LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 9, 2003

TO:	Honorable Joe Nixon, Chair, House Committee on Civil Practices
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB364 by Dutton (Relating to the payment of child support obligations on behalf of persons wrongfully imprisoned.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB364, As Introduced: a negative impact of ($321,080) through the biennium ending August 31, 2005.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

The bill amends Sections 103.052(a) and (b), adds Subsection 103.052(d); amends Sections 103.105(a) and (c), 103.151(a) and (c), 103.152, and 103.154 of the Civil Practice and Remedies relating to the payment of child support obligations on behalf of persons wrongfully imprisoned.  The bill makes the State liable for current child support that accrues while the wrongfully imprisoned obligor is in prison, plus any interest accruals during the period of imprisonment. After the wrongfully imprisoned obligor has brought a successful action under this chapter, the bill requires the Comptroller to make a lump sum payment of such child support amount, on behalf of the obligor, to the State Disbursement Unit for distribution to the obligee under the child support order.  The Act takes effect September 1, 2003.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004	($142,600)
2005	($178,480)
2006	($200,560)
2007	($210,680)
2008	($220,800)

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from GENERAL REVENUE FUND 1	Probable Revenue (Loss) from FEDERAL FUNDS 555	Probable Revenue Gain from CHLD SUPPORT RETAINED COL 787
2004	($155,000)	($18,600)	$12,400
2005	($194,000)	($23,280)	$15,520
2006	($218,000)	($26,160)	$17,440
2007	($229,000)	($27,480)	$18,320
2008	($240,000)	($28,800)	$19,200

Fiscal Analysis

The Comptroller of Public Accounts estimated the fiscal impact based on the number of potential payments of persons wrongly imprisoned using the average duration of persons wrongly imprisoned with unpaid child support in fiscal year 2003, the average annual child support obligation, and the estimated share of prisoners with child support orders when leaving prison.

Methodology

The Comptroller of Public Accounts (CPA) used $103,206 as the fiscal year 2003 baseline and projected forward this amount assuming the rapid growth of wrongly imprisoned claims during fiscal year 2002-03 would decline over time.  For example, in fiscal years 2004-05 the Comptroller of Public Accounts (CPA) estimated $349,000 in past due Child Support payments for wrongfully imprisoned persons would be payable.  The CPA assumed 20 percent of these potential payments would be for Temporary Assistance to Needy Families (TANF) and foster care recipients who received financial support from the state; therefore, $69,800 would not be payable to these recipients.  Currently, forty percent of this $69,800 ($27,920) would be deposited to the Child Support Retained Collections Account and eighty percent ($41,880) would be returned to the federal government.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:	302 Office of the Attorney General, 304 Comptroller of Public Accounts
LBB Staff:	JK, GO, MS, BL