By Harris S.B. No. 416
75R4315 SKB-D
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. Subchapter B, Chapter 231, Family Code, is
1-6 amended by adding Section 231.1015 to read as follows:
1-7 Sec. 231.1015. REFERRAL TO PRIVATE COLLECTOR. If the
1-8 attorney general is unable to establish compliance under an order
1-9 or agreement for the payment of child support on or before the
1-10 120th day after the date the order is entered or the agreement is
1-11 reached, the attorney general shall refer the account to a private
1-12 collector under Chapter 233.
1-13 SECTION 2. Subtitle D, Title 5, Family Code, is amended by
1-14 adding Chapter 233 to read as follows:
1-15 CHAPTER 233. PRIVATE CHILD SUPPORT COLLECTION SERVICES
1-16 Sec. 233.001. DEFINITIONS. In this chapter:
1-17 (1) "Account" means a file pertaining to a specific
1-18 person liable for the payment of child support that has been
1-19 referred from the attorney general to a private collector.
1-20 (2) "Agreement" means a child support collection
1-21 agreement between a person liable for child support payments and a
1-22 private collector regarding the terms and conditions of child
1-23 support payments under Section 233.008.
1-24 (3) "Contract" means an agreement between the council
2-1 and a private collector for the enforcement and collection of child
2-2 support.
2-3 (4) "Council" means the Child Support Collection
2-4 Privatization Council.
2-5 (5) "Order" means a decree or judgment of a court or
2-6 administrative body.
2-7 (6) "Private collector" means an attorney who
2-8 contracts with the council to engage in the collection of child
2-9 support payments.
2-10 Sec. 233.002. COUNCIL. The Child Support Collection
2-11 Privatization Council consists of the attorney general, the
2-12 comptroller, and the executive director of the Texas Department of
2-13 Human Services.
2-14 Sec. 233.003. POWERS AND DUTIES OF COUNCIL. (a) The
2-15 council shall:
2-16 (1) develop criteria for the selection of private
2-17 collectors;
2-18 (2) divide the state into regions as provided by
2-19 Section 233.004;
2-20 (3) develop and issue a request for proposal for the
2-21 selection of private collectors;
2-22 (4) select and contract with one private collector for
2-23 each region; and
2-24 (5) engage in other activities necessary for the
2-25 administration of this chapter.
2-26 (b) The powers and duties under this section may be
2-27 performed by the members of the council or by employees of the
3-1 state agencies represented by the council members.
3-2 Sec. 233.004. REGIONS. (a) The council shall divide the
3-3 state into not fewer than six and not more than 10 regions for the
3-4 purpose of administering this chapter.
3-5 (b) In designating regions under this section, the council
3-6 shall consider the total dollar amount of outstanding child support
3-7 in each part of the state and attempt to make the dollar amount of
3-8 outstanding collections equal in each region.
3-9 Sec. 233.005. CONTRACT; ELIGIBILITY. (a) The council shall
3-10 contract with one private collector for each region to provide
3-11 enforcement of child support orders and collection of child support
3-12 payments. In deciding the terms of a contract, the council shall
3-13 consider the total dollar amount of outstanding child support in
3-14 the region and include terms that are economically feasible for
3-15 the region.
3-16 (b) To be eligible, a private collector must be an attorney
3-17 licensed to practice in this state with not less than five years of
3-18 experience in the legal enforcement of large-scale collections.
3-19 (c) The collection activities of a private collector are
3-20 governed by the rules of professional responsibility applicable to
3-21 attorneys in this state.
3-22 (d) A private collector may subcontract with other
3-23 collection entities in the performance of the private collector's
3-24 duties under the contract. The collection activities of a
3-25 subcontractor are subject to the same standards that are imposed on
3-26 the private collector.
3-27 (e) An initial contract with a private collector shall be
4-1 for not less than four years. The contract may not be terminated
4-2 by the council except for a material violation of the terms of the
4-3 contract or a violation by the private collector of the rules of
4-4 professional responsibility applicable to attorneys in this state.
4-5 A contract may be renewed by the council for two years without
4-6 issuing a request for proposal for a new contract.
4-7 Sec. 233.006. FEES. (a) A contract under this section must
4-8 provide for payment to the private collector of a fee of 15 percent
4-9 of the gross amount collected by the private collector. Gross
4-10 collections are determined by adding current payment collections
4-11 and delinquent payment collections.
4-12 (b) If a private collector brings a person liable for the
4-13 payment of child support into material compliance with an order or
4-14 agreement, the private collector may collect the fee allowed under
4-15 Subsection (a) for five years or during the time the person remains
4-16 in material compliance, whichever period is shorter.
4-17 (c) The council shall evaluate and recommend any change in
4-18 the fee after the first four years of the contract.
4-19 Sec. 233.007. COMPLIANCE. (a) If a private collector is
4-20 unable to bring a person liable for the payment of child support
4-21 into material compliance with the order or agreement before the
4-22 first anniversary of the date the account was referred to the
4-23 private collector by the council, the council may require the
4-24 account to be returned to the attorney general for enforcement.
4-25 (b) If a private collector brings a person liable for the
4-26 payment of child support into compliance with the order or
4-27 agreement for current child support payments but is unable to
5-1 collect delinquent child support, the private collector shall
5-2 continue to pursue collection of outstanding delinquent child
5-3 support payments until the expiration of the private collector's
5-4 contract.
5-5 Sec. 233.008. CHILD SUPPORT COLLECTION AGREEMENT. (a) The
5-6 attorney general or a private collector may enter into an agreement
5-7 with a person liable for the payment of child support. The
5-8 agreement may relate to any matter that may be adjudicated by the
5-9 court, including:
5-10 (1) the determination of paternity;
5-11 (2) the determination of the amount of child support
5-12 due;
5-13 (3) the method of making child support payments;
5-14 (4) the imposition of wage garnishment or withholding;
5-15 (5) the payment of fees;
5-16 (6) the reimbursement of costs; and
5-17 (7) other matters permitted by state or federal law.
5-18 (b) The attorney general or a private collector may, as
5-19 consideration for the agreement, agree to waive litigation costs or
5-20 agree to other matters related to the collection of child support.
5-21 The attorney general or a private collector may not agree to
5-22 collect an amount of child support that does not comply with the
5-23 child support guidelines under Subchapter C, Chapter 154, Family
5-24 Code.
5-25 Sec. 233.009. ENFORCEMENT OF AGREEMENT. (a) If a party
5-26 liable for the payment of child support fails to comply with an
5-27 agreement under this section, the attorney general or private
6-1 collector may file the agreement in the district court of Travis
6-2 County or in the county in which the person entitled to receive
6-3 child support payments resides.
6-4 (b) The court shall enforce an agreement filed in the court
6-5 in the same manner as if the agreement were an order of the court.
6-6 (c) The person liable for the payment of child support may
6-7 contest the provisions of the agreement in the court in which the
6-8 agreement is filed. The person contesting the agreement has the
6-9 burden of proof to show by clear and convincing evidence that the
6-10 agreement should be modified or declared invalid.
6-11 (d) A hearing to modify or declare an agreement invalid may
6-12 be conducted by telephone conference at the request of the person
6-13 liable for the payment of child support.
6-14 SECTION 3. (a) This Act takes effect September 1, 1997.
6-15 (b) The Child Support Collection Privatization Council shall
6-16 develop criteria for the selection of private collectors, divide
6-17 the state into regions, and issue a request for proposal for the
6-18 selection of private collectors on or before December 1, 1997.
6-19 (c) The Child Support Collection Privatization Council shall
6-20 select and contract with a private collector for each region of the
6-21 state on or before March 1, 1998.
6-22 SECTION 4. The importance of this legislation and the
6-23 crowded condition of the calendars in both houses create an
6-24 emergency and an imperative public necessity that the
6-25 constitutional rule requiring bills to be read on three several
6-26 days in each house be suspended, and this rule is hereby suspended.