1-1 By: Harris of Tarrant S.B. No. 84
1-2 (In the Senate - Filed February 17, 1993; February 17, 1993,
1-3 read first time and referred to Committee on State Affairs;
1-4 March 1, 1993, reported favorably, as amended, by the following
1-5 vote: Yeas 8, Nays 0; March 1, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Harris of Dallas x
1-9 Rosson x
1-10 Carriker x
1-11 Henderson x
1-12 Leedom x
1-13 Lucio x
1-14 Luna x
1-15 Nelson x
1-16 Patterson x
1-17 Shelley x
1-18 Sibley x
1-19 West x
1-20 Whitmire x
1-21 COMMITTEE AMENDMENT NO. 1 By: Rosson
1-22 Amend S.B. No. 84 as follows:
1-23 (1) On line 14, page 8, delete the rest of the section after
1-24 "covered person." and add "On receipt of the medical support order
1-25 by the employer, the child shall be automatically enrolled for a
1-26 31-day period following the receipt of the order by the employer.
1-27 On receipt of the order by the employer, the employer shall notify
1-28 the insurer of such automatic enrollment. During the 31-day
1-29 period, the policyholder shall apply for coverage for the child in
1-30 accordance with the medical support order. An insurer affected by
1-31 this provision shall not require the policyholder to provide
1-32 evidence of the insurability of the child.
1-33 (2) After line 36, on page 9, add:
1-34 (K) An accident and sickness insurance policy that provides
1-35 coverage for the immediate family or children of a person insured
1-36 under the policy may not exclude from coverage or limit coverage to
1-37 a child of the insured solely because the child is adopted. For
1-38 the purposes, of this subsection, a child is considered to be the
1-39 child of an insured if<:>
1-40 <(1)> the insured is a party in a suit in which the
1-41 adoption of the child by the insured is sought<; and>
1-42 <(2) the insured has custody of the child under a
1-43 temporary court order that grants to the insured conservatorship of
1-44 the child>.
1-45 (3) After line 3, page 10, add a new section to the bill.
1-46 SECTION ____. Subsection (c), Section 3D, Article 3.51-6,
1-47 Insurance Code, is amended to read as follows:
1-48 (c) For the purposes of this section a child is considered
1-49 to be the child of an insured if<:>
1-50 <(1)> the insured is a party in a suit in which the
1-51 adoption of the child by the insured is sought<; and>
1-52 <(2) the insured has custody of the child under a
1-53 temporary court order that grants to the insured conservatorship of
1-54 the child>.
1-55 (4) On page 11, line 39 replace "publish in" with
1-56 "distribute to"
1-57 (5) On page 11, lines 44 and 45 replace "publish in" with
1-58 "distribute to"
1-59 (6) On page 11, line 64 delete "attorney general or"
1-60 COMMITTEE AMENDMENT NO. 2 By: Rosson
1-61 Amend S.B. No. 84 as follows:
1-62 (1) Delete Article 2 from page 10, line 29 through page 12,
1-63 line 32.
1-64 (2) Add new Article 2 to read as follows:
1-65 ARTICLE 2. ENFORCEMENT OF CHILD SUPPORT
1-66 ORDERS AFFECTING LICENSE HOLDERS AND
1-67 MISCELLANEOUS ENFORCEMENT PROVISIONS
1-68 SECTION 2.01. Subchapter B, Chapter 14, Family Code, is
2-1 amended by adding Sections 14.52, 14.53, and 14.54 to read as
2-2 follows:
2-3 Sec. 14.52. LICENSE WITHHOLDING AND REVOCATION. (a) The
2-4 attorney general, a private attorney representing an obligee, or
2-5 the obligee may petition a licensing agency for revocation of an
2-6 obligor's license because of the obligor's child support
2-7 delinquency. Not later than the 30th day after the date on which
2-8 the agency receives the petition, the agency shall convene an
2-9 administrative hearing to determine if the obligor is 30 or more
2-10 days delinquent. After notice and opportunity for hearing, the
2-11 licensing agency shall revoke the obligor's license unless the
2-12 obligor provides evidence that an agreement to pay arrearages has
2-13 been approved by the court of continuing jurisdiction. A licensing
2-14 agency may not reinstate a license revoked under this subsection
2-15 unless the obligor provides proof of full payment of all arrearages
2-16 or proof that an agreement to pay the arrearages has been approved
2-17 by the court of continuing jurisdiction.
2-18 (b) Each applicant for a license or license renewal shall
2-19 state in writing under oath at the time of such application that
2-20 the applicant is not 30 days or more delinquent in providing child
2-21 support or that the applicant is in compliance with a written
2-22 repayment agreement or court order as to any delinquency which does
2-23 exist.
2-24 (c) The attorney general shall adopt rules to implement this
2-25 section.
2-26 (d) In this section:
2-27 (1) "License" means a permit, certificate, or similar
2-28 form of permission issued by a licensing agency that is required by
2-29 law to:
2-30 (A) engage in a profession or occupation; or
2-31 (B) sell a regulated commodity.
2-32 (2) "Licensing agency" means a board, commission,
2-33 department, or other agency in the executive or judicial branch of
2-34 state government that issues or renews a license either directly or
2-35 through a private entity.
2-36 Sec. 14.53. DRIVER'S LICENSE WITHHOLDING AND REVOCATION.
2-37 The attorney general and the Department of Public Safety may by
2-38 rule establish a procedure for the denial or suspension of the
2-39 driver's license of any individual who is 30 days or more
2-40 delinquent in providing child support. Such rule shall include
2-41 provisions for verification, temporary licenses, and judicial
2-42 review of delinquency. Denial or suspension of licenses pursuant
2-43 to such rule shall be governed by this statute and the rule, not by
2-44 the general licensing provisions of Chapter 173, Acts of the 47th
2-45 Legislature, Regular Session, 1941 Article 6687b, Vernon's Texas
2-46 Civil Statutes.
2-47 Sec. 14.54. INELIGIBILITY TO RECEIVE STATE GRANTS OR LOANS
2-48 OR BID ON STATE CONTRACTS. (a) A child support obligor who is 30
2-49 or more days delinquent in paying child support is not eligible to:
2-50 (1) submit a bid or enter into a contract to provide
2-51 or otherwise provide property, materials, or services under a
2-52 contract with the state; or
2-53 (2) receive a state-funded grant or loan.
2-54 (b) A delinquent obligor ineligible to bid on state
2-55 contracts under Subsection (a)(1) of this section includes any sole
2-56 proprietor, partner, officer, majority shareholder, or owner of a
2-57 partnership, corporation, or other entity.
2-58 (c) A child support obligor shall remain ineligible to
2-59 submit a bid on a state contract or apply for a state-funded grant
2-60 or loan under Subsection (a) of this section until:
2-61 (1) all arrearages have been paid; or
2-62 (2) the obligor is in compliance with a written
2-63 repayment agreement or court order as to any delinquency which does
2-64 exist.
2-65 (d) All bidders for state contracts or applicants for
2-66 state-funded loans or grants under Subsection (a) of this section
2-67 shall submit a signed sworn statement accompanying any bid or
2-68 application for a grant or loan affirming that they are not 30 or
2-69 more days delinquent in providing child support pursuant to a court
2-70 order or a written repayment agreement.
3-1 (e) The attorney general may adopt rules or prescribe forms
3-2 to implement any provision of this section.
3-3 SECTION 2.02. Subsections (a) and (b), Section 403.055,
3-4 Government Code, are amended to read as follows:
3-5 (a)(1) Except as provided by Subsection (a)(3), the <The>
3-6 comptroller may not issue a warrant to a person if the person is
3-7 indebted or owes delinquent taxes to the state, or owes delinquent
3-8 taxes under a tax that the comptroller administers or collects,
3-9 until the debt or taxes are paid.
3-10 (2) Except as provided by Subdivision (3), the
3-11 comptroller may not issue a warrant to a person if the person owns
3-12 past-due child support for which an assignment has been made to the
3-13 attorney general pursuant to either Section 76.003 or 76.004, Human
3-14 Resources Code.
3-15 (3) The comptroller may issue a warrant to a person
3-16 owing past-due child support for which an assignment has been made
3-17 to the attorney general pursuant to either Section 76.003 or
3-18 76.004, Human Resources Code, for all or a portion of the amount
3-19 otherwise payable to the person only on authorization of such
3-20 warrant by the attorney general based on a resolution, in whole or
3-21 in part, of such past-due child support acceptable to the attorney
3-22 general.
3-23 (b)(1) The comptroller may issue a warrant to the assignee
3-24 of a person who is indebted or owes delinquent taxes to the state
3-25 and who does not owe past-due child support for which an assignment
3-26 has been made to the attorney general pursuant to either Section
3-27 76.003 or 76.004, Human Resources Code, only if the assignment
3-28 became effective before the person became indebted to the state or
3-29 delinquent in the payment of taxes to the state.
3-30 (2) The comptroller may issue a warrant to the
3-31 assignee of a person who owes past-due child support for which an
3-32 assignment has been made to the attorney general pursuant to either
3-33 Section 76.003 or 76.004, Human Resources Code, only in the event
3-34 that the attorney general is the assignee to whom the warrant is
3-35 issued.
3-36 SECTION 2.03. Section 77.001, Human Resources Code, is
3-37 amended to read as follows:
3-38 Sec. 77.001. DESIGNATED STATE AGENCY. (a) The state agency
3-39 designated to administer a statewide plan for child support may
3-40 establish and conduct a parent locator service which shall be used
3-41 to obtain information as to the whereabouts, income, and holdings
3-42 of any person when such information is to be used for the purposes
3-43 of locating such person and establishing or enforcing a support or
3-44 medical support obligation against such person.
3-45 (b) The designated state agency shall be entitled to <may>
3-46 request and obtain such information from state and local government
3-47 agencies, private companies, institutions, or other entities as
3-48 deemed necessary to carry out the provisions of this Act. Such
3-49 government and private entities shall furnish any information so
3-50 requested and known to such entity to the designated agency unless
3-51 state or federal law specifically provides that such information
3-52 shall not be disclosed to the designated agency office<, except to
3-53 the extent such information is made nondisclosable by law>.
3-54 (c) The designated agency may issue an administrative
3-55 subpoena to any individual or organization to furnish such
3-56 information deemed necessary to carry out the provisions of this
3-57 section and such individual or organization shall comply in the
3-58 manner required by the subpoena.
3-59 (d) The furnishing of information provided for in Subsection
3-60 (a) of this section by state governmental agencies shall include
3-61 the transmittal of information in the most efficient and
3-62 expeditious manner available, including electronic or automated
3-63 transfer and interface.
3-64 SECTION 2.04. Subsection (c), Section 14.972, Family Code,
3-65 is amended to read as follows:
3-66 (c) The lien attaches to all personal property not exempt
3-67 under provisions of the Texas Constitution, including all claims
3-68 for negligence, personal injury, or workers' compensation,including
3-69 an insurance award for any of those claims, owned by the obligor on
3-70 or after the date on which the lien attaches.
4-1 SECTION 2.05. Section 76.002, Human Resources Code, is
4-2 amended by adding Subsection (f) to read as follows:
4-3 (f) The attorney general shall report to the legislature
4-4 each biennium on the effectiveness of the attorney general's child
4-5 support enforcement activity in reducing the state's public
4-6 assistance obligations. The attorney general shall develop a
4-7 method for estimating the costs and benefits of the child support
4-8 enforcement program and the effect of the program on appropriations
4-9 for public assistance.
4-10 COMMITTEE AMENDMENT NO. 3 By: Rosson
4-11 Amend S.B. No. 84 as follows:
4-12 (1) Delete Article 1 from page 1, line 37 through page 10,
4-13 line 28.
4-14 (2) Add new Article 1 to read as follows:
4-15 ARTICLE 1. MEDICAL SUPPORT ORDERS FOR CHILDREN
4-16 SECTION 1.01. Subchapter B, Chapter 32, Human Resources
4-17 Code, is amended by adding Section 32.042 to read as follows:
4-18 Sec. 32.042. INFORMATION REQUIRED FROM HEALTH INSURERS.
4-19 (a) A health insurer, including a group health services
4-20 corporation and a health maintenance organization, providing
4-21 coverage or benefits in this state through an employer, union,
4-22 trade association, or another organization or source shall maintain
4-23 a centralized file system that contains the name, mailing address,
4-24 social security number, and date of birth of:
4-25 (1) each subscriber, policyholder, or enrollee of the
4-26 insurer; and
4-27 (2) other persons covered by the insurer.
4-28 (b) The information required to be maintained under
4-29 Subsection (a) shall be made available on request to the department
4-30 in the administration of the department's Medicaid third-party
4-31 recovery functions or to any other agency that performs those
4-32 functions. A health insurer shall permit data matches with the
4-33 department or the successor agency to identify state medical
4-34 assistance recipients with third-party health coverage or
4-35 insurance.
4-36 (c) The medical assistance identification card of a
4-37 recipient of medical support shall state whether the recipient is
4-38 covered by any third-party health coverage. A health care service
4-39 provider must seek reimbursement from available third-party health
4-40 coverage before billing the state medical assistance program.
4-41 SECTION 1.02. Section 14.061, Family Code, is amended by
4-42 adding Subsection (r) to read as follows:
4-43 (r) For purposes of enrolling a child in a health insurance
4-44 program under this section, a court order requiring that health
4-45 insurance be provided for a child is a change in the family
4-46 circumstances of the covered person equivalent to the birth or
4-47 adoption of a child by the covered person. Upon receipt of the
4-48 medical support order by the employer, the child shall be
4-49 automatically enrolled for a 31-day period following the receipt of
4-50 the order by the employer. Upon receipt of the order by the
4-51 employer, the employer shall notify the insurer of such automatic
4-52 enrollment. During the 31-day period, the policyholder shall apply
4-53 for coverage for the child in accordance with the medical support
4-54 order. An insurer affected by this provision shall not require the
4-55 policyholder to provide evidence of the insurability of the child.
4-56 SECTION 1.03. Subsections (l) and (n), Section 14.43, Family
4-57 Code, are amended to read as follows:
4-58 (l) Liability and Obligation of Employer for Payments. An
4-59 employer receiving an order under this section or a writ under
4-60 Section 14.45 who complies with the order or writ is not liable to
4-61 the obligor for the amount of income withheld and paid as provided
4-62 in the order or writ. An employer who received an order or writ of
4-63 withholding and who does not comply with the order or writ is
4-64 liable to the obligee for the amount not paid in compliance with
4-65 the order or writ, including an amount the obligor is required to
4-66 pay for health insurance under Section 14.061 of this code, or to
4-67 the obligor for the amount withheld and not paid and for reasonable
4-68 attorney's fees and court costs. An employer receiving two or more
4-69 orders or writs on any named obligor shall comply with every order
4-70 or writ to the maximum extent possible. If the total amount in the
5-1 orders or writ exceeds the maximum amount allowable to be withheld
5-2 under this section, the employer shall pay an equal amount towards
5-3 the current support portion of all orders or writs until each order
5-4 is individually complied with, and thereafter equal amounts on the
5-5 arrearage portion of all orders until each order or writ is
5-6 complied with, or until the maximum total amount of allowable
5-7 withholding under Subsection (f) of this section is reached,
5-8 whichever occurs first. If an employer is ordered to withhold from
5-9 more than one obligor, the employer may combine the withheld
5-10 amounts from the obligors' wages and make a single payment to each
5-11 appropriate agency requesting withholding if the employer
5-12 separately identifies the amount of the payment that is
5-13 attributable to each obligor.
5-14 (n) Fine for Employers. In addition to the civil remedies
5-15 provided by Subsections (l) and (m) of this section or by any other
5-16 remedy provided by law, an employer who knowingly violates the
5-17 provisions of those subsections may be subject to a fine not to
5-18 exceed $200 <$50> for each occurrence in which the employer fails
5-19 to withhold. Any fines recovered under this subsection shall be
5-20 paid to the obligee and credited against any amounts owed by the
5-21 obligor.
5-22 SECTION 1.04. Subsections (A)(3), (K), (L), and (M), Sec. 2,
5-23 Chapter 397, Acts of the 54th Legislature, 1955 (Article 3.70-2,
5-24 Vernon's Texas Insurance Code), are amended to read as follows:
5-25 (A) No policy of accident and sickness insurance shall be
5-26 delivered or issued for delivery to any person in this state
5-27 unless:
5-28 (1) the entire money and other consideration therefor
5-29 are expressed therein or in the application, if it is made a part
5-30 of the policy; and
5-31 (2) the time at which the insurance takes effect and
5-32 terminates is expressed therein; and
5-33 (3) it purports to insure only one person, except that
5-34 a policy may insure, originally or by subsequent amendment, upon
5-35 the application of an adult member of a family who shall be deemed
5-36 the policy holder, any two or more eligible members of that family,
5-37 including husband, wife, dependent children, including a dependent
5-38 grandchild of the policy holder who is less than 21 years old and
5-39 living with and in the household of the policy holder, or any
5-40 children under a specified age which shall not exceed twenty-five
5-41 years, a child the policy holder is required to insure under a
5-42 medical support order issued under Section 14.061, Family Code, or
5-43 enforceable by a court in this state, and any other person
5-44 dependent upon the policy holder; and
5-45 (4) the style, arrangement and over-all appearance of
5-46 the policy gives no undue prominence to any portion of the text,
5-47 and unless every printed portion of the text of the policy and of
5-48 any endorsements or attached papers (except copies of applications
5-49 and identification cards) are plainly printed in lightfaced type of
5-50 a style in general use, the size of which shall be uniform and not
5-51 less than ten-point with a lower-case unspaced alphabet length not
5-52 less than one hundred and twenty-point (the "text" shall include
5-53 all printed matter except the name and address of the insurer, name
5-54 or title of the policy, the brief description, if any, and captions
5-55 and subcaptions); and
5-56 (5) the exceptions and reductions of indemnity are set
5-57 forth in the policy and, except those which are set forth in
5-58 Section 3 of this Act, are printed, at the insurer's option, either
5-59 included with the benefit provision to which they apply, or under
5-60 an appropriate caption such as "Exceptions" or "Exceptions and
5-61 Reductions"; provided that if an exception or reduction
5-62 specifically applies only to a particular benefit of the policy, a
5-63 statement of such exception or reduction shall be included with the
5-64 benefit provision to which it applies; and
5-65 (6) each such form, including riders and endorsements,
5-66 shall be identified by a form number in the lower left-hand corner
5-67 of the first page thereof; and
5-68 (7) it contains no provision purporting to make any
5-69 portion of the charter, rules, constitution, or bylaws of the
5-70 insurer a part of the policy unless such portion is set forth in
6-1 full in the policy, except in the case of the incorporation of, or
6-2 reference to, a statement of rates or classification of risks, or
6-3 shortrate table filed with the Board; and
6-4 (8) it shall have printed thereon or attached thereto
6-5 a notice stating in substance that the person to whom the policy is
6-6 issued shall be permitted to return the policy within ten (10) days
6-7 of its delivery to such person and to have the premium paid
6-8 refunded if, after examination of the policy, such person is not
6-9 satisfied with it for any reason. If such person pursuant to such
6-10 notice, returns the policy to the insurer at its home or branch
6-11 office or to the agent through whom it was purchased, it shall be
6-12 void from the beginning and the parties shall be in the same
6-13 position as if no policy had been issued. This subdivision shall
6-14 not apply to single premium nonrenewable policies.
6-15 (K) An accident and sickness insurance policy that provides
6-16 coverage for the immediate family or children of a person insured
6-17 under the policy may not exclude from coverage or limit coverage to
6-18 a child of the insured solely because the child is adopted. For
6-19 the purposes of this subsection, a child is considered to be the
6-20 child of an insured if<:>
6-21 <(1)> the insured is a party in a suit in which the
6-22 adoption of the child by the insured is sought<; and>
6-23 <(2) the insured has custody of the child under a
6-24 temporary court order that grants to the insured conservatorship of
6-25 the child>.
6-26 (L) An individual or group policy of accident and sickness
6-27 insurance that is delivered, issued for delivery, or renewed in
6-28 this state, including a policy issued by a company subject to
6-29 Chapter 20, Insurance Code, and evidence of coverage issued by a
6-30 health maintenance organization subject to the Texas Health
6-31 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
6-32 Code), that provides coverage for a child of the policyholder, must
6-33 provide coverage upon payment of a premium for any children of the
6-34 policyholder's child if those children are dependents of the
6-35 policyholder for federal income tax purposes or for a child for
6-36 whom the group member or insured must provide medical support under
6-37 an order issued under Section 14.061, Family Code, or enforceable
6-38 by a court in this state.
6-39 (M)(1) A group or individual accident and sickness insurance
6-40 policy that provides coverage for dependent children of a group
6-41 member or a person insured under the policy may not exclude from or
6-42 discontinue coverage or set a different premium for the natural
6-43 born or adopted child of the group member or person insured or for
6-44 a child for whom the group member or insured must provide medical
6-45 support under an order issued under Section 14.061, Family Code, or
6-46 enforceable by a court in this state for either of the following
6-47 reasons:
6-48 (a) the child does not reside with the group
6-49 member or insured; or
6-50 (b) the group member or insured does not claim
6-51 the child as an exemption for federal income tax purposes under
6-52 Section 151(c)(1)(B), Internal Revenue Code of 1986 (26 U.S.C.
6-53 Section 151(c)(1)(B)).
6-54 (2) A group or individual accident and sickness
6-55 insurance policy that provides coverage for dependent children of a
6-56 group member or a person insured under the policy may not exclude
6-57 from or discontinue coverage or set a different premium for the
6-58 natural born or adopted child of the spouse of the group member or
6-59 person insured, provided that the child resides with the group
6-60 member or person insured.
6-61 (3) Other policy provisions relating to maximum
6-62 limiting attained age and enrollment in school may be used to
6-63 establish continued eligibility for coverage of a dependent child.
6-64 In the event of late enrollment, the insurance company may require
6-65 evidence of insurability satisfactory to the company before
6-66 inclusion of the dependent child for coverage under the policy.
6-67 SECTION 1.05. Subsection (c), Section 3D, Article 3.51-6,
6-68 Insurance Code, is amended to read as follows:
6-69 (c) For the purposes of this section, a child is considered
6-70 to be the child of an insured if<:>
7-1 <(1)> the insured is a party in a suit in which the
7-2 adoption of the child by the insured is sought<; and>
7-3 <(2) the insured has custody of the child under a
7-4 temporary court order that grants to the insured conservatorship of
7-5 the child>.
7-6 SECTION 1.06. Article 21.07-6, Insurance Code, is amended by
7-7 adding Section 25 to read as follows:
7-8 Sec. 25. COVERAGE FOR CERTAIN CHILDREN. Each administrator
7-9 operating under a certificate of authority who adjusts or settles
7-10 claims in connection with health benefits must provide coverage
7-11 upon payment of a premium for any children of the plan member's
7-12 child if those children are dependents of the plan member for
7-13 federal income tax purposes or for a child for whom the plan member
7-14 must provide medical support under an order issued under Section
7-15 14.061, Family Code, or enforceable by a court in this state and
7-16 may not exclude from or discontinue coverage or set a different
7-17 premium for the natural born or adopted child of the plan member.
7-18 SECTION 1.07. (a) This article applies only to an order in
7-19 a suit affecting the parent-child relationship or reciprocal child
7-20 support action entered on or after the effective date of this Act.
7-21 An order entered before the effective date of this Act is governed
7-22 by the law in effect on the date the order was entered, and that
7-23 law is continued in effect for that purpose.
7-24 (b) This article applies only to a policy delivered, issued
7-25 for delivery, or renewed on or after January 1, 1994. A policy
7-26 delivered, issued for delivery, or renewed before that date is
7-27 governed by the law that existed immediately before the effective
7-28 date of this Act, and that law is continued in effect for that
7-29 purpose.
7-30 A BILL TO BE ENTITLED
7-31 AN ACT
7-32 relating to the enforcement of support orders for children and the
7-33 issuance of insurance coverage for certain persons subject to a
7-34 medical support order for a child; providing a penalty.
7-35 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7-36 ARTICLE 1. MEDICAL SUPPORT ORDERS FOR CHILDREN
7-37 SECTION 1.01. Subchapter B, Chapter 32, Human Resources
7-38 Code, is amended by adding Section 32.042 to read as follows:
7-39 Sec. 32.042. INFORMATION REQUIRED FROM HEALTH INSURERS.
7-40 (a) A health insurer, including a group health services
7-41 corporation and a health maintenance organization, providing
7-42 coverage or benefits in this state through an employer, union,
7-43 trade association, or another organization or source shall maintain
7-44 a centralized file system that contains the name, mailing address,
7-45 social security number, and date of birth of:
7-46 (1) each subscriber, policyholder, or enrollee of the
7-47 insurer; and
7-48 (2) other persons covered by the insurer.
7-49 (b) The information required to be maintained under
7-50 Subsection (a) shall be made available on request to the department
7-51 in the administration of the department's Medicaid third-party
7-52 recovery functions or to any other agency that performs those
7-53 functions. A health insurer shall permit data matches with the
7-54 department or the successor agency to identify state medical
7-55 assistance recipients with third-party health coverage or
7-56 insurance.
7-57 (c) The medical assistance identification card of a
7-58 recipient of medical support shall state whether the recipient is
7-59 covered by any third-party health coverage. A health care service
7-60 provider must seek reimbursement from available third-party health
7-61 coverage before billing the state medical assistance program.
7-62 SECTION 1.02. Chapter 76, Human Resources Code, is amended
7-63 by adding Section 76.010 to read as follows:
7-64 Sec. 76.010. MEDICAL SUPPORT ENFORCEMENT FOR CHILDREN. The
7-65 attorney general shall develop policies for improving enforcement
7-66 of medical support orders for children ordered under Section
7-67 14.061, Family Code, or in a reciprocal support action under
7-68 Chapter 21, Family Code. To improve the enforcement of medical
7-69 support orders for children, the attorney general shall:
7-70 (1) centralize medical support enforcement activities
8-1 within a single office in the child support enforcement division of
8-2 the attorney general's office; and
8-3 (2) automate medical support enforcement activities to
8-4 the fullest extent possible.
8-5 SECTION 1.03. Section 14.061, Family Code, is amended by
8-6 adding Subsection (r) to read as follows:
8-7 (r) For purposes of enrolling a child in a health insurance
8-8 program under this section, a court order requiring that health
8-9 insurance be provided for a child is a change in the family
8-10 circumstances of the covered person equivalent to the birth or
8-11 adoption of a child by the covered person. A covered person
8-12 ordered to provide health insurance for a child shall be afforded
8-13 the same enrollment opportunity that the covered person would have
8-14 in the event of a birth or adoption of a child by the covered
8-15 person.
8-16 SECTION 1.04. Subsections (l) and (n), Section 14.43, Family
8-17 Code, are amended to read as follows:
8-18 (l) Liability and Obligation of Employer for Payments. An
8-19 employer receiving an order under this section or a writ under
8-20 Section 14.45 who complies with the order or writ is not liable to
8-21 the obligor for the amount of income withheld and paid as provided
8-22 in the order or writ. An employer who received an order or writ of
8-23 withholding and who does not comply with the order or writ is
8-24 liable to the obligee for the amount not paid in compliance with
8-25 the order or writ, including an amount the obligor is required to
8-26 pay for health insurance under Section 14.061 of this code, or to
8-27 the obligor for the amount withheld and not paid and for reasonable
8-28 attorney's fees and court costs. An employer receiving two or more
8-29 orders or writs on any named obligor shall comply with every order
8-30 or writ to the maximum extent possible. If the total amount in the
8-31 orders or writ exceeds the maximum amount allowable to be withheld
8-32 under this section, the employer shall pay an equal amount towards
8-33 the current support portion of all orders or writs until each order
8-34 is individually complied with, and thereafter equal amounts on the
8-35 arrearage portion of all orders until each order or writ is
8-36 complied with, or until the maximum total amount of allowable
8-37 withholding under Subsection (f) of this section is reached,
8-38 whichever occurs first. If an employer is ordered to withhold from
8-39 more than one obligor, the employer may combine the withheld
8-40 amounts from the obligors' wages and make a single payment to each
8-41 appropriate agency requesting withholding if the employer
8-42 separately identifies the amount of the payment that is
8-43 attributable to each obligor.
8-44 (n) Fine for Employers. In addition to the civil remedies
8-45 provided by Subsections (l) and (m) of this section or by any other
8-46 remedy provided by law, an employer who knowingly violates the
8-47 provisions of those subsections may be subject to a fine not to
8-48 exceed $200 <$50> for each occurrence in which the employer fails
8-49 to withhold. Any fines recovered under this subsection shall be
8-50 paid to the obligee and credited against any amounts owed by the
8-51 obligor.
8-52 SECTION 1.05. Subsections (A), (L), and (M), Section 2,
8-53 Chapter 397, Acts of the 54th Legislature, 1955 (Article 3.70-2,
8-54 Vernon's Texas Insurance Code), are amended to read as follows:
8-55 (A) No policy of accident and sickness insurance shall be
8-56 delivered or issued for delivery to any person in this state
8-57 unless:
8-58 (1) the entire money and other consideration therefor
8-59 are expressed therein or in the application, if it is made a part
8-60 of the policy; and
8-61 (2) the time at which the insurance takes effect and
8-62 terminates is expressed therein; and
8-63 (3) it purports to insure only one person, except that
8-64 a policy may insure, originally or by subsequent amendment, upon
8-65 the application of an adult member of a family who shall be deemed
8-66 the policy holder, any two or more eligible members of that family,
8-67 including husband, wife, dependent children, including a dependent
8-68 grandchild of the policy holder who is less than 21 years old and
8-69 living with and in the household of the policy holder, or any
8-70 children under a specified age which shall not exceed twenty-five
9-1 years, a child the policy holder is required to insure under a
9-2 medical support order issued under Section 14.061, Family Code, or
9-3 enforceable by a court in this state, and any other person
9-4 dependent upon the policy holder; and
9-5 (4) the style, arrangement and over-all appearance of
9-6 the policy gives no undue prominence to any portion of the text,
9-7 and unless every printed portion of the text of the policy and of
9-8 any endorsements or attached papers (except copies of applications
9-9 and identification cards) are plainly printed in lightfaced type of
9-10 a style in general use, the size of which shall be uniform and not
9-11 less than ten-point with a lower-case unspaced alphabet length not
9-12 less than one hundred and twenty-point (the "text" shall include
9-13 all printed matter except the name and address of the insurer, name
9-14 or title of the policy, the brief description, if any, and captions
9-15 and subcaptions); and
9-16 (5) the exceptions and reductions of indemnity are set
9-17 forth in the policy and, except those which are set forth in
9-18 Section 3 of this Act, are printed, at the insurer's option, either
9-19 included with the benefit provision to which they apply, or under
9-20 an appropriate caption such as "Exceptions" or "Exceptions and
9-21 Reductions"; provided that if an exception or reduction
9-22 specifically applies only to a particular benefit of the policy, a
9-23 statement of such exception or reduction shall be included with the
9-24 benefit provision to which it applies; and
9-25 (6) each such form, including riders and endorsements,
9-26 shall be identified by a form number in the lower left-hand corner
9-27 of the first page thereof; and
9-28 (7) it contains no provision purporting to make any
9-29 portion of the charter, rules, constitution, or bylaws of the
9-30 insurer a part of the policy unless such portion is set forth in
9-31 full in the policy, except in the case of the incorporation of, or
9-32 reference to, a statement of rates or classification of risks, or
9-33 shortrate table filed with the Board; and
9-34 (8) it shall have printed thereon or attached thereto
9-35 a notice stating in substance that the person to whom the policy is
9-36 issued shall be permitted to return the policy within ten (10) days
9-37 of its delivery to such person and to have the premium paid
9-38 refunded if, after examination of the policy, such person is not
9-39 satisfied with it for any reason. If such person pursuant to such
9-40 notice, returns the policy to the insurer at its home or branch
9-41 office or to the agent through whom it was purchased, it shall be
9-42 void from the beginning and the parties shall be in the same
9-43 position as if no policy had been issued. This subdivision shall
9-44 not apply to single premium nonrenewable policies.
9-45 (L) An individual or group policy of accident and sickness
9-46 insurance that is delivered, issued for delivery, or renewed in
9-47 this state, including a policy issued by a company subject to
9-48 Chapter 20, Insurance Code, and evidence of coverage issued by a
9-49 health maintenance organization subject to the Texas Health
9-50 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
9-51 Code), that provides coverage for a child of the policyholder, must
9-52 provide coverage upon payment of a premium for any children of the
9-53 policyholder's child if those children are dependents of the
9-54 policyholder for federal income tax purposes or for a child for
9-55 whom the policyholder must provide medical support under an order
9-56 issued under Section 14.061, Family Code, or enforceable by a court
9-57 in this state.
9-58 (M)(1) A group or individual accident and sickness insurance
9-59 policy that provides coverage for dependent children of a group
9-60 member or a person insured under the policy may not exclude from or
9-61 discontinue coverage or set a different premium for the natural
9-62 born or adopted child of the group member or person insured or for
9-63 a child for whom the group member or insured must provide medical
9-64 support under an order issued under Section 14.061, Family Code, or
9-65 enforceable by a court in this state for either of the following
9-66 reasons:
9-67 (a) the child does not reside with the group
9-68 member or insured; or
9-69 (b) the group member or insured does not claim
9-70 the child as an exemption for federal income tax purposes under
10-1 Section 151(c)(1)(B), Internal Revenue Code of 1986 (26 U.S.C.
10-2 Section 151(c)(1)(B)).
10-3 (2) A group or individual accident and sickness
10-4 insurance policy that provides coverage for dependent children of a
10-5 group member or a person insured under the policy may not exclude
10-6 from or discontinue coverage or set a different premium for the
10-7 natural born or adopted child of the spouse of the group member or
10-8 person insured, provided that the child resides with the group
10-9 member or person insured.
10-10 (3) Other policy provisions relating to maximum
10-11 limiting attained age and enrollment in school may be used to
10-12 establish continued eligibility for coverage of a dependent child.
10-13 In the event of late enrollment, the insurance company may require
10-14 evidence of insurability satisfactory to the company before
10-15 inclusion of the dependent child for coverage under the policy.
10-16 SECTION 1.06. (a) This article applies only to an order in
10-17 a suit affecting the parent-child relationship or reciprocal child
10-18 support action entered on or after the effective date of this Act.
10-19 An order entered before the effective date of this Act is governed
10-20 by the law in effect on the date the order was entered, and that
10-21 law is continued in effect for that purpose.
10-22 (b) This article applies only to a policy delivered, issued
10-23 for delivery, or renewed on or after January 1, 1994. A policy
10-24 delivered, issued for delivery, or renewed before that date is
10-25 governed by the law that existed immediately before the effective
10-26 date of this Act, and that law is continued in effect for that
10-27 purpose.
10-28 ARTICLE 2. ENFORCEMENT OF CHILD
10-29 SUPPORT ORDERS AFFECTING LICENSE
10-30 HOLDERS AND MISCELLANEOUS
10-31 ENFORCEMENT PROVISIONS
10-32 SECTION 2.01. Subchapter B, Chapter 14, Family Code, is
10-33 amended by adding Sections 14.52 through 14.56 to read as follows:
10-34 Sec. 14.52. LICENSE WITHHOLDING AND REVOCATION. (a) A
10-35 child support obligor who is 30 or more days delinquent in
10-36 providing child support is ineligible to obtain or renew a license
10-37 issued by a licensing agency.
10-38 (b) A licensing agency shall verify that an applicant for a
10-39 license or license renewal is not 30 or more days delinquent in
10-40 providing child support by consulting the attorney general's list
10-41 of delinquent child support obligors provided under Subsection (e)
10-42 of this section. If the applicant's name appears on the attorney
10-43 general's list of delinquent child support obligors, the licensing
10-44 agency may not grant the applicant a license or license renewal
10-45 except as provided by Subsection (c) or (d) of this section.
10-46 (c) A licensing agency may issue a license or license
10-47 renewal to an applicant whose name appears on the attorney
10-48 general's list of delinquent child support obligors if the agency
10-49 receives a written statement from the attorney general or district
10-50 attorney, as appropriate, that all child support arrearages have
10-51 been paid or that a repayment agreement has been approved by the
10-52 court of continuing jurisdiction.
10-53 (d) A licensing agency may issue an applicant whose name
10-54 appears on the attorney general's list of delinquent child support
10-55 obligors a license or license renewal that expires 60 days after
10-56 the date it was issued. The agency may not issue a license or
10-57 license renewal more than once under this subsection for each
10-58 applicant.
10-59 (e) The attorney general monthly shall provide to each
10-60 licensing agency a list of child support obligors who are 30 or
10-61 more days delinquent in providing child support.
10-62 (f) The attorney general, a private attorney representing an
10-63 obligee, or the obligee may petition a licensing agency for
10-64 revocation of an obligor's license because of the obligor's child
10-65 support delinquency. Not later than the 30th day after the date on
10-66 which the agency receives the petition, the agency shall convene an
10-67 administrative hearing to determine if the obligor is 30 or more
10-68 days delinquent. After notice and opportunity for hearing, the
10-69 licensing agency shall revoke the obligor's license unless the
10-70 obligor provides evidence of full payment of all arrearages or
11-1 evidence that an agreement to pay arrearages has been approved by
11-2 the attorney general or the court of continuing jurisdiction. A
11-3 licensing agency may not reinstate a license revoked under this
11-4 subsection unless the obligor provides proof of full payment of all
11-5 arrearages or proof that an agreement to pay the arrearages has
11-6 been approved by the attorney general or the court of continuing
11-7 jurisdiction.
11-8 (g) The attorney general shall reimburse a licensing agency
11-9 for reasonable costs for participating in child support enforcement
11-10 under this section.
11-11 (h) The attorney general shall adopt rules to implement this
11-12 section.
11-13 (i) In this section:
11-14 (1) "License" means a permit, certificate, or similar
11-15 form of permission issued by a licensing agency that is required by
11-16 law to:
11-17 (A) engage in a profession or occupation;
11-18 (B) operate a vehicle or machinery;
11-19 (C) participate in recreational activity; or
11-20 (D) sell a regulated commodity.
11-21 (2) "Licensing agency" means a board, commission,
11-22 department, or other agency in the executive or judicial branch of
11-23 state government that issues or renews a license, either directly
11-24 or through a private entity.
11-25 Sec. 14.53. PENALTY FOR FAILURE TO WITHHOLD LICENSE. (a) A
11-26 person commits an offense if the person issues a license or license
11-27 renewal on behalf of a state licensing agency to an obligor who is
11-28 30 or more days delinquent in the payment of child support except
11-29 as provided by Section 14.52(c) or (d) of this code. An offense
11-30 under this subsection is punishable by a fine not to exceed $50.
11-31 (b) It is a defense to an offense under Subsection (a) of
11-32 this section that the person attempted to verify whether an
11-33 applicant for a license owed delinquent child support by consulting
11-34 the attorney general's list of delinquent child support obligors
11-35 provided under Section 14.52(e) of this code and the person
11-36 reasonably believed that the applicant did not owe delinquent child
11-37 support.
11-38 Sec. 14.54. PUBLICATION OF NAMES OF DELINQUENT OBLIGORS.
11-39 (a) The attorney general shall, at least annually, publish in
11-40 newspapers of general circulation throughout the state:
11-41 (1) the first and last names of child support obligors
11-42 who are 30 or more days delinquent in paying child support; and
11-43 (2) the amount of the child support arrearage.
11-44 (b) The attorney general shall, at least quarterly, publish
11-45 in newspapers of general circulation throughout the state the first
11-46 and last names of child support obligors or parents for whom the
11-47 attorney general is attempting to establish a support order and
11-48 whom the attorney general cannot locate.
11-49 Sec. 14.55. INELIGIBILITY FOR STATE CONTRACTS. A child
11-50 support obligor who is 30 or more days delinquent in providing
11-51 child support is ineligible to submit a bid to provide, or
11-52 otherwise provide, property, materials, or services under a
11-53 contract with the state. If a delinquent obligor is a partner,
11-54 officer, majority shareholder, or owner of a partnership,
11-55 corporation, or other entity, the partnership, corporation, or
11-56 entity is ineligible to bid for or enter into a contract with the
11-57 state.
11-58 Sec. 14.56. INELIGIBILITY TO RECEIVE STATE GRANTS OR LOANS.
11-59 A child support obligor who is 30 or more days delinquent in paying
11-60 child support is not eligible to receive a state-funded grant or
11-61 loan until:
11-62 (1) all arrearages have been paid; or
11-63 (2) a repayment agreement has been approved by the
11-64 attorney general or court of continuing jurisdiction.
11-65 SECTION 2.02. Subsection (c), Section 14.972, Family Code,
11-66 is amended to read as follows:
11-67 (c) The lien attaches to all personal property not exempt
11-68 under provisions of the Texas Constitution, including all claims
11-69 for negligence, personal injury, or workers' compensation,
11-70 including an insurance award for any of those claims, owned by the
12-1 obligor on or after the date on which the lien attaches.
12-2 SECTION 2.03. Section 76.002, Human Resources Code, is
12-3 amended by adding Subsection (f) to read as follows:
12-4 (f) The attorney general shall report to the legislature
12-5 each biennium on the effectiveness of the attorney general's child
12-6 support enforcement activity in reducing the state's public
12-7 assistance obligations. The attorney general shall develop a
12-8 method for estimating the costs and benefits of each child support
12-9 enforcement measure and the effect of each measure on
12-10 appropriations for public assistance.
12-11 SECTION 2.04. (a) The change in law made by Section 2.01 of
12-12 this article relating to withholding a license or license renewal
12-13 from a delinquent child support obligor applies to the disposition
12-14 of an application for a license or license renewal on or after the
12-15 effective date of this Act without regard to whether the obligor
12-16 applies for the license or license renewal before, on, or after the
12-17 effective date of this Act.
12-18 (b) The change in law made by Section 2.01 of this article
12-19 relating to the ineligibility of a delinquent child support obligor
12-20 to bid for a state contract applies to the disposition of a pending
12-21 bid on or after the effective date of this Act without regard to
12-22 whether the bid is submitted before, on, or after the effective
12-23 date of this Act.
12-24 (c) The change in law made by Section 2.01 of this article
12-25 relating to the ineligibility of a delinquent child support obligor
12-26 to provide property, materials, or services under a contract with
12-27 the state applies only to a contract award made on or after the
12-28 effective date of this Act.
12-29 (d) The change in law made by Section 2.01 of this article
12-30 relating to the ineligibility of a delinquent child support obligor
12-31 to receive a state-funded grant or loan applies only to the
12-32 disposition of an application for a grant or loan that is made on
12-33 or after the effective date of this Act.
12-34 ARTICLE 3. EFFECTIVE DATE AND EMERGENCY PROVISION
12-35 SECTION 3.01. This Act takes effect September 1, 1993.
12-36 SECTION 3.02. The importance of this legislation and the
12-37 crowded condition of the calendars in both houses create an
12-38 emergency and an imperative public necessity that the
12-39 constitutional rule requiring bills to be read on three several
12-40 days in each house be suspended, and this rule is hereby suspended.
12-41 * * * * *
12-42 Austin,
12-43 Texas
12-44 March 1, 1993
12-45 Hon. Bob Bullock
12-46 President of the Senate
12-47 Sir:
12-48 We, your Committee on State Affairs to which was referred S.B. No.
12-49 84, have had the same under consideration, and I am instructed to
12-50 report it back to the Senate with the recommendation that it do
12-51 pass, as amended, and be printed.
12-52 Harris of
12-53 Dallas, Chairman
12-54 * * * * *
12-55 WITNESSES
12-56 FOR AGAINST ON
12-57 ___________________________________________________________________
12-58 Name: Ray Bonilla x
12-59 Representing: Comptroller's Office
12-60 City: Austin
12-61 -------------------------------------------------------------------
12-62 Name: Bee Moorhead x
12-63 Representing: Comptroller's Office
12-64 City: Austin
12-65 -------------------------------------------------------------------
12-66 Name: Cecelia Burke x
12-67 Representing: Tx Attorney General
12-68 City: Austin
12-69 -------------------------------------------------------------------
12-70 Name: Alan Pollack x
13-1 Representing: Tx Performance Review
13-2 City: Austin
13-3 -------------------------------------------------------------------
13-4 Name: Thomas Plant x
13-5 Representing: Comptroller's Office
13-6 City: Austin
13-7 -------------------------------------------------------------------
13-8 Name: Vicki Tynan x
13-9 Representing: Comptroller's Office
13-10 City: Austin
13-11 -------------------------------------------------------------------
13-12 Name: Tom Blanton
13-13 Representing: Tx Automobile Dealers Assoc
13-14 City: Austin
13-15 -------------------------------------------------------------------
13-16 Name: Howard Baldwin x
13-17 Representing: Office of the Attorney
13-18 General
13-19 City: Austin
13-20 -------------------------------------------------------------------