By Goodman, Van de Putte                              H.B. No. 2664
          Substitute the following for H.B. No. 2664:
          By Van de Putte                                   C.S.H.B. No. 2664
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the enforcement of certain child support and medical
    1-3  support obligations.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5           ARTICLE 1.  POWERS AND DUTIES OF ATTORNEY GENERAL
    1-6        SECTION 1.01.  Chapter 231, Family Code, is amended by adding
    1-7  Section 231.0011 to read as follows:
    1-8        Sec. 231.0011.  DEVELOPMENT OF STATE WIDE INTEGRATED SYSTEM
    1-9  FOR CHILD SUPPORT AND MEDICAL SUPPORT ENFORCEMENT.  (a)  The
   1-10  attorney general, as the Title IV-D agency for the state of Texas
   1-11  shall have final approval authority on any contract or proposal for
   1-12  delivery of IV-D services under this section, and in coordination
   1-13  with the Texas Judicial Council, the Office of Court
   1-14  Administration, the federal Office of Child Support Enforcement,
   1-15  state, county and local officials, shall develop and implement a
   1-16  statewide system for child support and medical support enforcement,
   1-17  employing federal, state, local and private resources to:
   1-18              (1)  unify child support registry functions;
   1-19              (2)  record and track all child support orders entered
   1-20  in the state;
   1-21              (3)  establish an automated enforcement process which
   1-22  will use delinquency monitoring, billing and other enforcement
   1-23  techniques to ensure the payment of current support;
   1-24              (4)  incorporate existing enforcement resources into
    2-1  the system to obtain maximum benefit from state and federal
    2-2  funding; and
    2-3              (5)  ensure accountability for all participants in the
    2-4  process, including state, county and local officials, private
    2-5  contractors, and the judiciary.
    2-6        (b)  The attorney general shall convene a workgroup to
    2-7  determine a process and develop a time-table for implementation of
    2-8  a unified registry system, and to identify any barriers to
    2-9  completion of the project.  The workgroup shall include
   2-10  representatives of the judiciary, district clerks and domestic
   2-11  relations Offices, as well as other interested agencies,
   2-12  organizations and individuals.  The workgroup shall report the
   2-13  results of its deliberations to the governor, lieutenant governor,
   2-14  speaker of the house of representatives and the attorney general on
   2-15  or before January 15, 1996.
   2-16        (c)  The attorney general shall, in cooperation with the
   2-17  workgroup established by this section, develop technical standards
   2-18  for participation in the unified child support system, including
   2-19  standard required data elements for effective monitoring of child
   2-20  support and medical support orders, and for the imposition of
   2-21  interest on delinquent child support.
   2-22        (d)  Counties and other providers of child support services
   2-23  shall be required, as a condition of participation in the unified
   2-24  system, to enter into a contract with the attorney general and
   2-25  comply with all federal requirements for the Title IV-D program,
   2-26  and to maintain at least the current level of funding for
   2-27  activities which are proposed to be included in the integrated
    3-1  child support system.
    3-2        (e)  The attorney general shall identify federal
    3-3  requirements, apply for necessary federal waivers, and provide
    3-4  technical system requirements and other information concerning
    3-5  participation in the system to counties and other providers of
    3-6  child support services, not later than January 15, 1996.  Counties
    3-7  shall notify the attorney general of existing resources and options
    3-8  for participation not later than May 1, 1996.
    3-9        (f)  Not later than June 1, 1996, the attorney general shall
   3-10  produce a procurement and implementation plan for hardware and
   3-11  software necessary to implement in phases a unified state wide
   3-12  registry and enforcement system.
   3-13        (g)  Effective January 15, 1996, the attorney general may
   3-14  contract with any county meeting technical system requirements
   3-15  necessary to comply with federal law for provision of Title IV-D
   3-16  services in that county.  All new cases in which support orders are
   3-17  entered in such county after the effective date of a monitoring
   3-18  contract shall be Title IV-D cases.  Any other case in the county,
   3-19  subject to federal requirements and the agreement of the county and
   3-20  the attorney general, may be included as a Title IV-D case.  Any
   3-21  obligee under a support order may refuse Title IV-D enforcement
   3-22  services unless required to accept such services pursuant to other
   3-23  law.
   3-24        (h)  Counties participating in the unified enforcement system
   3-25  shall monitor all child support registry cases and upon delinquency
   3-26  may, subject to the approval of the Title IV-D agency, provide
   3-27  enforcement services through:
    4-1              (1)  direct provision of services by county personnel;
    4-2              (2)  subcontracting all or portions of the services to
    4-3  private entities or attorneys; or
    4-4              (3)  such other methods as may be approved by the Title
    4-5  IV-D agency.
    4-6        (i)  The attorney general shall undertake a least-cost review
    4-7  of its child support operations and shall use the information
    4-8  developed in such review to determine what, if any, contribution of
    4-9  program funds generated through other Title IV-D activities should
   4-10  be made to the participating counties.  The attorney general, in
   4-11  cooperation with the counties and the federal Office of Child
   4-12  Support Enforcement shall develop a cost allocation methodology to
   4-13  assist the counties in identifying county contributions which may
   4-14  qualify for federal financial participation.
   4-15        (j)  The attorney general may phase in the integrated child
   4-16  support registry and enforcement system, and the requirement to
   4-17  implement the system shall be contingent upon the receipt of
   4-18  locally generated funds and federal reimbursement; "locally
   4-19  generated funds" include, but are not limited to, funds contributed
   4-20  by counties and cities.
   4-21        (k)  The attorney general shall adopt rules to implement this
   4-22  section.
   4-23        SECTION 1.02.  Chapter 231, Family Code, is amended by adding
   4-24  Section 231.113 to read as follows:
   4-25        Section 231.113.  ENFORCEMENT OF SUPPORT OBLIGATIONS IN
   4-26  PUBLIC ASSISTANCE CASES.  To the extent possible, the Title IV-D
   4-27  agency shall enforce a child support obligation in a case involving
    5-1  a child who receives financial assistance under Chapter 31, Human
    5-2  Resources Code, not later than the first anniversary of the date
    5-3  the agency receives from the Texas Department of Human Services the
    5-4  information the department is required to provide to assist in the
    5-5  enforcement of that obligation.
    5-6        SECTION 1.03.  Sections 231.109(b) and (d), Family Code, are
    5-7  amended to read as follows:
    5-8        (b)  The Title IV-D agency may contract with private
    5-9  attorneys, other private entities, or political subdivisions of the
   5-10  state to provide services in Title IV-D cases <represent this state
   5-11  or another state in an action brought under the authority of
   5-12  federal law and this chapter>.
   5-13        (d)  An attorney employed to provide Title IV-D services <by
   5-14  the Title IV-D agency or as otherwise provided by this chapter>
   5-15  represents the interest of the state and not the interest of any
   5-16  other party.  The provision of services by an attorney under this
   5-17  chapter does not create an attorney-client relationship between the
   5-18  attorney and any other party.  The agency shall, at the time an
   5-19  application for child support services is made, inform the
   5-20  applicant that neither the Title IV-D agency nor any attorney who
   5-21  provides services under this chapter is the applicant's attorney
   5-22  and that the attorney providing services under this chapter does
   5-23  not provide legal representation to the applicant.
   5-24        SECTION 1.04.  Section 231.202, Family Code, is amended to
   5-25  read as follows:
   5-26        Sec. 231.202.  AUTHORIZED COSTS AND FEES IN TITLE IV-D CASES.
   5-27  In a Title IV-D case filed under this title, the Title IV-D agency
    6-1  shall pay:
    6-2              (1)  filing fees and fees for issuance and service of
    6-3  process as provided by Chapter 110 of this code and by Sections
    6-4  51.317, 51.318(b)(2), and 51.319(4), Government Code;
    6-5              (2)  fees for transfer as provided by Chapter 110;
    6-6              (3)  fees for the issuance and delivery of orders and
    6-7  writs of income withholding in the amounts provided by Chapter 110;
    6-8  and
    6-9              (4)  a fee of $45 for each item of process to each
   6-10  individual on whom service is required, including service by
   6-11  certified or registered mail, to be paid to a sheriff, constable,
   6-12  or clerk whenever service of process is required<; and>
   6-13              <(5)  mileage costs incurred by a sheriff or constable
   6-14  when traveling out of the county to execute an outstanding warrant
   6-15  or capias, to be reimbursed at a rate not to exceed the rate
   6-16  provided for mileage incurred by state employees in the General
   6-17  Appropriations Act>.
   6-18        SECTION 105.  Section 231.304, Family Code, is amended by
   6-19  amending Subsections (b) and (h), and adding Subsections (j), (k),
   6-20  (l), and (m) to read as follows:
   6-21        (b)  The Title IV-D agency, the Department of Human Services,
   6-22  the Workers' Compensation Commission and the Texas Employment
   6-23  Commission shall create and develop a voluntary ENHR program to
   6-24  provide a means for employers to assist in the state's efforts to
   6-25  prevent fraud in the welfare, workers' compensation and
   6-26  unemployment insurance programs, locate absent parents who owe
   6-27  child support and collect support from those parents, by reporting
    7-1  information concerning newly hired and rehired employees directly
    7-2  to a centralized state database <the child support enforcement
    7-3  program>.  In order to encourage use of the ENHR program, employer
    7-4  reporting requirements shall be simplified and standardized.
    7-5        (h)  Subject to approval of the agencies involved and any
    7-6  requirements of federal law, the centralized database shall make
    7-7  the information on <For> each employee reported under the ENHR
    7-8  program available for:
    7-9              (1)  purposes directly connected with the
   7-10  administration of a plan or program for unemployment benefits,
   7-11  workers' compensation benefits, child support, or public
   7-12  assistance;
   7-13              (2)  an investigation or a civil or criminal
   7-14  prosecution relating to the administration of such plan or program;
   7-15  or
   7-16              (3)  the administration of any other Federal or
   7-17  Federally assisted program which provides assistance, in cash or in
   7-18  kind, or services, directly to individuals on the basis of need
   7-19  <the Title IV-D agency shall retain the information only if the
   7-20  agency is responsible for establishing, enforcing, or collecting a
   7-21  support obligation or debt of the employee or reporting to a court,
   7-22  domestic relations office, or a friend of the court the location of
   7-23  a parent who is denying possession of or access to a person with a
   7-24  valid possession order.  If the agency does not have any of those
   7-25  responsibilities, the agency shall not create a record regarding
   7-26  the employee and their information contained in the notice shall be
   7-27  promptly destroyed.>
    8-1        (j)  An employer participating in the ENHR program is
    8-2  strongly encouraged to report information about health insurance
    8-3  coverage available through the employer in which a dependent child
    8-4  may be enrolled under Section 14.061, Family Code.
    8-5        (k)  To expand the ENHR program, the Title IV-D agency shall
    8-6  work closely with the Texas Employment Commission, the Texas
    8-7  Workers' Compensation Commission, the comptroller, the Texas
    8-8  Department of Commerce, the secretary of state, and employer
    8-9  groups.  Efforts to expand the program shall include:
   8-10              (1)  regularly sending to employers solicitations for
   8-11  participation in the program and promotional information about the
   8-12  program that includes information on:
   8-13                    (A)  the program's impact on child support and
   8-14  medical support enforcement;
   8-15                    (B)  savings in public assistance payments
   8-16  attributable to the program;
   8-17                    (C)  benefits to employers and taxpayers of the
   8-18  fraud prevention aspects of the program;
   8-19                    (D)  participation requirements; and
   8-20                    (E)  awards available for business participation;
   8-21  and
   8-22              (2)  developing a public awareness program that:
   8-23                    (A)  stresses the importance of securing
   8-24  financial support for all children; and
   8-25                    (B)  informs the public about the ENHR program.
   8-26        (l)  The affected agencies may pool resources, develop a cost
   8-27  allocation plan, determine the most cost-effective means of
    9-1  establishing and funding the required database, and issue rules,
    9-2  solicit bids, or enter into contracts to carry out the purposes of
    9-3  this section.
    9-4        (m)  The affected agencies shall implement the plan to create
    9-5  the ENHR database, if cost-effective, using existing funding and
    9-6  considering savings and revenue gains that may result from the use
    9-7  of such system.
    9-8        SECTION 1.06.  Chapter 231, Family Code, is amended by adding
    9-9  Section 231.305 to read as follows:
   9-10        Sec. 231.305.  MEMORANDUM OF UNDERSTANDING ON CHILD SUPPORT
   9-11  FOR CHILDREN RECEIVING PUBLIC ASSISTANCE.  (a)  The Title IV-D
   9-12  agency and the Texas Department of Human Services by rule shall
   9-13  adopt a memorandum of understanding governing the establishment and
   9-14  enforcement of court-ordered child support in cases involving
   9-15  children who receive financial assistance under Chapter 31, Human
   9-16  Resources Code.  The memorandum shall require the agency and the
   9-17  department to:
   9-18              (1)  develop procedures to ensure that the information
   9-19  the department is required to collect to establish and enforce
   9-20  child support:
   9-21                    (A)  is collected from the person applying to
   9-22  receive the financial assistance at the time the application is
   9-23  filed;
   9-24                    (B)  is accurate and complete when the department
   9-25  forwards the information to the agency; and
   9-26                    (C)  is not information previously reported to
   9-27  the agency;
   10-1              (2)  develop procedures to ensure that the agency does
   10-2  not duplicate the efforts of the department in gathering necessary
   10-3  information;
   10-4              (3)  clarify each agency's responsibilities in the
   10-5  establishment and enforcement of child support; and
   10-6              (4)  develop guidelines for use by eligibility workers
   10-7  and child support enforcement officers in obtaining from an
   10-8  applicant the information required to establish and enforce child
   10-9  support for that child.
  10-10        (b)  The Title IV-D agency and the Texas Department of Human
  10-11  Services semiannually shall review and renew or modify the
  10-12  memorandum as necessary.
  10-13        SECTION 1.07.  Section 231.209, Family Code, is amended to
  10-14  read as follows:
  10-15        Sec. 231.209.  PAYMENT FOR SERVICES NOT AFFECTED BY THIS
  10-16  SUBCHAPTER.  Without regard to this subchapter and specifically
  10-17  Section 231.205, the Title IV-D agency may pay the costs for:
  10-18              (1)  the services of an official court reporter for the
  10-19  preparation of statements of facts; <and>
  10-20              (2)  the costs for the publication of citation served
  10-21  by publication; and
  10-22              (3)  mileage or other reasonable travel costs incurred
  10-23  by a sheriff or constable when traveling out of the county to
  10-24  execute an outstanding warrant or capias, to be reimbursed at a
  10-25  rate not to exceed the rate provided for mileage or other costs
  10-26  incurred by state employees in the General Appropriations Act.
  10-27               ARTICLE 2.  ENFORCEMENT OF CHILD SUPPORT
   11-1                    AND MEDICAL SUPPORT OBLIGATIONS
   11-2        SECTION 2.01.  Section 102.007, Family Code, is amended to
   11-3  read as follows:
   11-4        Sec. 102.007.  STANDING OF TITLE IV-D AGENCY.  In providing
   11-5  services authorized by Chapter 231, the Title IV-D agency or a
   11-6  political subdivision contracting with the attorney general to
   11-7  provide Title IV-D services under this title may file a child
   11-8  support action authorized under this title, including a suit for
   11-9  modification or a motion for enforcement.
  11-10        SECTION 2.02.  Subchapter B, Chapter 231, Family Code, is
  11-11  amended by adding Section 231.306 to read as follows:
  11-12        Sec. 231.306.  MAXIMIZING MEDICAL SUPPORT ESTABLISHMENT AND
  11-13  COLLECTION BY THE TITLE IV-D AGENCY.  (a)  On the installation of
  11-14  an automated child support enforcement system, the Title IV-D
  11-15  agency is strongly encouraged to:
  11-16              (1)  maximize the collection of medical support; and
  11-17              (2)  establish cash medical support orders for children
  11-18  eligible for medical assistance under the state Medicaid program
  11-19  for whom private insurance coverage is not available.
  11-20        (b)  In this section, "medical support" has the meaning
  11-21  assigned by Section 101.020.
  11-22        SECTION 2.03.  Section 101.005, Family Code, is amended to
  11-23  read as follows:
  11-24        Sec. 101.005.  CHILD SUPPORT REVIEW OFFICER.  "Child support
  11-25  review officer" means an individual designated and trained by a
  11-26  child support agency to conduct reviews under this title <who has
  11-27  received family law mediation training>.
   12-1        SECTION 2.04.  Subchapter E, Chapter 231, Family Code, is
   12-2  amended in sections, subsections, and parts of sections relating to
   12-3  the child support review process to establish or enforce support
   12-4  obligations to read as follows:
   12-5        Sec. 231.401.  PURPOSE.  The purpose of the child support
   12-6  review process authorized by this subchapter is to provide child
   12-7  support agencies an opportunity to resolve routine child support
   12-8  actions through <negotiation,> agreement of the parties<,> or
   12-9  uncontested orders.
  12-10        Sec. 231.402.  AGREEMENTS ENCOURAGED.  To the extent
  12-11  permitted by this subchapter, child support agencies shall make the
  12-12  child support review process understandable to all parties and
  12-13  shall encourage agreements <through mediation>.
  12-14        Sec. 231.405.  INITIATING CHILD SUPPORT REVIEW.  <(a)  A
  12-15  child support agency may review and assess the financial resources
  12-16  of a child's parent or of a person presumed or alleged to be the
  12-17  child's father from whom child support is requested to determine
  12-18  the resources that are available for the support of the child and
  12-19  to determine what action is appropriate.>
  12-20        <(b)>  An administrative action under this subchapter may be
  12-21  initiated by issuing a notice of child support review to each party
  12-22  entitled to notice <the parents and to the presumed or alleged
  12-23  father of a child>.
  12-24        Sec. 231.406.  CONTENTS OF NOTICE OF CHILD SUPPORT REVIEW.
  12-25  (a)  The notice of child support review must:
  12-26              (1)  describe the procedure for a child support review;
  12-27              (2)  inform the recipient that the recipient <is not
   13-1  required to participate in the child support review and> may be
   13-2  represented by legal counsel during the review process or at a
   13-3  court hearing;
   13-4              (3)  inform the recipient that the recipient may refuse
   13-5  to participate or cease participation in the child support review
   13-6  process, but that the refusal by the recipient to participate will
   13-7  not prevent the completion of the process or the filing of a child
   13-8  support review order <during any stage of the review but that the
   13-9  review will continue to completion and that afterward the recipient
  13-10  may request a court hearing>;
  13-11              (4)  include an affidavit of financial resources; and
  13-12              (5)  include a request that the recipient designate, on
  13-13  a form provided by the child support agency, an address for mailing
  13-14  any additional notice to the recipient.
  13-15        Sec. 231.407.  NOTICE BY MAIL.  (a)  A notice required in an
  13-16  administrative action under this subchapter must be delivered or
  13-17  served by first class mail or certified mail on each party entitled
  13-18  to citation or notice as provided by Chapter 102.
  13-19        (b)  <If notice is served by mail, three days must be added
  13-20  to the time in which the person is required to respond.>
  13-21        <(c)>  This section does not apply to notice required on
  13-22  filing of a child support review order or to later judicial
  13-23  actions.
  13-24        Sec. 231.408.  ADMINISTRATIVE SUBPOENA IN CHILD SUPPORT
  13-25  REVIEW.  (a)  In a child support review under this subchapter, a
  13-26  child support agency may issue an administrative subpoena to <a
  13-27  parent, a person presumed or alleged to be the father of a child
   14-1  for whom support is requested, or> any individual or organization
   14-2  believed to have information on the financial resources of the
   14-3  parent or presumed or alleged father.
   14-4        (b)  A court may compel compliance with an administrative
   14-5  subpoena and award attorney's fees and costs to a child support
   14-6  agency enforcing an administrative subpoena on proof that an
   14-7  individual or organization failed to comply with the subpoena
   14-8  without good cause.
   14-9        Sec. 231.409.  SCHEDULING AND CONDUCTING NEGOTIATION
  14-10  CONFERENCE.  (a)  The child support agency may schedule a
  14-11  negotiation conference without a request from a party.
  14-12        (b)  The child support agency shall schedule a negotiation
  14-13  conference on the timely request of a party <person who completes
  14-14  and returns an affidavit of financial resources>.
  14-15        (c)  A negotiation conference, or any part of a negotiation
  14-16  conference, may be conducted by telephone conference call or by
  14-17  video conference as well as in person.  The negotiation conference
  14-18  may be adjourned for a reasonable time to permit mediation of
  14-19  issues that cannot be resolved by the parties and the child support
  14-20  agency.
  14-21        Sec. 231.410.  TIME FOR NEGOTIATION CONFERENCE; NOTICE
  14-22  REQUIRED.  <(a)  A child support review or negotiation conference
  14-23  under this subchapter shall be conducted not later than the 45th
  14-24  day after the date all notices of child support review have been
  14-25  sent to the parties to the action.>
  14-26        <(b)>  All parties entitled to notice of the negotiation
  14-27  conference shall be notified of the date, time, and place of the
   15-1  negotiation conference not later than the 10th day before the date
   15-2  of the negotiation conference.
   15-3        Sec. 231.411.  RESCHEDULING NEGOTIATION CONFERENCE; NOTICE
   15-4  REQUIRED.  A negotiation conference may be rescheduled or adjourned
   15-5  on the request of any party at the discretion of the child support
   15-6  review officer.  All parties must be given notice of the
   15-7  rescheduling not later than the third day before the date of the
   15-8  rescheduled negotiation conference.
   15-9        Sec. 231.412.  INFORMATION REQUIRED TO BE PROVIDED AT
  15-10  NEGOTIATION CONFERENCE.  At the beginning of the negotiation
  15-11  conference, the child support review officer shall review with the
  15-12  <inform all> parties participating in the conference information
  15-13  provided in the notice of child support review and inform the
  15-14  parties <in attendance> that:
  15-15              (1)  the purpose of the negotiation conference is to
  15-16  provide an opportunity <attempt> to reach an agreement on a
  15-17  <regarding> child support order <payments>;
  15-18              (2)  <a party does not have to participate in the
  15-19  negotiation conference and may request a court hearing;>
  15-20              <(3)  a party may be represented by an attorney chosen
  15-21  by the party;>
  15-22              <(4)  the parties may stop participating in the
  15-23  negotiation conference at any time but that the child support
  15-24  review will continue until completed, and, if a child support
  15-25  review order is issued, a party may request a court hearing;>
  15-26              <(5)>  if the parties reach an agreement, the review
  15-27  officer will prepare an agreed review order <for the parties'
   16-1  signatures>;
   16-2              (3) <(6)>  a party does not have to sign a review order
   16-3  prepared by the child support review officer; and
   16-4              (4) <(7)  even though> a party <signs an agreed review
   16-5  order, the party> may request a court hearing at any time before
   16-6  the 20th day after the date a petition for confirmation of the
   16-7  order is filed <child support review order is confirmed by a
   16-8  court>.
   16-9        Sec. 231.414.  RECORD NOT REQUIRED.  (a)  For the purposes of
  16-10  this subchapter, documentary evidence relied on by the child
  16-11  support review officer, including an <written> affidavit of a
  16-12  party, together with <the written findings, and> the child support
  16-13  review order is <from a negotiation conference are> a sufficient
  16-14  record of the proceedings.
  16-15        Sec. 231.415  ISSUANCE OF CHILD SUPPORT REVIEW ORDER OR
  16-16  FINDING THAT NO ORDER SHOULD BE ISSUED; EFFECT.  (a)  If the
  16-17  negotiation conference does not result in agreement by all parties
  16-18  to the <an agreed> child support review order, the review officer
  16-19  shall promptly issue and sign a final decision in the form of a
  16-20  child support review order<,> or a determination that a child
  16-21  support review order should not be issued, not later than the fifth
  16-22  day after the date of the negotiation conference.
  16-23        (b)  If <On the day that a child support review order is
  16-24  issued or> a determination is made that a child support order will
  16-25  not be issued, each party to a child support review proceeding
  16-26  shall be furnished immediately by hand delivery or by mail <a copy
  16-27  of the order or> notice of the determination.
   17-1        Sec. 231.416.  VACATING CHILD SUPPORT REVIEW ORDER.  (a)  The
   17-2  review officer may vacate a child support review order on the
   17-3  officer's own motion at any time before the order is filed with the
   17-4  court.
   17-5        (b)  A new negotiation conference, with notice to all
   17-6  parties, may <shall> be scheduled or the officer may make a
   17-7  determination that a child support review order should not be
   17-8  issued and give notice of that determination as provided by this
   17-9  subchapter <to take place not later than the 10th day after the
  17-10  date the child support review order was vacated>.
  17-11        Sec. 231.417.  CONTENTS OF CHILD SUPPORT REVIEW ORDER.  (a)
  17-12  An agreed child support review order must contain all provisions
  17-13  that are appropriate for an order under this title.
  17-14        (b)  A child support review order that is not agreed to must
  17-15  include child support and medical support provisions, including a
  17-16  determination of arrearages or retroactive support.
  17-17        (c)  A child support review order providing for the
  17-18  enforcement of an order may not contain a provision that imposes
  17-19  incarceration or a fine or contains a finding of contempt.
  17-20        (d)  A child support review order that establishes or
  17-21  modifies an amount of previously ordered support must include the
  17-22  findings required by Section 154.130.
  17-23        (e)  A child support review order that is not agreed to by
  17-24  all the parties may specify and reserve for the court at the
  17-25  confirmation hearing unresolved issues relating to conservatorship
  17-26  or possession of a child.
  17-27        Sec. 231.418.  ADDITIONAL CONTENTS OF AGREED CHILD SUPPORT
   18-1  REVIEW ORDER.  If a negotiation conference results in an agreement
   18-2  <by all parties>, the <a> child support review order must be signed
   18-3  by each party who agrees to the order, must contain the provisions
   18-4  required by Section 231.417, <all parties to the action> and, as to
   18-5  each party in agreement with the order, must contain:
   18-6              (1)  a waiver by the <each> party of the right to
   18-7  service <and> of process, <the right to> a court hearing and the
   18-8  making of a record on the petition for confirmation;
   18-9              (2)  the mailing address of the <each> party; and
  18-10              (3)  the following statement printed on the order in
  18-11  boldface or in all capital letters;
  18-12              "I KNOW THAT I DO NOT HAVE TO SIGN THIS <AGREED> CHILD
  18-13        SUPPORT REVIEW ORDER.  I KNOW THAT I HAVE A RIGHT TO BE
  18-14        PERSONALLY SERVED WITH THE PETITION FOR CONFIRMATION OF THIS
  18-15        ORDER <HAVE A COURT HEAR EVIDENCE AND MAKE A DECISION IN THIS
  18-16        MATTER>.  I KNOW THAT I HAVE A RIGHT TO CHANGE MY MIND AND
  18-17        WITHDRAW MY AGREEMENT TO THE TERMS OF THIS ORDER AND REQUEST
  18-18        THAT A COURT DECIDE THIS MATTER BY FILING A REQUEST FOR COURT
  18-19        HEARING AT ANY TIME BEFORE THE 20TH DAY AFTER THE DATE THE
  18-20        PETITION FOR CONFIRMATION OF THE ORDER IS FILED WITH THE
  18-21        CLERK OF THE COURT.  I KNOW THAT IF I FAIL TO FILE A REQUEST
  18-22        FOR A COURT HEARING A COURT MAY CONFIRM AND APPROVE THIS
  18-23        ORDER WITHOUT A HEARING, AND THE ORDER WILL BECOME A VALID
  18-24        COURT ORDER.  I KNOW THAT IF I DO NOT OBEY THE TERMS OF THIS
  18-25        ORDER I MAY BE HELD IN CONTEMPT OF COURT."
  18-26        Sec. 231.420.  CONTENTS OF PETITION FOR CONFIRMATION;
  18-27  DOCUMENTARY EVIDENCE TO BE FILED WITH PETITION.  (a)  A petition
   19-1  for confirmation shall must include the final child support review
   19-2  order as an attachment to the petition.
   19-3        (b)  Documentary evidence relied on by the child support
   19-4  agency, including, if applicable, a <verified written report of a
   19-5  paternity testing expert concerning the results of paternity
   19-6  testing conducted in the case or a> statement of paternity or a
   19-7  written report of a parentage testing expert, shall be filed with
   19-8  the clerk as exhibits to the petition, but are not required to be
   19-9  served on the parties.  The petition must identify the exhibits
  19-10  that are filed with the clerk.
  19-11        Sec. 231.421.  DUTIES OF CLERK OF COURT.  (a)  On the filing
  19-12  of a petition for confirmation, the clerk of court shall endorse on
  19-13  the petition the date and time that the petition is filed <and sign
  19-14  the endorsement>.
  19-15        (b)  If the petition is for an original action, the clerk
  19-16  shall endorse the appropriate court and cause number on the
  19-17  petition.
  19-18        (c)  If the petition is to confirm an agreed child support
  19-19  review order under this subchapter, the child support agency
  19-20  <clerk> shall mail to each party that agreed to the order, at the
  19-21  address shown on the order, a copy of the petition with <and
  19-22  written notice of the filing of the petition that states> the
  19-23  court, filing date, and cause number of the case.  The clerk shall
  19-24  note on the docket that the notice was mailed.  The child support
  19-25  agency shall file a certificate of service showing the date of the
  19-26  mailing to each party.
  19-27        (d)  The <If the petition is to confirm an order other than
   20-1  an agreed order, the> clerk shall issue service of citation,
   20-2  including a copy of the petition and the child support review
   20-3  order, to each party entitled to service who has not waived
   20-4  service.
   20-5        (e)  A clerk of a district court is entitled to collect in a
   20-6  child support review case the fees authorized in a Title IV-D case
   20-7  by this chapter <a fee for:>
   20-8              <(1)  the filing of a petition under this section as
   20-9  provided by Section 51.317(b)(1), Government Code;>
  20-10              <(2)  the issuance of notice or process as provided by
  20-11  Section 51.317(b)(4), Government Code; and>
  20-12              <(3)  service of notice or citation as provided by
  20-13  Section 51.319(4), Government Code, or as otherwise provided by
  20-14  law>.
  20-15        Sec. 231.422.  FORM TO REQUEST A COURT HEARING.  (a)  A court
  20-16  shall consider any responsive pleading that is intended as an
  20-17  objection to confirmation of a child support review order,
  20-18  including a general denial, as a request for a court hearing.
  20-19        (b)  The <A> child support agency shall:
  20-20              (1)  <attach a copy of a form to request a court
  20-21  hearing to each party's copy of the petition for confirmation of a
  20-22  child support review order;>
  20-23              <(2)>  make available to each clerk of court copies of
  20-24  the form to request a court hearing; and
  20-25              (2) <(3)>  provide the form to request a court hearing
  20-26  to a party to the child support review proceeding on request.
  20-27        Sec. 231.423.  TIME TO REQUEST A COURT HEARING<; HEARING SUA
   21-1  SPONTE>.  <(a)>  A party may file a request for a court hearing not
   21-2  later than the 20th day after the date the petition for
   21-3  confirmation of a child support review order is served or mailed as
   21-4  provided by this subchapter <an agreed administrative order is
   21-5  filed or not later than the Monday following the 20th day after the
   21-6  date the party received service of citation in a case involving the
   21-7  confirmation of any other type of order>.
   21-8        <(b)  If the court finds that confirmation of a child support
   21-9  review order without a hearing would not be in the best interests
  21-10  of a child who is the subject of the order, the court may schedule
  21-11  a hearing.  The order setting the hearing on the confirmation of
  21-12  the order shall state the court's specific reasons for conducting
  21-13  the hearing.>
  21-14        Sec. 231.424.  CONFIRMATION WITHOUT HEARING.  Not later than
  21-15  the 30th day after the date a petition for confirmation that
  21-16  includes waivers by all parties is filed or after the date of
  21-17  service is made on the last party required to be served for a
  21-18  petition for confirmation that does not include waivers, whichever
  21-19  is later, the court shall confirm the child support review order by
  21-20  signing an order of confirmation unless a party has filed a timely
  21-21  request for hearing or the court has scheduled a hearing.
  21-22        Sec. 231.425.  EFFECT OF REQUEST FOR HEARING; PLEADING.  (a)
  21-23  A request for hearing or an order setting a hearing on confirmation
  21-24  stays confirmation of the order pending the hearing.
  21-25        (b)  At a hearing on confirmation, all issues in the child
  21-26  support review order shall be heard in a trial de novo.
  21-27        (c)  The petition for confirmation and the child support
   22-1  review order constitute a sufficient pleading by the child support
   22-2  agency for relief on any issue addressed in the petition and order.
   22-3        (d)  The request for hearing may limit the scope of the de
   22-4  novo hearing by specifying the issues that are in dispute.
   22-5        Sec. 231.426.  TIME FOR COURT HEARING.  A court shall hold a
   22-6  hearing on the confirmation of a child support review order not
   22-7  later than the 30th day after the date the <court determines that a
   22-8  hearing should be held or the> last party to be served files a
   22-9  timely request for a court hearing.
  22-10        Sec. 231.427.  ORDER AFTER HEARING; EFFECT OF CONFIRMATION
  22-11  ORDER.  (a)  After the hearing on the confirmation of a child
  22-12  support review order, the court shall:
  22-13              (1)  if the court finds that the order should be
  22-14  confirmed, immediately sign a confirmation order and enter the
  22-15  order as an order of the court;
  22-16              (2)  if the court finds that the relief granted in the
  22-17  child support review order is inappropriate, sign an appropriate
  22-18  order at the conclusion of the hearing or as soon after the
  22-19  conclusion of the hearing as is practical and enter the order as an
  22-20  order of the court; or
  22-21              (3)  if the court finds that all relief should be
  22-22  denied, enter an order that denies relief and includes specific
  22-23  findings explaining the reasons that relief is denied.
  22-24        (b)  On the signing of a confirmation order by the judge of
  22-25  the court, the child support review order becomes a final order
  22-26  <judgment> of the court.
  22-27        Sec. 231.428.  SPECIAL CHILD SUPPORT REVIEW PROCEDURES
   23-1  RELATING TO ESTABLISHMENT OF PARENTAGE <PATERNITY>.  (a)  If the
   23-2  parentage <paternity> of a child has not been established <by court
   23-3  order>, the notice of child support review served on the parties
   23-4  must include an allegation that the recipient <alleged father> is a
   23-5  <the> biological parent <father> of the child.  The notice shall
   23-6  inform the parties that the alleged father of the child may sign a
   23-7  statement of paternity and that any party may request that
   23-8  scientifically accepted parentage <paternity> testing be conducted
   23-9  to assist in determining the identities of <whether the alleged
  23-10  father is> the child's parents <father>.
  23-11        (b)  A negotiation conference shall be conducted to resolve
  23-12  any issues of support in an action in which all parties agree as to
  23-13  <that the alleged father is> the child's parentage <biological
  23-14  father>.
  23-15        (c)  If a party denies parentage <that the alleged father is
  23-16  the child's biological father or, in the case of a presumed father,
  23-17  if either party files a verified denial of paternity>, the child
  23-18  support agency may schedule parentage <paternity> testing.  If
  23-19  either party fails or refuses to participate in administrative
  23-20  parentage testing, the child support agency may file a child
  23-21  support review order with a request for court-ordered parentage
  23-22  testing.  The court shall follow the procedures and may impose the
  23-23  sanctions provided by this code to obtain compliance with the
  23-24  parentage testing order.  The court shall confirm the child support
  23-25  review order as a temporary or final order of the court only after
  23-26  an opportunity for parentage testing has been provided.
  23-27        (d)  If parentage <paternity> testing does not exclude the
   24-1  alleged parent and <father from being the child's father and a
   24-2  party continues to deny that the alleged father is the child's
   24-3  biological father, the child support agency may schedule a
   24-4  negotiation conference as provided by this subchapter.  If> the
   24-5  results of a verified written report of a parentage <paternity>
   24-6  testing expert meet the requirements of Chapter 160 for issuing a
   24-7  temporary order, the child support agency may issue a child support
   24-8  review order.
   24-9        (e)  If the results of parentage <paternity> testing exclude
  24-10  an <the> alleged parent <or presumed father> from being the
  24-11  biological parent <father> of the child, the child support agency
  24-12  shall issue a child support review order that declares that the
  24-13  excluded person <alleged or presumed father> is not a parent <the
  24-14  father> of the child.
  24-15        (f)  Any party may file a petition for confirmation of a
  24-16  child support review order issued under this section.
  24-17        SECTION 2.05.  Chapter 231, Family Code, is amended to add
  24-18  new Section 231.431 to read as follows:
  24-19        Sec. 231.431.  STUDY OF CHILD SUPPORT REVIEW PROCESS.  The
  24-20  attorney general as the Title IV-D agency shall conduct a study to
  24-21  determine and compare the cost of child support enforcement through
  24-22  use of the child support review process authorized by this
  24-23  subchapter and the cost of child support enforcement by the
  24-24  attorney general through use of other enforcement mechanisms
  24-25  available under this chapter.  The attorney general shall report
  24-26  the results of this study to the governor and the legislature not
  24-27  later than September 1, 1996, and shall include in the report
   25-1  recommendations regarding statutory amendments for improving
   25-2  judicial and administrative processes for child support
   25-3  enforcement.  This section expires September 2, 1996.
   25-4        SECTION 2.06.  Section 71.035(a), Government Code, is amended
   25-5  to read as follows:
   25-6        (a)  The council shall gather judicial statistics and other
   25-7  pertinent information from the several state judges and other court
   25-8  officials of this state.  In addition, the council shall implement
   25-9  a monthly tracking system to ensure accountability for counties and
  25-10  courts which participate in the state wide integrated system for
  25-11  child support and medical support enforcement established under
  25-12  Section 231.0011, Family Code.  As a duty of office, the district
  25-13  clerks and county clerks serving the affected courts shall report
  25-14  monthly such information as may be required by the council,
  25-15  including, at a minimum, the time required to enforce cases from
  25-16  date of delinquency, from date of filing, and from date of service
  25-17  until date of disposition.  Such information as is necessary to
  25-18  complete the report and not directly within the control of the
  25-19  district or county clerk, such as date of delinquency, shall be
  25-20  provided to the clerk by the child support registry or by the
  25-21  enforcement agency providing Title IV-D enforcement services in the
  25-22  court.  The monthly report shall be transmitted to the Office of
  25-23  Court Administration no later than the 20th day of the month
  25-24  following the month reported, in such form as may be prescribed by
  25-25  the Office of Court Administration, which may include electronic
  25-26  data transfer.  Copies of such reports shall be maintained in the
  25-27  office of the appropriate district or county clerk for a period of
   26-1  at least two (2) years, and shall be available to the public for
   26-2  inspection and reproduction.
   26-3            ARTICLE 3.  INTERAGENCY COOPERATION AND STUDIES
   26-4        SECTION 3.01.  MONITORING IMPLEMENTATION OF THE STATEWIDE
   26-5  INTEGRATED SYSTEM FOR CHILD SUPPORT ENFORCEMENT.  (a)  The attorney
   26-6  general shall establish a work group to monitor the progress toward
   26-7  implementation of the integrated statewide system established by
   26-8  Section 1.01 of this Bill, and determine the effect of that effort
   26-9  as it relates to:
  26-10              (1)  maximizing federal assistance for county-based
  26-11  child support collection efforts;
  26-12              (2)  replacing the existing state child support
  26-13  enforcement application system with an automatic enforcement system
  26-14  that does not require an applicant to file a complaint.
  26-15        (b)  The work group established by this Act shall report its
  26-16  findings and recommendations to the attorney general and shall
  26-17  notify the governor, the comptroller and the legislature of the
  26-18  filing of the report not later than September 1, 1996 and annually
  26-19  thereafter.
  26-20        SECTION 3.02.  AGREEMENT FOR CASH INCENTIVES FOR MEDICAL
  26-21  ASSISTANCE.  (a)  The attorney general as the Title IV-D agency and
  26-22  the Texas Department of Health shall negotiate an agreement
  26-23  regarding the payment by the department of a cash incentive to the
  26-24  agency for each child eligible for medical assistance under the
  26-25  state Medicaid program that the agency causes to be enrolled in a
  26-26  private health insurance plan, and for payment of a portion of the
  26-27  state share of costs recovered or saved as a result of the efforts
   27-1  of the agency.
   27-2        (b)  The attorney general and the Texas Department of Health
   27-3  shall report to the legislature the results of negotiations
   27-4  conducted under this section not later than October 1, 1996.
   27-5        SECTION 3.03.  STUDY ON MEDICAL SUPPORT.  (a)  The attorney
   27-6  general, the state medicaid administrator and the Insurance
   27-7  Commission shall initiate a study regarding establishment of a
   27-8  health insurance purchasing alliance to purchase insurance coverage
   27-9  for children for whom a child support obligation is established or
  27-10  enforced under Part D of Title IV of the federal Social Security
  27-11  Act (42 U.S.C. Section 651 et seq.).
  27-12        (b)  Not later than October 1, 1996, the attorney general,
  27-13  the state medicaid administrator and the Insurance Commission shall
  27-14  prepare and file a report summarizing the results of the study
  27-15  required by this section and shall give notice of filing the report
  27-16  to the:
  27-17              (1)  governor;
  27-18              (2)  lieutenant governor;
  27-19              (3)  speaker of the house of representatives;
  27-20              (4)  attorney general; and
  27-21              (5)  commissioner of health and human services.
  27-22        SECTION 3.04.  USE OF PRIVATE ENTITIES TO ASSIST IN CHILD
  27-23  SUPPORT ENFORCEMENT.  (a)  The Office of the Attorney General is
  27-24  strongly encouraged to expand the cost-effective use of private
  27-25  contractors to perform Title IV-D program functions.
  27-26        (b)  The Office of the Attorney General shall, not later than
  27-27  July 1, 1996, perform a cost analysis such as that used by the
   28-1  Council on Competitive Government, for a standardized comparison of
   28-2  similar activities performed by private firms and the Office of the
   28-3  Attorney General.  If Office of the Attorney General costs for
   28-4  identified activities of the Title IV-D agency are higher than the
   28-5  private contractors' and the contractor could deliver services as
   28-6  effectively as the Title IV-D agency, the agency may consider a
   28-7  contractor to perform the activities.  This section does not limit
   28-8  the authority of the Title IV-D agency to contract for services.
   28-9        (c)  The attorney general shall coordinate with the Council
  28-10  on Competitive Government, and may employ private consultants to
  28-11  develop the methodology and evaluate the activities being
  28-12  considered for privatization.
  28-13        (d)  The attorney general shall report the results of the
  28-14  efforts made under this section, and notify the governor, the
  28-15  comptroller and the legislature of the filing of the report not
  28-16  later than December 1, 1996
  28-17                     ARTICLE 4.  HEALTH INSURANCE
  28-18        SECTION 4.01.  Chapter 3, Insurance Code, is amended by
  28-19  adding Subchapter J to read as follows:
  28-20                 SUBCHAPTER J.  MEDICAL CHILD SUPPORT
  28-21        Art. 3.96-1.  DEFINITIONS.  In this subchapter:
  28-22              (1)  "Child" has the meaning assigned by Section
  28-23  101.003(a) and (b), Family Code.
  28-24              (2)  "Child support agency" has the meaning assigned by
  28-25  Section 101.004, Family Code.
  28-26              (3)  "Custodial parent" means:
  28-27                    (A)  a managing conservator of a child or a
   29-1  possessory conservator of a child who is a parent of the child; or
   29-2                    (B)  a guardian of the person of a child, or
   29-3  another custodian of a child if the guardian or custodian is
   29-4  designated by a court or administrative agency of this or another
   29-5  state.
   29-6              (4)  "Health insurer" means any insurance company,
   29-7  group hospital service corporation, or health maintenance
   29-8  organization that delivers or issues for delivery an individual,
   29-9  group, blanket, or franchise insurance policy or insurance
  29-10  agreement, a group hospital service contract, or an evidence of
  29-11  coverage that provides benefits for medical or surgical expenses
  29-12  incurred as a result of an accident or sickness.
  29-13              (5)  "Insurer" means:
  29-14                    (A)  a health insurer;
  29-15                    (B)  a governmental entity subject to:
  29-16                          (i)  Article 3.51-1, 3.51-2, 3.51-4,
  29-17  3.51-5, or 3.51-5A of this code; or
  29-18                          (ii)  Section 1, Chapter 123, Acts of the
  29-19  60th Legislature, Regular Session, 1967 (Article 3.51-3, Vernon's
  29-20  Texas Insurance Code);
  29-21                    (C)  a multiple employer welfare arrangement, as
  29-22  that term is defined by Article 3.95-1 of this code; or
  29-23                    (D)  a group health plan, as defined by Section
  29-24  607(1), Employee Retirement Income Security Act of 1974 (29 U.S.C.
  29-25  Section 1167).
  29-26              (6)  "Medical assistance" means medical assistance
  29-27  under the state Medicaid program.
   30-1        Art. 3.96-2.  DENIAL OF ENROLLMENT PROHIBITED.  An insurer
   30-2  may not deny enrollment of a child under the health insurance
   30-3  coverage of the child's parent on the ground that the child:
   30-4              (1)  has a preexisting condition;
   30-5              (2)  was born out of wedlock;
   30-6              (3)  is not claimed as a dependent on the parent's
   30-7  federal income tax return;
   30-8              (4)  does not reside with the parent or in the
   30-9  insurer's service area; or
  30-10              (5)  is or has been an applicant for or recipient of
  30-11  medical assistance.
  30-12        Art. 3.96-3.  ENROLLMENT REQUIRED.  (a)  If a parent eligible
  30-13  for dependent health coverage through an insurer is required by a
  30-14  court or administrative order to provide health coverage for a
  30-15  child, the insurer shall permit the parent to enroll the child
  30-16  without regard to any enrollment period restriction.
  30-17        (b)  If a parent eligible for dependent health coverage
  30-18  through an insurer is required by a court or administrative order
  30-19  to provide health coverage for a child and fails to apply to obtain
  30-20  the health insurance coverage for the child, the insurer shall
  30-21  enroll the child on application of a custodial parent of the child,
  30-22  a child support agency having a duty to collect or enforce support
  30-23  for the child, or the child.
  30-24        Art. 3.96-4.  CANCELLATION OR NONRENEWAL PROHIBITED.  (a)  An
  30-25  insurer may not cancel or refuse to renew insurance coverage of a
  30-26  child entitled to enrollment or enrolled under this subchapter
  30-27  unless satisfactory written evidence is filed with the insurer that
   31-1  shows that:
   31-2              (1)  the court order or administrative order that
   31-3  required the coverage is no longer in effect; or
   31-4              (2)  the child is enrolled in comparable health
   31-5  insurance coverage or will be enrolled in comparable coverage that
   31-6  will take effect not later than the effective date of the
   31-7  cancellation or nonrenewal.
   31-8        (b)  As used in this section, "a child entitled to enrollment
   31-9  or enrolled under this subchapter" does not include a child as to
  31-10  whom eligibility has terminated because the parent eligible for
  31-11  dependent health coverage is no longer eligible for such coverage.
  31-12        Art. 3.96-4.1  NOTICE OF AVAILABILITY OF CONTINUATION OR
  31-13  CONVERSION COVERAGE.  If dependent health coverage being terminated
  31-14  pursuant to Art. 3.96-4(b) contains provisions for the continuation
  31-15  or conversion of such coverage for the child, the insurer shall
  31-16  notify the custodial parent and the child support agency of the
  31-17  costs and other requirements for extending or converting such
  31-18  coverage, and shall enroll or continue enrollment of the child on
  31-19  application of a parent of the child, a child support agency or the
  31-20  child.
  31-21        Art. 3.96-5.  EFFECT OF ASSIGNMENT OF MEDICAL SUPPORT RIGHTS
  31-22  TO STATE AGENCY; INFORMATION.  (a)  An insurer may not impose
  31-23  requirements on a state agency that has been assigned the rights of
  31-24  an individual eligible for medical assistance and covered for
  31-25  health benefits from the insurer that are different from the
  31-26  requirements applicable to an agent or assignee of any other
  31-27  covered individual.
   32-1        (b)  An insurer shall provide to a state agency providing
   32-2  medical assistance, or to a child support agency enforcing medical
   32-3  support, information as necessary to facilitate reimbursement of
   32-4  medical services provided to or paid on behalf of a child.
   32-5        Art. 3.96-6.  RIGHTS OF CUSTODIAL PARENT AND ADULT CHILD.
   32-6  (a)  If a child receives health insurance coverage through the
   32-7  insurer of a parent of the child, that insurer must provide
   32-8  information and documents to each custodial parent or an adult
   32-9  child as necessary for the child to obtain benefits through that
  32-10  coverage, including:
  32-11              (1)  the name of the insurer;
  32-12              (2)  the number of the policy;
  32-13              (3)  a copy of the policy and schedule of benefits;
  32-14              (4)  a health insurance membership card;
  32-15              (5)  claim forms; and
  32-16              (6)  any other information or document necessary to
  32-17  submit a claim in accordance with the insurer's policies and
  32-18  procedures.
  32-19        (b)  The insurer shall permit a custodial parent, a health
  32-20  care provider, adult child, or a state agency that has been
  32-21  assigned medical support rights to submit claims for covered
  32-22  services without the approval of the insured parent.
  32-23        (c)  The insurer shall make payments on covered claims
  32-24  submitted in accordance with this article directly to the custodial
  32-25  parent, health care provider, adult child, or state agency making
  32-26  the claim.
  32-27        Art. 3.96-7.  SERVICE AREA RESTRICTIONS PROHIBITED.  An
   33-1  insurer may not enforce otherwise applicable provisions that would
   33-2  deny, limit, or reduce payment for claims for a covered child who
   33-3  lives outside the insurer's coverage territory but inside the
   33-4  United States.
   33-5        Art. 3.96-8.  PENALTIES; REMEDIES.  An insurer that violates
   33-6  this subchapter is subject to the same penalties, and an injured
   33-7  party has the same rights and remedies, as those provided by
   33-8  Section 16, Article 21.21, of this code.
   33-9        Art. 3.96-9.  RULES.  The commissioner shall adopt reasonable
  33-10  rules as necessary to implement this subchapter and the
  33-11  requirements of 42 U.S.C. Section 1396a(a)(60), including rules
  33-12  defining acts that constitute unfair or deceptive practices under
  33-13  Section 13, Article 21.21, of this code.
  33-14        SECTION 4.02.  Section 101.012, Family Code, is amended to
  33-15  read as follows:
  33-16        Sec. 101.012.  EMPLOYER.  "Employer" means a person,
  33-17  corporation, partnership, workers' compensation insurance carrier,
  33-18  governmental entity, and the United States, and includes, for
  33-19  purposes of enrolling dependents in a group health insurance plan,
  33-20  a union, trade association, or other similar organization.
  33-21        SECTION 4.03.  Section 154.186, Family Code, is amended to
  33-22  read as follows:
  33-23        Sec. 154.186.  NOTICE TO EMPLOYER.  The obligee, obligor, or
  33-24  a child support agency <local domestic relations office, or Title
  33-25  IV-D agency> may send a <certified> copy of the order requiring an
  33-26  employee to provide health insurance coverage for a <the> child to
  33-27  the employer <by certified mail, return receipt requested.  The
   34-1  order is binding on the employer on receipt>.
   34-2        SECTION 4.04.  Section 154.187, Family Code, is amended by
   34-3  amending subsection (a) to read as follows:
   34-4        (a)  An order to an employer directing that health insurance
   34-5  coverage be provided to a child of an employee or member is binding
   34-6  on the employer on receipt.  If the employee or member is eligible
   34-7  for dependent health coverage for the child, the <On receipt of an
   34-8  order directing that health insurance coverage be extended to a
   34-9  child of an employee, an> employer shall immediately enroll the
  34-10  child in a health insurance plan <available to the employee.  If
  34-11  the employer is not able to immediately enroll the child, the
  34-12  employer shall enroll the child at the next available enrollment
  34-13  period as a dependent of the employee>.  If dependent coverage is
  34-14  not available to the employee or member through the employer's
  34-15  health insurance plan, or the employer <is responsible for
  34-16  providing notice of this fact but> is not responsible or otherwise
  34-17  liable for providing such coverage, but shall provide notice to the
  34-18  sender in accordance with subsection (c) of this section.
  34-19        SECTION 4.05.  Section 154.187, Family Code, is amended by
  34-20  amending subsection (c), and adding new subsection (g) to read as
  34-21  follows:
  34-22        (c)  An employer who has received an order under this
  34-23  subchapter shall provide to the sender, by first class mail not
  34-24  later than the 30th day after the date the employer receives the
  34-25  order, a statement that the child:
  34-26              (1)  has been enrolled in a health insurance plan; or
  34-27              (2)  <will be enrolled in a health insurance plan at
   35-1  the next available enrollment period and provide the expected date
   35-2  of such enrollment; or>
   35-3              <(3)>  cannot be enrolled in a health insurance plan
   35-4  and provide the reason why coverage cannot be provided.
   35-5        (g)  An employer who fails to enroll a child, fails to
   35-6  withhold or remit premiums or cash medical support, or
   35-7  discriminates in hiring or employment on the basis of a medical
   35-8  support order shall be subject to the penalties and fines in
   35-9  Subchapter C, Chapter 158.
  35-10        SECTION 4.06.  Section 154.192, Family Code, is amended to
  35-11  read as follows:
  35-12        Sec. 154.192.  <HEALTH MAINTENANCE ORGANIZATION.  This
  35-13  subchapter does not require a health maintenance organization to
  35-14  provide coverage to a child who resides outside the geographic
  35-15  service area>.  CANCELLATION OR ELIMINATION OF INSURANCE COVERAGE
  35-16  FOR CHILD.  (a)  Unless the employee or member ceases to be
  35-17  eligible for dependent coverage, or the employer has eliminated
  35-18  dependent health coverage for all of the employer's employees or
  35-19  members, the employer may not cancel or eliminate coverage of a
  35-20  child enrolled under this subchapter until the employer is provided
  35-21  satisfactory written evidence that:
  35-22              (1)  the court order or administrative order requiring
  35-23  the coverage is no longer in effect; or
  35-24              (2)  the child is enrolled in comparable health
  35-25  insurance coverage or will be enrolled in comparable coverage that
  35-26  will take effect not later than the effective date of the
  35-27  cancellation or elimination of the employer's coverage.
   36-1        SECTION 4.07.  Section 154.184, Family Code, is amended to
   36-2  read as follows:
   36-3        (a)  Receipt of <For purposes of enrolling a child in a
   36-4  health insurance program under this subchapter,> a medical support
   36-5  order requiring that health insurance be provided for a child shall
   36-6  be considered a change in the family circumstances of the employee
   36-7  or member, for health insurance purposes, <covered person>
   36-8  equivalent to the birth or adoption of a child <by the covered
   36-9  person>.
  36-10        (b)  <On receipt of the order by the employer, the> The child
  36-11  shall be automatically enrolled for the first 31 days after the
  36-12  receipt of the order by the employer on the same terms and
  36-13  conditions as apply to any other <a> dependent child.
  36-14        (c)  <On receipt of the order by the employer, t> The
  36-15  employer shall notify the insurer of the automatic enrollment.
  36-16        (d)  During the 31-day period, the employer and insurer shall
  36-17  complete all necessary forms and procedures to make the enrollment
  36-18  permanent, or shall report in accordance with this subchapter the
  36-19  reasons the coverage cannot be made permanent <policyholder shall
  36-20  apply for coverage for the child in accordance with the medical
  36-21  support order>.
  36-22        SECTION 4.08.  Section 158.206(a), Family Code, is amended to
  36-23  read as follows:
  36-24        (a)  An employer receiving an order or writ of withholding,
  36-25  including an order directing that health insurance be provided to a
  36-26  child, who complies with the order or writ is not liable to the
  36-27  obligor for the amount of income withheld and paid as provided in
   37-1  the order or writ.
   37-2    ARTICLE 5.  EFFECTIVE DATE AND TRANSITION PROVISIONS; EMERGENCY
   37-3        SECTION 5.01.  (a)  This Act takes effect September 1, 1995.
   37-4        (b)  Section 4.01 of this Act applies only to an insurance
   37-5  policy or evidence of coverage that is delivered, issued for
   37-6  delivery, or renewed on or after January 1, 1996.  A policy or
   37-7  evidence of coverage that is delivered, issued for delivery, or
   37-8  renewed before January 1, 1996, is governed by the law as it
   37-9  existed immediately before the effective date of this Act, and that
  37-10  law is continued in effect for that purpose.
  37-11        (c)  The Office of the Attorney General may exercise the
  37-12  contracting authority granted in Section 1.01 of this Act to
  37-13  provide for a phased implementation of the state wide system, and
  37-14  shall implement the system to the extent that locally generated
  37-15  funds and federal reimbursement related to such funds are
  37-16  sufficient to pay for implementation.
  37-17        (d)  The Office of Court Administration may phase in the
  37-18  monthly report required by Section 2.06 of this Act to correspond
  37-19  with the phased implementation of the state wide integrated system
  37-20  for child support enforcement described in Section 1.01.
  37-21        (e)  If before implementing any provision of this Act, the
  37-22  attorney general, the Texas Department of Health, the Texas
  37-23  Department of Human Services, or another affected agency determines
  37-24  that a waiver or authorization from a federal agency is necessary
  37-25  for implementation of that provision, the affected agency shall
  37-26  promptly apply for a waiver, and the provision shall take effect
  37-27  when necessary waivers have been granted.  A copy of each waiver
   38-1  request shall be provided to the governor, the lieutenant governor
   38-2  and the speaker of the house of representatives.
   38-3        (f)  For the purpose of implementing the integrated system
   38-4  established by Sections 1.01 and 2.12 of this bill, all funds
   38-5  received from the federal government as reimbursement for expenses
   38-6  directly related to the integrated system, including the federal
   38-7  match for locally generated funds, shall be in excess of any amount
   38-8  appropriated to the attorney general by other Acts of the 74th
   38-9  Legislature, and are hereby appropriated to the attorney general
  38-10  for the fiscal years ending August 31, 1996 and August 31, 1997.
  38-11        SECTION 5.02.  Not later than December 1, 1996, the attorney
  38-12  general shall report to the legislature an estimate of the cost
  38-13  savings to the state and effectiveness of the expansion of child
  38-14  support enforcement services and of privatization efforts.
  38-15        SECTION 5.03.  (a)  The office of the attorney general, in
  38-16  conjunction with the Texas Department of Human Services, shall
  38-17  develop and implement a plan to assign a representative to work
  38-18  with department eligibility workers in department offices or
  38-19  facilities that are located in the same geographic region as
  38-20  offices or facilities of the attorney general.  The plan shall:
  38-21              (1)  include a schedule for implementation; and
  38-22              (2)  provide that the office of the attorney general
  38-23  may make a work assignment under this subsection only if the
  38-24  anticipated increased collection of child support for public
  38-25  assistance cases is greater than the cost of placing the
  38-26  representative in a department office or facility.
  38-27        (b)  Not later than October 1, 1995, the attorney general
   39-1  shall complete the plan required by this section and send notice of
   39-2  filing the completed plan to the governor, the lieutenant governor,
   39-3  and the speaker of the house of representatives.
   39-4        (c)  The attorney general and the Texas Department of Human
   39-5  Services shall prepare the initial memorandum of understanding
   39-6  required by Section 76.012, Human Resources Code, as added by this
   39-7  Act, not later than December 1, 1995.
   39-8        SECTION 5.04.  The change in law made to Subchapter E,
   39-9  Chapter 231, Family Code, as amended by this Act, applies only to a
  39-10  child support review for which notice is given on or after the
  39-11  effective date of this Act.  A child support review for which
  39-12  notice is given before that date is governed by the law in effect
  39-13  at the time notice was given, and the former law is continued in
  39-14  effect for that purpose.
  39-15        SECTION 5.05.  (a)  Section 3.01 of this Act expires on
  39-16  September 2, 1997.
  39-17        (b)  Sections 3.02(b) and 3.03 of this Act expire January 1,
  39-18  1997.
  39-19        SECTION 5.06.  The importance of this legislation and the
  39-20  crowded condition of the calendars in both houses create an
  39-21  emergency and an imperative public necessity that the
  39-22  constitutional rule requiring bills to be read on three several
  39-23  days in each house be suspended, and this rule is hereby suspended.