The Office of the Attorney General, Child Support Division, proposes an amendment to the 1 Texas Administrative Code §55.302(4), regarding the State Directory of New Hires pursuant to the Texas Family Code §§231.003, 234.101(1), and 234.104. The proposed amendment will provide guidance to employers who are deciding whether a particular individual falls under the definition of employee as defined by Texas Family Code §234.101. This amendment clarifies the definition of independent contractor by limiting the term to those whose income would be reported by employers on Form 1099-MISC.

Mara Friesen, Deputy Attorney General for Child Support (IV-D Director), has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amended section.

Ms. Friesen has also determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the amended section is that employers will report employees to the State Directory of New Hires on a more consistent basis as the term employee under Texas Family Code §234.101(1) has been expanded to include independent contractors, who will be clearly defined by the proposed amendment to the Texas Administrative Code as those whose income is required to be reported by employers on Form 1099-MISC. There will be no effect on small businesses, as the proposed amendment limits the definition of independent contractors to a particular sub-group of individuals who provide paid labor services. There is no anticipated economic cost to persons who are required to comply with the amendment as proposed.

Comments on this proposed amendment should be submitted to Ildefonso Ochoa, Deputy Director for Policy, Legal and Program Operations, Child Support Division, Office of the Attorney General, (physical address) 5500 East Oltorf, Austin, Texas 78741 or (mailing address) P.O. Box 12017, Mail Code 044, Austin, Texas 78711-2017. Comments on this proposed amendment must be submitted no later than 30 days from the date of this publication.

The proposed amendment is authorized under Texas Family Code §231.002(a)(2), which provides the Office of the Attorney General with the authority to adopt rules for the provision of child support services and by Texas Family Code §231.003, which authorizes the Title IV-D agency to promulgate by rule any forms and procedures necessary to comply fully with the intent of this chapter. The proposed amendment is also authorized under Texas Family Code §234.104, which provides the Office of the Attorney General with the authority to establish procedures for reporting employee information and for operating a state directory of new hires meeting the requirements of federal law.

The proposed amendment implements the Texas Family Code, Chapters 231 and 234.