By:  Harris                                            S.B. No. 793
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the enforcement of certain child support and medical
    1-2  support obligations; appropriating certain federal funds.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4           ARTICLE 1.  POWERS AND DUTIES OF ATTORNEY GENERAL
    1-5        SECTION 1.01.  Subchapter A, Chapter 231, Family Code, as
    1-6  added by H.B. No. 655, Acts of the 74th Legislature, Regular
    1-7  Session, 1995, is amended by adding Section 231.0011 to read as
    1-8  follows:
    1-9        Sec. 231.0011.  DEVELOPMENT OF STATEWIDE INTEGRATED SYSTEM
   1-10  FOR CHILD SUPPORT AND MEDICAL SUPPORT ENFORCEMENT.  (a)  The
   1-11  attorney general, as the Title IV-D agency for the State of Texas
   1-12  shall have final approval authority on any contract or proposal for
   1-13  delivery of Title IV-D services under this section and in
   1-14  coordination with the Texas Judicial Council, the Office of Court
   1-15  Administration of the Texas Judicial System, the federal Office of
   1-16  Child Support Enforcement, and state, county, and local officials,
   1-17  shall develop and implement a statewide integrated system for child
   1-18  support and medical support enforcement, employing federal, state,
   1-19  local, and private resources to:
   1-20              (1)  unify child support registry functions;
   1-21              (2)  record and track all child support orders entered
   1-22  in the state;
   1-23              (3)  establish an automated enforcement process which
   1-24  will use delinquency monitoring, billing, and other enforcement
    2-1  techniques to ensure the payment of current support;
    2-2              (4)  incorporate existing enforcement resources into
    2-3  the system to obtain  maximum benefit from state and federal
    2-4  funding; and
    2-5              (5)  ensure accountability for all participants in the
    2-6  process, including state, county, and local officials, private
    2-7  contractors, and the judiciary.
    2-8        (b)  The attorney general shall convene a workgroup to
    2-9  determine a process and develop a timetable for implementation of a
   2-10  unified registry system and to identify any barriers to completion
   2-11  of the project.  The workgroup shall include representatives of the
   2-12  judiciary, district clerks, and domestic relations offices, as well
   2-13  as other interested agencies, organizations, and individuals.  The
   2-14  workgroup shall report the results of its deliberations to the
   2-15  governor, lieutenant governor, speaker of the house of
   2-16  representatives, and attorney general on or before January 15,
   2-17  1996.
   2-18        (c)  The attorney general shall, in cooperation with the
   2-19  workgroup established by this section, develop technical standards
   2-20  for participation in the unified child support system, including
   2-21  standard required data elements for effective monitoring of child
   2-22  support and medical support orders and for the imposition of
   2-23  interest on delinquent child support.
   2-24        (d)  Counties and other providers of child support services
   2-25  shall be required, as a condition of participation in the unified
   2-26  system, to enter into a contract with the attorney general, to
   2-27  comply with all federal requirements for the Title IV-D program,
    3-1  and to maintain at least the current level of funding for
    3-2  activities which are proposed to be included in the integrated
    3-3  child support system.
    3-4        (e)  The attorney general shall identify federal
    3-5  requirements, apply for necessary federal waivers, and provide
    3-6  technical system requirements and other information concerning
    3-7  participation in the system to counties and other providers of
    3-8  child support services not later than January 15, 1996.  Counties
    3-9  shall notify the attorney general of existing resources and options
   3-10  for participation not later than May 1, 1996.
   3-11        (f)  Not later than June 1, 1996, the attorney general shall
   3-12  produce a procurement and implementation plan for hardware and
   3-13  software necessary to implement in phases a unified statewide
   3-14  registry and enforcement system.
   3-15        (g)  Effective January 15, 1996, the attorney general may
   3-16  contract with any county meeting technical system requirements
   3-17  necessary to comply with federal law for provision of Title IV-D
   3-18  services in that county.  All new cases in which support orders are
   3-19  entered in such county after the effective date of a monitoring
   3-20  contract shall be Title IV-D cases.  Any other case in the county,
   3-21  subject to federal requirements and the agreement of the county and
   3-22  the attorney general, may be included as a Title IV-D case.  Any
   3-23  obligee under a support order may refuse Title IV-D enforcement
   3-24  services unless required to accept such services pursuant to other
   3-25  law.
   3-26        (h)  Counties participating in the unified enforcement system
   3-27  shall monitor all child support registry cases and on delinquency
    4-1  may, subject to the approval of the Title IV-D agency, provide
    4-2  enforcement services through:
    4-3              (1)  direct provision of services by county personnel;
    4-4              (2)  subcontracting all or portions of the services to
    4-5  private entities or attorneys; or
    4-6              (3)  such other methods as may be approved by the Title
    4-7  IV-D agency.
    4-8        (i)  The attorney general shall undertake a least-cost review
    4-9  of its child support operations and shall use the information
   4-10  developed in such review to determine what, if any, contribution of
   4-11  program funds generated through other Title IV-D activities should
   4-12  be made to the participating counties.  The attorney general, in
   4-13  cooperation with the counties and the federal Office of Child
   4-14  Support Enforcement shall develop a cost allocation methodology to
   4-15  assist the counties in identifying county contributions which may
   4-16  qualify for federal financial participation.
   4-17        (j)  The attorney general may phase in the integrated child
   4-18  support registry and enforcement system, and the requirement to
   4-19  implement the system shall be contingent on the receipt of locally
   4-20  generated funds and federal reimbursement.  Locally generated funds
   4-21  include but are not limited to funds contributed by counties and
   4-22  cities.
   4-23        (k)  The attorney general shall adopt rules to implement this
   4-24  section.
   4-25        (l)  Participation in the statewide integrated system for
   4-26  child support and medical support enforcement by a county is
   4-27  voluntary, and nothing in this section shall be construed to
    5-1  mandate participation.
    5-2        SECTION 1.02.  Subsections (b) and (d), Section 231.109,
    5-3  Family Code, as added by H.B. No. 655, Acts of the 74th
    5-4  Legislature, Regular Session, 1995, are amended to read as follows:
    5-5        (b)  The Title IV-D agency may contract with private
    5-6  attorneys, other private entities, or political subdivisions of the
    5-7  state to provide services in Title IV-D cases <represent this state
    5-8  or another state in an action brought under the authority of
    5-9  federal law and this chapter>.
   5-10        (d)  An attorney employed to provide Title IV-D services <by
   5-11  the Title IV-D agency or as otherwise provided by this chapter>
   5-12  represents the interest of the state and not the interest of any
   5-13  other party.  The provision of services by an attorney under this
   5-14  chapter does not create an attorney-client relationship between the
   5-15  attorney and any other party.  The agency shall, at the time an
   5-16  application for child support services is made, inform the
   5-17  applicant that neither the Title IV-D agency nor any attorney who
   5-18  provides services under this chapter is the applicant's attorney
   5-19  and that the attorney providing services under this chapter does
   5-20  not provide legal representation to the applicant.
   5-21        SECTION 1.03.  Subchapter B, Chapter 231, Family Code, as
   5-22  added by H.B. No. 655, Acts of the 74th Legislature, Regular
   5-23  Session, 1995, is amended by adding Section 231.113 to read as
   5-24  follows:
   5-25        Sec. 231.113.  ENFORCEMENT OF SUPPORT OBLIGATIONS IN PUBLIC
   5-26  ASSISTANCE CASES.  To the extent possible, the Title IV-D agency
   5-27  shall enforce a child support obligation in a case involving a
    6-1  child who receives financial assistance under Chapter 31, Human
    6-2  Resources Code, not later than the first anniversary of the date
    6-3  the agency receives from the Texas Department of Human Services the
    6-4  information the department is required to provide to assist in the
    6-5  enforcement of that obligation.
    6-6        SECTION 1.04.  Section 231.202, Family Code, as added by H.B.
    6-7  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
    6-8  amended to read as follows:
    6-9        Sec. 231.202.  AUTHORIZED COSTS AND FEES IN TITLE IV-D CASES.
   6-10  In a Title IV-D case filed under this title, the Title IV-D agency
   6-11  shall pay:
   6-12              (1)  filing fees and fees for issuance and service of
   6-13  process as provided by Chapter 110 of this code and by Sections
   6-14  51.317, 51.318(b)(2), and 51.319(4), Government Code;
   6-15              (2)  fees for transfer as provided by Chapter 110;
   6-16              (3)  fees for the issuance and delivery of orders and
   6-17  writs of income withholding in the amounts provided by Chapter 110;
   6-18  and
   6-19              (4)  a fee of $45 for each item of process to each
   6-20  individual on whom service is required, including service by
   6-21  certified or registered mail, to be paid to a sheriff, constable,
   6-22  or clerk whenever service of process is required<; and>
   6-23              <(5)  mileage costs incurred by a sheriff or constable
   6-24  when traveling out of the county to execute an outstanding warrant
   6-25  or capias, to be reimbursed at a rate not to exceed the rate
   6-26  provided for mileage incurred by state employees in the General
   6-27  Appropriations Act>.
    7-1        SECTION 1.05.  Section 231.209, Family Code, as added by H.B.
    7-2  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
    7-3  amended to read as follows:
    7-4        Sec. 231.209.  PAYMENT FOR SERVICES NOT AFFECTED BY THIS
    7-5  SUBCHAPTER.  Without regard to this subchapter and specifically
    7-6  Section 231.205, the Title IV-D agency may pay the costs for:
    7-7              (1)  the services of an official court reporter for the
    7-8  preparation of statements of facts;
    7-9              (2)  <and> the costs for the publication of citation
   7-10  served by publication; and
   7-11              (3)  mileage or other reasonable travel costs incurred
   7-12  by a sheriff or constable when traveling out of the county to
   7-13  execute an outstanding warrant or capias, to be reimbursed at a
   7-14  rate not to exceed the rate provided for mileage or other costs
   7-15  incurred by state employees in the General Appropriations Act.
   7-16        SECTION 1.06.  Section 231.304, Family Code, as added by H.B.
   7-17  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   7-18  amended by amending Subsections (b) and (h) and by adding
   7-19  Subsections (j), (k), (l), and (m) to read as follows:
   7-20        (b)  The Title IV-D agency, the Texas Department of Human
   7-21  Services, the Texas Workers' Compensation Commission, and the Texas
   7-22  Employment Commission shall create and develop a voluntary ENHR
   7-23  program to provide a means for employers to assist in the state's
   7-24  efforts to prevent fraud in the welfare, workers' compensation, and
   7-25  unemployment insurance programs, locate absent parents who owe
   7-26  child support, and collect support from those parents by reporting
   7-27  information concerning newly hired and rehired employees directly
    8-1  to a centralized state database <the child support enforcement
    8-2  program>.  In order to encourage use of the ENHR program, employer
    8-3  reporting requirements shall be simplified and standardized.
    8-4        (h)  Subject to approval of the agencies involved and any
    8-5  requirements of federal law, the centralized database shall make
    8-6  the information on <For> each employee reported under the ENHR
    8-7  program available for:
    8-8              (1)  purposes directly connected with the
    8-9  administration of a plan or program for unemployment benefits,
   8-10  workers' compensation benefits, child support, or public
   8-11  assistance;
   8-12              (2)  an investigation or a civil or criminal
   8-13  prosecution relating to the administration of such plan or program;
   8-14  or
   8-15              (3)  the administration of any other federal or
   8-16  federally assisted program which provides assistance, in cash or in
   8-17  kind, or services, directly to individuals on the basis of need<,
   8-18  the Title IV-D agency shall retain the information only if the
   8-19  agency is responsible for establishing, enforcing, or collecting a
   8-20  support obligation or debt of the employee or reporting to a court,
   8-21  domestic relations office, or a friend of the court the location of
   8-22  a parent who is denying possession of or access to a person with a
   8-23  valid possession order.  If the agency does not have any of those
   8-24  responsibilities, the agency may not create a record regarding the
   8-25  employee and the information contained in the notice shall be
   8-26  promptly destroyed>.
   8-27        (j)  An employer participating in the ENHR program is
    9-1  strongly encouraged to report information about health insurance
    9-2  coverage available through the employer in which a dependent child
    9-3  may be enrolled under Subchapter D, Chapter 154.
    9-4        (k)  To expand the ENHR program, the Title IV-D agency shall
    9-5  work closely with the Texas Employment Commission, the Texas
    9-6  Workers' Compensation Commission, the comptroller, the Texas
    9-7  Department of Commerce, the secretary of state, and employer
    9-8  groups.  Efforts to expand the program shall include:
    9-9              (1)  regularly sending to employers solicitations for
   9-10  participation in the program and promotional information about the
   9-11  program that includes information on:
   9-12                    (A)  the program's impact on child support and
   9-13  medical support enforcement;
   9-14                    (B)  savings in public assistance payments
   9-15  attributable to the program;
   9-16                    (C)  benefits to employers and taxpayers of the
   9-17  fraud prevention aspects of the program;
   9-18                    (D)  participation requirements; and
   9-19                    (E)  awards available for business participation;
   9-20  and
   9-21              (2)  developing a public awareness program that:
   9-22                    (A)  stresses the importance of securing
   9-23  financial support for all children; and
   9-24                    (B)  informs the public about the ENHR program.
   9-25        (l)  The affected agencies may pool resources, develop a cost
   9-26  allocation plan, determine the most cost-effective means of
   9-27  establishing and funding the required database, and issue rules,
   10-1  solicit bids, or enter into contracts to carry out the purposes of
   10-2  this section.
   10-3        (m)  The affected agencies shall implement the plan to create
   10-4  the ENHR database, if cost-effective, using existing funding and
   10-5  considering savings and revenue gains that may result from the use
   10-6  of such system.
   10-7        SECTION 1.07.  Subchapter D, Chapter 231, Family Code, as
   10-8  added by H.B. No. 655, Acts of the 74th Legislature, Regular
   10-9  Session, 1995, is amended by adding Section 231.305 to read as
  10-10  follows:
  10-11        Sec. 231.305.  MEMORANDUM OF UNDERSTANDING ON CHILD SUPPORT
  10-12  FOR CHILDREN RECEIVING PUBLIC ASSISTANCE.  (a)  The Title IV-D
  10-13  agency and the Texas Department of Human Services by rule shall
  10-14  adopt a memorandum of understanding governing the establishment and
  10-15  enforcement of court-ordered child support in cases involving
  10-16  children who receive financial assistance under Chapter 31, Human
  10-17  Resources Code.  The memorandum shall require the agency and the
  10-18  department to:
  10-19              (1)  develop procedures to ensure that the information
  10-20  the department is required to collect to establish and enforce
  10-21  child support:
  10-22                    (A)  is collected from the person applying to
  10-23  receive the financial assistance at the time the application is
  10-24  filed;
  10-25                    (B)  is accurate and complete when the department
  10-26  forwards the information to the agency; and
  10-27                    (C)  is not information previously reported to
   11-1  the agency;
   11-2              (2)  develop procedures to ensure that the agency does
   11-3  not duplicate the efforts of the department in gathering necessary
   11-4  information;
   11-5              (3)  clarify each agency's responsibilities in the
   11-6  establishment and enforcement of child support; and
   11-7              (4)  develop guidelines for use by eligibility workers
   11-8  and child support enforcement officers in obtaining from an
   11-9  applicant the information required to establish and enforce child
  11-10  support for that child.
  11-11        (b)  The Title IV-D agency and the Texas Department of Human
  11-12  Services semiannually shall review and renew or modify the
  11-13  memorandum as necessary.
  11-14         ARTICLE 2.  ENFORCEMENT OF CHILD SUPPORT AND MEDICAL
  11-15                          SUPPORT OBLIGATIONS
  11-16        SECTION 2.01.  Section 101.005, Family Code, as added by H.B.
  11-17  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  11-18  amended to read as follows:
  11-19        Sec. 101.005.  CHILD SUPPORT REVIEW OFFICER.  "Child support
  11-20  review officer" means an individual designated and trained by a
  11-21  child support agency to conduct reviews under this title <who has
  11-22  received family law mediation training>.
  11-23        SECTION 2.02.  Section 102.007, Family Code, as added by H.B.
  11-24  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  11-25  amended to read as follows:
  11-26        Sec. 102.007.  STANDING OF TITLE IV-D AGENCY.  In providing
  11-27  services authorized by Chapter 231, the Title IV-D agency or a
   12-1  political subdivision contracting with the attorney general to
   12-2  provide Title IV-D services under this title may file a child
   12-3  support action authorized under this title, including a suit for
   12-4  modification or a motion for enforcement.
   12-5        SECTION 2.03.  Subchapter D, Chapter 231, Family Code, as
   12-6  added by H.B. No. 655, Acts of the 74th Legislature, Regular
   12-7  Session, 1995, is amended by adding Section 231.306 to read as
   12-8  follows:
   12-9        Sec. 231.306.  MAXIMIZING MEDICAL SUPPORT ESTABLISHMENT AND
  12-10  COLLECTION BY THE TITLE IV-D AGENCY.  (a)  On the installation of
  12-11  an automated child support enforcement system, the Title IV-D
  12-12  agency is strongly encouraged to:
  12-13              (1)  maximize the collection of medical support; and
  12-14              (2)  establish cash medical support orders for children
  12-15  eligible for medical assistance under the state Medicaid program
  12-16  for whom private insurance coverage is not available.
  12-17        (b)  In this section, "medical support" has the meaning
  12-18  assigned by Section 101.020.
  12-19        SECTION 2.04.  Subchapter E, Chapter 231, Family Code, as
  12-20  added by H.B. No. 655, Acts of the 74th Legislature, Regular
  12-21  Session, 1995, is amended to read as follows:
  12-22      SUBCHAPTER E.  CHILD SUPPORT REVIEW PROCESS TO ESTABLISH OR
  12-23                      ENFORCE SUPPORT OBLIGATIONS
  12-24        Sec. 231.401.  Purpose.  The purpose of the child support
  12-25  review process authorized by this subchapter is to provide child
  12-26  support agencies an opportunity to resolve routine child support
  12-27  actions through <negotiation,> agreement of the parties<,> or
   13-1  uncontested orders.
   13-2        Sec. 231.402.  AGREEMENTS ENCOURAGED.  To the extent
   13-3  permitted by this subchapter, child support agencies shall make the
   13-4  child support review process understandable to all parties and
   13-5  shall encourage agreements <through mediation>.
   13-6        Sec. 231.403.  Bilingual Forms Required.  A notice or other
   13-7  form used to implement the child support review process shall be
   13-8  printed in both Spanish and English.
   13-9        Sec. 231.404.  INTERPRETER REQUIRED.  If a party
  13-10  participating in a negotiation conference does not speak English or
  13-11  is hearing impaired, the child support agency shall provide for
  13-12  interpreter services at no charge to the parties.
  13-13        Sec. 231.405.  Initiating Child Support Review.  <(a)  A
  13-14  child support agency may review and assess the financial resources
  13-15  of a child's parent or of a person presumed or alleged to be the
  13-16  child's father from whom child support is requested to determine
  13-17  the resources that are available for the support of the child and
  13-18  to determine what action is appropriate.>
  13-19        <(b)>  An administrative action under this subchapter may be
  13-20  initiated by issuing a notice of child support review to each party
  13-21  entitled to notice <the parents and to the presumed or alleged
  13-22  father of a child>.
  13-23        Sec. 231.406.  CONTENTS OF NOTICE OF CHILD SUPPORT REVIEW.
  13-24  (a)  The notice of child support review must:
  13-25              (1)  describe the procedure for a child support review;
  13-26              (2)  inform the recipient that the recipient <is not
  13-27  required to participate in the child support review and> may be
   14-1  represented by legal counsel during the review process or at a
   14-2  court hearing;
   14-3              (3)  inform the recipient that the recipient may refuse
   14-4  to participate or cease participation in the child support review
   14-5  process, but that the refusal by the recipient to participate will
   14-6  not prevent the completion of the process or the filing of a child
   14-7  support review order <during any stage of the review but that the
   14-8  review will continue to completion and that afterward the recipient
   14-9  may request a court hearing>;
  14-10              (4)  include an affidavit of financial resources; and
  14-11              (5)  include a request that the recipient designate, on
  14-12  a form provided by the child support agency, an address for mailing
  14-13  any additional notice to the recipient.
  14-14        (b)  In addition to the information required by Subsection
  14-15  (a), the notice of child support review must inform the recipient
  14-16  that:
  14-17              (1)  the information requested on the form must be
  14-18  returned to the child support agency not later than the 15th day
  14-19  after the date the notice is received or delivered; and
  14-20              (2)  if the requested information is not returned as
  14-21  required, the child support agency:
  14-22                    (A)  may proceed with the review using the
  14-23  information that is available to the agency; and
  14-24                    (B)  may file a legal action without further
  14-25  notice to the recipient, except as otherwise required by law.
  14-26        Sec. 231.407.  Notice by Mail.  (a)  A notice required in an
  14-27  administrative action under this subchapter must be delivered or
   15-1  served by first class mail or certified mail on each party entitled
   15-2  to citation or notice as provided by Chapter 102.
   15-3        (b)  <If notice is served by mail, three days must be added
   15-4  to the time in which the person is required to respond.>
   15-5        <(c)>  This section does not apply to notice required on
   15-6  filing of a child support review order or to later judicial
   15-7  actions.
   15-8        Sec. 231.408.  Administrative Subpoena in Child Support
   15-9  Review.  (a)  In a child support review under this subchapter, a
  15-10  child support agency may issue an administrative subpoena to <a
  15-11  parent, a person presumed or alleged to be the father of a child
  15-12  for whom support is requested, or> any individual or organization
  15-13  believed to have information on the financial resources of the
  15-14  parent or presumed or alleged father.
  15-15        (b)  A court may compel compliance with an administrative
  15-16  subpoena and award attorney's fees and costs to a child support
  15-17  agency enforcing an administrative subpoena on proof that an
  15-18  individual or organization failed to comply with the subpoena
  15-19  without good cause.
  15-20        Sec. 231.409.  SCHEDULING AND CONDUCTING NEGOTIATION
  15-21  CONFERENCE.  (a)  The child support agency may schedule a
  15-22  negotiation conference without a request from a party.
  15-23        (b)  The child support agency shall schedule a negotiation
  15-24  conference on the timely request of a party <person who completes
  15-25  and returns an affidavit of financial resources>.
  15-26        (c)  A negotiation conference, or any part of a negotiation
  15-27  conference, may be conducted by telephone conference call, by video
   16-1  conference, or in person.  The negotiation conference may be
   16-2  adjourned for a reasonable time to permit mediation of issues that
   16-3  cannot be resolved by the parties and the child support agency.
   16-4        Sec. 231.410.  TIME FOR NEGOTIATION CONFERENCE; NOTICE
   16-5  REQUIRED.  <(a)  A child support review or negotiation conference
   16-6  under this subchapter shall be conducted not later than the 45th
   16-7  day after the date all notices of child support review have been
   16-8  sent to the parties to the action.>
   16-9        <(b)>  All parties entitled to notice of the negotiation
  16-10  conference shall be notified of the date, time, and place of the
  16-11  negotiation conference not later than the 10th day before the date
  16-12  of the negotiation conference.
  16-13        Sec. 231.411.  RESCHEDULING NEGOTIATION CONFERENCE; NOTICE
  16-14  REQUIRED.  A negotiation conference may be rescheduled or adjourned
  16-15  on the request of any party at the discretion of the child support
  16-16  review officer.  All parties must be given notice of the
  16-17  rescheduling not later than the third day before the date of the
  16-18  rescheduled negotiation conference.
  16-19        Sec. 231.412.  INFORMATION REQUIRED TO BE PROVIDED AT
  16-20  NEGOTIATION CONFERENCE.  At the beginning of the negotiation
  16-21  conference, the child support review officer shall review with the
  16-22  <inform all> parties participating in the conference information
  16-23  provided in the notice of child support review and inform the
  16-24  parties <in attendance> that:
  16-25              (1)  the purpose of the negotiation conference is to
  16-26  provide an opportunity <attempt> to reach an agreement on a
  16-27  <regarding> child support order <payments>;
   17-1              (2)  <a party does not have to participate in the
   17-2  negotiation conference and may request a court hearing;>
   17-3              <(3)  a party may be represented by an attorney chosen
   17-4  by the party;>
   17-5              <(4)  the parties may stop participating in the
   17-6  negotiation conference at any time but that the child support
   17-7  review will continue until completed, and, if a child support
   17-8  review order is issued, a party may request a court hearing;>
   17-9              <(5)>  if the parties reach an agreement, the review
  17-10  officer will prepare an agreed review order <for the parties'
  17-11  signatures>;
  17-12              (3) <(6)>  a party does not have to sign a review order
  17-13  prepared by the child support review officer; and
  17-14              (4) <(7)  even though> a party <signs an agreed review
  17-15  order, the party> may request a court hearing at any time before
  17-16  the 20th day after the date a petition for confirmation of the
  17-17  order is filed <child support review order is confirmed by a
  17-18  court>.
  17-19        Sec. 231.413.  DETERMINING SUPPORT AMOUNT; MODIFICATION.
  17-20  (a)  A child support agency may use any information obtained by the
  17-21  agency from the parties or any other source and shall apply the
  17-22  child support guidelines provided by this code to determine the
  17-23  appropriate amount of child support.
  17-24        (b)  If the child support agency determines that the support
  17-25  amount in an existing child support order is not in substantial
  17-26  compliance with the guidelines, the child support agency shall
  17-27  issue an appropriate child support review order, including a review
   18-1  order that has the effect of modifying an existing order for child
   18-2  support without the necessity of filing a motion to modify.
   18-3        Sec. 231.414.  Record Not Required.  (a)  For the purposes of
   18-4  this subchapter, documentary evidence relied on by the child
   18-5  support review officer, including an <a written> affidavit of a
   18-6  party, together with<, the written findings, and> the child support
   18-7  review order is <from a negotiation conference are> a sufficient
   18-8  record of the proceedings.
   18-9        (b)  A child support agency is not required to make any other
  18-10  record or transcript of the negotiation conference.
  18-11        Sec. 231.415.  ISSUANCE OF CHILD SUPPORT REVIEW ORDER OR
  18-12  FINDING THAT NO ORDER SHOULD BE ISSUED; EFFECT.  (a)  If the
  18-13  negotiation conference does not result in agreement by all parties
  18-14  to the <an agreed> child support review order, the review officer
  18-15  shall promptly issue and sign a final decision in the form of a
  18-16  child support review order<,> or a determination that a child
  18-17  support review order should not be issued, not later than the fifth
  18-18  day after the date of the negotiation conference.
  18-19        (b)  If <On the day that a child support review order is
  18-20  issued or> a determination is made that a child support order will
  18-21  not be issued, each party to a child support review proceeding
  18-22  shall be furnished immediately by hand delivery or by mail notice
  18-23  of <a copy of the order or> the determination.
  18-24        (c)  A determination that a child support order should not be
  18-25  issued must include a statement of the reasons that an order is not
  18-26  being issued and does not affect the right of the agency or a party
  18-27  to request any other remedy provided by law.
   19-1        Sec. 231.416.  VACATING CHILD SUPPORT REVIEW ORDER.  (a)  The
   19-2  review officer may vacate a child support review order on the
   19-3  officer's own motion at any time before the order is filed with the
   19-4  court.
   19-5        (b)  A new negotiation conference, with notice to all
   19-6  parties, may <shall> be scheduled or the officer may make a
   19-7  determination that a child support review order should not be
   19-8  issued and give notice of that determination as provided by this
   19-9  subchapter <to take place not later than the 10th day after the
  19-10  date the child support review order was vacated>.
  19-11        Sec. 231.417.  CONTENTS OF CHILD SUPPORT REVIEW ORDER.
  19-12  (a)  An agreed child support review order must contain all
  19-13  provisions that are appropriate for an order under this title.
  19-14        (b)  A child support review order that is not agreed to must
  19-15  include child support and medical support provisions, including a
  19-16  determination of arrearages or retroactive support.
  19-17        (c)  A child support review order providing for the
  19-18  enforcement of an order may not contain a provision that imposes
  19-19  incarceration or a fine or contains a finding of contempt.
  19-20        (d)  A child support review order that establishes or
  19-21  modifies an amount of previously ordered support must include the
  19-22  findings required by Section 154.130.
  19-23        (e)  A child support review order that is not agreed to by
  19-24  all the parties may specify and reserve for the court at the
  19-25  confirmation hearing unresolved issues relating to conservatorship
  19-26  or possession of a child.
  19-27        Sec. 231.418.  ADDITIONAL CONTENTS OF AGREED CHILD SUPPORT
   20-1  REVIEW ORDER.  If a negotiation conference results in an agreement
   20-2  <by all parties>, the <a> child support review order must be signed
   20-3  by each party who agrees to the order, must contain the provisions
   20-4  required by Section 231.417, <all parties to the action> and, as to
   20-5  each party in agreement with the order, must contain:
   20-6              (1)  a waiver by the <each> party of the right to
   20-7  service <and> of process and <the right to> a court hearing and the
   20-8  making of a record on the petition for confirmation;
   20-9              (2)  the mailing address of the <each> party; and
  20-10              (3)  the following statement printed on the order in
  20-11  boldface or in all capital letters:
  20-12              "I KNOW THAT I DO NOT HAVE TO SIGN THIS <AGREED>
  20-13        CHILD SUPPORT REVIEW ORDER.  I KNOW THAT I HAVE A RIGHT
  20-14        TO BE PERSONALLY SERVED WITH THE PETITION FOR
  20-15        CONFIRMATION OF THIS ORDER <HAVE A COURT HEAR EVIDENCE
  20-16        AND MAKE A DECISION IN THIS MATTER>.  I KNOW THAT I
  20-17        HAVE A RIGHT TO CHANGE MY MIND AND WITHDRAW MY
  20-18        AGREEMENT TO THE TERMS OF THIS ORDER AND REQUEST THAT A
  20-19        COURT DECIDE THIS MATTER BY FILING A REQUEST FOR COURT
  20-20        HEARING AT ANY TIME BEFORE THE 20TH DAY AFTER THE DATE
  20-21        THE PETITION FOR CONFIRMATION OF THE ORDER IS FILED
  20-22        WITH THE CLERK OF THE COURT.  I KNOW THAT IF I FAIL TO
  20-23        FILE A REQUEST FOR A COURT HEARING A COURT MAY CONFIRM
  20-24        AND APPROVE THIS ORDER WITHOUT A HEARING, AND THE ORDER
  20-25        WILL BECOME A VALID COURT ORDER.  I KNOW THAT IF I DO
  20-26        NOT OBEY THE TERMS OF THIS ORDER I MAY BE HELD IN
  20-27        CONTEMPT OF COURT."
   21-1        Sec. 231.419.  FILING OF PETITION FOR CONFIRMATION.  (a)  The
   21-2  child support agency shall file a petition for confirmation with
   21-3  the clerk of the court having continuing jurisdiction of the child
   21-4  who is the subject of the order.
   21-5        (b)  If there is not a court of continuing jurisdiction, the
   21-6  child support agency shall file the petition for confirmation with
   21-7  the clerk of a court having jurisdiction under this title.
   21-8        Sec. 231.420.  CONTENTS OF PETITION FOR CONFIRMATION;
   21-9  DOCUMENTARY EVIDENCE TO BE FILED WITH PETITION.  (a)  A petition
  21-10  for confirmation shall <must> include the final child support
  21-11  review order as an attachment to the petition.
  21-12        (b)  Documentary evidence relied on by the child support
  21-13  agency, including, if applicable, a <verified written report of a
  21-14  paternity testing expert concerning the results of paternity
  21-15  testing conducted in the case or a> statement of paternity or a
  21-16  written report of a parentage testing expert, shall be filed with
  21-17  the clerk as exhibits to the petition, but are not required to be
  21-18  served on the parties.  The petition must identify the exhibits
  21-19  that are filed with the clerk.
  21-20        Sec. 231.421.  DUTIES OF CLERK OF COURT.  (a)  On the filing
  21-21  of a petition for confirmation, the clerk of court shall endorse on
  21-22  the petition the date and time that the petition is filed <and sign
  21-23  the endorsement>.
  21-24        (b)  If the petition is for an original action, the clerk
  21-25  shall endorse the appropriate court and cause number on the
  21-26  petition.
  21-27        (c)  If the petition is to confirm an agreed child support
   22-1  review order under this subchapter, the child support agency
   22-2  <clerk> shall mail to each party that agreed to the order, at the
   22-3  address shown on the order, a copy of the petition with <and
   22-4  written notice of the filing of the petition that states> the
   22-5  court, filing date, and cause number of the case.  The clerk shall
   22-6  note on the docket that the notice was mailed.  The child support
   22-7  agency shall file a certificate of service showing the date of the
   22-8  mailing to each party.
   22-9        (d)  The <If the petition is to confirm an order other than
  22-10  an agreed order, the> clerk shall issue service of citation,
  22-11  including a copy of the petition and the child support review
  22-12  order, to each party entitled to service who has not waived
  22-13  service.
  22-14        (e)  A clerk of a district court is entitled to collect in a
  22-15  child support review case the fees authorized in a Title IV-D case
  22-16  by this chapter <a fee for:>
  22-17              <(1)  the filing of a petition under this section as
  22-18  provided by Section 51.317(b)(1), Government Code;>
  22-19              <(2)  the issuance of notice or process as provided by
  22-20  Section 51.317(b)(4), Government Code; and>
  22-21              <(3)  service of notice or citation as provided by
  22-22  Section 51.319(4), Government Code, or as otherwise provided by
  22-23  law>.
  22-24        Sec. 231.422.  FORM TO REQUEST A COURT HEARING.  (a)  A court
  22-25  shall consider any responsive pleading that is intended as an
  22-26  objection to confirmation of a child support review order,
  22-27  including a general denial, as a request for a court hearing.
   23-1        (b)  The <A> child support agency shall:
   23-2              (1)  <attach a copy of a form to request a court
   23-3  hearing to each party's copy of the petition for confirmation of a
   23-4  child support review order;>
   23-5              <(2)>  make available to each clerk of court copies of
   23-6  the form to request a court hearing; and
   23-7              (2) <(3)>  provide the form to request a court hearing
   23-8  to a party to the child support review proceeding on request.
   23-9        (c)  The clerk shall furnish the form to a party to a
  23-10  proceeding under this subchapter on the request of the party.
  23-11        Sec. 231.423.  TIME TO REQUEST A COURT HEARING<; HEARING SUA
  23-12  SPONTE>.  <(a)>  A party may file a request for a court hearing not
  23-13  later than the 20th day after the date the petition for
  23-14  confirmation of a child support review order is served or mailed as
  23-15  provided by this subchapter <an agreed administrative order is
  23-16  filed or not later than the Monday following the 20th day after the
  23-17  date the party received service of citation in a case involving the
  23-18  confirmation of any other type of order>.
  23-19        <(b)  If the court finds that confirmation of a child support
  23-20  review order without a hearing would not be in the best interests
  23-21  of a child who is the subject of the order, the court may schedule
  23-22  a hearing.  The order setting the hearing on the confirmation of
  23-23  the order shall state the court's specific reasons for conducting
  23-24  the hearing.>
  23-25        Sec. 231.424.  CONFIRMATION WITHOUT HEARING.  Not later than
  23-26  the 30th day after the date a petition for confirmation that
  23-27  includes waivers by all parties is filed or after the date of
   24-1  service is made on the last party required to be served for a
   24-2  petition for confirmation that does not include waivers, whichever
   24-3  is later, the court shall confirm the child support review order by
   24-4  signing an order of confirmation unless a party has filed a timely
   24-5  request for hearing or the court has scheduled a hearing.
   24-6        Sec. 231.425.  EFFECT OF REQUEST FOR HEARING; PLEADING.
   24-7  (a)  A request for hearing or an order setting a hearing on
   24-8  confirmation stays confirmation of the order pending the hearing.
   24-9        (b)  At a hearing on confirmation, all issues in the child
  24-10  support review order shall be heard in a trial de novo.
  24-11        (c)  The petition for confirmation and the child support
  24-12  review order constitute a sufficient pleading by the child support
  24-13  agency for relief on any issue addressed in the petition and order.
  24-14        (d)  The request for hearing may limit the scope of the de
  24-15  novo hearing by specifying the issues that are in dispute.
  24-16        Sec. 231.426.  TIME FOR COURT HEARING.  A court shall hold a
  24-17  hearing on the confirmation of a child support review order not
  24-18  later than the 30th day after the date the <court determines that a
  24-19  hearing should be held or the> last party to be served files a
  24-20  timely request for a court hearing.
  24-21        Sec. 231.427.  ORDER AFTER HEARING; EFFECT OF CONFIRMATION
  24-22  ORDER.  (a)  After the hearing on the confirmation of a child
  24-23  support review order, the court shall:
  24-24              (1)  if the court finds that the order should be
  24-25  confirmed, immediately sign a confirmation order and enter the
  24-26  order as an order of the court;
  24-27              (2)  if the court finds that the relief granted in the
   25-1  child support review order is inappropriate, sign an appropriate
   25-2  order at the conclusion of the hearing or as soon after the
   25-3  conclusion of the hearing as is practical and enter the order as an
   25-4  order of the court; or
   25-5              (3)  if the court finds that all relief should be
   25-6  denied, enter an order that denies relief and includes specific
   25-7  findings explaining the reasons that relief is denied.
   25-8        (b)  On the signing of a confirmation order by the judge of
   25-9  the court, the child support review order becomes a final order
  25-10  <judgment> of the court.
  25-11        Sec. 231.428.  SPECIAL CHILD SUPPORT REVIEW PROCEDURES
  25-12  RELATING TO ESTABLISHMENT OF PARENTAGE <PATERNITY>.  (a)  If the
  25-13  parentage <paternity> of a child has not been established <by court
  25-14  order>, the notice of child support review served on the parties
  25-15  must include an allegation that the recipient <alleged father> is a
  25-16  <the> biological parent <father> of the child.  The notice shall
  25-17  inform the parties that the alleged father of the child may sign a
  25-18  statement of paternity and that any party may request that
  25-19  scientifically accepted parentage <paternity> testing be conducted
  25-20  to assist in determining the identities of <whether the alleged
  25-21  father is> the child's parents <father>.
  25-22        (b)  A negotiation conference shall be conducted to resolve
  25-23  any issues of support in an action in which all parties agree as to
  25-24  <that the alleged father is> the child's parentage <biological
  25-25  father>.
  25-26        (c)  If a party denies parentage <that the alleged father is
  25-27  the child's biological father or, in the case of a presumed father,
   26-1  if either party files a verified denial of paternity>, the child
   26-2  support agency may schedule parentage <paternity> testing.  If
   26-3  either party fails or refuses to participate in administrative
   26-4  parentage testing, the child support agency may file a child
   26-5  support review order with a request for court-ordered parentage
   26-6  testing.  The court shall follow the procedures and may impose the
   26-7  sanctions provided by this code to obtain compliance with the
   26-8  parentage testing order.  The court shall confirm the child support
   26-9  review order as a temporary or final order of the court only after
  26-10  an opportunity for parentage testing has been provided.
  26-11        (d)  If parentage <paternity> testing does not exclude the
  26-12  alleged parent and <father from being the child's father and a
  26-13  party continues to deny that the alleged father is the child's
  26-14  biological father, the child support agency may schedule a
  26-15  negotiation conference as provided by this subchapter.  If> the
  26-16  results of a verified written report of a parentage <paternity>
  26-17  testing expert meet the requirements of Chapter 160 for issuing a
  26-18  temporary order, the child support agency may issue a child support
  26-19  review order.
  26-20        (e)  If the results of parentage <paternity> testing exclude
  26-21  an <the> alleged parent <or presumed father> from being the
  26-22  biological parent <father> of the child, the child support agency
  26-23  shall issue a child support review order that declares that the
  26-24  excluded person <alleged or presumed father> is not a parent <the
  26-25  father> of the child.
  26-26        (f)  Any party may file a petition for confirmation of a
  26-27  child support review order issued under this section.
   27-1        Sec. 231.429.  ADMINISTRATIVE PROCEDURE LAW NOT APPLICABLE.
   27-2  The child support review process under this chapter is not governed
   27-3  by the administrative procedure law, Chapter 2001, Government Code.
   27-4        Sec. 231.430.  EXPIRATION OF SUBCHAPTER.  This subchapter
   27-5  expires September 1, 1997.
   27-6        Sec. 231.431.  STUDY OF CHILD SUPPORT REVIEW PROCESS.  The
   27-7  attorney general as the Title IV-D agency shall conduct a study to
   27-8  determine and compare the cost of child support enforcement through
   27-9  use of the child support review process authorized by this
  27-10  subchapter and the cost of child support enforcement by the
  27-11  attorney general through use of other enforcement mechanisms
  27-12  available under this chapter.  The attorney general shall report
  27-13  the results of this study to the governor and the legislature not
  27-14  later than September 1, 1996, and shall include in the report
  27-15  recommendations regarding statutory amendments for improving
  27-16  judicial and administrative processes for child support
  27-17  enforcement.  This section expires September 2, 1996.
  27-18        SECTION 2.05.  Subsection (a), Section 71.035, Government
  27-19  Code, is amended to read as follows:
  27-20        (a)  The council shall gather judicial statistics and other
  27-21  pertinent information from the several state judges and other court
  27-22  officials of this state.  In addition, the council shall implement
  27-23  a monthly tracking system to ensure accountability for counties and
  27-24  courts which participate in the statewide integrated system for
  27-25  child support and medical support enforcement established under
  27-26  Section 231.0011, Family Code.  As a duty of office, the district
  27-27  clerks and county clerks serving the affected courts shall report
   28-1  monthly such information as may be required by the council,
   28-2  including, at a minimum, the time required to enforce cases from
   28-3  date of delinquency, from date of filing, and from date of service
   28-4  until date of disposition.  Such information as is necessary to
   28-5  complete the report and not directly within the control of the
   28-6  district or county clerk, such as date of delinquency, shall be
   28-7  provided to the clerk by the child support registry or by the
   28-8  enforcement agency providing Title IV-D enforcement services in the
   28-9  court.  The monthly report shall be transmitted to the Office of
  28-10  Court Administration of the Texas Judicial System no later than the
  28-11  20th day of the month following the month reported, in such form as
  28-12  may be prescribed by the Office of Court Administration, which may
  28-13  include electronic data transfer.  Copies of such reports shall be
  28-14  maintained in the office of the appropriate district or county
  28-15  clerk for a period of at least two years and shall be available to
  28-16  the public for inspection and reproduction.
  28-17            ARTICLE 3.  INTERAGENCY COOPERATION AND STUDIES
  28-18        SECTION 3.01.  MONITORING IMPLEMENTATION OF THE STATEWIDE
  28-19  INTEGRATED SYSTEM FOR CHILD SUPPORT ENFORCEMENT.  (a)  The attorney
  28-20  general shall establish a work group to monitor the progress toward
  28-21  implementation of the statewide integrated system for child support
  28-22  and medical support enforcement established by Section 1.01 of this
  28-23  Act and determine the effect of that effort as it relates to:
  28-24              (1)  maximizing federal assistance for county-based
  28-25  child support collection efforts; and
  28-26              (2)  replacing the existing state child support
  28-27  enforcement application system with an automatic enforcement system
   29-1  that does not require an applicant to file a complaint.
   29-2        (b)  The work group established by this section shall report
   29-3  its findings and recommendations to the attorney general and shall
   29-4  notify the governor, the comptroller, and the legislature of the
   29-5  filing of the report not later than September 1, 1996, and annually
   29-6  thereafter.
   29-7        SECTION 3.02.  AGREEMENT FOR CASH INCENTIVES FOR MEDICAL
   29-8  ASSISTANCE.  (a)  The attorney general as the Title IV-D agency and
   29-9  the Texas Department of Health shall negotiate an agreement
  29-10  regarding the payment by the department of a cash incentive to the
  29-11  agency for each child eligible for medical assistance under the
  29-12  state Medicaid program that the agency causes to be enrolled in a
  29-13  private health insurance plan and for payment of a portion of the
  29-14  state share of costs recovered or saved as a result of the efforts
  29-15  of the agency.
  29-16        (b)  The attorney general and the Texas Department of Health
  29-17  shall report to the legislature the results of negotiations
  29-18  conducted under this section not later than October 1, 1996.
  29-19        SECTION 3.03.  STUDY ON MEDICAL SUPPORT.  (a)  The attorney
  29-20  general, the state Medicaid administrator, and the commissioner of
  29-21  insurance shall initiate a study regarding establishment of a
  29-22  health insurance purchasing alliance to purchase insurance coverage
  29-23  for children for whom a child support obligation is established or
  29-24  enforced under Part D of Title IV of the federal Social Security
  29-25  Act (42 U.S.C. Section 651 et seq.).
  29-26        (b)  Not later than October 1, 1996, the attorney general,
  29-27  the state Medicaid administrator, and the commissioner of insurance
   30-1  shall prepare and file a report summarizing the results of the
   30-2  study required by this section and shall give notice of filing the
   30-3  report to the:
   30-4              (1)  governor;
   30-5              (2)  lieutenant governor;
   30-6              (3)  speaker of the house of representatives;
   30-7              (4)  attorney general; and
   30-8              (5)  commissioner of health and human services.
   30-9        SECTION 3.04.  USE OF PRIVATE ENTITIES TO ASSIST IN CHILD
  30-10  SUPPORT ENFORCEMENT.  (a)  The Office of the Attorney General is
  30-11  strongly encouraged to expand the cost-effective use of private
  30-12  contractors to perform Title IV-D program functions.
  30-13        (b)  The Office of the Attorney General shall, not later than
  30-14  July 1, 1996, perform a cost analysis such as that used by the
  30-15  State Council on Competitive Government, for a standardized
  30-16  comparison of similar activities performed by private firms and the
  30-17  Office of the Attorney General.  If the costs of the Office of the
  30-18  Attorney General for identified activities of the Title IV-D agency
  30-19  are higher than a private contractor's costs and the contractor
  30-20  could deliver services as effectively as the Title IV-D agency, the
  30-21  agency may consider the contractor to perform the activities.  This
  30-22  section does not limit the authority of the Title IV-D agency to
  30-23  contract for services.
  30-24        (c)  The attorney general shall coordinate with the State
  30-25  Council on Competitive Government and may employ private
  30-26  consultants to develop the methodology and evaluate the activities
  30-27  being considered for privatization.
   31-1        (d)  The attorney general shall report the results of the
   31-2  efforts made under this section and notify the governor, the
   31-3  comptroller, and the legislature of the filing of the report not
   31-4  later than December 1, 1996.
   31-5                     ARTICLE 4.  HEALTH INSURANCE
   31-6        SECTION 4.01.  Chapter 3, Insurance Code, is amended by
   31-7  adding Subchapter J to read as follows:
   31-8                 SUBCHAPTER J.  MEDICAL CHILD SUPPORT
   31-9        Art. 3.96-1.  DEFINITIONS.  In this subchapter:
  31-10              (1)  "Child" has the meaning assigned by Section
  31-11  101.003(a) and (b), Family Code.
  31-12              (2)  "Child support agency" has the meaning assigned by
  31-13  Section 101.004, Family Code.
  31-14              (3)  "Custodial parent" means:
  31-15                    (A)  a managing conservator of a child or a
  31-16  possessory conservator of a child who is a parent of the child; or
  31-17                    (B)  a guardian of the person of a child, or
  31-18  another custodian of a child if the guardian or custodian is
  31-19  designated by a court or administrative agency of this or another
  31-20  state.
  31-21              (4)  "Health insurer" means any insurance company,
  31-22  group hospital service corporation, or health maintenance
  31-23  organization that delivers or issues for delivery an individual,
  31-24  group, blanket, or franchise insurance policy or insurance
  31-25  agreement, a group hospital service contract, or an evidence of
  31-26  coverage that provides benefits for medical or surgical expenses
  31-27  incurred as a result of an accident or sickness.
   32-1              (5)  "Insurer" means:
   32-2                    (A)  a health insurer;
   32-3                    (B)  a governmental entity subject to:
   32-4                          (i)  Article 3.51-1, 3.51-2, 3.51-4,
   32-5  3.51-5, or 3.51-5A of this code; or
   32-6                          (ii)  Section 1, Chapter 123, Acts of the
   32-7  60th Legislature, Regular Session, 1967 (Article 3.51-3, Vernon's
   32-8  Texas Insurance Code);
   32-9                    (C)  a multiple employer welfare arrangement, as
  32-10  that term is defined by Article 3.95-1 of this code; or
  32-11                    (D)  a group health plan, as defined by Section
  32-12  607(1), Employee Retirement Income Security Act of 1974 (29 U.S.C.
  32-13  Section 1167).
  32-14              (6)  "Medical assistance" means medical assistance
  32-15  under the state Medicaid program.
  32-16        Art. 3.96-2.  DENIAL OF ENROLLMENT PROHIBITED.  An insurer
  32-17  may not deny enrollment of a child under the health insurance
  32-18  coverage of the child's parent on the ground that the child:
  32-19              (1)  has a preexisting condition;
  32-20              (2)  was born out of wedlock;
  32-21              (3)  is not claimed as a dependent on the parent's
  32-22  federal income tax return;
  32-23              (4)  does not reside with the parent or in the
  32-24  insurer's service area; or
  32-25              (5)  is or has been an applicant for or recipient of
  32-26  medical assistance.
  32-27        Art. 3.96-3.  ENROLLMENT REQUIRED.  (a)  If a parent eligible
   33-1  for dependent health coverage through an insurer is required by a
   33-2  court or administrative order to provide health coverage for a
   33-3  child, the insurer shall permit the parent to enroll the child
   33-4  without regard to any enrollment period restriction.
   33-5        (b)  If a parent eligible for dependent health coverage
   33-6  through an insurer is required by a court or administrative order
   33-7  to provide health coverage for a child and fails to apply to obtain
   33-8  the health insurance coverage for the child, the insurer shall
   33-9  enroll the child on application of a custodial parent of the child,
  33-10  a child support agency having a duty to collect or enforce support
  33-11  for the child, or the child.
  33-12        Art. 3.96-4.  CANCELLATION OR NONRENEWAL PROHIBITED.  (a)  An
  33-13  insurer may not cancel or refuse to renew insurance coverage of a
  33-14  child entitled to enrollment or enrolled under this subchapter
  33-15  unless satisfactory written evidence is filed with the insurer that
  33-16  shows that:
  33-17              (1)  the court order or administrative order that
  33-18  required the coverage is no longer in effect; or
  33-19              (2)  the child is enrolled in comparable health
  33-20  insurance coverage or will be enrolled in comparable coverage that
  33-21  will take effect not later than the effective date of the
  33-22  cancellation or nonrenewal.
  33-23        (b)  As used in this section, "a child entitled to enrollment
  33-24  or enrolled under this subchapter" does not include a child whose
  33-25  eligibility has terminated because the parent eligible for
  33-26  dependent health coverage is no longer eligible for such coverage.
  33-27        Art. 3.96-5.  NOTICE OF AVAILABILITY OF CONTINUATION OR
   34-1  CONVERSION COVERAGE.  If dependent health coverage being terminated
   34-2  pursuant to Subsection (b), Article 3.96-4, of this code contains
   34-3  provisions for the continuation or conversion of such coverage for
   34-4  the child, the insurer shall notify the custodial parent and the
   34-5  child support agency of the costs and other requirements for
   34-6  extending or converting such coverage and shall enroll or continue
   34-7  enrollment of the child on application of a parent of the child, a
   34-8  child support agency, or the child.
   34-9        Art. 3.96-6.  EFFECT OF ASSIGNMENT OF MEDICAL SUPPORT RIGHTS
  34-10  TO STATE AGENCY; INFORMATION.  (a)  An insurer may not impose
  34-11  requirements on a state agency that has been assigned the rights of
  34-12  an individual eligible for medical assistance and covered for
  34-13  health benefits from the insurer that are different from the
  34-14  requirements applicable to an agent or assignee of any other
  34-15  covered individual.
  34-16        (b)  An insurer shall provide to a state agency providing
  34-17  medical assistance, or to a child support agency enforcing medical
  34-18  support, information as necessary to facilitate reimbursement of
  34-19  medical services provided to or paid on behalf of a child.
  34-20        Art. 3.96-7.  RIGHTS OF CUSTODIAL PARENT AND ADULT CHILD.
  34-21  (a)  If a child receives health insurance coverage through the
  34-22  insurer of a parent of the child, that insurer must provide
  34-23  information and documents to each custodial parent or an adult
  34-24  child as necessary for the child to obtain benefits through that
  34-25  coverage, including:
  34-26              (1)  the name of the insurer;
  34-27              (2)  the number of the policy;
   35-1              (3)  a copy of the policy and schedule of benefits;
   35-2              (4)  a health insurance membership card;
   35-3              (5)  claim forms; and
   35-4              (6)  any other information or document necessary to
   35-5  submit a claim in accordance with the insurer's policies and
   35-6  procedures.
   35-7        (b)  The insurer shall permit a custodial parent, a health
   35-8  care provider, adult child, or a state agency that has been
   35-9  assigned medical support rights to submit claims for covered
  35-10  services without the approval of the insured parent.
  35-11        (c)  The insurer shall make payments on covered claims
  35-12  submitted in accordance with this article directly to the custodial
  35-13  parent, health care provider, adult child, or state agency making
  35-14  the claim.
  35-15        Art. 3.96-8.  SERVICE AREA RESTRICTIONS PROHIBITED.  An
  35-16  insurer may not enforce otherwise applicable provisions that would
  35-17  deny, limit, or reduce payment for claims for a covered child who
  35-18  lives outside the insurer's coverage territory but inside the
  35-19  United States.
  35-20        Art. 3.96-9.  PENALTIES; REMEDIES.  An insurer that violates
  35-21  this subchapter is subject to the same penalties, and an injured
  35-22  party has the same rights and remedies, as those provided by
  35-23  Section 16, Article 21.21, of this code.
  35-24        Art. 3.96-10.  RULES.  The commissioner shall adopt
  35-25  reasonable rules as necessary to implement this subchapter and the
  35-26  requirements of 42 U.S.C. Section 1396a(a)(60), including rules
  35-27  defining acts that constitute unfair or deceptive practices under
   36-1  Section 13, Article 21.21, of this code.
   36-2        SECTION 4.02.  Section 101.012, Family Code, as added by H.B.
   36-3  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   36-4  amended to read as follows:
   36-5        Sec. 101.012.  EMPLOYER.  "Employer" means a person,
   36-6  corporation, partnership, workers' compensation insurance carrier,
   36-7  governmental entity, and the United States, and includes, for
   36-8  purposes of enrolling dependents in a group health insurance plan,
   36-9  a union, trade association, or other similar organization.
  36-10        SECTION 4.03.  Section 154.184, Family Code, as added by H.B.
  36-11  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  36-12  amended to read as follows:
  36-13        Sec. 154.184.  EFFECT OF ORDER.  (a)  Receipt of <For
  36-14  purposes of enrolling a child in a health insurance program under
  36-15  this subchapter,> a medical support order requiring that health
  36-16  insurance be provided for a child shall be considered a change in
  36-17  the family circumstances of the employee or member, for health
  36-18  insurance purposes, <covered person> equivalent to the birth or
  36-19  adoption of a child <by the covered person>.
  36-20        (b)  The <On receipt of the order by the employer, the> child
  36-21  shall be automatically enrolled for the first 31 days after the
  36-22  receipt of the order by the employer on the same terms and
  36-23  conditions as apply to any other <a> dependent child.
  36-24        (c)  The <On receipt of the order by the employer, the>
  36-25  employer shall notify the insurer of the automatic enrollment.
  36-26        (d)  During the 31-day period, the employer and insurer shall
  36-27  complete all necessary forms and procedures to make the enrollment
   37-1  permanent or shall report in accordance with this subchapter the
   37-2  reasons the coverage cannot be made permanent <policyholder shall
   37-3  apply for coverage for the child in accordance with the medical
   37-4  support order>.
   37-5        SECTION 4.04.  Section 154.186, Family Code, as added by H.B.
   37-6  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   37-7  amended to read as follows:
   37-8        Sec. 154.186.  NOTICE TO EMPLOYER.  The obligee, obligor, or
   37-9  a child support <local domestic relations office, or Title IV-D>
  37-10  agency may send a <certified> copy of the order requiring an
  37-11  employee to provide health insurance coverage for a <the> child to
  37-12  the employer <by certified mail, return receipt requested.  The
  37-13  order is binding on the employer on receipt>.
  37-14        SECTION 4.05.  Section 154.187, Family Code, as added by H.B.
  37-15  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  37-16  amended by amending Subsections (a) and (c) and by adding
  37-17  Subsection (g) to read as follows:
  37-18        (a)  An order to an employer directing that health insurance
  37-19  coverage be provided to a child of an employee or member is binding
  37-20  on the employer on receipt.  If the employee or member is eligible
  37-21  for dependent health coverage for the child, the <On receipt of an
  37-22  order directing that health insurance coverage be extended to a
  37-23  child of an employee, an> employer shall immediately enroll the
  37-24  child in a health insurance plan <available to the employee.  If
  37-25  the employer is not able to immediately enroll the child, the
  37-26  employer shall enroll the child at the next available enrollment
  37-27  period as a dependent of the employee>.  If dependent coverage is
   38-1  not available to the employee or member through the employer's
   38-2  health insurance plan or<,> the employer <is responsible for
   38-3  providing notice of this fact but> is not responsible or otherwise
   38-4  liable for providing such coverage, the employer shall provide
   38-5  notice to the sender in accordance with Subsection (c).
   38-6        (c)  An employer who has received an order under this
   38-7  subchapter shall provide to the sender, by first class mail not
   38-8  later than the 30th day after the date the employer receives the
   38-9  order, a statement that the child:
  38-10              (1)  has been enrolled in a health insurance plan; or
  38-11              (2)  <will be enrolled in a health insurance plan at
  38-12  the next available enrollment period and provide the expected date
  38-13  of such enrollment; or>
  38-14              <(3)>  cannot be enrolled in a health insurance plan
  38-15  and provide the reason why coverage cannot be provided.
  38-16        (g)  An employer who fails to enroll a child, fails to
  38-17  withhold or remit premiums or cash medical support, or
  38-18  discriminates in hiring or employment on the basis of a medical
  38-19  support order shall be subject to the penalties and fines in
  38-20  Subchapter C, Chapter 158.
  38-21        SECTION 4.06.  Section 154.192, Family Code, as added by H.B.
  38-22  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  38-23  amended to read as follows:
  38-24        Sec. 154.192.  CANCELLATION OR ELIMINATION OF INSURANCE
  38-25  COVERAGE FOR CHILD <HEALTH MAINTENANCE ORGANIZATION>.  (a)  Unless
  38-26  the employee or member ceases to be eligible for dependent coverage
  38-27  or the employer has eliminated dependent health coverage for all of
   39-1  the employer's employees or members, the employer may not cancel or
   39-2  eliminate coverage of a child enrolled under this subchapter until
   39-3  the employer is provided satisfactory written evidence that:
   39-4              (1)  the court order or administrative order requiring
   39-5  the coverage is no longer in effect; or
   39-6              (2)  the child is enrolled in comparable health
   39-7  insurance coverage or will be enrolled in comparable coverage that
   39-8  will take effect not later than the effective date of the
   39-9  cancellation or elimination of the employer's coverage.  <This
  39-10  subchapter does not require a health maintenance organization to
  39-11  provide coverage to a child who resides outside the geographic
  39-12  service area.>
  39-13        SECTION 4.07.  Subsection (a), Section 158.206, Family Code,
  39-14  as added by H.B. No. 655, Acts of the 74th Legislature, Regular
  39-15  Session, 1995, is amended to read as follows:
  39-16        (a)  An employer receiving an order or writ of withholding,
  39-17  including an order directing that health insurance be provided to a
  39-18  child, who complies with the order or writ is not liable to the
  39-19  obligor for the amount of income withheld and paid as provided in
  39-20  the order or writ.
  39-21    ARTICLE 5.  EFFECTIVE DATE AND TRANSITION PROVISIONS; EMERGENCY
  39-22        SECTION 5.01.  (a)  This Act takes effect September 1, 1995.
  39-23        (b)  Subchapter J, Chapter 3, Insurance Code, as added by
  39-24  Section 4.01 of this Act, applies only to an insurance policy or
  39-25  evidence of coverage that is delivered, issued for delivery, or
  39-26  renewed on or after January 1, 1996.  A policy or evidence of
  39-27  coverage that is delivered, issued for delivery, or renewed before
   40-1  January 1, 1996, is governed by the law as it existed immediately
   40-2  before the effective date of this Act, and that law is continued in
   40-3  effect for that purpose.
   40-4        (c)  The Office of the Attorney General may exercise the
   40-5  contracting authority granted in Section 231.0011, Family Code, as
   40-6  added by Section 1.01 of this Act, to provide for a phased
   40-7  implementation of the statewide integrated system for child support
   40-8  and medical support enforcement, and shall implement the system to
   40-9  the extent that locally generated funds and federal reimbursement
  40-10  related to such funds are sufficient to pay for implementation.
  40-11        (d)  The Office of Court Administration of the Texas Judicial
  40-12  System may phase in the monthly report required by Section 71.035,
  40-13  Government Code, as amended by Section 2.05 of this Act, to
  40-14  correspond with the phased implementation of the statewide
  40-15  integrated system for child support and medical support enforcement
  40-16  described in Section 231.0011, Family Code, as added by Section
  40-17  1.01 of this Act.
  40-18        (e)  If before implementing any provision of this Act, the
  40-19  attorney general, the Texas Department of Health, the Texas
  40-20  Department of Human Services, or another affected agency determines
  40-21  that a waiver or authorization from a federal agency is necessary
  40-22  for implementation of that provision, the affected agency shall
  40-23  promptly apply for a waiver, and the provision shall take effect
  40-24  when necessary waivers have been granted.  A copy of each waiver
  40-25  request shall be provided to the governor, the lieutenant governor,
  40-26  and the speaker of the house of representatives.
  40-27        (f)  For the purpose of implementing the integrated system
   41-1  established by Section 231.0011, Family Code, as added by Section
   41-2  1.01 of this Act and Section 71.035, Government Code, as amended by
   41-3  Section 2.05 of this Act, all funds received from the federal
   41-4  government as reimbursement for expenses directly related to the
   41-5  integrated system, including the federal match for locally
   41-6  generated funds, shall be in excess of any amount appropriated to
   41-7  the attorney general by other Acts of the 74th Legislature, and are
   41-8  hereby appropriated to the attorney general for the fiscal years
   41-9  ending August 31, 1996, and August 31, 1997.
  41-10        SECTION 5.02.  Not later than December 1, 1996, the attorney
  41-11  general shall report to the legislature an estimate of the cost
  41-12  savings to the state and effectiveness of the expansion of child
  41-13  support enforcement services and of privatization efforts.
  41-14        SECTION 5.03.  (a)  The Office of the Attorney General, in
  41-15  conjunction with the Texas Department of Human Services, shall
  41-16  develop and implement a plan to assign a representative to work
  41-17  with department eligibility workers in department offices or
  41-18  facilities that are located in the same geographic region as
  41-19  offices or facilities of the attorney general.  The plan shall:
  41-20              (1)  include a schedule for implementation; and
  41-21              (2)  provide that the Office of the Attorney General
  41-22  may make a work assignment under this subsection only if the
  41-23  anticipated increased collection of child support for public
  41-24  assistance cases is greater than the cost of placing the
  41-25  representative in a department office or facility.
  41-26        (b)  Not later than October 1, 1995, the attorney general
  41-27  shall complete the plan required by this section and send notice of
   42-1  filing the completed plan to the governor, the lieutenant governor,
   42-2  and the speaker of the house of representatives.
   42-3        (c)  The attorney general and the Texas Department of Human
   42-4  Services shall prepare the initial memorandum of understanding
   42-5  required by Section 1.07 of this Act not later than December 1,
   42-6  1995.
   42-7        SECTION 5.04.  The change in law made by Subchapter E,
   42-8  Chapter 231, Family Code, as amended by this Act, applies only to a
   42-9  child support review for which notice is given on or after the
  42-10  effective date of this Act.  A child support review for which
  42-11  notice is given before that date is governed by the law in effect
  42-12  at the time notice was given, and the former law is continued in
  42-13  effect for that purpose.
  42-14        SECTION 5.05.  (a)  Section 3.01 of this Act expires
  42-15  September 2, 1997.
  42-16        (b)  Subsection (b), Section 3.02, and Section 3.03 of this
  42-17  Act expire January 1, 1997.
  42-18        SECTION 5.06.  The importance of this legislation and the
  42-19  crowded condition of the calendars in both houses create an
  42-20  emergency and an imperative public necessity that the
  42-21  constitutional rule requiring bills to be read on three several
  42-22  days in each house be suspended, and this rule is hereby suspended.