SRC-JJJ S.B. 1417 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1417
76R9410 JMM-FBy: Lucio
Jurisprudence
4/15/1999
As Filed


DIGEST 

Currently, Title IV-D agencies send child support payments in the form of
state warrants to custodial parents through the mail system.  S.B. 910,
enacted during the 75th Legislative Session, directed the Office of the
Attorney General to analyze the cost-effectiveness of using electronic
benefits transfer in conjunction with direct deposit to distribute  child
support payments.  S.B. 1417 would establish the authority of the Title
IV-D agency to offer direct deposit of child support payments to obligees. 
 
PURPOSE

As proposed, S.B. 1417 establishes the authority of the Title IV-D agency
to offer direct deposit of child support payments to obligees. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 234A, Family Code, by adding Section 234.006, as
follows: 

Sec. 234.006.  DIRECT DEPOSIT OF CHILD SUPPORT PAYMENTS.  Authorized the
state disbursement unit to transmit a child support payment to an obligee
by electronic funds transfer if the obligee maintains an account with a
financial institution.  Authorizes the convened workgroup to develop a plan
to assist an obligee who does not have an account with a financial
institution to obtain an account.  Authorizes the workgroup to determine
whether it is feasible and cost-effective for the state to administer an
electronic benefits transfer system for child support obligees and may
consider proposals from financial institutions to administer the system.
Authorizes a Title IV-D agency, after considering recommendations and
adhering to applicable notice and bidding requirements, to contract with a
suitable financial institution for the administration of an electronic
benefits transfer system.  Authorizes the workgroup to establish procedures
to administer its duties under this section. 
    
SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.