LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session February 24, 1995 TO: Honorable Don Henderson, Chair IN RE: Senate Bill No. 7 Committee on Jurisprudence By: Harris Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 7 (Relating to the family, including the marriage relationship, the parent-child relationship, and protection of the family.) this office has determined the following: The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would provide for changes in the current law with regard to divorce and parent-child issues, including paternity, child custody, conservatorship, adoption and child support. The bill would establish an expedited hearing in an uncontested divorce suit under certain circumstances, provide for alternative dispute resolution in divorce, unless there are allegations of family violence, and amends the current statutes on discovery and transfers of property and debts pending divorce. The central record file for decrees concerning the parent-child relationship is moved from the Texas Department of Human Services to the Bureau of Vital Statistics. The bill provides guidelines for use of possession and access exchange facilities or programs. The bill provides for a court order for either or both parents to make periodic child support payments in a proceeding in which the Department of Protective and Regulatory Services (DPRS) is named temporary managing conservator or permanent managing conservator. The bill provides for voluntary withholding by a child support obligor and a voluntary reduction or termination of withholding. The bill clarifies the ineligibility to receive state grants or loans or receive payments on state contracts by a child support obligor. The Department of Protective and Regulatory Services has expressed concern that the amendment to the Texas Family Code, Section 11.03, which would allow foster parents to intervene in child custody, would not be in compliance with Title IV-E of the Social Security Act as amended by Public Law 96-272. The Act authorizes the Secretary of Health and Human Services to review the State's plan for compliance and to withhold payments or reduce payment to states which do not comply with the provisions of the plan. DPRS is anticipating more information from the Administration for Children, Youth and Families regional office which should clarify this issue. The bill would set up an administrative procedure for suspension of drivers license as well as professional and occupational licenses for failure to make child support payments. The licensing agency is permitted to charge a fee to an obligor whose license has been suspended in an amount sufficient to recover the administrative costs incurred by the authority. The licensing authority will receive this fee from the obligor but will lose the licensing fee for the period of the suspension. The licensing authority is directed to supply to the Title IV-D agency identifying information for each individual who holds, applies for, or renews a license issued by the authority. The amount of gain or cost to the various licensing authorities cannot be determined. According to Comptroller of Public Accounts estimates, if revocation and non-renewal of professional and occupational licenses were interpreted to include sales tax and mixed beverage tax permittees and other similar permittees currently collecting and remitting state tax revenue, there could be an indeterminate loss of state tax revenue. It is assumed that the Office of Attorney General has adequate resources to implement the provision of the bill. The bill would establish Children's Advocacy Centers to assess victims of child abuse and their families to determine their need for and provide services related to the investigation of child abuse, provide a facility at which a multidisciplinary team can meet and coordinate the activities of governmental entities related to child abuse investigations and delivery of services to child abuse victims and their families. The Department of Human Services is directed to establish and operate a toll-free family violence telephone line to provide information regarding family violence shelters and services as well as information about protective orders. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Cost Out Probable Loss Probable Cost Year of General Out of Out of Revenue Federal Funds 555 Federal Funds 555 Fund 001 1996 $570,051 $48,621,588 $100,764 1997 385,763 50,956,060 31,976 1998 385,763 53,401,950 31,976 1999 385,763 55,965,245 31,976 2000 385,763 58,651,576 31,976 Fiscal Probable Revenue Change in Year Gain from Child Number of State Support Retained Employees from Collections 787 FY 1995 1996 $6,589,000 12.0 1997 9,250,000 12.0 1998 17,233,000 12.0 1999 10,644,000 12.0 2000 10,644,000 12.0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. The fiscal implication to units of local government cannot be determined. Source: Office of the Attorney General, Comptroller of Public Accounts, Department of Human Services, Department of Protective and Regulatory Services LBB Staff: JK, DC, RR