LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
January 31, 1997
TO: Honorable Rodney Ellis, Chair IN RE: Senate Bill No. 165
Committee on Jurisprudence By: Luna, Gregory
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB165 ( Relating to the
imposition of interest on delinquent child support payments.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by SB165-As Introduced
Implementing the provisions of the bill would result in a net negative
impact of $834,501 to General Revenue Related Funds through the biennium
ending August 31, 1997.
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
This bill would give the court sole discretion in ordering interest on delinquent
child support payments. If ordered by the court, interest would be set at a rate
to be determined by the court at the time of the enforcement hearing.
Methodolgy
Computer software reprogramming would be required to set interest at the
rate specified by the court and to remove current statutory interest rates
as of the effective date of the bill, which is September 1, 1997. Judicial
discretion at the enforcement hearing to set the rate of interest would
create variability in interest rate amounts. After the order is made by the
court, the rate and method for interest calculation would be entered into
the computer system of the Office of the Attorney General (OAG) and
applied to the child support delinquent accruals.
Contract programming services would be required to implement changes in
the OAG's existing automation support system. The agency estimates 81
programmers would be needed for two months at a total cost of $1,971,480.
Rental space, office setup and general operating expenses for the programmers
are estimated at $264,420 ($64,925 for rent, and $199,495 for operating costs).
The cost of electronic data processing equipment for the 81 contract programmers
is estimated to be $218,514.
Total estimated cost of implementing the bill is $2,454,414.
In order to implement the provisions of the bill by the effective date of
September 1, 1997, computer software reprogramming would commence
during the period June through August, 1997, and fiscal impact would be
within fiscal year 1997.
The probable fiscal implications of implementing the provisions of the bill
during each of the first five years following passage is estimated as follows:
Six Year Impact:
Fiscal Year Probable Cost Probable Cost
from General from Federal Funds
Revenue
Fund--Child
Support Retained
Collection Account
0001 0555
1997 ($834,501) ($1,619,913)
1997 0 0
1999 0 0
2000 0 0
2001 0 0
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
1997 ($834,501)
1998 0
1999 0
2000 0
2001 0
2002 0
Nine counties currently offer enforcement services to custodial
parents. The counties are Harris, Bexar, Tarrant, Dallas, Travis, El Paso,
Nueces, Collin and Denton. These counties currently offer enforcement
services to custodial parents and may need to reprogram their computer
software to set interest at the rate specified by the court and to remove
current statutory interest rates as of the effective date of this bill, which
is September 1, 1997. The cost of reprogramming at the county level may
be different, based on the size of each county's enforcement service.
Source: Agencies: 302 Office of the Attorney General
LBB Staff: JK ,PE ,JC