LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 10, 1997
TO: Honorable Rodney Ellis, Chair IN RE: House Bill No. 3281, As Engrossed
Committee on Jurisprudence By: Goodman
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB3281 ( Relating
to local court processing for child support cases and to enforcement
of child support orders; providing penalties.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB3281-As Engrossed
Implementing the provisions of the bill would result in a net
positive impact of $15,180,000 to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend the Government, Family, and Transportation
Codes to implement initiatives to increase child support collections.
Texas Performance Review recommendations GG12-16 in Disturbing
the Peace: The Challenge of Change in Texas Government would
be partially implemented.
The bill would establish a pilot
program to streamline court processing, allow competitive bids
on child support collections action, enhance the Child Support
Evaders program, and require the Department of Public Safety
(DPS) to include a notice in each mailing to driver's license
holders that a license may be suspended if the driver is delinquent
in paying child support. An independent evaluation of child
support activities in the Office of the Attorney General (OAG)
would also be required; the Sunset Advisory Commission would
select the firm and report results to the 76th Legislature.
Methodolgy
The Comptroller of Public Accounts assumes that: creating the
pilot program would not be contingent upon implementing a state
case registry, there would be federal financial participation,
and increased collections would entirely fund the project.
The Comptroller estimates a one-time cost to the Child Support
Retained Collections Account (Dedicated Account) in fiscal year
1998, and a gain of $601,000 in each fiscal year thereafter.
The
Comptroller further assumes that competitive bids on child support
enforcement functions would increase child support collections
and that allowing the OAG to pay vendors on a contingency basis
would not reduce available operating funds. The Comptroller
estimates increased revenue to the Dedicated Account to be $3,188,000
in fiscal year 1998, $10,467,000 in fiscal year 1999 and $11,577,000
in subsequent fiscal years.
The Comptroller assumes that
an additional 10 percent of non-custodial parents can be located
using social security numbers and that approximately one-half
of the state's share of collections for recipients of Temporary
Assistance for Needy Families (TANF) benefits would be deposited
in the Dedicated Account. Estimated gains are $135,000 in
fiscal year 1998 and $270,000 in subsequent fiscal years.
Based
on an assumption that more public exposure of child support
evaders would enhance the OAG's search efforts, the Comptroller
estimates a net gain to the Dedicated Account of $44,000 per
fiscal year.
The DPS estimates that it would incur additional
mailing costs of $242,506 and require one FTE to send advisory
notices to those renewing their driver's licenses.
Costs
of the independent study are not included since the bill requires
the OAG to pay those costs from funds appropriated for child
support enforcement.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue Probable Revenue Probable Probable Change in Number
Gain/(Loss) from Gain/(Loss) from Savings/(Cost) Savings/(Cost) of State
General Revenue General Revenue from General from State Employees from
Fund Fund -- Child Revenue Fund -- Highway Fund FY 1997
Support Retained Child Support
Collections Retained
Account Collections
Account
0001 0001 0001 0006
1998 $300,000 $3,746,000 ($1,002,000) ($281,268) 1.0
1998 601,000 11,537,000 (2,000) (280,470) 1.0
2000 601,000 12,647,000 (2,000) (280,470) 1.0
2001 601,000 12,647,000 (2,000) (280,470) 1.0
2002 601,000 12,647,000 (2,000) (280,470) 1.0
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $3,044,000
1999 12,136,000
2000 13,246,000
2001 13,246,000
2002 13,246,000
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 116 Sunset Advisory Commission
405 Department of Public Safety
304 Comptroller of Public Accounts
302 Office of the Attorney General
LBB Staff: JK ,BB ,CB ,JC