By Hill                                               H.B. No. 1457
         76R364 CLG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a contract with a private entity for the collection of
 1-3     child support.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 35, Business & Commerce Code, is amended
 1-6     by adding Subchapter J to read as follows:
 1-7        SUBCHAPTER J.  CONTRACTS FOR PRIVATE CHILD SUPPORT COLLECTION
 1-8                                  SERVICES
 1-9           Sec. 35.111.  DEFINITION.  In this subchapter, "private child
1-10     support collector" means a person who engages in the collection of
1-11     child support for a fee or other consideration.  The term does not
1-12     include:
1-13                 (1)  the state agency designated to serve as the
1-14     state's Title IV-D agency in accordance with Part D, Subchapter IV,
1-15     Social Security Act (42 U.S.C. Section 651 et seq.), or a similar
1-16     entity of another state or political subdivision; or
1-17                 (2)  a contractor awarded a contract under Chapter 234,
1-18     Family Code, as added by Chapter 420, Acts of the 75th Legislature,
1-19     Regular Session, 1997.
1-20           Sec. 35.112.  CONTRACT PROVISION REQUIRED.   A private child
1-21     support collector shall include in a contract for the collection of
1-22     child support a provision that allows the other contracting person
1-23     the option to terminate the contract before the end of the contract
1-24     period on the payment of an amount specifically stated in the
 2-1     contract.
 2-2           Sec. 35.113.  REMEDIES.  (a)  A contract that does not
 2-3     contain the provision required by Section 35.112 is voidable at the
 2-4     option of the person contracting with the private child support
 2-5     collector.  The person is entitled to recover any amount the
 2-6     collector received as compensation in connection with the contract.
 2-7           (b)  A person who prevails in an action to enforce the
 2-8     person's rights under this subchapter is entitled to recover court
 2-9     costs and reasonable attorney's fees.
2-10           Sec. 35.114.  WAIVER PROHIBITED.  An attempted waiver of a
2-11     provision of this subchapter is void.
2-12           SECTION 2.  This Act takes effect September 1, 1999, and
2-13     applies only to a contract that is entered into on or after that
2-14     date.
2-15           SECTION 3.  The importance of this legislation and the
2-16     crowded condition of the calendars in both houses create an
2-17     emergency and an imperative public necessity that the
2-18     constitutional rule requiring bills to be read on three several
2-19     days in each house be suspended, and this rule is hereby suspended.