By: Harris, Chris S.B. No. 84
73R4759 JMM-D
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. (a)
1-10 A health insurer, including a group health services corporation and
1-11 a health maintenance organization, providing coverage or benefits
1-12 in this state through an employer, union, trade association, or
1-13 another organization or source shall maintain a centralized file
1-14 system that contains the name, mailing address, social security
1-15 number, and date of birth of:
1-16 (1) each subscriber, policyholder, or enrollee of the
1-17 insurer; and
1-18 (2) other persons covered by the insurer.
1-19 (b) The information required to be maintained under
1-20 Subsection (a) shall be made available on request to the department
1-21 in the administration of the department's Medicaid third-party
1-22 recovery functions or to any other agency that performs those
1-23 functions. A health insurer shall permit data matches with the
1-24 department or the successor agency to identify state medical
2-1 assistance recipients with third-party health coverage or
2-2 insurance.
2-3 (c) The medical assistance identification card of a
2-4 recipient of medical support shall state whether the recipient is
2-5 covered by any third-party health coverage. A health care service
2-6 provider must seek reimbursement from available third-party health
2-7 coverage before billing the state medical assistance program.
2-8 SECTION 1.02. Chapter 76, Human Resources Code, is amended
2-9 by adding Section 76.010 to read as follows:
2-10 Sec. 76.010. MEDICAL SUPPORT ENFORCEMENT FOR CHILDREN. The
2-11 attorney general shall develop policies for improving enforcement
2-12 of medical support orders for children ordered under Section
2-13 14.061, Family Code, or in a reciprocal support action under
2-14 Chapter 21, Family Code. To improve the enforcement of medical
2-15 support orders for children, the attorney general shall:
2-16 (1) centralize medical support enforcement activities
2-17 within a single office in the child support enforcement division of
2-18 the attorney general's office; and
2-19 (2) automate medical support enforcement activities to
2-20 the fullest extent possible.
2-21 SECTION 1.03. Section 14.061, Family Code, is amended by
2-22 adding Subsection (r) to read as follows:
2-23 (r) For purposes of enrolling a child in a health insurance
2-24 program under this section, a court order requiring that health
2-25 insurance be provided for a child is a change in the family
2-26 circumstances of the covered person equivalent to the birth or
2-27 adoption of a child by the covered person. A covered person
3-1 ordered to provide health insurance for a child shall be afforded
3-2 the same enrollment opportunity that the covered person would have
3-3 in the event of a birth or adoption of a child by the covered
3-4 person.
3-5 SECTION 1.04. Sections 14.43(l) and (n), Family Code, are
3-6 amended to read as follows:
3-7 (l) Liability and Obligation of Employer for Payments. An
3-8 employer receiving an order under this section or a writ under
3-9 Section 14.45 who complies with the order or writ is not liable to
3-10 the obligor for the amount of income withheld and paid as provided
3-11 in the order or writ. An employer who received an order or writ of
3-12 withholding and who does not comply with the order or writ is
3-13 liable to the obligee for the amount not paid in compliance with
3-14 the order or writ, including an amount the obligor is required to
3-15 pay for health insurance under Section 14.061 of this code, or to
3-16 the obligor for the amount withheld and not paid and for reasonable
3-17 attorney's fees and court costs. An employer receiving two or more
3-18 orders or writs on any named obligor shall comply with every order
3-19 or writ to the maximum extent possible. If the total amount in the
3-20 orders or writ exceeds the maximum amount allowable to be withheld
3-21 under this section, the employer shall pay an equal amount towards
3-22 the current support portion of all orders or writs until each order
3-23 is individually complied with, and thereafter equal amounts on the
3-24 arrearage portion of all orders until each order or writ is
3-25 complied with, or until the maximum total amount of allowable
3-26 withholding under Subsection (f) of this section is reached,
3-27 whichever occurs first. If an employer is ordered to withhold from
4-1 more than one obligor, the employer may combine the withheld
4-2 amounts from the obligors' wages and make a single payment to each
4-3 appropriate agency requesting withholding if the employer
4-4 separately identifies the amount of the payment that is
4-5 attributable to each obligor.
4-6 (n) Fine for Employers. In addition to the civil remedies
4-7 provided by Subsections (l) and (m) of this section or by any other
4-8 remedy provided by law, an employer who knowingly violates the
4-9 provisions of those subsections may be subject to a fine not to
4-10 exceed $200 <$50> for each occurrence in which the employer fails
4-11 to withhold. Any fines recovered under this subsection shall be
4-12 paid to the obligee and credited against any amounts owed by the
4-13 obligor.
4-14 SECTION 1.05. Sections 2(A), (L), and (M)(1), Chapter 397,
4-15 Acts of the 54th Legislature, Regular Session, 1955 (Article
4-16 3.70-2, Vernon's Texas Insurance Code), are amended to read as
4-17 follows:
4-18 (A) No policy of accident and sickness insurance shall be
4-19 delivered or issued for delivery to any person in this state
4-20 unless:
4-21 (1) the entire money and other consideration therefor
4-22 are expressed therein or in the application, if it is made a part
4-23 of the policy; and
4-24 (2) the time at which the insurance takes effect and
4-25 terminates is expressed therein; and
4-26 (3) it purports to insure only one person, except that
4-27 a policy may insure, originally or by subsequent amendment, upon
5-1 the application of an adult member of a family who shall be deemed
5-2 the policy holder, any two or more eligible members of that family,
5-3 including husband, wife, dependent children, including a dependent
5-4 grandchild of the policy holder who is less than 21 years old and
5-5 living with and in the household of the policy holder, or any
5-6 children under a specified age which shall not exceed twenty-five
5-7 years, a child the policy holder is required to insure under a
5-8 medical support order issued under Section 14.061, Family Code, or
5-9 enforceable by a court in this state, and any other person
5-10 dependent upon the policy holder; and
5-11 (4) the style, arrangement and over-all appearance of
5-12 the policy gives no undue prominence to any portion of the text,
5-13 and unless every printed portion of the text of the policy and of
5-14 any endorsements or attached papers (except copies of applications
5-15 and identification cards) are plainly printed in lightfaced type of
5-16 a style in general use, the size of which shall be uniform and not
5-17 less than ten-point with a lower-case unspaced alphabet length not
5-18 less than one hundred and twenty-point (the "text" shall include
5-19 all printed matter except the name and address of the insurer, name
5-20 or title of the policy, the brief description, if any, and captions
5-21 and subcaptions); and
5-22 (5) the exceptions and reductions of indemnity are set
5-23 forth in the policy and, except those which are set forth in
5-24 Section 3 of this Act, are printed, at the insurer's option, either
5-25 included with the benefit provision to which they apply, or under
5-26 an appropriate caption such as "Exceptions" or "Exceptions and
5-27 Reductions"; provided that if an exception or reduction
6-1 specifically applies only to a particular benefit of the policy, a
6-2 statement of such exception or reduction shall be included with the
6-3 benefit provision to which it applies; and
6-4 (6) each such form, including riders and endorsements,
6-5 shall be identified by a form number in the lower left-hand corner
6-6 of the first page thereof; and
6-7 (7) it contains no provision purporting to make any
6-8 portion of the charter, rules, constitution, or bylaws of the
6-9 insurer a part of the policy unless such portion is set forth in
6-10 full in the policy, except in the case of the incorporation of, or
6-11 reference to, a statement of rates or classification of risks, or
6-12 shortrate table filed with the Board; and
6-13 (8) it shall have printed thereon or attached thereto
6-14 a notice stating in substance that the person to whom the policy is
6-15 issued shall be permitted to return the policy within ten (10) days
6-16 of its delivery to such person and to have the premium paid
6-17 refunded if, after examination of the policy, such person is not
6-18 satisfied with it for any reason. If such person pursuant to such
6-19 notice, returns the policy to the insurer at its home or branch
6-20 office or to the agent through whom it was purchased, it shall be
6-21 void from the beginning and the parties shall be in the same
6-22 position as if no policy had been issued. This subdivision shall
6-23 not apply to single premium nonrenewable policies.
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 policyholder must provide medical support under an order
7-8 issued under Section 14.061, Family Code, or enforceable by a court
7-9 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 SECTION 1.06. (a) This article applies only to an order in
7-26 a suit affecting the parent-child relationship or reciprocal child
7-27 support action entered on or after the effective date of this Act.
8-1 An order entered before the effective date of this Act is governed
8-2 by the law in effect on the date the order was entered, and that
8-3 law is continued in effect for that purpose.
8-4 (b) This article applies only to a policy delivered, issued
8-5 for delivery, or renewed on or after January 1, 1994. A policy
8-6 delivered, issued for delivery, or renewed before that date is
8-7 governed by the law that existed immediately before the effective
8-8 date of this Act, and that law is continued in effect for that
8-9 purpose.
8-10 ARTICLE 2. ENFORCEMENT OF CHILD
8-11 SUPPORT ORDERS AFFECTING LICENSE
8-12 HOLDERS AND MISCELLANEOUS
8-13 ENFORCEMENT PROVISIONS
8-14 SECTION 2.01. Subchapter B, Chapter 14, Family Code, is
8-15 amended by adding Sections 14.52-14.56 to read as follows:
8-16 Sec. 14.52. LICENSE WITHHOLDING AND REVOCATION. (a) A
8-17 child support obligor who is 30 or more days delinquent in
8-18 providing child support is ineligible to obtain or renew a license
8-19 issued by a licensing agency.
8-20 (b) A licensing agency shall verify that an applicant for a
8-21 license or license renewal is not 30 or more days delinquent in
8-22 providing child support by consulting the attorney general's list
8-23 of delinquent child support obligors provided under Subsection (e)
8-24 of this section. If the applicant's name appears on the attorney
8-25 general's list of delinquent child support obligors, the licensing
8-26 agency may not grant the applicant a license or license renewal
8-27 except as provided by Subsection (c) or (d) of this section.
9-1 (c) A licensing agency may issue a license or license
9-2 renewal to an applicant whose name appears on the attorney
9-3 general's list of delinquent child support obligors if the agency
9-4 receives a written statement from the attorney general or district
9-5 attorney, as appropriate, that all child support arrearages have
9-6 been paid or that a repayment agreement has been approved by the
9-7 court of continuing jurisdiction.
9-8 (d) A licensing agency may issue an applicant whose name
9-9 appears on the attorney general's list of delinquent child support
9-10 obligors a license or license renewal that expires 60 days after
9-11 the date it was issued. The agency may not issue a license or
9-12 license renewal more than once under this subsection for each
9-13 applicant.
9-14 (e) The attorney general monthly shall provide to each
9-15 licensing agency a list of child support obligors who are 30 or
9-16 more days delinquent in providing child support.
9-17 (f) The attorney general, a private attorney representing an
9-18 obligee, or the obligee may petition a licensing agency for
9-19 revocation of an obligor's license because of the obligor's child
9-20 support delinquency. Not later than the 30th day after the date on
9-21 which the agency receives the petition, the agency shall convene an
9-22 administrative hearing to determine if the obligor is 30 or more
9-23 days delinquent. After notice and opportunity for hearing, the
9-24 licensing agency shall revoke the obligor's license unless the
9-25 obligor provides evidence of full payment of all arrearages or
9-26 evidence that an agreement to pay arrearages has been approved by
9-27 the attorney general or the court of continuing jurisdiction. A
10-1 licensing agency may not reinstate a license revoked under this
10-2 subsection unless the obligor provides proof of full payment of all
10-3 arrearages or proof that an agreement to pay the arrearages has
10-4 been approved by the attorney general or the court of continuing
10-5 jurisdiction.
10-6 (g) The attorney general shall reimburse a licensing agency
10-7 for reasonable costs for participating in child support enforcement
10-8 under this section.
10-9 (h) The attorney general shall adopt rules to implement this
10-10 section.
10-11 (i) In this section:
10-12 (1) "License" means a permit, certificate, or similar
10-13 form of permission issued by a licensing agency that is required by
10-14 law to:
10-15 (A) engage in a profession or occupation;
10-16 (B) operate a vehicle or machinery;
10-17 (C) participate in recreational activity; or
10-18 (D) sell a regulated commodity.
10-19 (2) "Licensing agency" means a board, commission,
10-20 department, or other agency in the executive or judicial branch of
10-21 state government that issues or renews a license, either directly
10-22 or through a private entity.
10-23 Sec. 14.53. PENALTY FOR FAILURE TO WITHHOLD LICENSE. (a) A
10-24 person commits an offense if the person issues a license or license
10-25 renewal on behalf of a state licensing agency to an obligor who is
10-26 30 or more days delinquent in the payment of child support except
10-27 as provided by Section 14.52(c) or (d) of this code. An offense
11-1 under this subsection is punishable by a fine not to exceed $50.
11-2 (b) It is a defense to an offense under Subsection (a) of
11-3 this section that the person attempted to verify whether an
11-4 applicant for a license owed delinquent child support by consulting
11-5 the attorney general's list of delinquent child support obligors
11-6 provided under Section 14.52(e) of this code and the person
11-7 reasonably believed that the applicant did not owe delinquent child
11-8 support.
11-9 Sec. 14.54. PUBLICATION OF NAMES OF DELINQUENT OBLIGORS.
11-10 (a) The attorney general shall, at least annually, publish in
11-11 newspapers of general circulation throughout the state:
11-12 (1) the first and last names of child support obligors
11-13 who are 30 or more days delinquent in paying child support; and
11-14 (2) the amount of the child support arrearage.
11-15 (b) The attorney general shall, at least quarterly, publish
11-16 in newspapers of general circulation throughout the state the first
11-17 and last names of child support obligors or parents for whom the
11-18 attorney general is attempting to establish a support order and
11-19 whom the attorney general cannot locate.
11-20 Sec. 14.55. INELIGIBILITY FOR STATE CONTRACTS. A child
11-21 support obligor who is 30 or more days delinquent in providing
11-22 child support is ineligible to submit a bid to provide, or
11-23 otherwise provide, property, materials, or services under a
11-24 contract with the state. If a delinquent obligor is a partner,
11-25 officer, majority shareholder, or owner of a partnership,
11-26 corporation, or other entity, the partnership, corporation, or
11-27 entity is ineligible to bid for or enter into a contract with the
12-1 state.
12-2 Sec. 14.56. INELIGIBILITY TO RECEIVE STATE GRANTS OR LOANS.
12-3 A child support obligor who is 30 or more days delinquent in paying
12-4 child support is not eligible to receive a state-funded grant or
12-5 loan until:
12-6 (1) all arrearages have been paid; or
12-7 (2) a repayment agreement has been approved by the
12-8 attorney general or court of continuing jurisdiction.
12-9 SECTION 2.02. Section 14.972(c), Family Code, is amended to
12-10 read as follows:
12-11 (c) The lien attaches to all personal property not exempt
12-12 under provisions of the Texas Constitution, including all claims
12-13 for negligence, personal injury, or workers' compensation,
12-14 including an insurance award for any of those claims, owned by the
12-15 obligor on or after the date on which the lien attaches.
12-16 SECTION 2.03. Section 76.002, Human Resources Code, is
12-17 amended by adding Subsection (f) to read as follows:
12-18 (f) The attorney general shall report to the legislature
12-19 each biennium on the effectiveness of the attorney general's child
12-20 support enforcement activity in reducing the state's public
12-21 assistance obligations. The attorney general shall develop a
12-22 method for estimating the costs and benefits of each child support
12-23 enforcement measure and the effect of each measure on
12-24 appropriations for public assistance.
12-25 SECTION 2.04. (a) The change in law made by Section 2.01 of
12-26 this article relating to withholding a license or license renewal
12-27 from a delinquent child support obligor applies to the disposition
13-1 of an application for a license or license renewal on or after the
13-2 effective date of this Act without regard to whether the obligor
13-3 applies for the license or license renewal before, on, or after the
13-4 effective date of this Act.
13-5 (b) The change in law made by Section 2.01 of this article
13-6 relating to the ineligibility of a delinquent child support obligor
13-7 to bid for a state contract applies to the disposition of a pending
13-8 bid on or after the effective date of this Act without regard to
13-9 whether the bid is submitted before, on, or after the effective
13-10 date of this Act.
13-11 (c) The change in law made by Section 2.01 of this article
13-12 relating to the ineligibility of a delinquent child support obligor
13-13 to provide property, materials, or services under a contract with
13-14 the state applies only to a contract award made on or after the
13-15 effective date of this Act.
13-16 (d) The change in law made by Section 2.01 of this article
13-17 relating to the ineligibility of a delinquent child support obligor
13-18 to receive a state-funded grant or loan applies only to the
13-19 disposition of an application for a grant or loan that is made on
13-20 or after the effective date of this Act.
13-21 ARTICLE 3. EFFECTIVE DATE AND EMERGENCY PROVISION
13-22 SECTION 3.01. This Act takes effect September 1, 1993.
13-23 SECTION 3.02. The importance of this legislation and the
13-24 crowded condition of the calendars in both houses create an
13-25 emergency and an imperative public necessity that the
13-26 constitutional rule requiring bills to be read on three several
13-27 days in each house be suspended, and this rule is hereby suspended.