By Seidlits                                           H.B. No. 1862
       74R6809 JMM-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the private enforcement and collection of child support
    1-3  payments under the Child Support Collection Privatization Council.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  The heading of Chapter 76, Human Resources Code,
    1-6  is amended to read as follows:
    1-7       CHAPTER 76.  ATTORNEY GENERAL'S OFFICE AND PRIVATE CHILD
    1-8                      SUPPORT COLLECTION SERVICES
    1-9        SECTION 2.  Sections 76.001 through 76.011, Human Resources
   1-10  Code, are designated as Subchapter A to read as follows:
   1-11               SUBCHAPTER A.  ATTORNEY GENERAL'S OFFICE
   1-12        SECTION 3.  Section 76.002, Human Resources Code, is amended
   1-13  by adding Subsection (j) to read as follows:
   1-14        (j)  If the attorney general is unable to establish
   1-15  compliance under an order or agreement for the payment of child
   1-16  support on or before the 90th day after the date the order is
   1-17  entered or the agreement is reached, the attorney general shall
   1-18  refer the account to a private collector under Subchapter B.
   1-19        SECTION 4.  Chapter 76, Human Resources Code, is amended by
   1-20  adding Subchapter B to read as follows:
   1-21       SUBCHAPTER B.  PRIVATE CHILD SUPPORT COLLECTION SERVICES
   1-22        Sec. 76.021.  DEFINITIONS.  In this subchapter:
   1-23              (1)  "Account" means a file pertaining to a specific
   1-24  person liable for the payment of child support that has been
    2-1  referred from the attorney general to a private collector.
    2-2              (2)  "Agreement" means a child support collection
    2-3  agreement between a person liable for child support payments and a
    2-4  private collector regarding the terms and conditions of child
    2-5  support payments under Section 76.028.
    2-6              (3)  "Contract" means an agreement between the council
    2-7  and a private collector for the enforcement and collection of child
    2-8  support.
    2-9              (4)  "Council" means the Child Support Collection
   2-10  Privatization Council.
   2-11              (5)  "Order" means a decree or judgment of a court or
   2-12  administrative body.
   2-13              (6)  "Private collector" means an attorney who
   2-14  contracts with the council to engage in the collection of child
   2-15  support payments.
   2-16        Sec. 76.022.  COUNCIL.  The Child Support Collection
   2-17  Privatization Council consists of the attorney general, the
   2-18  comptroller, and the executive director of the Texas Department of
   2-19  Human Services.
   2-20        Sec. 76.023.  POWERS AND DUTIES OF COUNCIL.  (a) The council
   2-21  shall:
   2-22              (1)  develop criteria for the selection of private
   2-23  collectors;
   2-24              (2)  divide the state into regions as provided by
   2-25  Section 76.024;
   2-26              (3)  develop and issue a request for proposal for the
   2-27  selection of private collectors;
    3-1              (4)  select and contract with one private collector for
    3-2  each region; and
    3-3              (5)  engage in other activities necessary for the
    3-4  administration of this subchapter.
    3-5        (b)  The powers and duties under this section may be
    3-6  performed by the members of the council or by employees of the
    3-7  state agencies represented by the council members.
    3-8        Sec. 76.024.  REGIONS.  (a) The council shall divide the
    3-9  state into not fewer than six and not more than 10 regions for the
   3-10  purpose of administering this subchapter.
   3-11        (b)  In designating regions under this section, the council
   3-12  shall consider the total dollar amount of outstanding child support
   3-13  in each part of the state and attempt to make the dollar amount of
   3-14  outstanding collections equal in each region.
   3-15        Sec. 76.025.  CONTRACT; ELIGIBILITY.  (a) The council shall
   3-16  contract with one private collector for each region to provide
   3-17  enforcement of child support orders and collection of child support
   3-18  payments.  In deciding the terms of a contract, the council shall
   3-19  consider the total dollar amount of outstanding child support in
   3-20  the region and include terms that are  economically feasible for
   3-21  the region.
   3-22        (b)  To be eligible, a private collector must be an attorney
   3-23  licensed to practice in this state with not less than five years of
   3-24  experience in the legal enforcement of large-scale collections.
   3-25        (c)  The collection activities of a private collector are
   3-26  governed by the rules of professional responsibility applicable to
   3-27  attorneys in this state.
    4-1        (d)  A private collector may subcontract with other
    4-2  collection entities in the performance of the private collector's
    4-3  duties under the contract.  The collection activities of a
    4-4  subcontractor are subject to the same standards that are imposed on
    4-5  the private collector.
    4-6        (e)  An initial contract with a private collector shall be
    4-7  for not less than four years.  The contract may not be terminated
    4-8  by the council except for a material violation of the terms of the
    4-9  contract or a violation by the private collector of the rules of
   4-10  professional responsibility applicable to attorneys in this state.
   4-11  A contract may be renewed by the council for two years without
   4-12  issuing a request for proposal for a new contract.
   4-13        Sec. 76.026.  FEES.  (a) A contract under this section must
   4-14  provide for payment to the private collector of a fee of 15 percent
   4-15  of the gross amount collected by the private collector.  Gross
   4-16  collections are determined by adding current payment collections
   4-17  and delinquent payment collections.
   4-18        (b)  If a private collector brings a person liable for the
   4-19  payment of child support into material compliance with an order or
   4-20  agreement, the private collector may collect the fee allowed under
   4-21  Subsection (a) for five years or during the time the person remains
   4-22  in material compliance, whichever period is shorter.
   4-23        (c)  The council shall evaluate and recommend any change in
   4-24  the fee after the first four years of the contract.
   4-25        Sec. 76.027.  COMPLIANCE.  (a) If a private collector is
   4-26  unable to bring a person liable for the payment of child support
   4-27  into material compliance with the order or agreement before the
    5-1  first anniversary of the date the account was referred to the
    5-2  private collector by the council, the council may require the
    5-3  account to be returned to the attorney general for enforcement.
    5-4        (b)  If a private collector brings a person liable for the
    5-5  payment of child support into compliance with the order or
    5-6  agreement for current child support payments but is unable to
    5-7  collect delinquent child support, the private collector shall
    5-8  continue to pursue collection of outstanding delinquent child
    5-9  support payments until the expiration of the private collector's
   5-10  contract.
   5-11        Sec. 76.028.  CHILD SUPPORT COLLECTION AGREEMENT.  (a) The
   5-12  attorney general or a private collector may enter into an agreement
   5-13  with a person liable for the payment of child support.  The
   5-14  agreement may relate to any matter that may be adjudicated by the
   5-15  court, including:
   5-16              (1)  the determination of paternity;
   5-17              (2)  the determination of the amount of child support
   5-18  due;
   5-19              (3)  the method of making child support payments;
   5-20              (4)  the imposition of wage garnishment or withholding;
   5-21              (5)  the payment of fees;
   5-22              (6)  the reimbursement of costs; and
   5-23              (7)  other matters permitted by state or federal law.
   5-24        (b)  The attorney general or a private collector may, as
   5-25  consideration for the agreement, agree to waive litigation costs or
   5-26  agree to other matters related to the collection of child support.
   5-27  The attorney general or a private collector may not agree to
    6-1  collect an amount of child support that does not comply with the
    6-2  child support guidelines under Section 14.055, Family Code.
    6-3        Sec. 76.029.  ENFORCEMENT OF AGREEMENT.  (a) If a party
    6-4  liable for the payment of child support fails to comply with an
    6-5  agreement under this section, the attorney general or private
    6-6  collector may file the agreement in the district court of Travis
    6-7  County or in the county in which the person entitled to receive
    6-8  child support payments resides.
    6-9        (b)  The court shall enforce an agreement filed in the court
   6-10  in the same manner as if the agreement were an order of the court.
   6-11        (c)  The person liable for the payment of child support may
   6-12  contest the provisions of the agreement in the court in which the
   6-13  agreement is filed.  The person contesting the agreement has the
   6-14  burden of proof to show by clear and convincing evidence that the
   6-15  agreement should be modified or declared invalid.
   6-16        (d)  A hearing to modify or declare an agreement invalid may
   6-17  be conducted by telephone conference at the request of the person
   6-18  liable for the payment of child support.
   6-19        SECTION 5.  (a) This Act takes effect September 1, 1995.
   6-20        (b)  The Child Support Collection Privatization Council shall
   6-21  develop criteria for the selection of private collectors, divide
   6-22  the state into regions, and issue a request for proposal for the
   6-23  selection of private collectors on or before December 1, 1995.
   6-24        (c)  The Child Support Collection Privatization Council shall
   6-25  select and contract with a private collector for each region of the
   6-26  state on or before March 1, 1996.
   6-27        SECTION 6.  The importance of this legislation and the
    7-1  crowded condition of the calendars in both houses create an
    7-2  emergency and an imperative public necessity that the
    7-3  constitutional rule requiring bills to be read on three several
    7-4  days in each house be suspended, and this rule is hereby suspended.