TO: | Honorable Harold V. Dutton, Jr., Chair, House Committee on Juvenile Justice & Family Issues |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB2126 by Castro (Relating to the manner of payment of child support to a local registry.), As Introduced |
The bill would authorize a local registry to accept child support payments made by credit card. The bill would take effect September 1, 2003.
If a county is already set up to accept credit cards for other payments made to or through the county, there would be little or not cost to add acceptance of child support payments by credit card.
If a county were to establish a system for the local registry to accept credit cards for child support payments, the county would incur initial costs for equipment of at least $650 per machine and processing software. Other costs are usually offset by charging a convenience fee. If a vendor is contracted to provide credit card service on line, the vendor charges the convenience fee directly to the payor, not to the government entity.
There are different systems from which to choose. The most costly, approximately $5,000, occurs if an existing computer system requires the writing of an interface for the government system to be compatible with the vendor's system.
Counties that collect other types of payments by credit card have experienced both a reduction in fiscal costs resulting from "insufficient fund" checks received and an increase in collection rates.
Source Agencies: | 302 Office of the Attorney General
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LBB Staff: | JK, GO, JB, DLBa
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