By Montford S.B. No. 1507
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.