By Goodman, Hill, et al.                              H.B. No. 1434
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the establishment, modification, and enforcement of a
    1-3  child support order, including guidelines for the support of
    1-4  children in more than one household.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 14.05(a), Family Code, as amended by
    1-7  Chapter 617, Acts of the 71st Legislature, Regular Session, 1989,
    1-8  and Chapter 25, Acts of the 71st Legislature, 1st Called Session,
    1-9  1989, is amended to read as follows:
   1-10        (a)  Except as provided by Subsection (k) of this section,
   1-11  the  <The> court may order either or both parents to make periodic
   1-12  payments or, for good cause shown, order a lump-sum payment or
   1-13  purchase an annuity, or any combination of periodic payments,
   1-14  lump-sum payments, or annuity purchases for the support of the
   1-15  child until he or she is 18 years of age in the manner and to or
   1-16  for the benefit of the persons specified by the court in the
   1-17  decree.  The court of continuing exclusive jurisdiction may render
   1-18  an original support order, modify an existing order, or render a
   1-19  new order extending child support past the 18th birthday of the
   1-20  child, whether the request for such an order is filed before or
   1-21  after the child's 18th birthday, if the child is fully enrolled in
   1-22  an accredited secondary school in a program leading toward a high
   1-23  school diploma.  The order for periodic support may provide that
   1-24  payments continue until the end of the school year in which the
    2-1  child graduates.  In addition, the court may order a parent
    2-2  obligated to support a child to set aside property to be
    2-3  administered for the support of the child in the manner and by the
    2-4  persons specified by the court in the decree.  In determining the
    2-5  amount of child support, the court shall be guided by the child
    2-6  support guidelines contained in Sections 14.052 through 14.058 of
    2-7  this chapter for the support of a child.
    2-8        SECTION 2.  (a)  Section 14.05, Family Code, is amended by
    2-9  adding Subsection (k) to read as follows:
   2-10        (k)  A court may not order the payment of child support for
   2-11  the benefit of a child who does not reside with the child's parent,
   2-12  managing conservator, or guardian or with another responsible
   2-13  person as a result of a voluntary decision made by the child and
   2-14  not as a result of abuse or neglect as defined by Section 34.012 of
   2-15  this code.
   2-16        (b)  Subsection (a) of this section applies only to a child
   2-17  support order entered or modified on or after the effective date of
   2-18  this Act.  The enactment of Subsection (a) of this section is
   2-19  sufficient by itself to constitute a material and substantial
   2-20  change in the circumstances of a child for whose benefit a child
   2-21  support order has been entered to warrant modification of the order
   2-22  under Section 14.08, Family Code.
   2-23        SECTION 3.  Section 14.05, Family Code, is amended by adding
   2-24  Subsection (l) to read as follows:
   2-25        (l)  In a proceeding in which the Department of Protective
   2-26  and Regulatory Services is appointed managing conservator of a
   2-27  child, in appropriate circumstances, and in accordance with the
    3-1  guidelines established for child support payments as provided in
    3-2  this title, the court may order either or both parents to make
    3-3  periodic payments or a lump-sum payment, or both, for the support
    3-4  of the child until the child is 18 years of age in the manner
    3-5  specified by the court in the decree.
    3-6        SECTION 4.  Section 14.053, Family Code, is amended by
    3-7  amending Subsections (b) and (d) and adding Subsection (l) to read
    3-8  as follows:
    3-9        (b)  Net Resources Defined.  "Net resources," for the purpose
   3-10  of determining child support liability, are 100 percent of all wage
   3-11  and salary income and other compensation for personal services
   3-12  (including commissions, overtime pay, tips, and bonuses), interest,
   3-13  dividends, royalty income, self-employment income (as described in
   3-14  Subsection (c) of this section), net rental income (defined as rent
   3-15  after deducting operating expenses and mortgage payments, but not
   3-16  including noncash items such as depreciation), and all other income
   3-17  actually being received, including but not limited to severance
   3-18  pay, retirement benefits, pensions, trust income, annuities,
   3-19  capital gains, social security benefits, unemployment benefits,
   3-20  disability and workers' compensation benefits, interest income from
   3-21  notes but not including return of principal or capital, <and/or>
   3-22  accounts receivable regardless of the source, gifts and prizes,
   3-23  spousal maintenance, and alimony, less (subtracting) 100 percent of
   3-24  social security taxes, federal income tax withholding for a single
   3-25  person claiming one personal exemption and the standard deduction,
   3-26  union dues, and expenses for health insurance coverage for the
   3-27  obligor's child.  Benefits paid pursuant to aid for families with
    4-1  dependent children and any other child support received from any
    4-2  source shall be disregarded in calculating net resources.
    4-3        (d)  Health Insurance.  The guidelines for a court order for
    4-4  the support of a child in this chapter assume that the court will
    4-5  order the obligor to provide health insurance coverage for the
    4-6  child subject of the suit in addition to the amount of child
    4-7  support calculated pursuant to these guidelines.  If the court
    4-8  finds and sets forth in the order setting child support that the
    4-9  obligee will maintain health insurance coverage at the obligee's
   4-10  expense for the child, the court may increase the amount of child
   4-11  support to be paid by the obligor in an amount not exceeding the
   4-12  total expense to the obligee for maintaining health insurance
   4-13  coverage.  The court may order the obligor to pay as additional
   4-14  child support not less than 50 percent of the reasonable and
   4-15  necessary health care expenses of a child that are not reimbursed
   4-16  by a third party.
   4-17        (l)  Retroactive Support.  The guidelines for the support of
   4-18  a child in this chapter are intended to guide the court in
   4-19  determining the amount of retroactive child support, if any, to be
   4-20  ordered under this chapter or Chapter 13 of this code.  In ordering
   4-21  retroactive child support, the court shall consider the net
   4-22  resources of the obligor during the relevant time period.  In
   4-23  making an order of retroactive support under this subsection, the
   4-24  court shall consider the following evidentiary factors:
   4-25              (1)  whether the mother of the child had made any
   4-26  previous attempts to notify the biological father of his paternity
   4-27  or probable paternity;
    5-1              (2)  whether the biological father had knowledge of his
    5-2  paternity or probable paternity;
    5-3              (3)  whether the order of retroactive child support
    5-4  will impose an undue financial hardship on the obligor or his
    5-5  family; and
    5-6              (4)  whether the obligor has provided actual support or
    5-7  other necessaries prior to the filing of the action.
    5-8        SECTION 5.  Section 14.055, Family Code, is amended by
    5-9  amending Subsections (a), (b), and (c) and adding Subsections
   5-10  (f)-(j) to read as follows:
   5-11        (a)  Rebuttable Presumption.  The guidelines for the support
   5-12  of a child in this chapter are specifically designed to apply to
   5-13  situations in which the obligor's monthly net resources are $6,000
   5-14  <$4,000> or less. In any suit affecting the parent-child
   5-15  relationship, there is a rebuttable presumption that an order
   5-16  containing the amount of periodic child support payments
   5-17  established by the schedule provided in this section is reasonable
   5-18  and that the order is in the best interest of the child.  A court
   5-19  may determine that the application of the guidelines would be
   5-20  unjust or inappropriate under the circumstances.
   5-21        (b)  Schedule:  $6,000 <$4,000> or Less Monthly Net
   5-22  Resources.  In rendering an order of child support under
   5-23  circumstances in which the obligor's monthly net resources are
   5-24  $6,000 <$4,000> or less, the court shall presumptively apply the
   5-25  following schedule:
   5-26                       CHILD SUPPORT GUIDELINES
   5-27           BASED ON THE MONTHLY NET RESOURCES OF THE OBLIGOR
    6-1  1 child            20% of Obligor's Net Resources
    6-2  2 children         25% of Obligor's Net Resources
    6-3  3 children         30% of Obligor's Net Resources
    6-4  4 children         35% of Obligor's Net Resources
    6-5  5<+> children      40% of Obligor's Net Resources <Not less than
    6-6                     the amount for 4 children>
    6-7  6+ children        Not less than the amount for 5 children
    6-8        (c)  More Than $6,000 <$4,000> Monthly Net Resources.  In
    6-9  situations in which the obligor's net resources exceed $6,000
   6-10  <$4,000> per month, the court shall presumptively apply the
   6-11  percentage guidelines in Subsection (b) of this section to the
   6-12  first $6,000 <$4,000> of the obligor's net resources.  A court may
   6-13  not apply the percentage guidelines in Subsection (b) of this
   6-14  section to any portion of the obligor's monthly net resources which
   6-15  exceeds $6,000.  The court may order periodic child support
   6-16  payments in an amount in excess of the maximum amount presumptively
   6-17  established by the guidelines, however, if the court finds that
   6-18  such additional support is necessary and appropriate to meet
   6-19  extraordinary health care costs or additional educational and
   6-20  educationally related extracurricular expenses directly
   6-21  attributable to the needs of the child.  The <Without further
   6-22  reference to the percentage recommended by these guidelines, the>
   6-23  court may order that additional <amounts of> child support <as
   6-24  proven,> in excess of the amount established by application of the
   6-25  guidelines be paid by the obligor directly to a third party who
   6-26  provides the goods or services for the sole benefit of the child
   6-27  <depending on the needs of the child at the time of the order>.
    7-1  The support of a minor who qualifies for support under Section
    7-2  14.051 of this code shall be governed by that section.
    7-3        (f)  Children in More Than One Household.  In applying the
    7-4  child support guidelines for an obligor who has children in more
    7-5  than one household, the court shall apply the percentage guidelines
    7-6  in this section by making the following computation:
    7-7              (1)  determine the amount of child support that would
    7-8  be ordered if all children, both before the court and not before
    7-9  the court, whom the obligor has the legal duty to support lived in
   7-10  one household by applying the schedule in Subsection (b) of this
   7-11  section;
   7-12              (2)  compute a child support credit for the obligor's
   7-13  children who are not before the court by dividing the amount
   7-14  determined under Subdivision (1) of this subsection by the total
   7-15  number of children whom the obligor is obligated to support and
   7-16  multiplying that number by the number of the obligor's children who
   7-17  are not before the court;
   7-18              (3)  determine the adjusted net resources of the
   7-19  obligor by subtracting the child support credit computed under
   7-20  Subdivision (2) of this subsection from the net resources of the
   7-21  obligor; and
   7-22              (4)  determine the child support amount for the
   7-23  children before the court by applying the percentage guidelines
   7-24  from Subsection (b) of this section for the number of children of
   7-25  the obligor before the court to the obligor's adjusted net
   7-26  resources.
   7-27        (g)  Child Support Credit.  For the purpose of determining a
    8-1  child support credit under Subsection (f)(2) of this section, the
    8-2  total number of an  obligor's children includes the children before
    8-3  the court for the establishment or modification of a support order
    8-4  and any other children, including children residing with the
    8-5  obligor, whom the obligor has the legal duty of support.
    8-6        (h)  Child Support Paid by Obligor.  The child support credit
    8-7  under Subsection (f)(2) of this section with respect to children
    8-8  for whom the obligor is obligated by a court order to pay support
    8-9  is computed, regardless of whether the obligor is delinquent in
   8-10  child support payments, without regard to the amount of the order.
   8-11        (i)  Child Support Received by Obligor.  Child support
   8-12  received by an obligor who is obligated to support children in more
   8-13  than one household    shall be added to the net resources of the
   8-14  obligor to compute the net resources of an obligor before
   8-15  determining the child support credit under Subsection (f)(2) of
   8-16  this section or applying the percentages in the table in Subsection
   8-17  (j) of this section.
   8-18        (j)  Alternative Method of Computing Support for Children in
   8-19  More Than One Household.  In lieu of performing the computation
   8-20  under Subsection (f) of this section, the court may determine the
   8-21  child support amount for the children before the court by applying
   8-22  the percentages in the table below to the obligor's net resources.
   8-23  Multiple Family
   8-24  adjusted                  Number of children before the court
   8-25  guidelines 
   8-26  (% of net            1      2      3      4      5      6      7
   8-27  resources)                                                        
    9-1  Number of       0  20.00  25.00  30.00  35.00  40.00  40.00  40.00
    9-2  other           1  17.50  22.50  27.38  32.20  37.33  37.71  38.00
    9-3  children for    2  16.00  20.63  25.20  30.33  35.43  36.00  36.44
    9-4  whom the        3  14.75  19.00  24.00  29.00  34.00  34.67  35.20
    9-5  obligor has     4  13.60  18.33  23.14  28.00  32.89  33.60  34.18
    9-6  a duty of       5  13.33  17.86  22.50  27.22  32.00  32.73  33.33
    9-7  support:        6  13.14  17.50  22.00  26.60  31.27  32.00  32.62
    9-8                  7  13.00  17.22  21.60  26.09  30.67  31.38  32.00
    9-9        SECTION 6.  Section 14.056, Family Code, is amended by
   9-10  amending Subsection (b) and adding Subsection (d) to read as
   9-11  follows:
   9-12        (b)  Additional Factors.  In addition to the factors listed
   9-13  in these guidelines, a court may consider other relevant factors.
   9-14  <The support obligation owed to a subsequently born or adopted
   9-15  child does not constitute cause to decrease the amount of an
   9-16  existing child support order.>  The history of support voluntarily
   9-17  provided in excess of the court order does not constitute cause to
   9-18  increase the amount of an existing child support order.
   9-19        (d)  Use of Guidelines for Children in More Than One
   9-20  Household.  In applying the child support guidelines under this
   9-21  section, if the obligor has the duty to support children in more
   9-22  than one household, the court shall apply the percentage guidelines
   9-23  in Section 14.055 of this code by making the computation provided
   9-24  by Section 14.055(f) of this code.
   9-25        SECTION 7.  Section 14.057, Family Code, is amended by
   9-26  amending Subsection (a) and adding Subsection (c) to read as
   9-27  follows:
   10-1        (a)  Without regard to Rules 296 through 299, Texas Rules of
   10-2  Civil Procedure, in any suit affecting the parent-child
   10-3  relationship or reciprocal child support action in which child
   10-4  support is contested and the amount of the support <order> is set
   10-5  or modified by the court, on written request made or filed with the
   10-6  court not later than 10 days after the date of the hearing or an
   10-7  oral request made in open court during the hearing, the court shall
   10-8  state the following in the child support order:
   10-9              "(1)  the amount of net resources available to the
  10-10  obligor per month is $________;
  10-11              "(2)  the amount of net resources available to the
  10-12  obligee per month is $________;
  10-13              "(3)  the amount of child support payments per month
  10-14  that is computed if Section 14.055, Family Code, is applied is
  10-15  $_______;
  10-16              "(4)  the percentage applied to the obligor's net
  10-17  resources for child support by the actual order rendered by the
  10-18  court is _______%; and, if applicable,
  10-19              "(5)  the specific reasons that the amount of support
  10-20  per month ordered by the court varies from the amount computed by
  10-21  applying the percentage guidelines pursuant to Section 14.055,
  10-22  Family Code, are:_________."
  10-23        (c)  In an order that child support be paid by an obligor who
  10-24  is obligated to support children as provided by Section 14.055(f)
  10-25  of this code, the court shall make the findings required by
  10-26  Subsection (b) of this section and shall specify under finding five
  10-27  of that subsection:
   11-1              (1)  the number of children before the court;
   11-2              (2)  the number of children not before the court:
   11-3                    (A)  who reside in the same household with the
   11-4  obligor; and
   11-5                    (B)  for whom the obligor is obligated by a court
   11-6  order to pay support, without regard to whether the obligor is
   11-7  delinquent in child support payments, and who are not counted in
   11-8  Paragraph (A) of this subdivision.
   11-9        SECTION 8.  Subchapter B, Chapter 14, Family Code, is amended
  11-10  by adding Section 14.46 to read as follows:
  11-11        Sec. 14.46.  REPORT OF DELINQUENT CHILD SUPPORT TO CREDIT
  11-12  BUREAU.  (a)  On determination by a court under this subchapter
  11-13  that an obligor is delinquent in the payment of child support, the
  11-14  county officer charged with collecting the child support obligation
  11-15  shall make available upon request by a credit reporting bureau the
  11-16  fact of delinquency to a credit reporting bureau that provides
  11-17  credit information in the county in which the child support agency
  11-18  is located.
  11-19        (b)  In this section, "credit reporting bureau" means a
  11-20  person or organization engaging in the practice of assembling or
  11-21  reporting credit information on individuals for the purpose of
  11-22  furnishing such information to third parties or as defined by the
  11-23  attorney general.
  11-24        SECTION 9.  This Act takes effect September 1, 1993.
  11-25        SECTION 10.  (a)  This Act applies only to a child support
  11-26  order entered or modified on or after the effective date of this
  11-27  Act.
   12-1        (b)  The enactment of this Act is sufficient by itself to
   12-2  constitute a material and substantial change in the circumstances
   12-3  of a child for whose benefit a child support order has been entered
   12-4  to warrant modification of the order under Section 14.08, Family
   12-5  Code.
   12-6        SECTION 11.  The importance of this legislation and the
   12-7  crowded condition of the calendars in both houses create an
   12-8  emergency and an imperative public necessity that the
   12-9  constitutional rule requiring bills to be read on three several
  12-10  days in each house be suspended, and this rule is hereby suspended.