S.B. No. 84
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) An insurer shall maintain a file system that contains the
1-10 name, employer's mailing address, social security number, and date
1-11 of birth of each subscriber or policyholder covered by the insurer.
1-12 (b) The state's Medicaid third-party recovery division shall
1-13 identify state medical assistance recipients who have third-party
1-14 health coverage or insurance as provided by this subsection. The
1-15 department shall provide to an insurer Medicaid data tapes that
1-16 identify medical assistance recipients and request that the insurer
1-17 identify each subscriber or policyholder of the insurer whose name
1-18 also appears on the Medicaid data tape. An insurer shall comply
1-19 with a request under this subsection not later than the 60th day
1-20 after the date the request was made. An insurer is only required
1-21 under this subsection to provide the department with the
1-22 information maintained under Subsection (a) by the insurer or made
1-23 available to the insurer from the plan. A third-party
1-24 administrator is subject to this subsection to the extent the
2-1 information described in this subsection is made available to the
2-2 third-party administrator from the plan.
2-3 (c) An insurer may not be required to provide information in
2-4 response to a request under this section more than once during a
2-5 calendar year.
2-6 (d) An insurer shall provide the information required under
2-7 this section only if the department certifies that the identified
2-8 individuals are applicants for or recipients of services under
2-9 Medicaid or are legally responsible for an applicant for or
2-10 recipient of Medicaid services.
2-11 (e) The department may enter into an agreement with insurers
2-12 that provides procedures for requesting and providing information
2-13 under this section. An agreement under this subsection may not be
2-14 inconsistent with any law relating to the confidentiality or
2-15 privacy of personal information or medical records. The procedures
2-16 agreed to under this subsection must include financial arrangements
2-17 to reimburse an insurer for necessary costs incurred in providing
2-18 the requested information and must state the time and manner the
2-19 procedures take effect.
2-20 (f) Information required to be furnished to the department
2-21 under this section is limited to information necessary to determine
2-22 whether health benefits have been or should have been claimed and
2-23 paid under a health insurance policy or plan for medical care or
2-24 services received by an individual for whom Medicaid coverage would
2-25 otherwise be available.
2-26 (g) Information regarding an individual certified to an
2-27 insurer as an applicant for or recipient of medical assistance may
3-1 only be used to identify the records or information requested and
3-2 may not violate the confidentiality of the applicant or recipient.
3-3 The department shall establish guidelines not later than the date
3-4 on which the procedures agreed to under Subsection (e) take effect.
3-5 (h) In this section, "insurer" means a group health services
3-6 corporation, a health maintenance organization, a self-funded or
3-7 self-insured welfare or benefit plan or program to the extent the
3-8 regulation of the plan or program is not preempted by federal law,
3-9 and any other entity that provides health coverage in this state
3-10 through an employer, union, trade association, or other
3-11 organization or other source.
3-12 SECTION 1.02. Section 14.061, Family Code, is amended by
3-13 adding Subsection (r) to read as follows:
3-14 (r) For purposes of enrolling a child in a health insurance
3-15 program under this section, a court order requiring that health
3-16 insurance be provided for a child is a change in the family
3-17 circumstances of the covered person equivalent to the birth or
3-18 adoption of a child by the covered person. On receipt of the
3-19 medical support order by the employer, the child shall be
3-20 automatically enrolled for the first 31 days after the receipt of
3-21 the order by the employer on the same terms and conditions as apply
3-22 to a dependent child. On receipt of the order by the employer, the
3-23 employer shall notify the insurer of the automatic enrollment.
3-24 During the 31-day period, the policyholder shall apply for coverage
3-25 for the child in accordance with the medical support order.
3-26 SECTION 1.03. Subsections (l) and (n), Section 14.43, Family
3-27 Code, are amended to read as follows:
4-1 (l) Liability and Obligation of Employer for Payments. An
4-2 employer receiving an order under this section or a writ under
4-3 Section 14.45 who complies with the order or writ is not liable to
4-4 the obligor for the amount of income withheld and paid as provided
4-5 in the order or writ. An employer who received an order or writ of
4-6 withholding and who does not comply with the order or writ is
4-7 liable to the obligee for the amount not paid in compliance with
4-8 the order or writ, including an amount the obligor is required to
4-9 pay for health insurance under Section 14.061 of this code, or to
4-10 the obligor for the amount withheld and not paid and for reasonable
4-11 attorney's fees and court costs. An employer receiving two or more
4-12 orders or writs on any named obligor shall comply with every order
4-13 or writ to the maximum extent possible. If the total amount in the
4-14 orders or writ exceeds the maximum amount allowable to be withheld
4-15 under this section, the employer shall pay an equal amount towards
4-16 the current support portion of all orders or writs until each order
4-17 is individually complied with, and thereafter equal amounts on the
4-18 arrearage portion of all orders until each order or writ is
4-19 complied with, or until the maximum total amount of allowable
4-20 withholding under Subsection (f) of this section is reached,
4-21 whichever occurs first. If an employer is ordered to withhold from
4-22 more than one obligor, the employer may combine the withheld
4-23 amounts from the obligors' wages and make a single payment to each
4-24 appropriate agency requesting withholding if the employer
4-25 separately identifies the amount of the payment that is
4-26 attributable to each obligor.
4-27 (n) Fine for Employers. In addition to the civil remedies
5-1 provided by Subsections (l) and (m) of this section or by any other
5-2 remedy provided by law, an employer who knowingly violates the
5-3 provisions of those subsections may be subject to a fine not to
5-4 exceed $200 <$50> for each occurrence in which the employer fails
5-5 to withhold. Any fines recovered under this subsection shall be
5-6 paid to the obligee and credited against any amounts owed by the
5-7 obligor.
5-8 SECTION 1.04. Subsections (A), (K), (L), and (M), Section 2,
5-9 Chapter 397, Acts of the 54th Legislature, 1955 (Article 3.70-2,
5-10 Vernon's Texas Insurance Code), are amended to read as follows:
5-11 (A) No policy of accident and sickness insurance shall be
5-12 delivered or issued for delivery to any person in this state
5-13 unless:
5-14 (1) the entire money and other consideration therefor
5-15 are expressed therein or in the application, if it is made a part
5-16 of the policy; and
5-17 (2) the time at which the insurance takes effect and
5-18 terminates is expressed therein; and
5-19 (3) it purports to insure only one person, except that
5-20 a policy may insure, originally or by subsequent amendment, upon
5-21 the application of an adult member of a family who shall be deemed
5-22 the policy holder, any two or more eligible members of that family,
5-23 including husband, wife, dependent children, including a dependent
5-24 grandchild of the policy holder who is less than 21 years old and
5-25 living with and in the household of the policy holder, or any
5-26 children under a specified age which shall not exceed twenty-five
5-27 years, a child the policy holder is required to insure under a
6-1 medical support order issued under Section 14.061, Family Code, or
6-2 enforceable by a court in this state, and any other person
6-3 dependent upon the policy holder; and
6-4 (4) the style, arrangement and over-all appearance of
6-5 the policy gives no undue prominence to any portion of the text,
6-6 and unless every printed portion of the text of the policy and of
6-7 any endorsements or attached papers (except copies of applications
6-8 and identification cards) are plainly printed in lightfaced type of
6-9 a style in general use, the size of which shall be uniform and not
6-10 less than ten-point with a lower-case unspaced alphabet length not
6-11 less than one hundred and twenty-point (the "text" shall include
6-12 all printed matter except the name and address of the insurer, name
6-13 or title of the policy, the brief description, if any, and captions
6-14 and subcaptions); and
6-15 (5) the exceptions and reductions of indemnity are set
6-16 forth in the policy and, except those which are set forth in
6-17 Section 3 of this Act, are printed, at the insurer's option, either
6-18 included with the benefit provision to which they apply, or under
6-19 an appropriate caption such as "Exceptions" or "Exceptions and
6-20 Reductions"; provided that if an exception or reduction
6-21 specifically applies only to a particular benefit of the policy, a
6-22 statement of such exception or reduction shall be included with the
6-23 benefit provision to which it applies; and
6-24 (6) each such form, including riders and endorsements,
6-25 shall be identified by a form number in the lower left-hand corner
6-26 of the first page thereof; and
6-27 (7) it contains no provision purporting to make any
7-1 portion of the charter, rules, constitution, or bylaws of the
7-2 insurer a part of the policy unless such portion is set forth in
7-3 full in the policy, except in the case of the incorporation of, or
7-4 reference to, a statement of rates or classification of risks, or
7-5 shortrate table filed with the Board; and
7-6 (8) it shall have printed thereon or attached thereto
7-7 a notice stating in substance that the person to whom the policy is
7-8 issued shall be permitted to return the policy within ten (10) days
7-9 of its delivery to such person and to have the premium paid
7-10 refunded if, after examination of the policy, such person is not
7-11 satisfied with it for any reason. If such person pursuant to such
7-12 notice, returns the policy to the insurer at its home or branch
7-13 office or to the agent through whom it was purchased, it shall be
7-14 void from the beginning and the parties shall be in the same
7-15 position as if no policy had been issued. This subdivision shall
7-16 not apply to single premium nonrenewable policies.
7-17 (K) An accident and sickness insurance policy that provides
7-18 coverage for the immediate family or children of a person insured
7-19 under the policy may not exclude from coverage or limit coverage to
7-20 a child of the insured solely because the child is adopted. For
7-21 the purposes of this subsection, a child is considered to be the
7-22 child of an insured if<:>
7-23 <(1)> the insured is a party in a suit in which the
7-24 adoption of the child by the insured is sought<; and>
7-25 <(2) the insured has custody of the child under a
7-26 temporary court order that grants to the insured conservatorship of
7-27 the child>.
8-1 (L) An individual or group policy of accident and sickness
8-2 insurance that is delivered, issued for delivery, or renewed in
8-3 this state, including a policy issued by a company subject to
8-4 Chapter 20, Insurance Code, <and> evidence of coverage issued by a
8-5 health maintenance organization subject to the Texas Health
8-6 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
8-7 Code), and a self-funded or self-insured welfare or benefit plan or
8-8 program to the extent that regulation of the plan or program is not
8-9 preempted by federal law that provides coverage for a child of the
8-10 policyholder, must provide coverage upon payment of a premium for
8-11 any children of the policyholder's child if those children are
8-12 dependents of the policyholder for federal income tax purposes or
8-13 for a child for whom the group member or insured must provide
8-14 medical support under an order issued under Section 14.061, Family
8-15 Code, or enforceable by a court in this state.
8-16 (M)(1) A group or individual accident and sickness insurance
8-17 policy that provides coverage for dependent children of a group
8-18 member or a person insured under the policy may not exclude from or
8-19 discontinue coverage or set a different premium for the natural
8-20 born or adopted child of the group member or person insured or for
8-21 a child for whom the group member or insured must provide medical
8-22 support under an order issued under Section 14.061, Family Code, or
8-23 enforceable by a court in this state for either of the following
8-24 reasons:
8-25 (a) the child does not reside with the group
8-26 member or insured; or
8-27 (b) the group member or insured does not claim
9-1 the child as an exemption for federal income tax purposes under
9-2 Section 151(c)(1)(B), Internal Revenue Code of 1986 (26 U.S.C.
9-3 Section 151(c)(1)(B)).
9-4 (2) A group or individual accident and sickness
9-5 insurance policy that provides coverage for dependent children of a
9-6 group member or a person insured under the policy may not exclude
9-7 from or discontinue coverage or set a different premium for the
9-8 natural born or adopted child of the spouse of the group member or
9-9 person insured, provided that the child resides with the group
9-10 member or person insured.
9-11 (3) Other policy provisions relating to maximum
9-12 limiting attained age and enrollment in school may be used to
9-13 establish continued eligibility for coverage of a dependent child.
9-14 In the event of late enrollment, the insurance company may require
9-15 evidence of insurability satisfactory to the company before
9-16 inclusion of the dependent child for coverage under the policy.
9-17 SECTION 1.05. Subsection (c), Section 3D, Article 3.51-6,
9-18 Insurance Code, is amended to read as follows:
9-19 (c) For the purposes of this section, a child is considered
9-20 to be the child of an insured if<:>
9-21 <(1)> the insured is a party in a suit in which the
9-22 adoption of the child by the insured is sought<; and>
9-23 <(2) the insured has custody of the child under a
9-24 temporary court order that grants to the insured conservatorship of
9-25 the child>.
9-26 SECTION 1.06. The comptroller shall perform a study to
9-27 determine the cost-effectiveness of performing data matches under
10-1 Section 32.042, Human Resources Code, as added by this Act, and the
10-2 feasibility of expanding the scope of the program under that
10-3 section. The comptroller shall report the results of the study to
10-4 the lieutenant governor and the speaker of the house of
10-5 representatives not later than December 1, 1994.
10-6 SECTION 1.07. (a) This article applies only to an order in
10-7 a suit affecting the parent-child relationship or reciprocal child
10-8 support action entered on or after the effective date of this Act.
10-9 An order entered before the effective date of this Act is governed
10-10 by the law in effect on the date the order was entered, and that
10-11 law is continued in effect for that purpose.
10-12 (b) This article applies only to a policy delivered, issued
10-13 for delivery, or renewed on or after January 1, 1994. A policy
10-14 delivered, issued for delivery, or renewed before that date is
10-15 governed by the law that existed immediately before the effective
10-16 date of this Act, and that law is continued in effect for that
10-17 purpose.
10-18 ARTICLE 2. ENFORCEMENT OF CHILD SUPPORT
10-19 ORDERS AFFECTING LICENSE HOLDERS AND
10-20 MISCELLANEOUS ENFORCEMENT PROVISIONS
10-21 SECTION 2.01. Subchapter B, Chapter 14, Family Code, is
10-22 amended by adding Section 14.52 to read as follows:
10-23 Sec. 14.52. INELIGIBILITY TO RECEIVE STATE GRANTS OR LOANS
10-24 OR BID ON STATE CONTRACTS. (a) A child support obligor who is 30
10-25 or more days delinquent in paying child support is not eligible to:
10-26 (1) submit a bid or enter into a contract to provide
10-27 property, materials, or services under a contract with the state;
11-1 or
11-2 (2) receive a state-funded grant or loan.
11-3 (b) A sole proprietorship, partnership, corporation, or
11-4 other entity in which a sole proprietor, partner, majority
11-5 shareholder, or substantial owner is a delinquent obligor who is
11-6 ineligible to bid on a state contract under Subsection (a)(1) of
11-7 this section may not bid on a state contract as provided by this
11-8 section.
11-9 (c) A child support obligor remains ineligible to submit a
11-10 bid on or enter into a state contract or apply for a state-funded
11-11 grant or loan under Subsection (a) of this section until:
11-12 (1) all arrearages have been paid; or
11-13 (2) the obligor is in compliance with a written
11-14 repayment agreement or court order as to any existing delinquency.
11-15 (d) Each bidder for a state contract or applicant for a
11-16 state-funded loan or grant under Subsection (a) of this section
11-17 shall submit a signed, sworn statement accompanying any bid or
11-18 application for a grant or loan affirming that the bidder or
11-19 applicant is not 30 or more days delinquent in providing child
11-20 support under a court order or a written repayment agreement.
11-21 (e) The attorney general and the General Services Commission
11-22 may adopt rules or prescribe forms to implement any provision of
11-23 this section.
11-24 SECTION 2.02. Chapter 76, Human Resources Code, is amended
11-25 by adding Section 76.0041 to read as follows:
11-26 Sec. 76.0041. DEBTS TO STATE. (a) A person obligated to
11-27 pay child support in a case in which the attorney general is
12-1 providing services under this chapter who does not pay the required
12-2 child support is in debt to the state for the purposes of Section
12-3 403.055, Government Code.
12-4 (b) The debt of a person in debt to the state as provided by
12-5 Subsection (a) is equal to the amount of the child support that is
12-6 past-due and not paid and any interest, fees, court costs, or other
12-7 amounts owed by the person as a result of the person's failure to
12-8 pay the child support.
12-9 (c) The attorney general is an assignee of all payments,
12-10 including compensation, by the state to a person in debt to the
12-11 state as provided by this section. The assignment under this
12-12 subsection takes effect before the date the person's debt to the
12-13 state arose.
12-14 (d) A person in debt to the state as provided by this
12-15 section may eliminate the person's debt by:
12-16 (1) paying the entire amount of the debt; or
12-17 (2) resolving the debt in a manner acceptable to the
12-18 attorney general.
12-19 (e) The comptroller may rely on a representation by the
12-20 attorney general that:
12-21 (1) a person is in debt to the state as provided by
12-22 this section; or
12-23 (2) a person who was in debt to the state has
12-24 eliminated the person's debt as provided by Subsection (d).
12-25 (f) In this section, the payment of workers' compensation
12-26 benefits to a person in debt to the state is the same as any other
12-27 payment made to the person by the state. Notwithstanding Section
13-1 4.08, Texas Workers' Compensation Act (Article 8308-4.08, Vernon's
13-2 Texas Civil Statutes), an order or writ to withhold income from
13-3 workers' compensation benefits is not required under this section.
13-4 However, the amount of weekly workers' compensation benefits that
13-5 may be withheld or assigned under this section may not exceed the
13-6 percentage of the person's benefits that would apply if the
13-7 benefits equalled the person's monthly net resources under the
13-8 child support guidelines in Section 14.055, Family Code, except
13-9 that in no event may more than 50 percent of the person's weekly
13-10 compensation benefits be withheld or assigned.
13-11 (g) Notwithstanding Sections 403.055(c) and (e)(4),
13-12 Government Code, the comptroller may not issue a warrant to a state
13-13 officer or employee who is in debt to the state as provided by this
13-14 section.
13-15 (h) In this section, "compensation" has the meaning assigned
13-16 by Section 403.055(f)(1), Government Code, and includes the payment
13-17 of workers' compensation benefits.
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 is entitled to <may> request
14-1 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 the information may
14-7 not be disclosed to the designated agency office<, except to the
14-8 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 information
14-11 necessary to carry out the provisions of this section, and any
14-12 individual or organization receiving a subpoena shall comply with
14-13 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 (i) to read as follows:
15-1 (i) 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. The attorney general shall conduct a study
15-8 on the payment of child support in Texas and shall report back to
15-9 the 74th Legislature not later than March 1, 1995. Local child
15-10 support registries, as defined by Section 11.01 (11), Family Code,
15-11 and other governmental entities shall, on request, provide to the
15-12 attorney general such information as is necessary for the attorney
15-13 general to conduct this study. This study may include any issues
15-14 that the attorney general deems relevant and shall include:
15-15 (1) data relating to the percentage of obligors who
15-16 pay child support as ordered by the court and the percentage of
15-17 court-ordered child support which is paid; and
15-18 (2) the reasons for nonpayment of child support,
15-19 including the obligor's ability to pay child support and the
15-20 obligor's opportunity to exercise court-ordered possession of or
15-21 access to the obligor's child or children.
15-22 ARTICLE 3. EFFECTIVE DATE AND EMERGENCY PROVISION
15-23 SECTION 3.01. This Act takes effect September 1, 1993.
15-24 SECTION 3.02. The importance of this legislation and the
15-25 crowded condition of the calendars in both houses create an
15-26 emergency and an imperative public necessity that the
15-27 constitutional rule requiring bills to be read on three several
16-1 days in each house be suspended, and this rule is hereby suspended.