), Human Resources Code,
   5-15  are amended to read as follows:
   5-16        (a)  In, or in connection with, a Title IV-D case brought by
   5-17  the attorney general or a private attorney or political subdivision
   5-18  that has entered into a contract under Section 76.0011(a)
   5-19  <76.007(b)>, the attorney general shall pay the following fees in a
   5-20  suit affecting the parent-child relationship under Title 2, Family
   5-21  Code, including a suit to establish paternity, a motion to enforce
   5-22  or modify a decree, or a notice of child support delinquency, or in
   5-23  a suit under Chapter 21, Family Code:
   5-24              (1)  filing fees and fees for issuance and service of
   5-25  process as provided by Sections 51.317, 51.318(b)(2), and
   5-26  51.319(4), Government Code, and Section 14.13, Family Code;
   5-27              (2)  fees for transfer as provided by Section 11.06(l)
    6-1  or Section 14.13, Family Code;
    6-2              (3)  fees for the issuance and delivery of orders and
    6-3  writs of income withholding in the amounts provided by Sections
    6-4  14.43 and 14.45(h), Family Code;
    6-5              (4)  a fee of $45 for each item of process to each
    6-6  individual on whom service is required, including service by
    6-7  certified or registered mail, to be paid to a sheriff, constable,
    6-8  or clerk whenever service of process is required; and
    6-9              (5)  mileage costs incurred by a sheriff or constable
   6-10  when traveling out of the county to execute an outstanding warrant
   6-11  or capias, to be reimbursed at a rate not to exceed the rate
   6-12  provided for mileage incurred by state employees in the General
   6-13  Appropriations Act.
   6-14        (b)  Except as provided by Subsections (a) and (d), a
   6-15  district or county clerk, sheriff, constable, or other government
   6-16  officer or employee may not charge the attorney general or a
   6-17  private attorney or political subdivision that has entered into a
   6-18  contract under Section 76.0011(a) <76.007(b)> any fees or other
   6-19  amounts otherwise imposed by law for services rendered in, or in
   6-20  connection with, a Title IV-D case, including:
   6-21              (1)  a fee payable to a district clerk under Sections
   6-22  51.319(1), (2), (3), and (5), Government Code;
   6-23              (2)  a court reporter fee under Section 51.601,
   6-24  Government Code, except as provided by Subsection (i) of this
   6-25  section;
   6-26              (3)  a judicial fund fee under Section 51.701,
   6-27  Government Code;
    7-1              (4)  a fee for a child support registry, enforcement
    7-2  office, or domestic relations office; and
    7-3              (5)  a fee for alternative dispute resolution services.
    7-4        SECTION 4.  Section  11.03(i), Family Code, is amended to
    7-5  read as follows:
    7-6        (i)  In providing services authorized by Chapter 76, Human
    7-7  Resources Code, the attorney general or a private attorney, other
    7-8  private entity, or political subdivision contracting with the
    7-9  attorney general under Section 76.0011, Human Resources Code, may
   7-10  bring any child support action authorized under Title 2 <of this
   7-11  code>, including an action to modify a court support order and an
   7-12  action to enforce a court support order.
   7-13        SECTION 5.  Section 11.181(a), Family Code, is amended to
   7-14  read as follows:
   7-15        (a)  At the conclusion of a Title IV-D case, the court may
   7-16  assess attorney fees and all court costs as authorized by law
   7-17  against the nonprevailing party, except that the court may not
   7-18  assess those amounts against the attorney general or a private
   7-19  attorney or political subdivision that has entered into a contract
   7-20  under Section 76.0011(a) <76.007(b)>, Human Resources Code, or any
   7-21  party to whom the attorney general has provided services under this
   7-22  chapter.  Such fees and costs shall not exceed reasonable and
   7-23  necessary costs as determined by the court.
   7-24        SECTION 6.  Subchapter B, Chapter 14, Family Code, is amended
   7-25  by adding Section 14.35 to read as follows:
   7-26        Sec. 14.35.  ACCRUAL OF LATE PAYMENT FEES ON DELINQUENT CHILD
   7-27  SUPPORT.  (a)  A late payment fee accrues on delinquent child
    8-1  support at the rate of six percent a year.  The late payment fee
    8-2  accrues from the date the support is delinquent until the date the
    8-3  support is paid, regardless of whether the amount of child support
    8-4  in arrears has been reduced to judgment by the court as provided by
    8-5  Section 14.41.  A court that confirms the amount of child support
    8-6  in arrears under Section 14.41 shall include the amount of a late
    8-7  payment fee owed in the total amount confirmed.
    8-8        (b)  A child support payment is delinquent if the payment is
    8-9  not received by the obligee, registry, or other entity specified by
   8-10  the child support order before the 31st day after the payment date
   8-11  stated in the order.  If a payment date is not stated in the child
   8-12  support order, a child support payment is delinquent if payment is
   8-13  not received by the obligee, registry, or other entity specified by
   8-14  the child support order on the date that an amount equal to the
   8-15  support payable for one month becomes past due.
   8-16        (c)  A late payment fee that accrues as provided by this
   8-17  section may be  collected by any means provided for the collection
   8-18  of child support.  The fee may be collected only after the full
   8-19  amount of overdue child support is paid.
   8-20        (d)  In a case in which a child support obligee is
   8-21  represented by the attorney general or a private attorney, other
   8-22  private entity, or political subdivision contracting with the
   8-23  attorney general under Section 76.0011, Human Resources Code, a
   8-24  late payment fee collected under this section is assigned to the
   8-25  attorney general to be used for the payment of costs relating to
   8-26  the collection of child support.
   8-27        (e)  The late payment fee under this section is in addition
    9-1  to any accrued interest on unpaid child support under Section
    9-2  14.34.
    9-3        SECTION 7.  Not later than February 1, 1997, the attorney
    9-4  general shall report to the legislature an estimate of cost savings
    9-5  to the state resulting from changes in child support enforcement
    9-6  implemented by this Act.
    9-7        SECTION 8.  (a)  This Act takes effect September 1, 1995.
    9-8        (b)  The fee imposed by Section 6 of this Act accrues on a
    9-9  delinquent child support payment beginning on September 1, 1995, or
   9-10  the date on which the payment becomes delinquent, whichever is
   9-11  later.
   9-12        SECTION 9.  The importance of this legislation and the
   9-13  crowded condition of the calendars in both houses create an
   9-14  emergency and an imperative public necessity that the
   9-15  constitutional rule requiring bills to be read on three several
   9-16  days in each house be suspended, and this rule is hereby suspended.