BILL ANALYSIS
C.S.S.B. 793
By: Harris
Jurisprudence
5-3-95
Committee Report (Substituted)
BACKGROUND
'The office of the attorney general has the responsibility for
child support activities for families receiving public assistance.
In addition, counties are involved in other child support cases
through registries and in some cases enforcement activities. The
office's child support division operates under Title IV, Part D of
the federal Social Security Act. Every family receiving Aid to
Families with Dependent Children (AFDC) or Medicaid and needing
paternity or support order establishment, enforcement or medical
support services is currently referred to this division.
Total caseload for the child support enforcement program grew by 55
percent, from 427,565 cases in 1989 to 664,250 at the end of 1994.
The total number of cases is expected to exceed one million by the
end of 1997. Child support obligations have been established in
less than half of the cases.
In a 1995 comptroller's report, a number of recommendations were
made suggesting ways to improve collection of child support. These
include simplification of the state's hearings process for child
support enforcement, creation of a working group including counties
to increase collections, taking steps to increase cash medical
support payments, and improving information collection in AFDC and
child support programs.
PURPOSE
As proposed, C.S.S.B. 793 transfers the enforcement of certain
child support and medical support obligations from the state
government to private entities and political subdivisions of the
state; sets forth requirements for a statewide child support
registry and enforcement system; sets forth requirements for
enforcement of medical support to ensure that a child's insurance
is not dependent on the parent's marital status and shifts some
responsibility for health insurance to the parents and the private
sector; provides penalties; and makes an appropriation.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the attorney general under SECTION 1.01 (Section 231.0011(k),
Family Code), to agencies developing the Employer New Hire
Reporting program under SECTION 1.05(l), to the Title IV-D agency
and the Texas Department of Human Services under SECTION 1.06
(Section 231.305(a), Human Resources Code), and to the Commissioner
of Insurance in SECTION 4.01 (Article 3.96-9, Insurance Code) of
this bill.
SECTION BY SECTION ANALYSIS
ARTICLE 1. POWERS AND DUTIES OF ATTORNEY GENERAL
SECTION 1.01. Amends Chapter 231, Family Code, by adding Section
231.0011, as follows:
Sec. 231.0011. DEVELOPMENT OF STATEWIDE INTEGRATED SYSTEM FOR
CHILD SUPPORT AND MEDICAL SUPPORT ENFORCEMENT. (a) Requires
the attorney general, as the Title IV-D agency for the state,
to have final approval authority on any contract or proposal
for delivery of services under this section and, in
coordination with the Texas Judicial Council, the Office of
Court Administration, the federal Office of Child Support
Enforcement, state, county, and local officials, to develop a
statewide system for child support and medical support
enforcement, employing federal, state, local, and private
resources to accomplish certain child support enforcement
goals.
(b) Requires the attorney general to convene a work group to
determine a process and time-table for implementation of a
unified registry system (registry) and to identify any
barriers to completion of the project. Sets forth entities
required to be included in the work group. Requires the
work group to report the results to the governor, lieutenant
governor, speaker of the house, and the attorney general by
January 15, 1996.
(c) Requires the attorney general to develop with the work
group technical standards for participation in the unified
child support system.
(d) Requires counties and providers of child support
services to be required, as a condition of participation in
the unified system, to enter into a contract with the
attorney general and comply with all federal requirements
for the Title IV-D program, and to maintain at least the
current level of funding for activities which are proposed
to be included in the integrated child support system.
(e) Requires the attorney general to identify federal
requirements, apply for federal waivers, and provide
information concerning participation in the system to
counties and providers of child support services by January
15, 1996. Requires counties to notify the attorney general
of resources and options for participation by May 1, 1996.
(f) Requires the attorney general to produce a procurement
and implementation plan for hardware and software to
implement in phases a unified registry and enforcement
system.
(g) Authorizes the attorney general, effective January 15,
1996, to contract with any county meeting necessary
technical system requirements for provision of Title IV-D
services in that county. Requires all cases after the
contract to be Title IV-D cases. Authorizes any other case
in the county to be included as a Title IV-D case, subject
to federal requirements and agreement of the county and the
attorney general. Authorizes any obligee under a support
order to refuse enforcement services unless required to do
so pursuant to other law.
(h) Requires counties participating in the unified
enforcement system to monitor all registry cases and
authorizes these counties, subject to the approval of the
Title IV-D agency, to provide enforcement services through
certain methods.
(i) Requires the attorney general to undertake a least-cost
review of its child support operations and to use the
information to determine what contribution of program funds
should be made to the participating counties. Requires the
attorney general to develop a cost allocation methodology to
assist the counties in identifying contributions which
qualify for federal financial participation.
(j) Authorizes the attorney general to phase in the registry
and enforcement system and requires the requirement to
implement the system to be contingent upon the receipt of
locally generated funds and reimbursement. Defines "locally
generated funds."
(k) Requires the attorney general to adopt rules to
implement this section.
(l) Provides that participation in the statewide integrated
child and medical support enforcement system is voluntary,
and prohibits anything in this section from being construed
to mandate participation.
SECTION 1.02. Amends Chapter 231, Family Code, by adding Section
231.113, as follows:
Sec. 231.113. ENFORCEMENT OF SUPPORT OBLIGATIONS IN PUBLIC
ASSISTANCE CASES. Requires the Title IV-D agency to enforce
a child support obligation in a case involving a child who
receives financial assistance under Chapter 31, Human
Resources Code, by the first anniversary of the date that the
agency receives information from the Texas Department of Human
Services (department) to assist in the enforcement.
SECTION 1.03. Amends Sections 231.109(b) and (d), Family Code, to
authorize the Title IV-D agency to contract with private entities
to provide services in Title IV-D cases. Deletes a provision
authorizing the agency to contract with private attorneys or
political subdivisions to represent this state or another state in
an action brought under federal law and this chapter. Makes
conforming changes.
SECTION 1.04. Amends Section 231.202, Family Code, to delete a
provision requiring the Title IV-D agency to pay mileage costs
incurred by a sheriff or constable when traveling to execute an
outstanding warrant or capias.
SECTION 1.05. Amends Section 231.304, Family Code, by amending
Subsections (b) and (h) and adding Subsections (j)-(m), as follows:
(b) Requires the Title IV-D agency, the department, the
Workers' Compensation Commission and the Texas Employment
Commission to create and develop a voluntary Employer New Hire
Reporting (ENHR) program to prevent fraud in the welfare,
workers' compensation, and unemployment insurance programs,
and locate absent parents who owe child support by reporting
information concerning newly hire employees directly to a
centralized state database, rather than the child support
enforcement program. Requires the employer reporting
requirements to be simplified and standardized.
(h) Sets forth purposes for which the database is required to
make the information available, subject to the approval of
involved agencies and federal law. Deletes a provision
requiring the Title IV-D agency to retain the information only
under certain circumstances.
(j) Provides that an employer in the ENHR program is
encouraged to report the information about health insurance
coverage available through the employer in which a dependent
child may be enrolled.
(k) Requires the attorney general's office (office) to work
closely with certain governmental entities to expand the ENHR
program. Sets forth requirements for efforts to expand the
program.
(l) Authorizes the affected agencies to perform certain
actions, including issuing rules, to carry out the purposes of
this section.
(m) Requires the affected agencies to implement the plan to
create the ENHR database using existing funding and
considering savings and revenue gains that may result from the
use of such system.
SECTION 1.06. Amends Chapter 231, Family Code, by adding Section
231.305, as follows:
Sec. 231.305. MEMORANDUM OF UNDERSTANDING ON CHILD SUPPORT
FOR CHILDREN RECEIVING PUBLIC ASSISTANCE. (a) Requires the
Title IV-D agency and the department, by rule, to adopt a
memorandum of understanding governing the establishment and
enforcement of court-ordered child support in cases involving
children who receive aid under Chapter 31. Requires the
memorandum to require the attorney general and the department
to perform certain actions.
(b) Requires the attorney general and the department to
semiannually review and update the memorandum.
SECTION 1.07. Amends Section 231.209, Family Code, to authorize
the Title IV-D agency to pay the costs for mileage or other travel
costs incurred by a sheriff or constable when traveling to execute
an outstanding warrant or capias.
ARTICLE 2. ENFORCEMENT OF CHILD SUPPORT AND MEDICAL
SUPPORT OBLIGATIONS
SECTION 2.01. Amends Section 102.007, Family Code, to make
conforming changes.
SECTION 2.02. Amends Chapter 231B, Family Code, by adding Section
231.306, as follows:
Sec. 231.306. MAXIMIZING MEDICAL SUPPORT ESTABLISHMENT AND
COLLECTION BY THE TITLE IV-D AGENCY. (a) Provides that the
Title IV-D agency is encouraged to maximize the collection of
medical support and establish cash medical support orders for
children eligible for the state Medicaid program without
private insurance, on the installation of an automated
enforcement system.
(b) Defines "medical support."
SECTION 2.03. Amends Section 101.005, Family Code, to redefine
"child support review officer."
SECTION 2.04. Amends Chapter 231E, Family Code, by amending
Sections 231.401, 231.402, and 231.405-231.428.
Sec. 231.401. Provides that the purpose of the child support
review process (review) is to resolve routine child support
action through the agreement of the parties or through
agreeing to uncontested orders, rather than by negotiation.
Sec. 231.402 Deletes provisions requiring mediation to make
the review understandable to all parties and encourage
agreements.
Sec. 231.405. Deletes a provision authorizing a child support
agency (agency) to review and assess the financial resources
of a child's parent or presumed or alleged father from whom
support is requested. Authorizes an administrative action to
be initiated by issuing a notice of review to each party
entitled to notice, rather than to the parents and to the
presumed or alleged father of a child.
Sec. 231.406. Sets forth requirements for the notice of
review, including informing the recipient that the recipient
may refuse to participate or cease participation in the review
process, but that the refusal will not prevent the completion
of the process or filing of a review order. Makes conforming
changes.
Sec. 231.407. Deletes a provision requiring three days to be
added to the time in which a person is required to respond to
the notice if notice is served by mail.
Sec. 231.408. Authorizes a court to compel compliance with an
administrative subpoena and award attorney's fees and costs to
an agency enforcing a subpoena on proof that an entity failed
to comply without good cause.
Sec. 231.409. New heading: SCHEDULING AND CONDUCTING
NEGOTIATION CONFERENCE. (a) Makes no changes.
(b) Requires the agency to schedule a negotiation conference
on the request of a party.
(c) Authorizes a negotiation conference to be conducted by
telephone or video conference call as well as in person.
Authorizes the conference to be adjourned to permit
mediation of issues.
Sec. 231.410. Deletes a provision requiring the conference to
be held within a certain time period.
Sec. 231.411. Authorizes a negotiation conference to be
rescheduled or adjourned on the request of any party, at the
discretion of the review officer.
Sec. 231.412. Requires the review officer to inform the
parties of certain information provided in the notice of
review, including that a party may request a hearing at any
time before the 20th day after the date a petition for
confirmation of the order is filed. Deletes provisions
requiring the parties to be informed of information regarding
a party's right not to participate in the negotiation, to be
represented by an attorney, and to have a court hearing.
Makes conforming changes.
Sec. 231.414. Provides that documentary evidence relied on by
the review officer is a sufficient record of the proceedings.
Sec. 231.415. Makes conforming and nonsubstantive changes.
Sec. 231.416. Authorizes, rather than requires, a new
conference to be scheduled or the officer to make a
determination that a review order should not be issued and
give notice of that determination.
Sec. 231.417. (a)-(c) Make no changes.
(d) Requires a review order that establishes or modifies an
amount or previously ordered support to include the findings
required by Section 154.130.
(e) Authorizes a review order that is not agreed to by all
parties to specify and reserve for the court at the
confirmation hearing unresolved issues, among other
requirements for the order.
Sec. 231.418. Requires the review order to be signed by each
party who agrees to the order and to contain the provisions
required by Section 231.417, and sets forth requirements for
the order, as to each party in agreement with the order,
including language for a statement to appear in the order.
Sec. 231.420. Requires documentary evidence relied on by the
agency to be filed with the clerk, but not to be served on the
parties. Makes nonsubstantive changes.
Sec. 231.421. (a) Deletes a provision requiring the clerk to
sign the endorsement of the date and time on the filing of a
petition for confirmation.
(b) Makes no changes.
(c) Requires the agency, rather than the clerk, to mail to
each party that agreed to the order certain information.
Requires the agency to file a certificate of service showing
the date of the mailing to each party.
(d) Deletes a provision requiring the clerk to issue service
of citation only if the petition is to conform an order
other than an agreed order. Makes conforming changes.
(e) Entitles a clerk to collect in a review case the fees
authorized in a Title IV-D case. Makes conforming changes.
Sec. 231.422. Deletes a provision requiring the agency to
attach a copy of a form to request a court hearing to each
party's copy of the petition for confirmation of an order.
Makes conforming changes.
Sec. 231.423. New heading: TIME TO REQUEST A COURT HEARING.
Deletes a provision authorizing the court to schedule a
hearing if the court finds that confirmation of a review order
would not be in the child's best interests. Makes conforming
changes.
Sec. 231.424. Makes conforming changes.
Sec. 231.425. Provides that the request for hearing may limit
the scope of the de novo hearing by specifying the issues that
are in dispute. Makes conforming changes.
Sec. 231.426. Makes conforming changes.
Sec. 231.427. Makes a conforming change.
Sec. 231.428. New heading: SPECIAL CHILD SUPPORT REVIEW
PROCEDURES RELATING TO ESTABLISHMENT OF PARENTAGE. Sets forth
child support review procedures relating to establishment of
parentage, rather than paternity. Makes conforming changes.
Authorizes an agency to file a review order with a request for
court-ordered parentage testing if either party fails to
participate in the testing.
SECTION 2.05. Amends Chapter 231, Family Code, by adding Section
231.431, as follows:
Sec. 231.431. STUDY OF CHILD SUPPORT REVIEW PROCESS.
Requires the attorney general to conduct a study to determine
and compare the cost of child support enforcement through the
use of the review process and the cost of enforcement by the
attorney general through the use of other enforcement
mechanisms in this chapter. Requires the attorney general to
report the results to the governor and the legislature by
September 1, 1996 and to include recommendations regarding
statutory amendments for improving judicial and administrative
processes for enforcement. Provides that this section expires
September 2, 1996.
SECTION 2.06. Amends Section 71.035(a), Government Code, to
require the Texas Judicial Council to implement a monthly tracking
system to ensure accountability for counties and courts in the
statewide system. Requires the district and county clerks to
report such information as may be required. Sets forth
requirements for the clerks to obtain, report, and store
information.
ARTICLE 3. INTERAGENCY COOPERATION AND STUDIES
SECTION 3.01. INTEGRATED SYSTEM FOR MONITORING IMPLEMENTATION OF
THE STATEWIDE CHILD SUPPORT ENFORCEMENT. (a) Sets forth
requirements for the attorney general to establish a work group to
monitor the progress toward a statewide system and to determine the
effect of that effort as it relates to certain goals.
(b) Requires the group to report its findings and
recommendations to the attorney general, and to notify the
governor, the comptroller, and the legislature of the filing
by September 1, 1996 and annually thereafter.
SECTION 3.02. AGREEMENT FOR CASH INCENTIVES FOR MEDICAL
ASSISTANCE. (a) Requires the attorney general and the Texas
Department of Health (health department) to negotiate an agreement
regarding the payment by the health department of a cash incentive
to the Title IV-D agency for each child eligible for Medicaid that
the office causes to be enrolled in a private health insurance plan
and for payment of a portion of the state share of costs recovered
or saved as a result of the Title IV-D agency's efforts.
(b) Requires the attorney general and the health department to
report to the legislature the results of negotiations by
October 1, 1996.
SECTION 3.03. STUDY ON MEDICAL SUPPORT. (a) Requires the attorney
general, the state medicaid administrator, and the Insurance
Commission to initiate a study regarding certain health insurance
issues.
(b) Requires the attorney general, the state medicaid
administrator, and the Insurance Commission, by October 1,
1996, to prepare a report summarizing the results of the study
and sets forth a list of parties to whom the study is required
to be reported.
SECTION 3.04. USE OF PRIVATE ENTITIES TO ASSIST IN CHILD SUPPORT
ENFORCEMENT. (a) Provides that the office is encouraged to expand
the use of private contractors to perform Title IV-D program
functions.
(b) Requires the office, by July 1, 1996, to perform a cost
analysis for a standardized comparison of activities performed
by private firms and the office. Authorizes the Title IV-D
agency to consider a contractor if the office costs are higher
than private costs. Provides that this section does not limit
the authority of the Title IV-D agency to contract for
services.
(c) Requires the attorney general to coordinate with the
Council on Competitive Government and authorizes the attorney
general to employ private consultants to develop the
methodology and evaluate the activities being considered for
privatization.
(d) Requires the attorney general to report the results to the
governor, comptroller, and the legislature by December 1,
1996.
ARTICLE 4. HEALTH INSURANCE
SECTION 4.01. Amends Chapter 3, Insurance Code, by adding
Subchapter J, as follows:
SUBCHAPTER J. MEDICAL CHILD SUPPORT
Art. 3.96-1. DEFINITIONS. Defines "child," "child support
agency," "custodial parent," "health insurer," "insurer," and
"medical assistance."
Art. 3.96-2. DENIAL OF ENROLLMENT PROHIBITED. Prohibits an
insurer from denying enrollment of a child under the health
insurance coverage (coverage) of the child's parent on certain
grounds.
Art. 3.96-3. ENROLLMENT REQUIRE. (a) Requires the insurer to
permit the parent to enroll the child without regard to any
enrollment period restriction if a parent eligible for
dependent health coverage (eligible parent) is required by
order to provide coverage for a child.
(b) Requires the insurer to enroll the child on application
of a custodial parent of the child, an agency, or the child,
if an eligible parent is required to provide coverage and
fails to apply to obtain coverage.
Art. 3.96-4. CANCELLATION OR NONRENEWAL PROHIBITED. (a)
Prohibits an insurer from cancelling or refusing to renew
coverage of a child entitled to enrollment unless certain
evidence is filed with the insurer.
(b) Defines "a child entitled to enrollment or enrolled
under this subchapter."
Art. 3.96-4.1. NOTICE OF AVAILABILITY OF CONTINUATION OR
CONVERSION COVERAGE. Requires the insurer to notify the
custodial parent and the agency of the costs and requirements
for extending or converting such coverage and to enroll the
child on application of a parent, an agency, or the child, if
dependent coverage being terminated contains provisions for
the continuation or conversion of coverage for the child.
Art. 3.96-5. EFFECT OF ASSIGNMENT OF MEDICAL SUPPORT RIGHTS
TO STATE AGENCY; INFORMATION. (a) Prohibits an insurer from
imposing requirements on a state agency that has been assigned
the rights of an individual eligible for medical assistance
and health benefits that are different from the requirements
applicable to an agent of any other covered individual.
(b) Requires an insurer to provide to a state agency
providing medical assistance or an agency enforcing medical
support information to facilitate reimbursement of medical
services provided on behalf of a child.
Art. 3.96-6. RIGHTS OF CUSTODIAL PARENT AND ADULT CHILD. (a)
Requires an insurer who provides coverage for a child through
a parent to provide information to each custodial parent or
adult child for the child to obtain benefits through that
coverage.
(b) Requires the insurer to permit an entity that has
medical support rights to submit claims for covered services
without the approval of the insured parent.
(c) Requires the insurer to make payments on covered claims
submitted directly to the entity making the claim.
Art. 3.96-7. SERVICE AREA RESTRICTIONS PROHIBITED. Prohibits
an insurer from enforcing otherwise applicable provisions that
would deny, limit, or reduce payment for claims for a covered
child who lives outside the insurer's coverage territory but
inside the U.S.
Art. 3.96-8. PENALTIES; REMEDIES. Subjects an insurer and
provides injured parties to the same penalties and remedies in
Section 16, Article 21.21, of this code.
Art. 3.96-9. RULES. Requires the Commissioner of Insurance
to adopt rules to implement this subchapter and the
requirements of 42 U.S.C. Section 1396a(a)(60).
SECTION 4.02. Amends Section 101.012, Family Code, to redefine
"employer."
SECTION 4.03. Amends Section 154.186, Family Code, to delete from
the list of entities authorized to send a copy of the order
requiring an employee to provide coverage for the child, the local
domestic relations office or Title IV-D agency. Deletes provisions
specifying the method for sending the copy. Makes conforming
changes.
SECTION 4.04. Amends Section 154.187, Family Code, by amending
Subsection (a), to provide that an order to an employer directing
that coverage be provided to a child of an employee is binding on
the employer on receipt. Deletes a provision authorizing the
employer to enroll the child at the next available enrollment
period if the employer is not able to immediately enroll the child.
Makes conforming changes.
SECTION 4.05. Amends Section 154.187, Family Code, by amending
Subsection (c) and adding Subsection (g), to require an employer
who fails to enroll a child, fails to withhold or remit premiums or
cash medical support, or discriminates in hiring or employment on
the basis of a medical support order to be subject to penalties and
fines. Makes conforming changes.
SECTION 4.06. Amends Section 154.192, Family Code, as follows:
Sec. 154.192. New heading: CANCELLATION OR ELIMINATION OF
INSURANCE COVERAGE FOR CHILD. Prohibits the employer from
cancelling or eliminating coverage of an enrolled child until
the employer is provided certain evidence unless the employee
ceases to be eligible for dependent coverage or the employer
has eliminated dependent health coverage for all employees.
SECTION 4.07. Amends Section 154.184, Family Code, to require the
employer and the insurer to complete all necessary forms and
procedures during the first 31 days after the employer's receipt of
the order or to report the reasons coverage cannot be made
permanent. Makes conforming and nonsubstantive changes.
SECTION 4.08. Amends Section 158.206(a), Family Code, to make
conforming changes.
ARTICLE 5. EFFECTIVE DATE AND TRANSITION PROVISIONS; EMERGENCY
SECTION 5.01. (a) Effective date: September 1, 1995.
(b) Makes application of Section 4.01 prospective beginning
January 1, 1996.
(c) Authorizes the office to exercise the contracting
authority granted in Section 1.01 to provide for a phased
implementation of the statewide system and requires the office
to implement the system to the extent that locally generated
funds and federal reimbursement are sufficient to pay for
implementation.
(d) Authorizes the Office of Court Administration to phase in
the monthly report required by Section 2.06 to correspond with
the implementation of the statewide system.
(e) Requires any affected agency that determines a federal
waiver or authorization is necessary for implementation to
apply for waivers and requires the provision to take effect
when waivers have been granted. Requires a copy of each
waiver request to be provided to the governor, the lieutenant
governor, and the speaker of the house.
(f) Requires all funds received from the federal government as
reimbursement for expenses related to the integrated system to
be in excess of any amount appropriated to the attorney
general by the 74th Legislature and provides that these funds
are appropriated to the attorney general for the fiscal years
ending August 31, 1996 and August 31, 1997.
SECTION 5.02. Requires the attorney general to report to the
legislature an estimate of the savings from the expansion of the
privatization of enforcement services by December 1, 1996.
SECTION 5.03. (a) Requires the attorney general's office, in
conjunction with the department, to develop and implement a plan to
assign a representative to work with department eligibility workers
in department offices or facilities that are located in the same
geographic region as offices or facilities of the attorney general.
Sets forth requirements for the plan.
(b) Requires the attorney general to complete the plan and
send a copy of the plan to the governor, the lieutenant
governor, and the speaker of the house of representatives by
October 1, 1995.
(c) Requires the attorney general and the department to
prepare the initial memorandum of understanding by December 1,
1995.
SECTION 5.04. Makes application of this Act prospective.
SECTION 5.05 (a) Provides that Section 3.01 of this Act expires
on September 2, 1996.
(b) Provides that Sections 3.02 and 3.03 of this Act expire
January 1, 1997.
SECTION 5.06. Emergency clause.