1-1 By: Carona S.B. No. 1161 1-2 (In the Senate - Filed March 11, 1997; March 17, 1997, read 1-3 first time and referred to Committee on Jurisprudence; 1-4 April 10, 1997, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 7, Nays 0; April 10, 1997, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1161 By: Cain 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the authority of certain counties to contract with 1-11 private entities for child support and visitation enforcement 1-12 services. 1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. Subtitle B, Title 10, Human Resources Code, is 1-15 amended by adding Chapter 153 to read as follows: 1-16 CHAPTER 153. CHILD SUPPORT COLLECTION BY PRIVATE ENTITY 1-17 Sec. 153.001. APPLICABILITY. This chapter applies only to a 1-18 county that: 1-19 (1) has a population of 1,800,000 or more; and 1-20 (2) did not have the authority to contract with a 1-21 private entity to receive, disburse, and record payments or 1-22 restitution of child support on January 1, 1997. 1-23 Sec. 153.002. AUTHORITY TO CONTRACT. A county, acting 1-24 through its commissioners court or domestic relations office, may 1-25 contract with a private entity to: 1-26 (1) enforce, collect, receive, and disburse: 1-27 (A) child support payments; 1-28 (B) other amounts due under a court order 1-29 containing an order to pay child support; and 1-30 (C) fees, including fees provided by this 1-31 chapter; 1-32 (2) maintain appropriate records, including records of 1-33 child support and other amounts and fees that are due, past due, 1-34 paid, or delinquent; 1-35 (3) locate absent parents; 1-36 (4) furnish statements to parents accounting for 1-37 payments that are due, past due, paid, or delinquent; 1-38 (5) send billings and other appropriate notices to 1-39 parents; 1-40 (6) perform any duty or function that a local 1-41 registry, as that term is defined by Section 101.018, Family Code, 1-42 is authorized to perform; or 1-43 (7) provide another child support or visitation 1-44 enforcement service authorized by the commissioners court, 1-45 including mediation of disputes related to child support or 1-46 visitation. 1-47 Sec. 153.003. TERMS AND CONDITIONS OF CONTRACT. The 1-48 commissioners court or domestic relations office shall include all 1-49 appropriate terms and conditions in the contract that it determines 1-50 are reasonable to secure the services of a private entity as 1-51 provided by this chapter, including: 1-52 (1) provisions specifying the services to be provided 1-53 by the entity; 1-54 (2) the method, conditions, and amount of compensation 1-55 for the entity; 1-56 (3) provisions for the security of funds collected as 1-57 child support, fees, or other amounts under the contract or that 1-58 otherwise provide reasonable assurance to the county of the 1-59 entity's full and faithful performance of the contract; 1-60 (4) provisions specifying the records to be kept by 1-61 the entity, including any records necessary to fully account for 1-62 all funds received and disbursed as child support, fees, or other 1-63 amounts; 1-64 (5) requirements governing the inspection, 2-1 verification, audit, or explanation of the entity's accounting or 2-2 other records; 2-3 (6) the county's right to terminate the contract on 30 2-4 days' notice to the private entity if the private entity engages in 2-5 an ongoing pattern of child support enforcement that constitutes 2-6 wilful and gross misconduct subjecting delinquent obligors to 2-7 unconscionable duress, abuse, or harassment; 2-8 (7) provisions permitting a payor and payee to jointly 2-9 waive the monitoring procedure, if not required by law, by written 2-10 request approved by order of the court having jurisdiction of the 2-11 suit in which the child support order was issued; and 2-12 (8) provisions for the disclosure or nondisclosure of 2-13 information or records maintained or known to the entity as a 2-14 result of contract performance, including a requirement for the 2-15 private entity to: 2-16 (A) disclose to any child support obligor that 2-17 the private entity is attempting to enforce the obligor's child 2-18 support obligation; and 2-19 (B) make no disclosure of the information or 2-20 records other than in furtherance of the effort to enforce the 2-21 child support order. 2-22 Sec. 153.004. FUNDING. (a) To provide or recover the costs 2-23 of providing services authorized by this chapter, a commissioners 2-24 court, on its behalf or on behalf of the domestic relations office, 2-25 may: 2-26 (1) provide by order for the assessment and collection 2-27 of a reasonable fee at the time a party files a suit affecting the 2-28 parent-child relationship under the Family Code; 2-29 (2) provide by order for the assessment and collection 2-30 of a fee of $3 per month at a time specified for payment of child 2-31 support; 2-32 (3) provide by order for the assessment and collection 2-33 of a late payment fee of $4 per month to be imposed if an obligor 2-34 does not make a payment of child support in full when due; 2-35 (4) accept or receive funds from public grants or 2-36 private sources available for providing services authorized by this 2-37 chapter; or 2-38 (5) use any combination of funding sources specified 2-39 by this subsection. 2-40 (b) The commissioners court, on its behalf or on behalf of 2-41 the domestic relations office, may: 2-42 (1) provide by order for reasonable exemptions from 2-43 the collection of fees authorized by Subsection (a); and 2-44 (2) require payment of a fee authorized by Subsections 2-45 (a)(2) annually and in advance. 2-46 (c) The commissioners court may not charge a fee under 2-47 Subsection (a)(2) if the amount of child support ordered to be paid 2-48 is less than the equivalent of $100 per month. 2-49 (d) The fees established under Subsection (a) may be 2-50 collected by any means provided for the collection of child 2-51 support. The commissioners court may provide by order, on its 2-52 behalf or on behalf of the domestic relations office, for the 2-53 manner of collection of fees and the apportionment of payments 2-54 received to meet fee obligations. 2-55 Sec. 153.005. CUMULATIVE EFFECT OF CHAPTER. A power or duty 2-56 conferred on a county, county official, or county instrumentality 2-57 by this chapter is cumulative of the powers and duties created or 2-58 conferred by other law. 2-59 SECTION 2. Subsection (b), Section 154.242, Family Code, is 2-60 amended to read as follows: 2-61 (b) A local registry may transmit child support payments to 2-62 the Title IV-D agency by electronic funds transfer if the Title 2-63 IV-D agency agrees to accept electronic payment. An obligor may 2-64 make payments, with the approval of the court entering the order, 2-65 directly to the bank account of the obligee by electronic transfer 2-66 and provide verification of the deposit to the local registry. A 2-67 local registry in a county that makes deposits into personal bank 2-68 accounts by electronic funds transfer as of April 1, 1995, shall 2-69 transmit a child support payment to an obligee by electronic funds 3-1 transfer if the obligee maintains a bank account. The obligee 3-2 shall furnish to the local registry the necessary bank account 3-3 information to complete electronic payment if the Title IV-D agency 3-4 agrees to accept electronic payment. 3-5 SECTION 3. This Act takes effect September 1, 1997. 3-6 SECTION 4. The importance of this legislation and the 3-7 crowded condition of the calendars in both houses create an 3-8 emergency and an imperative public necessity that the 3-9 constitutional rule requiring bills to be read on three several 3-10 days in each house be suspended, and this rule is hereby suspended. 3-11 * * * * *