CJ C.S.H.B. 3281 75(R)BILL ANALYSIS JUVENILE JUSTICE & FAMILY ISSUES C.S.H.B. 3281 By: Rep. Goodman 4-25-97 Committee Report (Substituted) BACKGROUND In July 1996, the Texas Office of the Attorney General (OAG) had a caseload of 1,054,426 children not being financially supported by their non-custodial parents. In Texas and throughout the country, the need for child support services outweighs their availability. In Texas, the Office of the Attorney General (OAG) administers the "Title IV-D" child support enforcement program, established by Title IV, Part D of the federal Social Security Act. In fiscal 1995, the Title IV-D program had more than 20 million open cases in the U.S. and nearly 740,000 cases in Texas. About half of Texas' cases lack child support orders. Of more than 15,000 new cases coming into the Texas system each month, nearly two-thirds need paternity established; OAG has a backlog of more than 240,000 such cases. Several tools and system efficiencies have been identified in the Comptroller's Disturbing the Peace: The Challenge of Change in Texas Government in issues GG 12 through GG 16. These recommendations were the basis for the proposed changes in HB 3281. PURPOSE The purpose of the bill is to implement initiatives to increase child support enforcement collections in Texas. These issues specifically improve the processing of child support enforcement court cases through increased automation in district courts, increase child support collections by contracting for certain child support cases, expand the Office of the Attorney General's (OAG) "Most Wanted Program," strengthen the license suspension program and expands the OAG lien procedures. RULEMAKING AUTHORITY The Title IV-D agency would be given authority to establish rules pertaining to the offering of a reward to individuals for child support enforcement information. SECTION BY SECTION ANALYSIS SECTION 1. Amends section 157.311 of the family code to add court of continuing jurisdiction to the definitions. SECTION 2. Amends section 157.312 of the family code to add sections (d)-(f) which describe the parameters and methods of handling child support liens. SECTION 3. Amends section 157.313(a) of the family code adds administrative order to be used to assert a child support lien and language to clarify that the lien notice includes the date and manner arrearages are determined and stating that arrearages may be the basis of asserting a lien. SECTION 4. Amends section 157.314 of the family code to provide that a lien notice or abstract of judgment may be filed with the county clerk of the county in which the court of continuing jurisdiction sits and that a lien may be filed the county in which the court of continuing jurisdiction sits. It also would provide that a lien notice may be filed with any individual or organization believed to be in possession of real or personal property (property) of the obligor or any governmental unit or agency that issues or records certificates, titles or other indicia of property. SECTION 5. Amends Section 157.316 of the family code to specify that a lien is perfected when an abstract of judgment is filed with the county clerk. SECTION 6. Amends Section 157.317 (a) of the family code to include real property not exempt by the constitution as eligible property for attachment for a lien. It goes on to describe the method of filing the lien notice. SECTION 7. Amends section 157.318 of the family code to extend the duration of a child support lien until current support, arrearages, and interest have been paid or the lien has been released. And specifies that the lien extends to arrearages which accrue after the determination of arreages in the lien notice. The bill would provides that the filing of a lien notice or abstract of judgment with the county clerk has the same effect as any other real property lien notice. SECTION 8. Amends Section 157.319 of the family code, this would provide that a person having notice of a child support lien who violates the child support lien requirements may be included as a party to a foreclosure action and is subject to the remedies of the chapter. SECTION 9. Adds "owned by the obligor" to Section 157.321 DISCRETIONARY RELEASE OF LIEN. This would add a provision to allow the future action to collect past due child support from the same or other property owned by the obligor after the release of the lien or return of property. SECTION 10. Amends Section 157.322(a) and (b), family code to require delivery of the release of lien to the obligor or the obligor's attorney and that the release would be effective when filed with the county clerk in the county where the lien or abstract of judgment was filed. SECTION 11. Expands Section 157.323 FORECLOSURE OR SUIT TO DETERMINE ARREARS. SECTION 12. Amends Section 157.324 LIABILITY FOR FAILURE TO COMPLY WITH ORDER OF LIEN would modify the provisions relating to a person knowingly disposing of property subject to a lien or after a foreclosure hearing after being directed by a court or administrative order to do so. SECTION 13. Amends Sec. 157.325 (b), family code to provide that the holder of personal property or the obligor may file suit for an order determining the arreages and discharging property or money from the lien. SECTION 14. Amends Section 157.326 INTEREST OF OBLIGOR'S SPOUSE, of the Family Code to change the filing location from a court of competent jurisdiction to the court of continuing jurisdiction or the district court of the county in which the property is located for the spouse of an obligor to file an affidavit. This section would also change the law relating to the interest of the obligor's spouse and the burden of proof of ownership interest in property. SECTION 15. Amends Section 158.210(b), family code to pay fines to the county of the obligee's residence to be used for child support services. SECTION 16. Amends Subchapter A, Chapter 231, family code to add clarification that the manager of the Title IV-D agency's child support enforcement duties reports to the attorney general and state that Title IV-D appropriations may be used only for the purpose appropriated. SECTION 17. Amends Subchapter A, Chapter 231, family code to describe a new case processing pilot program. The pilot will include medical support orders and welfare cases as part of the integrated system. The pilot will be established in a minimum of two counties with a population of more than a million. The processes to be included are described, the requirement to cooperate with local entities, review of county assessments, funding sources, and deadlines for status reports to state officials. SECTION 18. Amends Subchapter B, Chapter 231, family code to direct the Title IV-D agency to make certain child support information available on the internet. SECTION 19. Amends Subchapter C, Chapter 231, family code to add Sec.231.2025 which would allow the Office of the Attorney General to pay a contingency fee from the state funds recovered by a private agency or individual in a contract or agreement authorized under Section 231.002(c). SECTION 20.Amends Section 231.302, family code to incorporate functions of this state with those of other states and other entities to streamline information flow, maintain privacy and security safeguards with penalties and updates and allowed uses for social security numbers. SECTION 21. Amends Subchapter D, Chapter 231, family code to add Sections 231.308 and Section 231.309 which direct the Title IV-D agency to develop a program to enlist the general public in an effort to identify delinquent obligors and the ability to offer rewards for information that leads to collection of arrears. SECTION 22. Amends Section 232.003, family code to make license suspension permissive. SECTION 23. Amends Section 232.003 family code to clarify that license suspension may be ordered without regard to when the repayment schedule was agreed to. SECTION 24. Amends Section 232.004(a), family code to clarify that the 90 day amount of an arrearage is the trigger for filing a petition to suspend. SECTION 25. Amends Section 232.009, family code to add clarifying language to when a license may be suspended without a hearing. SECTION 26. Amends Subtitle D, Title 5, family code to add Chapter 233. SHARING INFORMATION IN STATE CASE REGISTRY which: Sec. 233.001. Sets out the process for the Title IV-D agency to share information in the state case registry with custodial parents. Sec. 233.002. Allowing written requests for inclusion of eligible cases into the state case registry. Sec. 233.003. Stating the services that the Title IV-D agency may not refuse due to the lack of an application for services. Sec. 233.004. Authorizing fees, not to exceed costs, for including certain cases and for providing information on cases in the registry. SECTION 27. Amends Subtitle D, Title 5, family code to add Chapter 234 COMPETITIVE BIDDING FOR CHILD SUPPORT COLLECTION SERVICES which: Sec. 234.001. Defines terms used in competitive bids for child support services. Sec. 234.002. Lists the powers and duties of the council. Sec. 234.003.Outlines the terms of agreements that may be used for the payment of child support. SECTION 28. Amends Section 521.044, transportation code to add Subsection (e) directing the inclusion of the percentage of correct social security numbers on driver's licenses in certain reports. SECTION 29. Amends Subchapter C, Chapter 521, transportation code by adding Section 521.0445 to require the inclusion of a notice to driver's licence holders delinquent in child support payments to contact the attorney general's office to correct the matter or they may have their license suspended. SECTION 30. Places the child support enforcement matters handled by the attorney general's office under the Texas Sunset Act. SECTION 31. Transition provisions to comply with the sunset process. SECTION 32. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The original Section 1, pilot program was deleted and replaced by a similar pilot program in Section 17. Section 2 of the original is deleted and replaced by a competitive bid provision in Section 27 of the substitute. The first Section 4 of the original is deleted. Section 5 of the original is contained in similar provisions of Sections 21 and 18 of the substitute. Section 16 of the substitute is new. Sections 20,22,23,24,25,26,30 and 31 are new. The second Section 4 of the original is similar to Sections 28 and 29 of the substitute. Other Sections of the original are renumbered in the substitute.