COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4829-01
Bill No.: HB 1945
Subject: Children and Minors; Domestic Relations; Marriage and Divorce
Type: Original
Date: February 26, 2008
Bill Summary: This legislation requires employers with twenty-five or more employees to transfer any child support payments withheld from employees to the family support payment center by electronic transfer.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
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Total Estimated Net Effect on General Revenue Fund |
$0 |
$0 |
$0 |
ESTIMATED NET EFFECT ON OTHER STATE FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Child Support Enforcement Fund |
$521,100 |
$521,100 |
$521,100 |
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Total Estimated Net Effect on Other State Funds |
$521,100 |
$521,100 |
$521,100 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ESTIMATED NET EFFECT ON FEDERAL FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Federal Funds* |
$0 |
$0 |
$0 |
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Total Estimated Net Effect on All Federal Funds |
$0 |
$0 |
$0 |
*Savings and costs of $878,500 for FY09, FY10 & FY11 would net to $0.
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE) |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
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Total Estimated Net Effect on FTE |
0 |
0 |
0 |
☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).
☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).
ESTIMATED NET EFFECT ON LOCAL FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Local Government |
$0 |
$0 |
$0 |
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Revenue, Office of the Attorney General and the Office of the State Courts Administrator each assume the proposal would have no fiscal impact on their respective agencies.
Officials from the Department of Social Services - Family Support Division state under the Family Support Payment Center (FSPC) contract, the state saves $1 each time a collection is made electronically, rather than by paper check. During SFY07, the FSPC receipted over two million employer paper check payments. Of the two million paper payments, the Division estimates that approximately 1.4 million would be converted to electronic payments under the proposed legislation. However, since the FSPC contract is administered by the Department of Revenue (DOR), any cost savings achieved by requiring employers to remit support payments electronically should be identified by DOR.
FISCAL IMPACT - State Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
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CHILD SUPPORT ENFORCEMENT FUND |
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Savings - Department of Social Services |
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Filing Electronic Payments |
$521,100 |
$521,100 |
$521,100 |
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ESTIMATED NET EFFECT ON CHILD SUPPORT ENFORCEMENT FUND |
$521,100 |
$521,100 |
$521,100 |
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FISCAL IMPACT - State Government (continued) |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
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FEDERAL FUNDS |
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Savings - Department of Social Services |
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Filing Electronic Payments |
$878,500 |
$878,500 |
$878,500 |
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Costs - Department of Social Services |
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Reimburse Federal Fund |
($878,500) |
($878,500) |
($878,500) |
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ESTIMATED NET EFFECT ON FEDERAL FUNDS |
$0 |
$0 |
$0 |
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FISCAL IMPACT - Local Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
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$0 |
$0 |
$0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
The proposed legislation requires employers with 25 or more employees to transfer any child support payments withheld from an employee's paycheck to the Family Support Payment Center by electronic transfer.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of the Attorney General
Office of the State Courts Administrator
Department of Revenue
Department of Social Services
Mickey Wilson, CPA
Director
February 26, 2008