By:  Harris, Chris                                    S.B. No. 1406
       73R9342 JMM-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the establishment or modification of a child support
    1-3  order, including guidelines for the support of children in more
    1-4  than one household.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 14.05, Family Code, is amended by adding
    1-7  Subsection (k) to read as follows:
    1-8        (k)  In a proceeding in which the Department of Protective
    1-9  and Regulatory Services is appointed managing conservator of a
   1-10  child, in appropriate circumstances, and in accordance with the
   1-11  guidelines established for child support payments as provided in
   1-12  this title, the court shall order either or both parents to make
   1-13  periodic payments or a lump-sum payment, or both, for the support
   1-14  of the child until the child is 18 years of age in the manner
   1-15  specified by the court in the decree.
   1-16        SECTION 2.  Section 14.053, Family Code, is amended by
   1-17  amending Subsections (b) and (d) and adding Subsection (l) to read
   1-18  as follows:
   1-19        (b)  Net Resources Defined.  "Net resources," for the purpose
   1-20  of determining child support liability, are 100 percent of all wage
   1-21  and salary income and other compensation for personal services
   1-22  (including commissions, overtime pay, tips, and bonuses), interest,
   1-23  dividends, royalty income, self-employment income (as described in
   1-24  Subsection (c) of this section), net rental income (defined as rent
    2-1  after deducting operating expenses and mortgage payments, but not
    2-2  including noncash items such as depreciation), and all other income
    2-3  actually being received, including but not limited to severance
    2-4  pay, retirement benefits, pensions, trust income, annuities,
    2-5  capital gains, social security benefits, unemployment benefits,
    2-6  disability and workers' compensation benefits, interest income from
    2-7  notes but not including return of principal or capital, <and/or>
    2-8  accounts receivable regardless of the source, gifts and prizes,
    2-9  spousal maintenance, and alimony, less (subtracting) 100 percent of
   2-10  social security taxes, federal income tax withholding for a single
   2-11  person claiming one personal exemption and the standard deduction,
   2-12  union dues, and expenses for health insurance coverage for the
   2-13  obligor's child.  Benefits paid pursuant to aid for families with
   2-14  dependent children and any other child support received from any
   2-15  source shall be disregarded in calculating net resources.
   2-16        (d)  Health Insurance.  The guidelines for a court order for
   2-17  the support of a child in this chapter assume that the court will
   2-18  order the obligor to provide health insurance coverage for the
   2-19  child subject of the suit in addition to the amount of child
   2-20  support calculated pursuant to these guidelines.  If the court
   2-21  finds and sets forth in the order setting child support that the
   2-22  obligee will maintain health insurance coverage at the obligee's
   2-23  expense for the child, the court may increase the amount of child
   2-24  support to be paid by the obligor in an amount not exceeding the
   2-25  total expense to the obligee for maintaining health insurance
   2-26  coverage.  The court shall order the obligor to pay as additional
   2-27  child support not less than 50 percent of the reasonable and
    3-1  necessary health care expenses of a child that are not reimbursed
    3-2  by a third party.
    3-3        (l)  Retroactive Support.  The guidelines for the support of
    3-4  a child in this chapter are intended to guide the court in
    3-5  determining the amount of retroactive child support that may be
    3-6  ordered under this chapter or Chapter 13 of this code.  In ordering
    3-7  retroactive child support, the court shall consider the net
    3-8  resources of the obligor during the relevant time period.
    3-9        SECTION 3.  Section 14.055, Family Code, is amended by
   3-10  amending Subsections (a), (b), and (c) and adding Subsections
   3-11  (f)-(j) to read as follows:
   3-12        (a)  Rebuttable Presumption.  The guidelines for the support
   3-13  of a child in this chapter are specifically designed to apply to
   3-14  situations in which the obligor's monthly net resources are $6,000
   3-15  <$4,000> or less. In any suit affecting the parent-child
   3-16  relationship, there is a rebuttable presumption that an order
   3-17  containing the amount of periodic child support payments
   3-18  established by the schedule provided in this section is reasonable
   3-19  and that the order is in the best interest of the child.  A court
   3-20  may determine that the application of the guidelines would be
   3-21  unjust or inappropriate under the circumstances.
   3-22        (b)  Schedule:  $6,000 <$4,000> or Less Monthly Net
   3-23  Resources.  In rendering an order of child support under
   3-24  circumstances in which the obligor's monthly net resources are
   3-25  $6,000 <$4,000> or less, the court shall presumptively apply the
   3-26  following schedule:
   3-27                       CHILD SUPPORT GUIDELINES
    4-1           BASED ON THE MONTHLY NET RESOURCES OF THE OBLIGOR
    4-2  1 child            20% of Obligor's Net Resources
    4-3  2 children         25% of Obligor's Net Resources
    4-4  3 children         30% of Obligor's Net Resources
    4-5  4 children         35% of Obligor's Net Resources
    4-6  5<+> children      40% of Obligor's Net Resources <Not less than
    4-7                     the amount for 4 children>
    4-8  6+ children        Not less than the amount for 5 children
    4-9        (c)  More Than $6,000 <$4,000> Monthly Net Resources.  In
   4-10  situations in which the obligor's net resources exceed $6,000
   4-11  <$4,000> per month, the court shall presumptively apply the
   4-12  percentage guidelines in Subsection (b) of this section to the
   4-13  first $6,000 <$4,000> of the obligor's net resources.  Without
   4-14  further reference to the percentage recommended by these
   4-15  guidelines, the court may order additional amounts of child support
   4-16  as proven, depending on the needs of the child at the time of the
   4-17  order.
   4-18        (f)  Children in More Than One Household.  In applying the
   4-19  child support guidelines for an obligor who has children in more
   4-20  than one household, the court shall apply the percentage guidelines
   4-21  in this section by making the following computation:
   4-22              (1)  determine the amount of child support that would
   4-23  be ordered if all children, both before the court and not before
   4-24  the court, whom the obligor has the legal duty to support lived in
   4-25  one household by applying the schedule in Subsection (b) of this
   4-26  section;
   4-27              (2)  compute a child support credit for the obligor's
    5-1  children who are not before the court by dividing the amount
    5-2  determined under Subdivision (1) of this subsection by the total
    5-3  number of children whom the obligor is obligated to support and
    5-4  multiplying that number by the number of the obligor's children who
    5-5  are not before the court;
    5-6              (3)  determine the adjusted net resources of the
    5-7  obligor by subtracting the child support credit computed under
    5-8  Subdivision (2) of this subsection from the net resources of the
    5-9  obligor; and
   5-10              (4)  determine the child support amount for the
   5-11  children before the court by applying the percentage guidelines
   5-12  from Subsection (b) of this section for the number of children of
   5-13  the obligor before the court to the obligor's adjusted net
   5-14  resources.
   5-15        (g)  Child Support Credit.  For the purpose of determining a
   5-16  child support credit under Subsection (f)(2) of this section, the
   5-17  total number of an  obligor's children includes the children before
   5-18  the court for the establishment or modification of a support order
   5-19  and any other children, including children residing with the
   5-20  obligor, whom the obligor has the legal duty of support.
   5-21        (h)  Child Support Paid by Obligor.  The child support credit
   5-22  under Subsection (f)(2) of this section with respect to children
   5-23  for whom the obligor is obligated by a court order to pay support
   5-24  is computed, regardless of whether the obligor is delinquent in
   5-25  child support payments, without regard to the amount of the order.
   5-26        (i)  Child Support Received by Obligor.  Child support
   5-27  received by an obligor who is obligated to support children in more
    6-1  than one household    shall be added to the net resources of the
    6-2  obligor to compute the net resources of an obligor before
    6-3  determining the child support credit under Subsection (f)(2) of
    6-4  this section or applying the percentages in the table in Subsection
    6-5  (j) of this section.
    6-6        (j)  Alternative Method of Computing Support for Children in
    6-7  More Than One Household.  In lieu of performing the computation
    6-8  under Subsection (f) of this section, the court may determine the
    6-9  child support amount for the children before the court by applying
   6-10  the percentages in the table below to the obligor's net resources.
   6-11  Multiple Family
   6-12  adjusted                  Number of children before the court
   6-13  guidelines 
   6-14  (% of net            1      2      3      4      5      6      7
   6-15  resources)                                                        
   6-16  Number of       0  20.00  25.00  30.00  35.00  40.00  40.00  40.00
   6-17  other           1  17.50  22.50  27.38  32.20  37.33  37.71  38.00
   6-18  children for    2  16.00  20.63  25.20  30.33  35.43  36.00  36.44
   6-19  whom the        3  14.75  19.00  24.00  29.00  34.00  34.67  35.20
   6-20  obligor has     4  13.60  18.33  23.14  28.00  32.89  33.60  34.18
   6-21  a duty of       5  13.33  17.86  22.50  27.22  32.00  32.73  33.33
   6-22  support:        6  13.14  17.50  22.00  26.60  31.27  32.00  32.62
   6-23                  7  13.00  17.22  21.60  26.09  30.67  31.38  32.00
   6-24        SECTION 4.  Section 14.056, Family Code, is amended by
   6-25  amending Subsection (b) and adding Subsection (d) to read as
   6-26  follows:
   6-27        (b)  Additional Factors.  In addition to the factors listed
    7-1  in these guidelines, a court may consider other relevant factors.
    7-2  <The support obligation owed to a subsequently born or adopted
    7-3  child does not constitute cause to decrease the amount of an
    7-4  existing child support order.>  The history of support voluntarily
    7-5  provided in excess of the court order does not constitute cause to
    7-6  increase the amount of an existing child support order.
    7-7        (d)  Use of Guidelines for Children in More Than One
    7-8  Household.  In applying the child support guidelines under this
    7-9  section, if the obligor has the duty to support children in more
   7-10  than one household, the court shall apply the percentage guidelines
   7-11  in Section 14.055 of this code by making the computation provided
   7-12  by Section 14.055(f) of this code.
   7-13        SECTION 5.  Section 14.057, Family Code, is amended by
   7-14  amending Subsection (a) and adding Subsection (c) to read as
   7-15  follows:
   7-16        (a)  Without regard to Rules 296 through 299, Texas Rules of
   7-17  Civil Procedure, in any suit affecting the parent-child
   7-18  relationship or reciprocal child support action in which child
   7-19  support is contested and the amount of the support <order> is set
   7-20  or modified by the court, on written request made or filed with the
   7-21  court not later than 10 days after the date of the hearing or an
   7-22  oral request made in open court during the hearing, the court shall
   7-23  state the following in the child support order:
   7-24              "(1)  the amount of net resources available to the
   7-25  obligor per month is $________;
   7-26              "(2)  the amount of net resources available to the
   7-27  obligee per month is $________;
    8-1              "(3)  the amount of child support payments per month
    8-2  that is computed if Section 14.055, Family Code, is applied is
    8-3  $_______;
    8-4              "(4)  the percentage applied to the obligor's net
    8-5  resources for child support by the actual order rendered by the
    8-6  court is _______%; and, if applicable,
    8-7              "(5)  the specific reasons that the amount of support
    8-8  per month ordered by the court varies from the amount computed by
    8-9  applying the percentage guidelines pursuant to Section 14.055,
   8-10  Family Code, are:_________."
   8-11        (c)  In an order that child support be paid by an obligor who
   8-12  is obligated to support children as provided by Section 14.055(f)
   8-13  of this code, the court shall make the findings required by
   8-14  Subsection (b) of this section and shall specify under finding five
   8-15  of that subsection:
   8-16              (1)  the number of children before the court;
   8-17              (2)  the number of children not before the court:
   8-18                    (A)  who reside in the same household with the
   8-19  obligor; and
   8-20                    (B)  for whom the obligor is obligated by a court
   8-21  order to pay support, without regard to whether the obligor is
   8-22  delinquent in child support payments, and who are not counted in
   8-23  Paragraph (A) of this subdivision.
   8-24        SECTION 6.  This Act takes effect September 1, 1993.
   8-25        SECTION 7.  (a)  This Act applies only to a child support
   8-26  order entered or modified on or after the effective date of this
   8-27  Act.
    9-1        (b)  The enactment of this Act is sufficient by itself to
    9-2  constitute a material and substantial change in the circumstances
    9-3  of a child for whose benefit a child support order has been entered
    9-4  to warrant modification of the order under Section 14.08, Family
    9-5  Code.
    9-6        SECTION 8.  The importance of this legislation and the
    9-7  crowded condition of the calendars in both houses create an
    9-8  emergency and an imperative public necessity that the
    9-9  constitutional rule requiring bills to be read on three several
   9-10  days in each house be suspended, and this rule is hereby suspended.