LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 31, 1997
TO: Honorable Toby Goodman, Chair IN RE: House Bill No. 3286
Committee on Juvenile Justice and Family Issues By: Goodman
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB3286 ( Relating
to the implementation of the child support enforcement provisions
of Title III of the federal Personal Responsibility and Work
Opportunity Reconciliation Act of 1996; providing penalties.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB3286-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(6,875,673) 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.
The bill would amend sections of the Texas Family
Code and the Business and Commerce Code to implement the Title
IV-D child support enforcement requirements under the federal
Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (PRWORA). This Act requires all states to enact
specific federal mandates relating to the administration of
the child support enforcement program under Title IV-D of the
federal Social Security Act.
Fiscal Analysis
The bill would require the development of a State Case Registry
of all IV-D and non IV-D child support orders entered or modified
after October 1, 1998, which would match IV-D cases with a national
database. A State Disbursement Unit would be established for
the collection and disbursement of child support payments in
all IV-D cases and in non IV-D cases in which a support order
is subject to income withholding. A State Directory of New Hires,
an automated directory containing information provided by employers
in the state on all new hires, would be established. The Texas
Child Support Enforcement System (TXCSES) would need to be reprogrammed
to take into account the elimination of the "$50 disregard"
distribution of child support payments received and the need
for new interfaces and new enforcement and establishment remedies..
Methodolgy
The Office of the Attorney General has estimated that the cost
of developing a State Case Registry, a State Disbursement Unit
and a State Directory of New Hires would be programming and
telecommunication costs, including the hiring of additional
administrative technicians and contracting with a vendor to
create and maintain the required databases. The costs related
to these items would be approximately $11.585,770 in fiscal
year 1998 and $8,636,739 in fiscal year 1999. Federal funds
would amount to sixty-six percent of the cost of funding these
initiatives.
Costs associated with the TXCSES system would
be the costs of programming changes to the system, although
the Office of the Attorney General has sufficient resources
and employees to effect needed programming changes associated
with the TXCSES system without requiring additional resources.
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 Probable
Savings/(Cost) Savings/(Cost)
from General from Federal Funds
Revenue
Fund--Child
Support Retained
Account
0001 0555
1998 ($3,939,182) ($7,646,608)
1998 (2,936,491) (5,700,248)
2000 (1,725,963) (3,350,399)
2001 (1,693,838) (3,288,038)
2002 0 0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($3,939,182)
1999 (2,936,491)
2000 (1,725,963)
2001 (1,693,838)
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Impact to local government has been assumed at $204,000 each
year from fiscal year 1999 through fiscal year 2002. A registry
fee could be established by local governments and federal financial
participation could be passed through to counties.
Source: Agencies: 405 Department of Public Safety
501 Department of Health
302 Office of the Attorney General
LBB Staff: JK ,CB ,JC