By: Harris of Tarrant S.B. No. 84
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the enforcement of support orders for children and the
1-2 issuance of insurance coverage for certain persons subject to a
1-3 medical support order for a child; providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. MEDICAL SUPPORT ORDERS FOR CHILDREN
1-6 SECTION 1.01. Subchapter B, Chapter 32, Human Resources
1-7 Code, is amended by adding Section 32.042 to read as follows:
1-8 Sec. 32.042. INFORMATION REQUIRED FROM HEALTH INSURERS.
1-9 (a) A health insurer, including a group health services
1-10 corporation and a health maintenance organization, providing
1-11 coverage or benefits in this state through an employer, union,
1-12 trade association, or another organization or source shall maintain
1-13 a centralized file system that contains the name, mailing address,
1-14 social security number, and date of birth of:
1-15 (1) each subscriber, policyholder, or enrollee of the
1-16 insurer; and
1-17 (2) other persons covered by the insurer.
1-18 (b) The information required to be maintained under
1-19 Subsection (a) shall be made available on request to the department
1-20 in the administration of the department's Medicaid third-party
1-21 recovery functions or to any other agency that performs those
1-22 functions. A health insurer shall permit data matches with the
1-23 department or the successor agency to identify state medical
1-24 assistance recipients with third-party health coverage or
2-1 insurance.
2-2 (c) The medical assistance identification card of a
2-3 recipient of medical support shall state whether the recipient is
2-4 covered by any third-party health coverage. A health care service
2-5 provider must seek reimbursement from available third-party health
2-6 coverage before billing the state medical assistance program.
2-7 SECTION 1.02. Section 14.061, Family Code, is amended by
2-8 adding Subsection (r) to read as follows:
2-9 (r) For purposes of enrolling a child in a health insurance
2-10 program under this section, a court order requiring that health
2-11 insurance be provided for a child is a change in the family
2-12 circumstances of the covered person equivalent to the birth or
2-13 adoption of a child by the covered person. On receipt of the
2-14 medical support order by the employer, the child shall be
2-15 automatically enrolled for a 31-day period following the receipt of
2-16 the order by the employer. On receipt of the order by the
2-17 employer, the employer shall notify the insurer of such automatic
2-18 enrollment. During the 31-day period, the policyholder shall apply
2-19 for coverage for the child in accordance with the medical support
2-20 order. An insurer affected by this provision shall not require the
2-21 policyholder to provide evidence of the insurability of the child.
2-22 SECTION 1.03. Subsections (l) and (n), Section 14.43, Family
2-23 Code, are amended to read as follows:
2-24 (l) Liability and Obligation of Employer for Payments. An
2-25 employer receiving an order under this section or a writ under
2-26 Section 14.45 who complies with the order or writ is not liable to
2-27 the obligor for the amount of income withheld and paid as provided
3-1 in the order or writ. An employer who received an order or writ of
3-2 withholding and who does not comply with the order or writ is
3-3 liable to the obligee for the amount not paid in compliance with
3-4 the order or writ, including an amount the obligor is required to
3-5 pay for health insurance under Section 14.061 of this code, or to
3-6 the obligor for the amount withheld and not paid and for reasonable
3-7 attorney's fees and court costs. An employer receiving two or more
3-8 orders or writs on any named obligor shall comply with every order
3-9 or writ to the maximum extent possible. If the total amount in the
3-10 orders or writ exceeds the maximum amount allowable to be withheld
3-11 under this section, the employer shall pay an equal amount towards
3-12 the current support portion of all orders or writs until each order
3-13 is individually complied with, and thereafter equal amounts on the
3-14 arrearage portion of all orders until each order or writ is
3-15 complied with, or until the maximum total amount of allowable
3-16 withholding under Subsection (f) of this section is reached,
3-17 whichever occurs first. If an employer is ordered to withhold from
3-18 more than one obligor, the employer may combine the withheld
3-19 amounts from the obligors' wages and make a single payment to each
3-20 appropriate agency requesting withholding if the employer
3-21 separately identifies the amount of the payment that is
3-22 attributable to each obligor.
3-23 (n) Fine for Employers. In addition to the civil remedies
3-24 provided by Subsections (l) and (m) of this section or by any other
3-25 remedy provided by law, an employer who knowingly violates the
3-26 provisions of those subsections may be subject to a fine not to
3-27 exceed $200 <$50> for each occurrence in which the employer fails
4-1 to withhold. Any fines recovered under this subsection shall be
4-2 paid to the obligee and credited against any amounts owed by the
4-3 obligor.
4-4 SECTION 1.04. Subsections (A)(3), (K), (L), and (M), Sec. 2,
4-5 Chapter 397, Acts of the 54th Legislature, 1955 (Article 3.70-2,
4-6 Vernon's Texas Insurance Code), are amended to read as follows:
4-7 (A) No policy of accident and sickness insurance shall be
4-8 delivered or issued for delivery to any person in this state
4-9 unless:
4-10 (1) the entire money and other consideration therefor
4-11 are expressed therein or in the application, if it is made a part
4-12 of the policy; and
4-13 (2) the time at which the insurance takes effect and
4-14 terminates is expressed therein; and
4-15 (3) it purports to insure only one person, except that
4-16 a policy may insure, originally or by subsequent amendment, upon
4-17 the application of an adult member of a family who shall be deemed
4-18 the policy holder, any two or more eligible members of that family,
4-19 including husband, wife, dependent children, including a dependent
4-20 grandchild of the policy holder who is less than 21 years old and
4-21 living with and in the household of the policy holder, or any
4-22 children under a specified age which shall not exceed twenty-five
4-23 years, a child the policy holder is required to insure under a
4-24 medical support order issued under Section 14.061, Family Code, or
4-25 enforceable by a court in this state, and any other person
4-26 dependent upon the policy holder; and
4-27 (4) the style, arrangement and over-all appearance of
5-1 the policy gives no undue prominence to any portion of the text,
5-2 and unless every printed portion of the text of the policy and of
5-3 any endorsements or attached papers (except copies of applications
5-4 and identification cards) are plainly printed in lightfaced type of
5-5 a style in general use, the size of which shall be uniform and not
5-6 less than ten-point with a lower-case unspaced alphabet length not
5-7 less than one hundred and twenty-point (the "text" shall include
5-8 all printed matter except the name and address of the insurer, name
5-9 or title of the policy, the brief description, if any, and captions
5-10 and subcaptions); and
5-11 (5) the exceptions and reductions of indemnity are set
5-12 forth in the policy and, except those which are set forth in
5-13 Section 3 of this Act, are printed, at the insurer's option, either
5-14 included with the benefit provision to which they apply, or under
5-15 an appropriate caption such as "Exceptions" or "Exceptions and
5-16 Reductions"; provided that if an exception or reduction
5-17 specifically applies only to a particular benefit of the policy, a
5-18 statement of such exception or reduction shall be included with the
5-19 benefit provision to which it applies; and
5-20 (6) each such form, including riders and endorsements,
5-21 shall be identified by a form number in the lower left-hand corner
5-22 of the first page thereof; and
5-23 (7) it contains no provision purporting to make any
5-24 portion of the charter, rules, constitution, or bylaws of the
5-25 insurer a part of the policy unless such portion is set forth in
5-26 full in the policy, except in the case of the incorporation of, or
5-27 reference to, a statement of rates or classification of risks, or
6-1 shortrate table filed with the Board; and
6-2 (8) it shall have printed thereon or attached thereto
6-3 a notice stating in substance that the person to whom the policy is
6-4 issued shall be permitted to return the policy within ten (10) days
6-5 of its delivery to such person and to have the premium paid
6-6 refunded if, after examination of the policy, such person is not
6-7 satisfied with it for any reason. If such person pursuant to such
6-8 notice, returns the policy to the insurer at its home or branch
6-9 office or to the agent through whom it was purchased, it shall be
6-10 void from the beginning and the parties shall be in the same
6-11 position as if no policy had been issued. This subdivision shall
6-12 not apply to single premium nonrenewable policies.
6-13 (K) An accident and sickness insurance policy that provides
6-14 coverage for the immediate family or children of a person insured
6-15 under the policy may not exclude from coverage or limit coverage to
6-16 a child of the insured solely because the child is adopted. For
6-17 the purposes of this subsection, a child is considered to be the
6-18 child of an insured if<:>
6-19 <(1)> the insured is a party in a suit in which the
6-20 adoption of the child by the insured is sought<; and>
6-21 <(2) the insured has custody of the child under a
6-22 temporary court order that grants to the insured conservatorship of
6-23 the child>.
6-24 (L) An individual or group policy of accident and sickness
6-25 insurance that is delivered, issued for delivery, or renewed in
6-26 this state, including a policy issued by a company subject to
6-27 Chapter 20, Insurance Code, and evidence of coverage issued by a
7-1 health maintenance organization subject to the Texas Health
7-2 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
7-3 Code), that provides coverage for a child of the policyholder, must
7-4 provide coverage upon payment of a premium for any children of the
7-5 policyholder's child if those children are dependents of the
7-6 policyholder for federal income tax purposes or for a child for
7-7 whom the group member or insured must provide medical support under
7-8 an order issued under Section 14.061, Family Code, or enforceable
7-9 by a court in this state.
7-10 (M)(1) A group or individual accident and sickness insurance
7-11 policy that provides coverage for dependent children of a group
7-12 member or a person insured under the policy may not exclude from or
7-13 discontinue coverage or set a different premium for the natural
7-14 born or adopted child of the group member or person insured or for
7-15 a child for whom the group member or insured must provide medical
7-16 support under an order issued under Section 14.061, Family Code, or
7-17 enforceable by a court in this state for either of the following
7-18 reasons:
7-19 (a) the child does not reside with the group
7-20 member or insured; or
7-21 (b) the group member or insured does not claim
7-22 the child as an exemption for federal income tax purposes under
7-23 Section 151(c)(1)(B), Internal Revenue Code of 1986 (26 U.S.C.
7-24 Section 151(c)(1)(B)).
7-25 (2) A group or individual accident and sickness
7-26 insurance policy that provides coverage for dependent children of a
7-27 group member or a person insured under the policy may not exclude
8-1 from or discontinue coverage or set a different premium for the
8-2 natural born or adopted child of the spouse of the group member or
8-3 person insured, provided that the child resides with the group
8-4 member or person insured.
8-5 (3) Other policy provisions relating to maximum
8-6 limiting attained age and enrollment in school may be used to
8-7 establish continued eligibility for coverage of a dependent child.
8-8 In the event of late enrollment, the insurance company may require
8-9 evidence of insurability satisfactory to the company before
8-10 inclusion of the dependent child for coverage under the policy.
8-11 SECTION 1.05. Subsection (c), Section 3D, Article 3.51-6,
8-12 Insurance Code, is amended to read as follows:
8-13 (c) For the purposes of this section, a child is considered
8-14 to be the child of an insured if<:>
8-15 <(1)> the insured is a party in a suit in which the
8-16 adoption of the child by the insured is sought<; and>
8-17 <(2) the insured has custody of the child under a
8-18 temporary court order that grants to the insured conservatorship of
8-19 the child>.
8-20 SECTION 1.06. Article 21.07-6, Insurance Code, is amended by
8-21 adding Section 25 to read as follows:
8-22 Sec. 25. COVERAGE FOR CERTAIN CHILDREN. Each administrator
8-23 operating under a certificate of authority who adjusts or settles
8-24 claims in connection with health benefits must provide coverage
8-25 upon payment of a premium for any children of the plan member's
8-26 child if those children are dependents of the plan member for
8-27 federal income tax purposes or for a child for whom the plan member
9-1 must provide medical support under an order issued under Section
9-2 14.061, Family Code, or enforceable by a court in this state and
9-3 may not exclude from or discontinue coverage or set a different
9-4 premium for the natural born or adopted child of the plan member.
9-5 SECTION 1.07. (a) This article applies only to an order in
9-6 a suit affecting the parent-child relationship or reciprocal child
9-7 support action entered on or after the effective date of this Act.
9-8 An order entered before the effective date of this Act is governed
9-9 by the law in effect on the date the order was entered, and that
9-10 law is continued in effect for that purpose.
9-11 (b) This article applies only to a policy delivered, issued
9-12 for delivery, or renewed on or after January 1, 1994. A policy
9-13 delivered, issued for delivery, or renewed before that date is
9-14 governed by the law that existed immediately before the effective
9-15 date of this Act, and that law is continued in effect for that
9-16 purpose.
9-17 ARTICLE 2. ENFORCEMENT OF CHILD SUPPORT
9-18 ORDERS AFFECTING LICENSE HOLDERS AND
9-19 MISCELLANEOUS ENFORCEMENT PROVISIONS
9-20 SECTION 2.01. Subchapter B, Chapter 14, Family Code, is
9-21 amended by adding Sections 14.52, 14.53, and 14.54 to read as
9-22 follows:
9-23 Sec. 14.52. LICENSE WITHHOLDING AND REVOCATION. (a) The
9-24 attorney general, a private attorney representing an obligee, or
9-25 the obligee may petition a licensing agency for revocation of an
9-26 obligor's license because of the obligor's child support
9-27 delinquency. Not later than the 30th day after the date on which
10-1 the agency receives the petition, the agency shall convene an
10-2 administrative hearing to determine if the obligor is 30 or more
10-3 days delinquent. After notice and opportunity for hearing, the
10-4 licensing agency shall revoke the obligor's license unless the
10-5 obligor provides evidence that an agreement to pay arrearages has
10-6 been approved by the court of continuing jurisdiction. A licensing
10-7 agency may not reinstate a license revoked under this subsection
10-8 unless the obligor provides proof of full payment of all arrearages
10-9 or proof that an agreement to pay the arrearages has been approved
10-10 by the court of continuing jurisdiction.
10-11 (b) Each applicant for a license or license renewal shall
10-12 state in writing under oath at the time of such application that
10-13 the applicant is not 30 days or more delinquent in providing child
10-14 support or that the applicant is in compliance with a written
10-15 repayment agreement or court order as to any delinquency which does
10-16 exist.
10-17 (c) The attorney general shall adopt rules to implement this
10-18 section.
10-19 (d) In this section:
10-20 (1) "License" means a permit, certificate, or similar
10-21 form of permission issued by a licensing agency that is required by
10-22 law to:
10-23 (A) engage in a profession or occupation; or
10-24 (B) sell a regulated commodity.
10-25 (2) "Licensing agency" means a board, commission,
10-26 department, or other agency in the executive or judicial branch of
10-27 state government that issues or renews a license either directly or
11-1 through a private entity.
11-2 Sec. 14.53. DRIVER'S LICENSE WITHHOLDING AND REVOCATION.
11-3 The attorney general and the Department of Public Safety may by
11-4 rule establish a procedure for the denial or suspension of the
11-5 driver's license of any individual who is 30 days or more
11-6 delinquent in providing child support. Such rule shall include
11-7 provisions for verification, temporary licenses, and judicial
11-8 review of delinquency. Denial or suspension of licenses pursuant
11-9 to such rule shall be governed by this statute and the rule, not by
11-10 the general licensing provisions of Chapter 173, Acts of the 47th
11-11 Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
11-12 Civil Statutes).
11-13 Sec. 14.54. INELIGIBILITY TO RECEIVE STATE GRANTS OR LOANS
11-14 OR BID ON STATE CONTRACTS. (a) A child support obligor who is 30
11-15 or more days delinquent in paying child support is not eligible to:
11-16 (1) submit a bid or enter into a contract to provide
11-17 or otherwise provide property, materials, or services under a
11-18 contract with the state; or
11-19 (2) receive a state-funded grant or loan.
11-20 (b) A delinquent obligor ineligible to bid on state
11-21 contracts under Subsection (a)(1) of this section includes any sole
11-22 proprietor, partner, officer, majority shareholder, or owner of a
11-23 partnership, corporation, or other entity.
11-24 (c) A child support obligor shall remain ineligible to
11-25 submit a bid on a state contract or apply for a state-funded grant
11-26 or loan under Subsection (a) of this section until:
11-27 (1) all arrearages have been paid; or
12-1 (2) the obligor is in compliance with a written
12-2 repayment agreement or court order as to any delinquency which does
12-3 exist.
12-4 (d) All bidders for state contracts or applicants for
12-5 state-funded loans or grants under Subsection (a) of this section
12-6 shall submit a signed sworn statement accompanying any bid or
12-7 application for a grant or loan affirming that they are not 30 or
12-8 more days delinquent in providing child support pursuant to a court
12-9 order or a written repayment agreement.
12-10 (e) The attorney general may adopt rules or prescribe forms
12-11 to implement any provision of this section.
12-12 SECTION 2.02. Subsections (a) and (b), Section 403.055,
12-13 Government Code, are amended to read as follows:
12-14 (a)(1) Except as provided by Subsection (a)(3), the <The>
12-15 comptroller may not issue a warrant to a person if the person is
12-16 indebted or owes delinquent taxes to the state, or owes delinquent
12-17 taxes under a tax that the comptroller administers or collects,
12-18 until the debt or taxes are paid.
12-19 (2) Except as provided by Subdivision (3), the
12-20 comptroller may not issue a warrant to a person if the person owes
12-21 past-due child support for which an assignment has been made to the
12-22 attorney general pursuant to either Section 76.003 or 76.004, Human
12-23 Resources Code.
12-24 (3) The comptroller may issue a warrant to a person
12-25 owing past-due child support for which an assignment has been made
12-26 to the attorney general pursuant to either Section 76.003 or
12-27 76.004, Human Resources Code, for all or a portion of the amount
13-1 otherwise payable to the person only on authorization of such
13-2 warrant by the attorney general based on a resolution, in whole or
13-3 in part, of such past-due child support acceptable to the attorney
13-4 general.
13-5 (b)(1) The comptroller may issue a warrant to the assignee
13-6 of a person who is indebted or owes delinquent taxes to the state
13-7 and who does not owe past-due child support for which an assignment
13-8 has been made to the attorney general pursuant to either Section
13-9 76.003 or 76.004, Human Resources Code, only if the assignment
13-10 became effective before the person became indebted to the state or
13-11 delinquent in the payment of taxes to the state.
13-12 (2) The comptroller may issue a warrant to the
13-13 assignee of a person who owes past-due child support for which an
13-14 assignment has been made to the attorney general pursuant to either
13-15 Section 76.003 or 76.004, Human Resources Code, only in the event
13-16 that the attorney general is the assignee to whom the warrant is
13-17 issued.
13-18 SECTION 2.03. Section 77.001, Human Resources Code, is
13-19 amended to read as follows:
13-20 Sec. 77.001. DESIGNATED STATE AGENCY. (a) The state agency
13-21 designated to administer a statewide plan for child support may
13-22 establish and conduct a parent locator service which shall be used
13-23 to obtain information as to the whereabouts, income, and holdings
13-24 of any person when such information is to be used for the purposes
13-25 of locating such person and establishing or enforcing a support or
13-26 medical support obligation against such person.
13-27 (b) The designated state agency shall be entitled to <may>
14-1 request and obtain such information from state and local government
14-2 agencies, private companies, institutions, or other entities as
14-3 deemed necessary to carry out the provisions of this Act. Such
14-4 government and private entities shall furnish any information so
14-5 requested and known to such entity to the designated agency unless
14-6 state or federal law specifically provides that such information
14-7 shall not be disclosed to the designated agency office<, except to
14-8 the extent such information is made nondisclosable by law>.
14-9 (c) The designated agency may issue an administrative
14-10 subpoena to any individual or organization to furnish such
14-11 information deemed necessary to carry out the provisions of this
14-12 section and such individual or organization shall comply in the
14-13 manner required by the subpoena.
14-14 (d) The furnishing of information provided for in Subsection
14-15 (a) of this section by state governmental agencies shall include
14-16 the transmittal of information in the most efficient and
14-17 expeditious manner available, including electronic or automated
14-18 transfer and interface.
14-19 SECTION 2.04. Subsection (c), Section 14.972, Family Code,
14-20 is amended to read as follows:
14-21 (c) The lien attaches to all personal property not exempt
14-22 under provisions of the Texas Constitution, including all claims
14-23 for negligence, personal injury, or workers' compensation,
14-24 including an insurance award for any of those claims, owned by the
14-25 obligor on or after the date on which the lien attaches.
14-26 SECTION 2.05. Section 76.002, Human Resources Code, is
14-27 amended by adding Subsection (f) to read as follows:
15-1 (f) The attorney general shall report to the legislature
15-2 each biennium on the effectiveness of the attorney general's child
15-3 support enforcement activity in reducing the state's public
15-4 assistance obligations. The attorney general shall develop a
15-5 method for estimating the costs and benefits of the child support
15-6 enforcement program and the effect of the program on appropriations
15-7 for public assistance.
15-8 ARTICLE 3. EFFECTIVE DATE AND EMERGENCY PROVISION
15-9 SECTION 3.01. This Act takes effect September 1, 1993.
15-10 SECTION 3.02. The importance of this legislation and the
15-11 crowded condition of the calendars in both houses create an
15-12 emergency and an imperative public necessity that the
15-13 constitutional rule requiring bills to be read on three several
15-14 days in each house be suspended, and this rule is hereby suspended.