LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 20, 2001
  
  
          TO:  Honorable Toby Goodman, Chair, House Committee on
               Juvenile Justice & Family Issues
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2429  by Goodman (Relating to the regulation of private
               child support enforcement agencies; providing a civil
               penalty.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2429, As Introduced:  negative impact of $(233,390) through the     *
*  biennium ending August 31, 2003.                                      *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                           $(107,555)  *
          *       2003                            (125,835)  *
          *       2004                            (128,749)  *
          *       2005                            (134,314)  *
          *       2006                            (133,593)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
**************************************************************************
*Fiscal        Probable         Probable Revenue    Change in Number of  *
* Year    Savings/(Cost) from   Gain/(Loss) from   State Employees from  *
*        General Revenue Fund General Revenue Fund        FY 2001        *
*                0001                 0001                               *
*  2002             $(110,055)               $2,500                  1.7 *
*  2003              (128,335)                2,500                  2.0 *
*  2004              (131,249)                2,500                  2.0 *
*  2005              (136,814)                2,500                  2.0 *
*  2006              (136,093)                2,500                  2.0 *
**************************************************************************
  
Technology Impact
  
Additional computers and a printer at a cost of $4,800 for the new
Full-time equivalent positions in fiscal year 2002.
  
  
Fiscal Analysis
  
The bill would amend the Finance Code by adding Chapter 36 requiring the
Finance Commission (FC) to regulate private child support enforcement
agencies as defined by the bill.  The bill allows the FC to charge each
applicant for a certificate of registration or renewal a non-refundable
fee of $500 and up to $500 annually to cover the cost of regulation.

The bill takes effect September 1, 2001, except that a private child
support enforcement agency be registered applies only on and after
January 1, 2002.
  
  
Methodology
  
The FC estimates that the provisions of the bill would require two
additional FTEs.  Since the registration requirements is effective
January 1, 2002, it is estimated that the agency would need two months of
fiscal year 2002 to organize and prepare and eight months for the new
registration.  Therefore, the FC would need only 1.7 FTEs in fiscal year
2002.  The FC estimates that it would require an attorney who will be
responsible for developing rules to administer the statute, provide
technical and legal advice to potential registrants, help the
investigator determine the legal issues in complaints, and perform all
duties related to the administrative hearings.  It would also require an
investigator for the estimated 250 to 1,000 complaints per year.  The
agency anticipates that half of the complaints would need to be
investigated and all of the complaints would be closed within in a year.

According to the Office of the Attorney General, there are approximately
five to ten private child support enforcement agencies.  The basis for
this fiscal note assumes that there would be five applicants for a
certificate of registration and five renewals each year.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   449   Finance Commission of Texas, 304   Comptroller
                   of Public Accounts, 302   Office of the Attorney
                   General
LBB Staff:         JK, JC, RT, DE