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.