By Harris S.B. No. 790
74R4546 MJW-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to registration and certification of a private entity
1-3 engaged in child support enforcement.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 14, Family Code, is amended by adding
1-6 Subchapter C to read as follows:
1-7 SUBCHAPTER C. REGISTRATION OF PRIVATE ENTITY ENGAGED IN CHILD
1-8 SUPPORT COLLECTION
1-9 Sec. 14.601. REGISTRATION OF PRIVATE ENTITY ENGAGED IN CHILD
1-10 SUPPORT COLLECTION. (a) A private entity engaged in collecting
1-11 delinquent child support payments shall register with the office of
1-12 the attorney general in the manner provided by this subchapter.
1-13 (b) An entity required to register under Subsection (a) may
1-14 not engage in the business of collecting delinquent child support
1-15 payments after June 1, 1996, if the entity is not registered.
1-16 Sec. 14.602. REGISTRANT INFORMATION. (a) An entity
1-17 required to register under this subchapter shall provide the
1-18 following information on a form prescribed by the attorney general:
1-19 (1) the name of and biographical information for each
1-20 owner or officer of the entity;
1-21 (2) the physical address of the entity's offices
1-22 within this state;
1-23 (3) account numbers and current balances of the
1-24 entity's bank accounts;
2-1 (4) any prior bankruptcy filings by the entity;
2-2 (5) the disposition or current status, as appropriate,
2-3 of any lawsuit claiming fraud or deceptive trade practices against
2-4 the entity;
2-5 (6) any criminal conviction of an owner or officer of
2-6 the entity; and
2-7 (7) other information that the attorney general
2-8 considers relevant to a person interested in employing the entity
2-9 to collect child support.
2-10 (b) In addition to information provided under Subsection
2-11 (a), an entity required to register under this subchapter shall
2-12 provide to the office of the attorney general:
2-13 (1) a surety bond in an amount set by the attorney
2-14 general that is:
2-15 (A) not less than $50,000;
2-16 (B) payable to the state for equitable
2-17 distribution to the entity's clients; and
2-18 (C) conditioned on the entity's faithful
2-19 performance of duties to its clients;
2-20 (2) a copy of all client application forms and other
2-21 materials provided to clients or investors by the entity, with an
2-22 attestation by the entity's chief executive officer that the
2-23 materials are accurate and represent services offered and provided;
2-24 (3) a signed statement by the entity's chief executive
2-25 officer that an attorney licensed to practice law in this state
2-26 will prepare all documents filed by the entity on a client's behalf
2-27 with a court of this state, and that the attorney's name and State
3-1 Bar of Texas number will appear on each filed document; and
3-2 (4) a reasonable registration fee in an amount set by
3-3 the attorney general.
3-4 (c) An entity registering under this subchapter shall
3-5 annually update the information required by this section.
3-6 Sec. 14.603. REGISTRATION BY ATTORNEY GENERAL. (a) Not
3-7 later than the 30th day after the date on which the office of the
3-8 attorney general receives all information and other materials
3-9 required by Section 14.602, the attorney general shall issue to the
3-10 applicant a registration certificate with a unique registration
3-11 number.
3-12 (b) On request, the attorney general shall issue to the
3-13 entity duplicate originals of the registration certificate. The
3-14 attorney general may charge a reasonable fee for issuing additional
3-15 copies of the registration certificate.
3-16 Sec. 14.604. DISPLAY OF REGISTRATION CERTIFICATE AND
3-17 REGISTRATION NUMBER. An entity that receives a registration
3-18 certificate under this subchapter shall:
3-19 (1) display the certificate in a prominent place in
3-20 each office operated by the entity; and
3-21 (2) include the registration number on all printed
3-22 materials sent to another person by the entity in the regular
3-23 course of business.
3-24 Sec. 14.605. DISCLOSURE OF COLLECTION INFORMATION. On
3-25 registration under this subchapter, an entity shall provide to each
3-26 client a written, boldfaced statement that the entity will provide
3-27 to a client on request, without charge, a quarterly accounting of
4-1 all amounts collected or retained by the entity on behalf of the
4-2 client, including all amounts retained by or paid to the entity as
4-3 a fee or as reimbursement of a business expense.
4-4 Sec. 14.606. PUBLIC REQUEST FOR INFORMATION. On request,
4-5 the office of the attorney general shall provide to the public a
4-6 copy of information provided under Section 14.602 by a private
4-7 entity engaged in child support collection.
4-8 Sec. 14.607. PROCEDURES. The attorney general by rule shall
4-9 adopt procedures to implement the registration process required by
4-10 this subchapter.
4-11 SECTION 2. (a) Not later than September 1, 1996, the
4-12 attorney general shall prepare a report that:
4-13 (1) recommends criteria for statutory certification of
4-14 private entities engaged in child support collection, including
4-15 recommendations for specific policies and procedures for those
4-16 entities that will further the state's interest in child support
4-17 collection; and
4-18 (2) analyzes information compiled during registration
4-19 under this Act that will assist the legislature in regulating
4-20 private child support collection.
4-21 (b) The attorney general shall submit the report required by
4-22 this section to the:
4-23 (1) governor;
4-24 (2) lieutenant governor; and
4-25 (3) speaker of the house of representatives.
4-26 SECTION 3. The attorney general shall adopt rules and
4-27 prescribe forms and procedures necessary to implement this Act not
5-1 later than January 1, 1996.
5-2 SECTION 4. This Act takes effect September 1, 1995.
5-3 SECTION 5. The importance of this legislation and the
5-4 crowded condition of the calendars in both houses create an
5-5 emergency and an imperative public necessity that the
5-6 constitutional rule requiring bills to be read on three several
5-7 days in each house be suspended, and this rule is hereby suspended.