1-1  By:  Goodman, Hill, et al.                            H.B. No. 1434
    1-2       (Senate Sponsor - Harris of Tarrant)
    1-3        (In the Senate - Received from the House May 5, 1993;
    1-4  May 6, 1993, read first time and referred to Committee on
    1-5  Jurisprudence; May 18, 1993, reported favorably, as amended, by the
    1-6  following vote:  Yeas 5, Nays 0; May 18, 1993, sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Henderson          x                               
   1-10        Harris of Tarrant  x                               
   1-11        Brown                                          x   
   1-12        Harris of Dallas   x                               
   1-13        Luna               x                               
   1-14        Parker                                         x   
   1-15        West               x                               
   1-16  COMMITTEE AMENDMENT NO. 1                    By:  Harris of Tarrant
   1-17  Amend H.B. 1434 as follows:
   1-18        (1)  Strike Sections 1 and 2 in their entirety, beginning on
   1-19  page 1, line 31, through page 2, line 7.
   1-20        (2)  In Section 4, on page 2, line 53, strike "not less than"
   1-21  and substitute "up to".
   1-22        (3)  Strike Section 8 in its entirety, beginning on page 5,
   1-23  line 27, through page 5, line 41.
   1-24        Renumber subsequent sections appropriately.
   1-25                         A BILL TO BE ENTITLED
   1-26                                AN ACT
   1-27  relating to the establishment, modification, and enforcement of a
   1-28  child support order, including guidelines for the support of
   1-29  children in more than one household.
   1-30        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-31        SECTION 1.  Section 14.05(a), Family Code, as amended by
   1-32  Chapter 617, Acts of the 71st Legislature, Regular Session, 1989,
   1-33  and Chapter 25, Acts of the 71st Legislature, 1st Called Session,
   1-34  1989, is amended to read as follows:
   1-35        (a)  Except as provided by Subsection (k) of this section,
   1-36  the  <The> court may order either or both parents to make periodic
   1-37  payments or, for good cause shown, order a lump-sum payment or
   1-38  purchase an annuity, or any combination of periodic payments,
   1-39  lump-sum payments, or annuity purchases for the support of the
   1-40  child until he or she is 18 years of age in the manner and to or
   1-41  for the benefit of the persons specified by the court in the
   1-42  decree.  The court of continuing exclusive jurisdiction may render
   1-43  an original support order, modify an existing order, or render a
   1-44  new order extending child support past the 18th birthday of the
   1-45  child, whether the request for such an order is filed before or
   1-46  after the child's 18th birthday, if the child is fully enrolled in
   1-47  an accredited secondary school in a program leading toward a high
   1-48  school diploma.  The order for periodic support may provide that
   1-49  payments continue until the end of the school year in which the
   1-50  child graduates.  In addition, the court may order a parent
   1-51  obligated to support a child to set aside property to be
   1-52  administered for the support of the child in the manner and by the
   1-53  persons specified by the court in the decree.  In determining the
   1-54  amount of child support, the court shall be guided by the child
   1-55  support guidelines contained in Sections 14.052 through 14.058 of
   1-56  this chapter for the support of a child.
   1-57        SECTION 2.  (a)  Section 14.05, Family Code, is amended by
   1-58  adding Subsection (k) to read as follows:
   1-59        (k)  A court may not order the payment of child support for
   1-60  the benefit of a child who does not reside with the child's parent,
   1-61  managing conservator, or guardian or with another responsible
   1-62  person as a result of a voluntary decision made by the child and
   1-63  not as a result of abuse or neglect as defined by Section 34.012 of
   1-64  this code.
   1-65        (b)  Subsection (a) of this section applies only to a child
   1-66  support order entered or modified on or after the effective date of
   1-67  this Act.  The enactment of Subsection (a) of this section is
   1-68  sufficient by itself to constitute a material and substantial
    2-1  change in the circumstances of a child for whose benefit a child
    2-2  support order has been entered to warrant modification of the order
    2-3  under Section 14.08, Family Code.
    2-4        SECTION 3.  Section 14.05, Family Code, is amended by adding
    2-5  Subsection (l) to read as follows:
    2-6        (l)  In a proceeding in which the Department of Protective
    2-7  and Regulatory Services is appointed managing conservator of a
    2-8  child, in appropriate circumstances, and in accordance with the
    2-9  guidelines established for child support payments as provided in
   2-10  this title, the court may order either or both parents to make
   2-11  periodic payments or a lump-sum payment, or both, for the support
   2-12  of the child until the child is 18 years of age in the manner
   2-13  specified by the court in the decree.
   2-14        SECTION 4.  Section 14.053, Family Code, is amended by
   2-15  amending Subsections (b) and (d) and adding Subsection (l) to read
   2-16  as follows:
   2-17        (b)  Net Resources Defined.  "Net resources," for the purpose
   2-18  of determining child support liability, are 100 percent of all wage
   2-19  and salary income and other compensation for personal services
   2-20  (including commissions, overtime pay, tips, and bonuses), interest,
   2-21  dividends, royalty income, self-employment income (as described in
   2-22  Subsection (c) of this section), net rental income (defined as rent
   2-23  after deducting operating expenses and mortgage payments, but not
   2-24  including noncash items such as depreciation), and all other income
   2-25  actually being received, including but not limited to severance
   2-26  pay, retirement benefits, pensions, trust income, annuities,
   2-27  capital gains, social security benefits, unemployment benefits,
   2-28  disability and workers' compensation benefits, interest income from
   2-29  notes but not including return of principal or capital, <and/or>
   2-30  accounts receivable regardless of the source, gifts and prizes,
   2-31  spousal maintenance, and alimony, less (subtracting) 100 percent of
   2-32  social security taxes, federal income tax withholding for a single
   2-33  person claiming one personal exemption and the standard deduction,
   2-34  union dues, and expenses for health insurance coverage for the
   2-35  obligor's child.  Benefits paid pursuant to aid for families with
   2-36  dependent children and any other child support received from any
   2-37  source shall be disregarded in calculating net resources.
   2-38        (d)  Health Insurance.  The guidelines for a court order for
   2-39  the support of a child in this chapter assume that the court will
   2-40  order the obligor to provide health insurance coverage for the
   2-41  child subject of the suit in addition to the amount of child
   2-42  support calculated pursuant to these guidelines.  If the court
   2-43  finds and sets forth in the order setting child support that the
   2-44  obligee will maintain health insurance coverage at the obligee's
   2-45  expense for the child, the court may increase the amount of child
   2-46  support to be paid by the obligor in an amount not exceeding the
   2-47  total expense to the obligee for maintaining health insurance
   2-48  coverage.  The court may order the obligor to pay as additional
   2-49  child support not less than 50 percent of the reasonable and
   2-50  necessary health care expenses of a child that are not reimbursed
   2-51  by a third party.
   2-52        (l)  Retroactive Support.  The guidelines for the support of
   2-53  a child in this chapter are intended to guide the court in
   2-54  determining the amount of retroactive child support, if any, to be
   2-55  ordered under this chapter or Chapter 13 of this code.  In ordering
   2-56  retroactive child support, the court shall consider the net
   2-57  resources of the obligor during the relevant time period.  In
   2-58  making an order of retroactive support under this subsection, the
   2-59  court shall consider the following evidentiary factors:
   2-60              (1)  whether the mother of the child had made any
   2-61  previous attempts to notify the biological father of his paternity
   2-62  or probable paternity;
   2-63              (2)  whether the biological father had knowledge of his
   2-64  paternity or probable paternity;
   2-65              (3)  whether the order of retroactive child support
   2-66  will impose an undue financial hardship on the obligor or his
   2-67  family; and
   2-68              (4)  whether the obligor has provided actual support or
   2-69  other necessaries prior to the filing of the action.
   2-70        SECTION 5.  Section 14.055, Family Code, is amended by
    3-1  amending Subsections (a), (b), and (c) and adding Subsections
    3-2  (f)-(j) to read as follows:
    3-3        (a)  Rebuttable Presumption.  The guidelines for the support
    3-4  of a child in this chapter are specifically designed to apply to
    3-5  situations in which the obligor's monthly net resources are $6,000
    3-6  <$4,000> or less. In any suit affecting the parent-child
    3-7  relationship, there is a rebuttable presumption that an order
    3-8  containing the amount of periodic child support payments
    3-9  established by the schedule provided in this section is reasonable
   3-10  and that the order is in the best interest of the child.  A court
   3-11  may determine that the application of the guidelines would be
   3-12  unjust or inappropriate under the circumstances.
   3-13        (b)  Schedule:  $6,000 <$4,000> or Less Monthly Net
   3-14  Resources.  In rendering an order of child support under
   3-15  circumstances in which the obligor's monthly net resources are
   3-16  $6,000 <$4,000> or less, the court shall presumptively apply the
   3-17  following schedule:
   3-18                       CHILD SUPPORT GUIDELINES
   3-19           BASED ON THE MONTHLY NET RESOURCES OF THE OBLIGOR
   3-20  1 child            20% of Obligor's Net Resources
   3-21  2 children         25% of Obligor's Net Resources
   3-22  3 children         30% of Obligor's Net Resources
   3-23  4 children         35% of Obligor's Net Resources
   3-24  5<+> children      40% of Obligor's Net Resources <Not less than
   3-25                     the amount for 4 children>
   3-26  6+ children        Not less than the amount for 5 children
   3-27        (c)  More Than $6,000 <$4,000> Monthly Net Resources.  In
   3-28  situations in which the obligor's net resources exceed $6,000
   3-29  <$4,000> per month, the court shall presumptively apply the
   3-30  percentage guidelines in Subsection (b) of this section to the
   3-31  first $6,000 <$4,000> of the obligor's net resources.  A court may
   3-32  not apply the percentage guidelines in Subsection (b) of this
   3-33  section to any portion of the obligor's monthly net resources which
   3-34  exceeds $6,000.  The court may order periodic child support
   3-35  payments in an amount in excess of the maximum amount presumptively
   3-36  established by the guidelines, however, if the court finds that
   3-37  such additional support is necessary and appropriate to meet
   3-38  extraordinary health care costs or additional educational and
   3-39  educationally related extracurricular expenses directly
   3-40  attributable to the needs of the child.  The <Without further
   3-41  reference to the percentage recommended by these guidelines, the>
   3-42  court may order that additional <amounts of> child support <as
   3-43  proven,> in excess of the amount established by application of the
   3-44  guidelines be paid by the obligor directly to a third party who
   3-45  provides the goods or services for the sole benefit of the child
   3-46  <depending on the needs of the child at the time of the order>.
   3-47  The support of a minor who qualifies for support under Section
   3-48  14.051 of this code shall be governed by that section.
   3-49        (f)  Children in More Than One Household.  In applying the
   3-50  child support guidelines for an obligor who has children in more
   3-51  than one household, the court shall apply the percentage guidelines
   3-52  in this section by making the following computation:
   3-53              (1)  determine the amount of child support that would
   3-54  be ordered if all children, both before the court and not before
   3-55  the court, whom the obligor has the legal duty to support lived in
   3-56  one household by applying the schedule in Subsection (b) of this
   3-57  section;
   3-58              (2)  compute a child support credit for the obligor's
   3-59  children who are not before the court by dividing the amount
   3-60  determined under Subdivision (1) of this subsection by the total
   3-61  number of children whom the obligor is obligated to support and
   3-62  multiplying that number by the number of the obligor's children who
   3-63  are not before the court;
   3-64              (3)  determine the adjusted net resources of the
   3-65  obligor by subtracting the child support credit computed under
   3-66  Subdivision (2) of this subsection from the net resources of the
   3-67  obligor; and
   3-68              (4)  determine the child support amount for the
   3-69  children before the court by applying the percentage guidelines
   3-70  from Subsection (b) of this section for the number of children of
    4-1  the obligor before the court to the obligor's adjusted net
    4-2  resources.
    4-3        (g)  Child Support Credit.  For the purpose of determining a
    4-4  child support credit under Subsection (f)(2) of this section, the
    4-5  total number of an  obligor's children includes the children before
    4-6  the court for the establishment or modification of a support order
    4-7  and any other children, including children residing with the
    4-8  obligor, whom the obligor has the legal duty of support.
    4-9        (h)  Child Support Paid by Obligor.  The child support credit
   4-10  under Subsection (f)(2) of this section with respect to children
   4-11  for whom the obligor is obligated by a court order to pay support
   4-12  is computed, regardless of whether the obligor is delinquent in
   4-13  child support payments, without regard to the amount of the order.
   4-14        (i)  Child Support Received by Obligor.  Child support
   4-15  received by an obligor who is obligated to support children in more
   4-16  than one household    shall be added to the net resources of the
   4-17  obligor to compute the net resources of an obligor before
   4-18  determining the child support credit under Subsection (f)(2) of
   4-19  this section or applying the percentages in the table in Subsection
   4-20  (j) of this section.
   4-21        (j)  Alternative Method of Computing Support for Children in
   4-22  More Than One Household.  In lieu of performing the computation
   4-23  under Subsection (f) of this section, the court may determine the
   4-24  child support amount for the children before the court by applying
   4-25  the percentages in the table below to the obligor's net resources.
   4-26  Multiple Family
   4-27  adjusted                  Number of children before the court
   4-28  guidelines 
   4-29  (% of net            1      2      3      4      5      6      7
   4-30  resources)                                                        
   4-31  Number of       0  20.00  25.00  30.00  35.00  40.00  40.00  40.00
   4-32  other           1  17.50  22.50  27.38  32.20  37.33  37.71  38.00
   4-33  children for    2  16.00  20.63  25.20  30.33  35.43  36.00  36.44
   4-34  whom the        3  14.75  19.00  24.00  29.00  34.00  34.67  35.20
   4-35  obligor has     4  13.60  18.33  23.14  28.00  32.89  33.60  34.18
   4-36  a duty of       5  13.33  17.86  22.50  27.22  32.00  32.73  33.33
   4-37  support:        6  13.14  17.50  22.00  26.60  31.27  32.00  32.62
   4-38                  7  13.00  17.22  21.60  26.09  30.67  31.38  32.00
   4-39        SECTION 6.  Section 14.056, Family Code, is amended by
   4-40  amending Subsection (b) and adding Subsection (d) to read as
   4-41  follows:
   4-42        (b)  Additional Factors.  In addition to the factors listed
   4-43  in these guidelines, a court may consider other relevant factors.
   4-44  <The support obligation owed to a subsequently born or adopted
   4-45  child does not constitute cause to decrease the amount of an
   4-46  existing child support order.>  The history of support voluntarily
   4-47  provided in excess of the court order does not constitute cause to
   4-48  increase the amount of an existing child support order.
   4-49        (d)  Use of Guidelines for Children in More Than One
   4-50  Household.  In applying the child support guidelines under this
   4-51  section, if the obligor has the duty to support children in more
   4-52  than one household, the court shall apply the percentage guidelines
   4-53  in Section 14.055 of this code by making the computation provided
   4-54  by Section 14.055(f) of this code.
   4-55        SECTION 7.  Section 14.057, Family Code, is amended by
   4-56  amending Subsection (a) and adding Subsection (c) to read as
   4-57  follows:
   4-58        (a)  Without regard to Rules 296 through 299, Texas Rules of
   4-59  Civil Procedure, in any suit affecting the parent-child
   4-60  relationship or reciprocal child support action in which child
   4-61  support is contested and the amount of the support <order> is set
   4-62  or modified by the court, on written request made or filed with the
   4-63  court not later than 10 days after the date of the hearing or an
   4-64  oral request made in open court during the hearing, the court shall
   4-65  state the following in the child support order:
   4-66              "(1)  the amount of net resources available to the
   4-67  obligor per month is $________;
   4-68              "(2)  the amount of net resources available to the
   4-69  obligee per month is $________;
   4-70              "(3)  the amount of child support payments per month
    5-1  that is computed if Section 14.055, Family Code, is applied is
    5-2  $_______;
    5-3              "(4)  the percentage applied to the obligor's net
    5-4  resources for child support by the actual order rendered by the
    5-5  court is _______%; and, if applicable,
    5-6              "(5)  the specific reasons that the amount of support
    5-7  per month ordered by the court varies from the amount computed by
    5-8  applying the percentage guidelines pursuant to Section 14.055,
    5-9  Family Code, are:_________."
   5-10        (c)  In an order that child support be paid by an obligor who
   5-11  is obligated to support children as provided by Section 14.055(f)
   5-12  of this code, the court shall make the findings required by
   5-13  Subsection (b) of this section and shall specify under finding five
   5-14  of that subsection:
   5-15              (1)  the number of children before the court;
   5-16              (2)  the number of children not before the court:
   5-17                    (A)  who reside in the same household with the
   5-18  obligor; and
   5-19                    (B)  for whom the obligor is obligated by a court
   5-20  order to pay support, without regard to whether the obligor is
   5-21  delinquent in child support payments, and who are not counted in
   5-22  Paragraph (A) of this subdivision.
   5-23        SECTION 8.  Subchapter B, Chapter 14, Family Code, is amended
   5-24  by adding Section 14.46 to read as follows:
   5-25        Sec. 14.46.  REPORT OF DELINQUENT CHILD SUPPORT TO CREDIT
   5-26  BUREAU.  (a)  On determination by a court under this subchapter
   5-27  that an obligor is delinquent in the payment of child support, the
   5-28  county officer charged with collecting the child support obligation
   5-29  shall make available upon request by a credit reporting bureau the
   5-30  fact of delinquency to a credit reporting bureau that provides
   5-31  credit information in the county in which the child support agency
   5-32  is located.
   5-33        (b)  In this section, "credit reporting bureau" means a
   5-34  person or organization engaging in the practice of assembling or
   5-35  reporting credit information on individuals for the purpose of
   5-36  furnishing such information to third parties or as defined by the
   5-37  attorney general.
   5-38        SECTION 9.  This Act takes effect September 1, 1993.
   5-39        SECTION 10.  (a)  This Act applies only to a child support
   5-40  order entered or modified on or after the effective date of this
   5-41  Act.
   5-42        (b)  The enactment of this Act is sufficient by itself to
   5-43  constitute a material and substantial change in the circumstances
   5-44  of a child for whose benefit a child support order has been entered
   5-45  to warrant modification of the order under Section 14.08, Family
   5-46  Code.
   5-47        SECTION 11.  The importance of this legislation and the
   5-48  crowded condition of the calendars in both houses create an
   5-49  emergency and an imperative public necessity that the
   5-50  constitutional rule requiring bills to be read on three several
   5-51  days in each house be suspended, and this rule is hereby suspended.
   5-52                               * * * * *
   5-53                                                         Austin,
   5-54  Texas
   5-55                                                         May 18, 1993
   5-56  Hon. Bob Bullock
   5-57  President of the Senate
   5-58  Sir:
   5-59  We, your Committee on Jurisprudence to which was referred H.B. No.
   5-60  1434, have had the same under consideration, and I am instructed to
   5-61  report it back to the Senate with the recommendation that it do
   5-62  pass, as amended, and be printed.
   5-63                                                         Henderson,
   5-64  Chairman
   5-65                               * * * * *
   5-66                               WITNESSES
   5-67                                                  FOR   AGAINST  ON
   5-68  ___________________________________________________________________
   5-69                                                  FOR   AGAINST  ON
   5-70  ___________________________________________________________________
    6-1  Name:  John J. Sampson                           x
    6-2  Representing:  Self
    6-3  City:  Austin
    6-4  -------------------------------------------------------------------
    6-5  Name:  Howard Baldwin                                          x
    6-6  Representing:  Atty Gen
    6-7  City:  Austin
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    6-9  Name:  Rhonda Cates                              x
   6-10  Representing:  Tx Cncl. on Fam. violence
   6-11  City:  Austin
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   6-13  Name:  Stephen Musil                                     x
   6-14  Representing:  Travis Cty Dom. Relations Off.
   6-15  City:  Austin
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   6-17  Name:  Brent D. Sandbak                                  x
   6-18  Representing:  Tx Fathers
   6-19  City:  Austin
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   6-21  Name:  Shannon Noble                             x
   6-22  Representing:  Tx Womens' Pol. Caucus
   6-23  City:  Austin
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   6-25  Name:  Bob Green                                         x
   6-26  Representing:  Tx Fathers Alliance
   6-27  City:  Austin
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   6-29  Name:  E. Shaw                                           x
   6-30  Representing:  Self
   6-31  City:  Houston
   6-32  -------------------------------------------------------------------
   6-33  Name:  Harry Tindall                             x
   6-34  Representing:  Self
   6-35  City:  Houston
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