HBA-JRA H.B. 1457 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1457 By: Hill Juvenile Justice and Family Issues 2/25/1999 Introduced BACKGROUND AND PURPOSE Currently, a contracted private child support collection agency receives 33 to 50 percent of each child support payment made, regardless of whether the payment is the result of efforts by the agency or the custodial parent. Under the collection agency's contract, the client is bound to the agreement for 12 months after the last payment. Most private agencies automatically renew the contract every time a payment is made. H.B. 1457 provides clients of private child support collection agencies with the option of buying out of a contract for child support collection services. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 35, Business & Commerce Code, by adding Subchapter J, as follows: SUBCHAPTER J. CONTRACTS FOR PRIVATE CHILD SUPPORT COLLECTION SERVICES Sec. 35.111. DEFINITION. Defines "private child support collector" in this subchapter. Sec. 35.112. CONTRACT PROVISION REQUIRED. Requires a private child support collector to include in a contract for the collection of child support a provision that allows the other contracting person the option to terminate the contract before the end of the contract period on the payment of an amount specifically stated in the contract. Sec. 35.113. REMEDIES. Provides that a contract that does not contain the provision required by Section 35.112 is voidable at the option of the person contracting with the private child support collector. Entitles the person to recover any amount the collector received as compensation in connection with the contract. Entitles a person who prevails in an action to enforce the person's rights under this subchapter to recover court costs and reasonable attorney's fees. Sec. 35.114. WAIVER PROHIBITED. Prohibits a waiver of a provision of this subchapter. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.