HBA-JRA H.B. 1457 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1457
By: Hill
Juvenile Justice and Family Issues
2/25/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, a contracted private child support collection agency receives 33
to 50 percent of each child support payment made, regardless of whether the
payment is the result of efforts by the agency or the custodial parent.
Under the collection agency's contract, the client is bound to the
agreement for 12 months after the last payment.  Most private agencies
automatically renew the contract every time a payment is made.  H.B. 1457
provides clients of private child support collection agencies with the
option of buying out of a contract for child support collection services. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 35, Business & Commerce Code, by adding
Subchapter J, as follows: 

SUBCHAPTER J.  CONTRACTS FOR PRIVATE CHILD SUPPORT
COLLECTION SERVICES

Sec. 35.111.  DEFINITION.  Defines "private child support collector" in
this subchapter. 

Sec. 35.112.  CONTRACT PROVISION REQUIRED.  Requires a private child
support collector to include in a contract for the collection of child
support a provision that allows the other contracting person the option to
terminate the contract before the end of the contract period on the payment
of an amount specifically stated in the contract. 

Sec. 35.113.  REMEDIES.  Provides that a contract that does not contain the
provision required by Section 35.112 is voidable at the option of the
person contracting with the private child support collector.  Entitles the
person to recover any amount the collector received as compensation in
connection with the contract.  Entitles a person who prevails in an action
to enforce the person's rights under this subchapter to recover court costs
and reasonable attorney's fees. 

Sec. 35.114.  WAIVER PROHIBITED.  Prohibits a waiver of a provision of this
subchapter. 

SECTION 2.  Effective date: September 1, 1999.
Makes application of this Act prospective.

SECTION 3.  Emergency clause.