73R8833 JMM-F
By Harris of Tarrant S.B. No. 84
Substitute the following for S.B. No. 84:
By Goodman C.S.S.B. No. 84
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the enforcement of support orders for children and the
1-3 issuance of insurance coverage for certain persons subject to a
1-4 medical support order for a child; providing a penalty.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1. MEDICAL SUPPORT ORDERS FOR CHILDREN
1-7 SECTION 1.01. Subchapter B, Chapter 32, Human Resources
1-8 Code, is amended by adding Section 32.042 to read as follows:
1-9 Sec. 32.042. INFORMATION REQUIRED FROM HEALTH INSURERS.
1-10 (a) An insurer shall maintain a file system that contains the
1-11 name, employer's mailing address, social security number, and date
1-12 of birth of each subscriber or policyholder covered by the insurer.
1-13 (b) The state's Medicaid third-party recovery division shall
1-14 identify state medical assistance recipients who have third-party
1-15 health coverage or insurance as provided by this subsection. The
1-16 department shall provide to an insurer Medicaid data tapes that
1-17 identify medical assistance recipients and request that the insurer
1-18 identify each subscriber or policyholder of the insurer whose name
1-19 also appears on the Medicaid data tape. An insurer shall comply
1-20 with a request under this subsection not later than the 60th day
1-21 after the date the request was made. An insurer is only required
1-22 under this subsection to provide the department with the
1-23 information maintained under Subsection (a) by the insurer or made
1-24 available to the insurer from the plan. A third-party
2-1 administrator is subject to this subsection to the extent the
2-2 information described in this subsection is made available to the
2-3 third-party administrator from the plan.
2-4 (c) An insurer may not be required to provide information in
2-5 response to a request under this section more than once during a
2-6 calendar year.
2-7 (d) An insurer shall provide the information required under
2-8 this section only if the department certifies that the identified
2-9 individuals are applicants for or recipients of services under
2-10 Medicaid or are legally responsible for an applicant for or
2-11 recipient of Medicaid services.
2-12 (e) The department may enter into an agreement with insurers
2-13 that provides procedures for requesting and providing information
2-14 under this section. An agreement under this subsection may not be
2-15 inconsistent with any law relating to the confidentiality or
2-16 privacy of personal information or medical records. The procedures
2-17 agreed to under this subsection must include financial arrangements
2-18 to reimburse an insurer for necessary costs incurred in providing
2-19 the requested information and must state the time and manner the
2-20 procedures take effect.
2-21 (f) Information required to be furnished to the department
2-22 under this section is limited to information necessary to determine
2-23 whether health benefits have been or should have been claimed and
2-24 paid under a health insurance policy or plan for medical care or
2-25 services received by an individual for whom Medicaid coverage would
2-26 otherwise be available.
2-27 (g) Information regarding an individual certified to an
3-1 insurer as an applicant for or recipient of medical assistance may
3-2 only be used to identify the records or information requested and
3-3 may not violate the confidentiality of the applicant or recipient.
3-4 The department shall establish guidelines not later than the date
3-5 on which the procedures agreed to under Subsection (e) take effect.
3-6 (h) In this section, "insurer" means a group health services
3-7 corporation, a health maintenance organization, a self-funded or
3-8 self-insured welfare or benefit plan or program to the extent the
3-9 regulation of the plan or program is not preempted by federal law,
3-10 and any other entity that provides health coverage in this state
3-11 through an employer, union, trade association, or other
3-12 organization or other source.
3-13 SECTION 1.02. Section 14.061, Family Code, is amended by
3-14 adding Subsection (r) to read as follows:
3-15 (r) For purposes of enrolling a child in a health insurance
3-16 program under this section, a court order requiring that health
3-17 insurance be provided for a child is a change in the family
3-18 circumstances of the covered person equivalent to the birth or
3-19 adoption of a child by the covered person. On receipt of the
3-20 medical support order by the employer, the child shall be
3-21 automatically enrolled for the first 31 days after the receipt of
3-22 the order by the employer on the same terms and conditions as apply
3-23 to a dependent child. On receipt of the order by the employer, the
3-24 employer shall notify the insurer of the automatic enrollment.
3-25 During the 31-day period, the policyholder shall apply for coverage
3-26 for the child in accordance with the medical support order.
3-27 SECTION 1.03. Subsections (l) and (n), Section 14.43, Family
4-1 Code, are amended to read as follows:
4-2 (l) Liability and Obligation of Employer for Payments. An
4-3 employer receiving an order under this section or a writ under
4-4 Section 14.45 who complies with the order or writ is not liable to
4-5 the obligor for the amount of income withheld and paid as provided
4-6 in the order or writ. An employer who received an order or writ of
4-7 withholding and who does not comply with the order or writ is
4-8 liable to the obligee for the amount not paid in compliance with
4-9 the order or writ, including an amount the obligor is required to
4-10 pay for health insurance under Section 14.061 of this code, or to
4-11 the obligor for the amount withheld and not paid and for reasonable
4-12 attorney's fees and court costs. An employer receiving two or more
4-13 orders or writs on any named obligor shall comply with every order
4-14 or writ to the maximum extent possible. If the total amount in the
4-15 orders or writ exceeds the maximum amount allowable to be withheld
4-16 under this section, the employer shall pay an equal amount towards
4-17 the current support portion of all orders or writs until each order
4-18 is individually complied with, and thereafter equal amounts on the
4-19 arrearage portion of all orders until each order or writ is
4-20 complied with, or until the maximum total amount of allowable
4-21 withholding under Subsection (f) of this section is reached,
4-22 whichever occurs first. If an employer is ordered to withhold from
4-23 more than one obligor, the employer may combine the withheld
4-24 amounts from the obligors' wages and make a single payment to each
4-25 appropriate agency requesting withholding if the employer
4-26 separately identifies the amount of the payment that is
4-27 attributable to each obligor.
5-1 (n) Fine for Employers. In addition to the civil remedies
5-2 provided by Subsections (l) and (m) of this section or by any other
5-3 remedy provided by law, an employer who knowingly violates the
5-4 provisions of those subsections may be subject to a fine not to
5-5 exceed $200 <$50> for each occurrence in which the employer fails
5-6 to withhold. Any fines recovered under this subsection shall be
5-7 paid to the obligee and credited against any amounts owed by the
5-8 obligor.
5-9 SECTION 1.04. Sections (2)(A), (K), (L), and (M), Chapter
5-10 397, Acts of the 54th Legislature, 1955 (Article 3.70-2, Vernon's
5-11 Texas Insurance Code), are amended to read as follows:
5-12 (A) No policy of accident and sickness insurance shall be
5-13 delivered or issued for delivery to any person in this state
5-14 unless:
5-15 (1) the entire money and other consideration therefor
5-16 are expressed therein or in the application, if it is made a part
5-17 of the policy; and
5-18 (2) the time at which the insurance takes effect and
5-19 terminates is expressed therein; and
5-20 (3) it purports to insure only one person, except that
5-21 a policy may insure, originally or by subsequent amendment, upon
5-22 the application of an adult member of a family who shall be deemed
5-23 the policy holder, any two or more eligible members of that family,
5-24 including husband, wife, dependent children, including a dependent
5-25 grandchild of the policy holder who is less than 21 years old and
5-26 living with and in the household of the policy holder, or any
5-27 children under a specified age which shall not exceed twenty-five
6-1 years, a child the policy holder is required to insure under a
6-2 medical support order issued under Section 14.061, Family Code, or
6-3 enforceable by a court in this state, and any other person
6-4 dependent upon the policy holder; and
6-5 (4) the style, arrangement and over-all appearance of
6-6 the policy gives no undue prominence to any portion of the text,
6-7 and unless every printed portion of the text of the policy and of
6-8 any endorsements or attached papers (except copies of applications
6-9 and identification cards) are plainly printed in lightfaced type of
6-10 a style in general use, the size of which shall be uniform and not
6-11 less than ten-point with a lower-case unspaced alphabet length not
6-12 less than one hundred and twenty-point (the "text" shall include
6-13 all printed matter except the name and address of the insurer, name
6-14 or title of the policy, the brief description, if any, and captions
6-15 and subcaptions); and
6-16 (5) the exceptions and reductions of indemnity are set
6-17 forth in the policy and, except those which are set forth in
6-18 Section 3 of this Act, are printed, at the insurer's option, either
6-19 included with the benefit provision to which they apply, or under
6-20 an appropriate caption such as "Exceptions" or "Exceptions and
6-21 Reductions"; provided that if an exception or reduction
6-22 specifically applies only to a particular benefit of the policy, a
6-23 statement of such exception or reduction shall be included with the
6-24 benefit provision to which it applies; and
6-25 (6) each such form, including riders and endorsements,
6-26 shall be identified by a form number in the lower left-hand corner
6-27 of the first page thereof; and
7-1 (7) it contains no provision purporting to make any
7-2 portion of the charter, rules, constitution, or bylaws of the
7-3 insurer a part of the policy unless such portion is set forth in
7-4 full in the policy, except in the case of the incorporation of, or
7-5 reference to, a statement of rates or classification of risks, or
7-6 shortrate table filed with the Board; and
7-7 (8) it shall have printed thereon or attached thereto
7-8 a notice stating in substance that the person to whom the policy is
7-9 issued shall be permitted to return the policy within ten (10) days
7-10 of its delivery to such person and to have the premium paid
7-11 refunded if, after examination of the policy, such person is not
7-12 satisfied with it for any reason. If such person pursuant to such
7-13 notice, returns the policy to the insurer at its home or branch
7-14 office or to the agent through whom it was purchased, it shall be
7-15 void from the beginning and the parties shall be in the same
7-16 position as if no policy had been issued. This subdivision shall
7-17 not apply to single premium nonrenewable policies.
7-18 (K) An accident and sickness insurance policy that provides
7-19 coverage for the immediate family or children of a person insured
7-20 under the policy may not exclude from coverage or limit coverage to
7-21 a child of the insured solely because the child is adopted. For
7-22 the purposes of this subsection, a child is considered to be the
7-23 child of an insured if<:>
7-24 <(1)> the insured is a party in a suit in which the
7-25 adoption of the child by the insured is sought<; and>
7-26 <(2) the insured has custody of the child under a
7-27 temporary court order that grants to the insured conservatorship of
8-1 the child>.
8-2 (L) An individual or group policy of accident and sickness
8-3 insurance that is delivered, issued for delivery, or renewed in
8-4 this state, including a policy issued by a company subject to
8-5 Chapter 20, Insurance Code, <and> evidence of coverage issued by a
8-6 health maintenance organization subject to the Texas Health
8-7 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
8-8 Code), and a self-funded or self-insured welfare or benefit plan or
8-9 program to the extent that regulation of the plan or program is not
8-10 preempted by federal law that provides coverage for a child of the
8-11 policyholder, must provide coverage upon payment of a premium for
8-12 any children of the policyholder's child if those children are
8-13 dependents of the policyholder for federal income tax purposes or
8-14 for a child for whom the group member or insured must provide
8-15 medical support under an order issued under Section 14.061, Family
8-16 Code, or enforceable by a court in this state.
8-17 (M)(1) A group or individual accident and sickness insurance
8-18 policy that provides coverage for dependent children of a group
8-19 member or a person insured under the policy may not exclude from or
8-20 discontinue coverage or set a different premium for the natural
8-21 born or adopted child of the group member or person insured or for
8-22 a child for whom the group member or insured must provide medical
8-23 support under an order issued under Section 14.061, Family Code, or
8-24 enforceable by a court in this state for either of the following
8-25 reasons:
8-26 (a) the child does not reside with the group
8-27 member or insured; or
9-1 (b) the group member or insured does not claim
9-2 the child as an exemption for federal income tax purposes under
9-3 Section 151(c)(1)(B), Internal Revenue Code of 1986 (26 U.S.C.
9-4 Section 151(c)(1)(B)).
9-5 (2) A group or individual accident and sickness
9-6 insurance policy that provides coverage for dependent children of a
9-7 group member or a person insured under the policy may not exclude
9-8 from or discontinue coverage or set a different premium for the
9-9 natural born or adopted child of the spouse of the group member or
9-10 person insured, provided that the child resides with the group
9-11 member or person insured.
9-12 (3) Other policy provisions relating to maximum
9-13 limiting attained age and enrollment in school may be used to
9-14 establish continued eligibility for coverage of a dependent child.
9-15 In the event of late enrollment, the insurance company may require
9-16 evidence of insurability satisfactory to the company before
9-17 inclusion of the dependent child for coverage under the policy.
9-18 SECTION 1.05. Subsection (c), Section 3D, Article 3.51-6,
9-19 Insurance Code, is amended to read as follows:
9-20 (c) For the purposes of this section, a child is considered
9-21 to be the child of an insured if<:>
9-22 <(1)> the insured is a party in a suit in which the
9-23 adoption of the child by the insured is sought<; and>
9-24 <(2) the insured has custody of the child under a
9-25 temporary court order that grants to the insured conservatorship of
9-26 the child>.
9-27 SECTION 1.06. The comptroller shall perform a study to
10-1 determine the cost-effectiveness of performing data matches under
10-2 Section 32.042, Human Resources Code, and the feasibility of
10-3 expanding the scope of the program under that section. The
10-4 comptroller shall report the results of the study to the lieutenant
10-5 governor and the speaker of the house of representatives not later
10-6 than December 1, 1994.
10-7 SECTION 1.07. (a) This article applies only to an order in
10-8 a suit affecting the parent-child relationship or reciprocal child
10-9 support action entered on or after the effective date of this Act.
10-10 An order entered before the effective date of this Act is governed
10-11 by the law in effect on the date the order was entered, and that
10-12 law is continued in effect for that purpose.
10-13 (b) This article applies only to a policy delivered, issued
10-14 for delivery, or renewed on or after January 1, 1994. A policy
10-15 delivered, issued for delivery, or renewed before that date is
10-16 governed by the law that existed immediately before the effective
10-17 date of this Act, and that law is continued in effect for that
10-18 purpose.
10-19 ARTICLE 2. ENFORCEMENT OF CHILD SUPPORT
10-20 ORDERS AFFECTING LICENSE HOLDERS AND
10-21 MISCELLANEOUS ENFORCEMENT PROVISIONS
10-22 SECTION 2.01. Subchapter B, Chapter 14, Family Code, is
10-23 amended by adding Sections 14.52, 14.53, and 14.54 to read as
10-24 follows:
10-25 Sec. 14.52. LICENSE WITHHOLDING AND REVOCATION. (a) The
10-26 attorney general, a domestic relations office, a private attorney
10-27 representing an obligee, or the obligee may petition a licensing
11-1 agency for revocation of an obligor's license because of the
11-2 obligor's child support delinquency. Not later than the 30th day
11-3 after the date on which the agency receives the petition, the
11-4 agency shall convene an administrative hearing to determine if the
11-5 obligor is 30 or more days delinquent. After notice and
11-6 opportunity for hearing, the licensing agency shall revoke the
11-7 obligor's license unless the obligor provides evidence that an
11-8 agreement to pay arrearages has been approved by the court of
11-9 continuing jurisdiction. A licensing agency may not reinstate a
11-10 license revoked under this subsection unless the obligor provides
11-11 proof of full payment of all arrearages or proof that an agreement
11-12 to pay the arrearages has been approved by the court of continuing
11-13 jurisdiction.
11-14 (b) A person who submits a written application for a license
11-15 or license renewal shall state in writing under oath at the time of
11-16 the application that the applicant:
11-17 (1) is not 30 days or more delinquent in providing
11-18 child support; or
11-19 (2) is in compliance with a written repayment
11-20 agreement or court order for any delinquency that does exist.
11-21 (c) The attorney general shall adopt rules to implement this
11-22 section.
11-23 (d) In this section:
11-24 (1) "License" means a permit, certificate, or similar
11-25 form of permission issued to a person by a licensing agency and
11-26 that the person is required by law to have before the person may:
11-27 (A) engage in a profession or occupation; or
12-1 (B) sell a regulated commodity.
12-2 (2) "Licensing agency" means a board, commission,
12-3 department, or other agency in the executive or judicial branch of
12-4 state government that issues or renews a license either directly or
12-5 through a private entity.
12-6 Sec. 14.53. DRIVER'S LICENSE WITHHOLDING AND REVOCATION.
12-7 The attorney general and the Department of Public Safety may by
12-8 rule establish a procedure for the denial or suspension of the
12-9 driver's license of any individual who is 30 days or more
12-10 delinquent in providing child support. A rule adopted under this
12-11 section shall include provisions for verification, temporary
12-12 licenses, and judicial review of delinquency. Denial or suspension
12-13 of a license under a rule adopted under this section is governed
12-14 by this section and by the rule and not by:
12-15 (1) the general licensing provisions of Chapter 173,
12-16 Acts of the 47th Legislature, Regular Session, 1941 (Article 6687b,
12-17 Vernon's Texas Civil Statutes); or
12-18 (2) Section 2, Administrative Procedure and Texas
12-19 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
12-20 Sec. 14.54. INELIGIBILITY TO RECEIVE STATE GRANTS OR LOANS
12-21 OR BID ON STATE CONTRACTS. (a) A child support obligor who is 30
12-22 or more days delinquent in paying child support is not eligible to:
12-23 (1) submit a bid or enter into a contract to provide
12-24 property, materials, or services under a contract with the state;
12-25 or
12-26 (2) receive a state-funded grant or loan.
12-27 (b) A sole proprietorship, partnership, corporation, or
13-1 other entity in which a sole proprietor, partner, majority
13-2 shareholder, or substantial owner is a delinquent obligor who is
13-3 ineligible to bid on a state contract under Subsection (a)(1) of
13-4 this section may not bid on a state contract as provided by this
13-5 section.
13-6 (c) A child support obligor remains ineligible to submit a
13-7 bid on or enter into a state contract or apply for a state-funded
13-8 grant or loan under Subsection (a) of this section until:
13-9 (1) all arrearages have been paid; or
13-10 (2) the obligor is in compliance with a written
13-11 repayment agreement or court order as to any existing delinquency.
13-12 (d) Each bidder for a state contract or applicant for a
13-13 state-funded loan or grant under Subsection (a) of this section
13-14 shall submit a signed, sworn statement accompanying any bid or
13-15 application for a grant or loan affirming that the bidder or
13-16 applicant is not 30 or more days delinquent in providing child
13-17 support under a court order or a written repayment agreement.
13-18 (e) The attorney general and the General Services Commission
13-19 may adopt rules or prescribe forms to implement any provision of
13-20 this section.
13-21 SECTION 2.02. Chapter 76, Human Resources Code, is amended
13-22 by adding Section 76.0041 to read as follows:
13-23 Sec. 76.0041. DEBTS TO STATE. (a) A person obligated to
13-24 pay child support in a case in which the attorney general is
13-25 providing services under this chapter who does not pay the required
13-26 child support is in debt to the state for the purposes of Section
13-27 403.055, Government Code.
14-1 (b) The debt of a person in debt to the state as provided by
14-2 Subsection (a) is equal to the amount of the child support that is
14-3 past-due and not paid and any interest, fees, court costs, or other
14-4 amounts owed by the person as a result of the person's failure to
14-5 pay the child support.
14-6 (c) The attorney general is an assignee of all payments,
14-7 including compensation, by the state to a person in debt to the
14-8 state as provided by this section. The assignment under this
14-9 subsection takes effect before the date the person's debt to the
14-10 state arose.
14-11 (d) A person in debt to the state as provided by this
14-12 section may eliminate the person's debt by:
14-13 (1) paying the entire amount of the debt; or
14-14 (2) resolving the debt in a manner acceptable to the
14-15 attorney general.
14-16 (e) The comptroller may rely on a representation by the
14-17 attorney general that:
14-18 (1) a person is in debt to the state as provided by
14-19 this section; or
14-20 (2) a person who was in debt to the state has
14-21 eliminated the person's debt as provided by Subsection (d).
14-22 (f) In this section, the payment of workers' compensation
14-23 benefits to a person in debt to the state is the same as any other
14-24 payment made to the person by the state. Notwithstanding Section
14-25 4.08, Texas Workers' Compensation Act (Article 8308-4.08, Vernon's
14-26 Texas Civil Statutes), an order or writ to withhold income from
14-27 workers' compensation benefits is not required under this section.
15-1 (g) Notwithstanding Sections 403.055(c) and (e)(4),
15-2 Government Code, the comptroller may not issue a warrant to a state
15-3 officer or employee who is in debt to the state as provided by this
15-4 section.
15-5 (h) In this section, "compensation" has the meaning assigned
15-6 by Section 403.055(f)(1), Government Code, and includes the payment
15-7 of workers' compensation benefits.
15-8 SECTION 2.03. Section 77.001, Human Resources Code, is
15-9 amended to read as follows:
15-10 Sec. 77.001. DESIGNATED STATE AGENCY. (a) The state agency
15-11 designated to administer a statewide plan for child support may
15-12 establish and conduct a parent locator service which shall be used
15-13 to obtain information as to the whereabouts, income, and holdings
15-14 of any person when such information is to be used for the purposes
15-15 of locating such person and establishing or enforcing a support or
15-16 medical support obligation against such person.
15-17 (b) The designated state agency is entitled to <may> request
15-18 and obtain such information from state and local government
15-19 agencies, private companies, institutions, or other entities as
15-20 deemed necessary to carry out the provisions of this Act. Such
15-21 government and private entities shall furnish any information so
15-22 requested and known to such entity to the designated agency unless
15-23 state or federal law specifically provides that the information may
15-24 not be disclosed to the designated agency office<, except to the
15-25 extent such information is made nondisclosable by law>.
15-26 (c) The designated agency may issue an administrative
15-27 subpoena to any individual or organization to furnish information
16-1 necessary to carry out the provisions of this section and any
16-2 individual or organization receiving a subpoena shall comply with
16-3 the subpoena.
16-4 (d) The furnishing of information provided for in Subsection
16-5 (a) of this section by state governmental agencies shall include
16-6 the transmittal of information in the most efficient and
16-7 expeditious manner available, including electronic or automated
16-8 transfer and interface.
16-9 SECTION 2.04. Subsection (c), Section 14.972, Family Code,
16-10 is amended to read as follows:
16-11 (c) The lien attaches to all personal property not exempt
16-12 under provisions of the Texas Constitution, including all claims
16-13 for negligence, personal injury, or workers' compensation,
16-14 including an insurance award for any of those claims, owned by the
16-15 obligor on or after the date on which the lien attaches.
16-16 SECTION 2.05. Section 76.002, Human Resources Code, is
16-17 amended by adding Subsection (f) to read as follows:
16-18 (f) The attorney general shall report to the legislature
16-19 each biennium on the effectiveness of the attorney general's child
16-20 support enforcement activity in reducing the state's public
16-21 assistance obligations. The attorney general shall develop a
16-22 method for estimating the costs and benefits of the child support
16-23 enforcement program and the effect of the program on appropriations
16-24 for public assistance.
16-25 ARTICLE 3. EFFECTIVE DATE AND EMERGENCY PROVISION
16-26 SECTION 3.01. This Act takes effect September 1, 1993.
16-27 SECTION 3.02. The importance of this legislation and the
17-1 crowded condition of the calendars in both houses create an
17-2 emergency and an imperative public necessity that the
17-3 constitutional rule requiring bills to be read on three several
17-4 days in each house be suspended, and this rule is hereby suspended.