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


Senate Research CenterC.S.S.B. 1417
By: Lucio
Jurisprudence
4/20/1999
Committee Report (Substituted)


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.  C.S.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, C.S.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. 237.006.  DIRECT DEPOSIT OF CHILD SUPPORT PAYMENTS.  Authorizes 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 to
recommend implementation of such a system to the Title IV-D agency.
Authorizes the Title IV-D agency or the vendor selected by the Title IV-D
agency to operate the state disbursement unit to provide for electronic
benefits transfer, if the request for proposals and a consent resulting
from the vendor selection provides for electronic transfer.  Authorizes the
workgroup to recommend and the Title IV-D agency to establish procedures to
implement this section.  Authorizes the Title IVD agency, upon receiving
the recommendation, to require an obligee to receive payments by direct
deposit to the obligee's bank account or by electronic benefit transfer to
a certain account, if the account is established at  no cost to the
obligee.  
    
SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 234.006, Family Code, to recommend implementation of a
direct deposit child support payment system to a Title IV-D agency.  Sets
forth operation and implementation, by a Title IV-D agency, of electronic
benefit transfer for the state  disbursement unit.  Deletes proposed text
regarding the administration of an electronic benefit transfer system and
Subsection (e).