S.B. No. 793
                                        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 work group 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 work group shall include representatives of
   2-12  the judiciary, district clerks, and domestic relations offices, as
   2-13  well as other interested agencies, organizations, and individuals.
   2-14  The work group 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 work
   2-19  group established by this section, develop technical standards for
   2-20  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 Sections 231.113 and 231.114 to
   5-24  read as 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        Sec. 231.114.  REPORTS OF CHILD SUPPORT PAYMENTS TO CONSUMER
    6-7  REPORTING AGENCIES.  (a)  The Title IV-D agency shall make
    6-8  information available in accordance with this section to a consumer
    6-9  reporting agency regarding the amount of child support owed and the
   6-10  amount paid by an obligor in a Title IV-D case.
   6-11        (b)  Before disclosing the information to consumer reporting
   6-12  agencies, the Title IV-D agency shall send the obligor a notice by
   6-13  mail to the obligor's last known address.  The notice must include:
   6-14              (1)  the information to be released, including the
   6-15  amount of the obligor's child support obligation and delinquency,
   6-16  if any, that will be reported;
   6-17              (2)  the procedure available for the obligor to contest
   6-18  the accuracy of the information; and
   6-19              (3)  a statement that the information will be released
   6-20  if the obligor fails to contest the disclosure before the 30th day
   6-21  after the date of mailing of the notice.
   6-22        (c)  If the obligor does not contest the disclosure within
   6-23  the period specified by Subsection (b), the Title IV-D agency shall
   6-24  make the information available to the consumer reporting agency.
   6-25        (d)  The Title IV-D agency shall regularly update the
   6-26  information released to a consumer reporting agency under this
   6-27  section to ensure the accuracy of the released information.
    7-1        (e)  The Title IV-D agency may charge a consumer reporting
    7-2  agency a reasonable fee for making information available under this
    7-3  section, including all applicable mailing costs.
    7-4        (f)  In this section:
    7-5              (1)  "Consumer reporting agency" means any person that
    7-6  regularly engages in whole or in part in the practice of assembling
    7-7  or evaluating consumer credit information or other information on
    7-8  consumers for monetary fees, for dues, or on a cooperative
    7-9  nonprofit basis, to furnish consumer reports to third parties.
   7-10              (2)  "Obligor" means any person required to make
   7-11  payments under the terms of a support order for a child.
   7-12              (3)  "Title IV-D case" means a case in which services
   7-13  are being provided by the Title IV-D agency under Part D of Title
   7-14  IV of the federal Social Security Act (42 U.S.C. Section 651 et
   7-15  seq.) seeking to locate an absent parent, determine parentage, or
   7-16  establish, modify, enforce, or monitor a child support obligation.
   7-17        SECTION 1.04.  Section 231.202, Family Code, as added by H.B.
   7-18  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   7-19  amended to read as follows:
   7-20        Sec. 231.202.  AUTHORIZED COSTS AND FEES IN TITLE IV-D CASES.
   7-21  In a Title IV-D case filed under this title, the Title IV-D agency
   7-22  shall pay:
   7-23              (1)  filing fees and fees for issuance and service of
   7-24  process as provided by Chapter 110 of this code and by Sections
   7-25  51.317, 51.318(b)(2), and 51.319(4), Government Code;
   7-26              (2)  fees for transfer as provided by Chapter 110;
   7-27              (3)  fees for the issuance and delivery of orders and
    8-1  writs of income withholding in the amounts provided by Chapter 110;
    8-2  and
    8-3              (4)  a fee of $45 for each item of process to each
    8-4  individual on whom service is required, including service by
    8-5  certified or registered mail, to be paid to a sheriff, constable,
    8-6  or clerk whenever service of process is required<; and>
    8-7              <(5)  mileage costs incurred by a sheriff or constable
    8-8  when traveling out of the county to execute an outstanding warrant
    8-9  or capias, to be reimbursed at a rate not to exceed the rate
   8-10  provided for mileage incurred by state employees in the General
   8-11  Appropriations Act>.
   8-12        SECTION 1.05.  Section 231.209, Family Code, as added by H.B.
   8-13  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   8-14  amended to read as follows:
   8-15        Sec. 231.209.  PAYMENT FOR SERVICES NOT AFFECTED BY THIS
   8-16  SUBCHAPTER.  Without regard to this subchapter and specifically
   8-17  Section 231.205, the Title IV-D agency may pay the costs for:
   8-18              (1)  the services of an official court reporter for the
   8-19  preparation of statements of facts;
   8-20              (2)  <and> the costs for the publication of citation
   8-21  served by publication; and
   8-22              (3)  mileage or other reasonable travel costs incurred
   8-23  by a sheriff or constable when traveling out of the county to
   8-24  execute an outstanding warrant or capias, to be reimbursed at a
   8-25  rate not to exceed the rate provided for mileage or other costs
   8-26  incurred by state employees in the General Appropriations Act.
   8-27        SECTION 1.06.  Section 231.304, Family Code, as added by H.B.
    9-1  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
    9-2  amended by amending Subsections (b) and (h) and by adding
    9-3  Subsections (j), (k), (l), and (m) to read as follows:
    9-4        (b)  The Title IV-D agency, the Texas Department of Human
    9-5  Services, the Texas Workers' Compensation Commission, and the Texas
    9-6  Employment Commission shall create and develop a voluntary ENHR
    9-7  program to provide a means for employers to assist in the state's
    9-8  efforts to prevent fraud in the welfare, workers' compensation, and
    9-9  unemployment insurance programs, locate absent parents who owe
   9-10  child support, and collect support from those parents by reporting
   9-11  information concerning newly hired and rehired employees directly
   9-12  to a centralized state database <the child support enforcement
   9-13  program>.  In order to encourage use of the ENHR program, employer
   9-14  reporting requirements shall be simplified and standardized.
   9-15        (h)  Subject to approval of the agencies involved and any
   9-16  requirements of federal law, the centralized database shall make
   9-17  the information on <For> each employee reported under the ENHR
   9-18  program available for:
   9-19              (1)  purposes directly connected with the
   9-20  administration of a plan or program for unemployment benefits,
   9-21  workers' compensation benefits, child support, or public
   9-22  assistance;
   9-23              (2)  an investigation or a civil or criminal
   9-24  prosecution relating to the administration of such plan or program;
   9-25  or
   9-26              (3)  the administration of any other federal or
   9-27  federally assisted program which provides assistance, in cash or in
   10-1  kind, or services, directly to individuals on the basis of need<,
   10-2  the Title IV-D agency shall retain the information only if the
   10-3  agency is responsible for establishing, enforcing, or collecting a
   10-4  support obligation or debt of the employee or reporting to a court,
   10-5  domestic relations office, or a friend of the court the location of
   10-6  a parent who is denying possession of or access to a person with a
   10-7  valid possession order.  If the agency does not have any of those
   10-8  responsibilities, the agency may not create a record regarding the
   10-9  employee and the information contained in the notice shall be
  10-10  promptly destroyed>.
  10-11        (j)  An employer participating in the ENHR program is
  10-12  strongly encouraged to report information about health insurance
  10-13  coverage available through the employer in which a dependent child
  10-14  may be enrolled under Subchapter D, Chapter 154.
  10-15        (k)  To expand the ENHR program, the Title IV-D agency shall
  10-16  work closely with the Texas Employment Commission, the Texas
  10-17  Workers' Compensation Commission, the comptroller, the Texas
  10-18  Department of Commerce, the secretary of state, and employer
  10-19  groups.  Efforts to expand the program shall include:
  10-20              (1)  regularly sending to employers solicitations for
  10-21  participation in the program and promotional information about the
  10-22  program that includes information on:
  10-23                    (A)  the program's impact on child support and
  10-24  medical support enforcement;
  10-25                    (B)  savings in public assistance payments
  10-26  attributable to the program;
  10-27                    (C)  benefits to employers and taxpayers of the
   11-1  fraud prevention aspects of the program;
   11-2                    (D)  participation requirements; and
   11-3                    (E)  awards available for business participation;
   11-4  and
   11-5              (2)  developing a public awareness program that:
   11-6                    (A)  stresses the importance of securing
   11-7  financial support for all children; and
   11-8                    (B)  informs the public about the ENHR program.
   11-9        (l)  The affected agencies may pool resources, develop a cost
  11-10  allocation plan, determine the most cost-effective means of
  11-11  establishing and funding the required database, and issue rules,
  11-12  solicit bids, or enter into contracts to carry out the purposes of
  11-13  this section.
  11-14        (m)  The affected agencies shall implement the plan to create
  11-15  the ENHR database, if cost-effective, using existing funding and
  11-16  considering savings and revenue gains that may result from the use
  11-17  of such system.
  11-18        SECTION 1.07.  Subchapter D, Chapter 231, Family Code, as
  11-19  added by H.B. No. 655, Acts of the 74th Legislature, Regular
  11-20  Session, 1995, is amended by adding Section 231.305 to read as
  11-21  follows:
  11-22        Sec. 231.305.  MEMORANDUM OF UNDERSTANDING ON CHILD SUPPORT
  11-23  FOR CHILDREN RECEIVING PUBLIC ASSISTANCE.  (a)  The Title IV-D
  11-24  agency and the Texas Department of Human Services by rule shall
  11-25  adopt a memorandum of understanding governing the establishment and
  11-26  enforcement of court-ordered child support in cases involving
  11-27  children who receive financial assistance under Chapter 31, Human
   12-1  Resources Code.  The memorandum shall require the agency and the
   12-2  department to:
   12-3              (1)  develop procedures to ensure that the information
   12-4  the department is required to collect to establish and enforce
   12-5  child support:
   12-6                    (A)  is collected from the person applying to
   12-7  receive the financial assistance at the time the application is
   12-8  filed;
   12-9                    (B)  is accurate and complete when the department
  12-10  forwards the information to the agency; and
  12-11                    (C)  is not information previously reported to
  12-12  the agency;
  12-13              (2)  develop procedures to ensure that the agency does
  12-14  not duplicate the efforts of the department in gathering necessary
  12-15  information;
  12-16              (3)  clarify each agency's responsibilities in the
  12-17  establishment and enforcement of child support; and
  12-18              (4)  develop guidelines for use by eligibility workers
  12-19  and child support enforcement officers in obtaining from an
  12-20  applicant the information required to establish and enforce child
  12-21  support for that child.
  12-22        (b)  The Title IV-D agency and the Texas Department of Human
  12-23  Services semiannually shall review and renew or modify the
  12-24  memorandum as necessary.
  12-25        SECTION 1.08.  Subsection (c), Section 231.108, Family Code,
  12-26  as added by H.B. No. 655, Acts of the 74th Legislature, Regular
  12-27  Session, 1995, is amended to read as follows:
   13-1        (c)  The Title IV-D agency may use or release information
   13-2  from the files and records, including information that results from
   13-3  a communication made by a recipient of financial assistance under
   13-4  Chapter 31, Human Resources Code, or by an applicant for or
   13-5  recipient of services under this chapter, for purposes directly
   13-6  connected with the administration of the child support, paternity
   13-7  determination, parent locator, or aid to families with dependent
   13-8  children programs.  The Title IV-D agency may release information
   13-9  from the files and records to a consumer reporting agency in
  13-10  accordance with Section 231.114.
  13-11         ARTICLE 2.  ENFORCEMENT OF CHILD SUPPORT AND MEDICAL
  13-12                          SUPPORT OBLIGATIONS
  13-13        SECTION 2.01.  Section 101.005, Family Code, as added by H.B.
  13-14  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  13-15  amended to read as follows:
  13-16        Sec. 101.005.  CHILD SUPPORT REVIEW OFFICER.  "Child support
  13-17  review officer" means an individual designated and trained by a
  13-18  child support agency to conduct reviews under this title <who has
  13-19  received family law mediation training>.
  13-20        SECTION 2.02.  Section 102.007, Family Code, as added by H.B.
  13-21  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  13-22  amended to read as follows:
  13-23        Sec. 102.007.  STANDING OF TITLE IV-D AGENCY.  In providing
  13-24  services authorized by Chapter 231, the Title IV-D agency or a
  13-25  political subdivision contracting with the attorney general to
  13-26  provide Title IV-D services under this title may file a child
  13-27  support action authorized under this title, including a suit for
   14-1  modification or a motion for enforcement.
   14-2        SECTION 2.03.  Subchapter D, Chapter 231, Family Code, as
   14-3  added by H.B. No. 655, Acts of the 74th Legislature, Regular
   14-4  Session, 1995, is amended by adding Section 231.306 to read as
   14-5  follows:
   14-6        Sec. 231.306.  MAXIMIZING MEDICAL SUPPORT ESTABLISHMENT AND
   14-7  COLLECTION BY THE TITLE IV-D AGENCY.  (a)  On the installation of
   14-8  an automated child support enforcement system, the Title IV-D
   14-9  agency is strongly encouraged to:
  14-10              (1)  maximize the collection of medical support; and
  14-11              (2)  establish cash medical support orders for children
  14-12  eligible for medical assistance under the state Medicaid program
  14-13  for whom private insurance coverage is not available.
  14-14        (b)  In this section, "medical support" has the meaning
  14-15  assigned by Section 101.020.
  14-16        SECTION 2.04.  Subchapter E, Chapter 231, Family Code, as
  14-17  added by H.B. No. 655, Acts of the 74th Legislature, Regular
  14-18  Session, 1995, is amended to read as follows:
  14-19      SUBCHAPTER E.  CHILD SUPPORT REVIEW PROCESS TO ESTABLISH OR
  14-20                      ENFORCE SUPPORT OBLIGATIONS
  14-21        Sec. 231.401.  Purpose.  The purpose of the child support
  14-22  review process authorized by this subchapter is to provide child
  14-23  support agencies an opportunity to resolve routine child support
  14-24  actions through <negotiation,> agreement of the parties<,> or
  14-25  uncontested orders.
  14-26        Sec. 231.402.  AGREEMENTS ENCOURAGED.  To the extent
  14-27  permitted by this subchapter, child support agencies shall make the
   15-1  child support review process understandable to all parties and
   15-2  shall encourage agreements <through mediation>.
   15-3        Sec. 231.403.  Bilingual Forms Required.  A notice or other
   15-4  form used to implement the child support review process shall be
   15-5  printed in both Spanish and English.
   15-6        Sec. 231.404.  INTERPRETER REQUIRED.  If a party
   15-7  participating in a negotiation conference does not speak English or
   15-8  is hearing impaired, the child support agency shall provide for
   15-9  interpreter services at no charge to the parties.
  15-10        Sec. 231.405.  Initiating Child Support Review.  <(a)  A
  15-11  child support agency may review and assess the financial resources
  15-12  of a child's parent or of a person presumed or alleged to be the
  15-13  child's father from whom child support is requested to determine
  15-14  the resources that are available for the support of the child and
  15-15  to determine what action is appropriate.>
  15-16        <(b)>  An administrative action under this subchapter may be
  15-17  initiated by issuing a notice of child support review to each party
  15-18  entitled to notice <the parents and to the presumed or alleged
  15-19  father of a child>.
  15-20        Sec. 231.406.  CONTENTS OF NOTICE OF CHILD SUPPORT REVIEW.
  15-21  (a)  The notice of child support review must:
  15-22              (1)  describe the procedure for a child support review;
  15-23              (2)  inform the recipient that the recipient <is not
  15-24  required to participate in the child support review and> may be
  15-25  represented by legal counsel during the review process or at a
  15-26  court hearing;
  15-27              (3)  inform the recipient that the recipient may refuse
   16-1  to participate or cease participation in the child support review
   16-2  process, but that the refusal by the recipient to participate will
   16-3  not prevent the completion of the process or the filing of a child
   16-4  support review order <during any stage of the review but that the
   16-5  review will continue to completion and that afterward the recipient
   16-6  may request a court hearing>;
   16-7              (4)  include an affidavit of financial resources; and
   16-8              (5)  include a request that the recipient designate, on
   16-9  a form provided by the child support agency, an address for mailing
  16-10  any additional notice to the recipient.
  16-11        (b)  In addition to the information required by Subsection
  16-12  (a), the notice of child support review must inform the recipient
  16-13  that:
  16-14              (1)  the information requested on the form must be
  16-15  returned to the child support agency not later than the 15th day
  16-16  after the date the notice is received or delivered; and
  16-17              (2)  if the requested information is not returned as
  16-18  required, the child support agency:
  16-19                    (A)  may proceed with the review using the
  16-20  information that is available to the agency; and
  16-21                    (B)  may file a legal action without further
  16-22  notice to the recipient, except as otherwise required by law.
  16-23        Sec. 231.407.  Notice by Mail.  (a)  A notice required in an
  16-24  administrative action under this subchapter must be delivered or
  16-25  served by first class mail or certified mail on each party entitled
  16-26  to citation or notice as provided by Chapter 102.
  16-27        (b)  <If notice is served by mail, three days must be added
   17-1  to the time in which the person is required to respond.>
   17-2        <(c)>  This section does not apply to notice required on
   17-3  filing of a child support review order or to later judicial
   17-4  actions.
   17-5        Sec. 231.408.  Administrative Subpoena in Child Support
   17-6  Review.  (a)  In a child support review under this subchapter, a
   17-7  child support agency may issue an administrative subpoena to <a
   17-8  parent, a person presumed or alleged to be the father of a child
   17-9  for whom support is requested, or> any individual or organization
  17-10  believed to have information on the financial resources of the
  17-11  parent or presumed or alleged father.
  17-12        (b)  A court may compel compliance with an administrative
  17-13  subpoena and award attorney's fees and costs to a child support
  17-14  agency enforcing an administrative subpoena on proof that an
  17-15  individual or organization failed to comply with the subpoena
  17-16  without good cause.
  17-17        Sec. 231.409.  SCHEDULING AND CONDUCTING NEGOTIATION
  17-18  CONFERENCE.  (a)  The child support agency may schedule a
  17-19  negotiation conference without a request from a party.
  17-20        (b)  The child support agency shall schedule a negotiation
  17-21  conference on the timely request of a party <person who completes
  17-22  and returns an affidavit of financial resources>.
  17-23        (c)  A negotiation conference, or any part of a negotiation
  17-24  conference, may be conducted by telephone conference call, by video
  17-25  conference, as well as in person.  The negotiation conference may
  17-26  be adjourned for a reasonable time to permit mediation of issues
  17-27  that cannot be resolved by the parties and the child support
   18-1  agency.
   18-2        Sec. 231.410.  TIME FOR NEGOTIATION CONFERENCE; NOTICE
   18-3  REQUIRED.  <(a)  A child support review or negotiation conference
   18-4  under this subchapter shall be conducted not later than the 45th
   18-5  day after the date all notices of child support review have been
   18-6  sent to the parties to the action.>
   18-7        <(b)>  All parties entitled to notice of the negotiation
   18-8  conference shall be notified of the date, time, and place of the
   18-9  negotiation conference not later than the 10th day before the date
  18-10  of the negotiation conference.
  18-11        Sec. 231.411.  RESCHEDULING NEGOTIATION CONFERENCE; NOTICE
  18-12  REQUIRED.  A negotiation conference may be rescheduled or adjourned
  18-13  on the request of any party at the discretion of the child support
  18-14  review officer.  All parties must be given notice of the
  18-15  rescheduling not later than the third day before the date of the
  18-16  rescheduled negotiation conference.
  18-17        Sec. 231.412.  INFORMATION REQUIRED TO BE PROVIDED AT
  18-18  NEGOTIATION CONFERENCE.  At the beginning of the negotiation
  18-19  conference, the child support review officer shall review with the
  18-20  <inform all> parties participating in the conference information
  18-21  provided in the notice of child support review and inform the
  18-22  parties <in attendance> that:
  18-23              (1)  the purpose of the negotiation conference is to
  18-24  provide an opportunity <attempt> to reach an agreement on a
  18-25  <regarding> child support order <payments>;
  18-26              (2)  <a party does not have to participate in the
  18-27  negotiation conference and may request a court hearing;>
   19-1              <(3)  a party may be represented by an attorney chosen
   19-2  by the party;>
   19-3              <(4)  the parties may stop participating in the
   19-4  negotiation conference at any time but that the child support
   19-5  review will continue until completed, and, if a child support
   19-6  review order is issued, a party may request a court hearing;>
   19-7              <(5)>  if the parties reach an agreement, the review
   19-8  officer will prepare an agreed review order <for the parties'
   19-9  signatures>;
  19-10              (3) <(6)>  a party does not have to sign a review order
  19-11  prepared by the child support review officer; and
  19-12              (4) <(7)  even though> a party <signs an agreed review
  19-13  order, the party> may request a court hearing at any time before
  19-14  the 20th day after the date a petition for confirmation of the
  19-15  order is filed <child support review order is confirmed by a
  19-16  court>.
  19-17        Sec. 231.413.  DETERMINING SUPPORT AMOUNT; MODIFICATION.
  19-18  (a)  A child support agency may use any information obtained by the
  19-19  agency from the parties or any other source and shall apply the
  19-20  child support guidelines provided by this code to determine the
  19-21  appropriate amount of child support.
  19-22        (b)  If the child support agency determines that the support
  19-23  amount in an existing child support order is not in substantial
  19-24  compliance with the guidelines, the child support agency shall
  19-25  issue an appropriate child support review order, including a review
  19-26  order that has the effect of modifying an existing order for child
  19-27  support without the necessity of filing a motion to modify.
   20-1        Sec. 231.414.  Record Not Required.  (a)  For the purposes of
   20-2  this subchapter, documentary evidence relied on by the child
   20-3  support review officer, including an <a written> affidavit of a
   20-4  party, together with<, the written findings, and> the child support
   20-5  review order is <from a negotiation conference are> a sufficient
   20-6  record of the proceedings.
   20-7        (b)  A child support agency is not required to make any other
   20-8  record or transcript of the negotiation conference.
   20-9        Sec. 231.415.  ISSUANCE OF CHILD SUPPORT REVIEW ORDER OR
  20-10  FINDING THAT NO ORDER SHOULD BE ISSUED; EFFECT.  (a)  If the
  20-11  negotiation conference does not result in agreement by all parties
  20-12  to the <an agreed> child support review order, the review officer
  20-13  shall promptly issue and sign a final decision in the form of a
  20-14  child support review order<,> or a determination that a child
  20-15  support review order should not be issued, not later than the fifth
  20-16  day after the date of the negotiation conference.
  20-17        (b)  If <On the day that a child support review order is
  20-18  issued or> a determination is made that a child support order will
  20-19  not be issued, each party to a child support review proceeding
  20-20  shall be furnished immediately by hand delivery or by mail notice
  20-21  of <a copy of the order or> the determination.
  20-22        (c)  A determination that a child support order should not be
  20-23  issued must include a statement of the reasons that an order is not
  20-24  being issued and does not affect the right of the agency or a party
  20-25  to request any other remedy provided by law.
  20-26        Sec. 231.416.  VACATING CHILD SUPPORT REVIEW ORDER.  (a)  The
  20-27  review officer may vacate a child support review order on the
   21-1  officer's own motion at any time before the order is filed with the
   21-2  court.
   21-3        (b)  A new negotiation conference, with notice to all
   21-4  parties, may <shall> be scheduled or the officer may make a
   21-5  determination that a child support review order should not be
   21-6  issued and give notice of that determination as provided by this
   21-7  subchapter <to take place not later than the 10th day after the
   21-8  date the child support review order was vacated>.
   21-9        Sec. 231.417.  CONTENTS OF CHILD SUPPORT REVIEW ORDER.
  21-10  (a)  An agreed child support review order must contain all
  21-11  provisions that are appropriate for an order under this title.
  21-12        (b)  A child support review order that is not agreed to must
  21-13  include child support and medical support provisions, including a
  21-14  determination of arrearages or retroactive support.
  21-15        (c)  A child support review order providing for the
  21-16  enforcement of an order may not contain a provision that imposes
  21-17  incarceration or a fine or contains a finding of contempt.
  21-18        (d)  A child support review order that establishes or
  21-19  modifies an amount of previously ordered support must include the
  21-20  findings required by Section 154.130.
  21-21        (e)  A child support review order that is not agreed to by
  21-22  all the parties may specify and reserve for the court at the
  21-23  confirmation hearing unresolved issues relating to conservatorship
  21-24  or possession of a child.
  21-25        Sec. 231.418.  ADDITIONAL CONTENTS OF AGREED CHILD SUPPORT
  21-26  REVIEW ORDER.  If a negotiation conference results in an agreement
  21-27  <by all parties>, the <a> child support review order must be signed
   22-1  by each party who agrees to the order, must contain the provisions
   22-2  required by Section 231.417, <all parties to the action> and, as to
   22-3  each party in agreement with the order, must contain:
   22-4              (1)  a waiver by the <each> party of the right to
   22-5  service <and> of process and <the right to> a court hearing and the
   22-6  making of a record on the petition for confirmation;
   22-7              (2)  the mailing address of the <each> party; and
   22-8              (3)  the following statement printed on the order in
   22-9  boldface or in all capital letters:
  22-10              "I KNOW THAT I DO NOT HAVE TO SIGN THIS <AGREED>
  22-11        CHILD SUPPORT REVIEW ORDER.  I KNOW THAT I HAVE A RIGHT
  22-12        TO BE PERSONALLY SERVED WITH THE PETITION FOR
  22-13        CONFIRMATION OF THIS ORDER <HAVE A COURT HEAR EVIDENCE
  22-14        AND MAKE A DECISION IN THIS MATTER>.  I KNOW THAT I
  22-15        HAVE A RIGHT TO CHANGE MY MIND AND WITHDRAW MY
  22-16        AGREEMENT TO THE TERMS OF THIS ORDER AND REQUEST THAT A
  22-17        COURT DECIDE THIS MATTER BY FILING A REQUEST FOR COURT
  22-18        HEARING AT ANY TIME BEFORE THE 20TH DAY AFTER THE DATE
  22-19        THE PETITION FOR CONFIRMATION OF THE ORDER IS FILED
  22-20        WITH THE CLERK OF THE COURT.  I KNOW THAT IF I FAIL TO
  22-21        FILE A REQUEST FOR A COURT HEARING A COURT MAY CONFIRM
  22-22        AND APPROVE THIS ORDER WITHOUT A HEARING, AND THE ORDER
  22-23        WILL BECOME A VALID COURT ORDER.  I KNOW THAT IF I DO
  22-24        NOT OBEY THE TERMS OF THIS ORDER I MAY BE HELD IN
  22-25        CONTEMPT OF COURT."
  22-26        Sec. 231.419.  FILING OF PETITION FOR CONFIRMATION.  (a)  The
  22-27  child support agency shall file a petition for confirmation with
   23-1  the clerk of the court having continuing jurisdiction of the child
   23-2  who is the subject of the order.
   23-3        (b)  If there is not a court of continuing jurisdiction, the
   23-4  child support agency shall file the petition for confirmation with
   23-5  the clerk of a court having jurisdiction under this title.
   23-6        Sec. 231.420.  CONTENTS OF PETITION FOR CONFIRMATION;
   23-7  DOCUMENTARY EVIDENCE TO BE FILED WITH PETITION.  (a)  A petition
   23-8  for confirmation shall <must> include the final child support
   23-9  review order as an attachment to the petition.
  23-10        (b)  Documentary evidence relied on by the child support
  23-11  agency, including, if applicable, a <verified written report of a
  23-12  paternity testing expert concerning the results of paternity
  23-13  testing conducted in the case or a> statement of paternity or a
  23-14  written report of a parentage testing expert, shall be filed with
  23-15  the clerk as exhibits to the petition, but are not required to be
  23-16  served on the parties.  The petition must identify the exhibits
  23-17  that are filed with the clerk.
  23-18        Sec. 231.421.  DUTIES OF CLERK OF COURT.  (a)  On the filing
  23-19  of a petition for confirmation, the clerk of court shall endorse on
  23-20  the petition the date and time that the petition is filed <and sign
  23-21  the endorsement>.
  23-22        (b)  If the petition is for an original action, the clerk
  23-23  shall endorse the appropriate court and cause number on the
  23-24  petition.
  23-25        (c)  If the petition is to confirm an agreed child support
  23-26  review order under this subchapter, the child support agency
  23-27  <clerk> shall mail to each party that agreed to the order, at the
   24-1  address shown on the order, a copy of the petition with <and
   24-2  written notice of the filing of the petition that states> the
   24-3  court, filing date, and cause number of the case.  The clerk shall
   24-4  note on the docket that the notice was mailed.  The child support
   24-5  agency shall file a certificate of service showing the date of the
   24-6  mailing to each party.
   24-7        (d)  The <If the petition is to confirm an order other than
   24-8  an agreed order, the> clerk shall issue service of citation,
   24-9  including a copy of the petition and the child support review
  24-10  order, to each party entitled to service who has not waived
  24-11  service.
  24-12        (e)  A clerk of a district court is entitled to collect in a
  24-13  child support review case the fees authorized in a Title IV-D case
  24-14  by this chapter <a fee for:>
  24-15              <(1)  the filing of a petition under this section as
  24-16  provided by Section 51.317(b)(1), Government Code;>
  24-17              <(2)  the issuance of notice or process as provided by
  24-18  Section 51.317(b)(4), Government Code; and>
  24-19              <(3)  service of notice or citation as provided by
  24-20  Section 51.319(4), Government Code, or as otherwise provided by
  24-21  law>.
  24-22        Sec. 231.422.  FORM TO REQUEST A COURT HEARING.  (a)  A court
  24-23  shall consider any responsive pleading that is intended as an
  24-24  objection to confirmation of a child support review order,
  24-25  including a general denial, as a request for a court hearing.
  24-26        (b)  The <A> child support agency shall:
  24-27              (1)  <attach a copy of a form to request a court
   25-1  hearing to each party's copy of the petition for confirmation of a
   25-2  child support review order;>
   25-3              <(2)>  make available to each clerk of court copies of
   25-4  the form to request a court hearing; and
   25-5              (2) <(3)>  provide the form to request a court hearing
   25-6  to a party to the child support review proceeding on request.
   25-7        (c)  The clerk shall furnish the form to a party to a
   25-8  proceeding under this subchapter on the request of the party.
   25-9        Sec. 231.423.  TIME TO REQUEST A COURT HEARING<; HEARING SUA
  25-10  SPONTE>.  <(a)>  A party may file a request for a court hearing not
  25-11  later than the 20th day after the date the petition for
  25-12  confirmation of a child support review order is served or mailed as
  25-13  provided by this subchapter <an agreed administrative order is
  25-14  filed or not later than the Monday following the 20th day after the
  25-15  date the party received service of citation in a case involving the
  25-16  confirmation of any other type of order>.
  25-17        <(b)  If the court finds that confirmation of a child support
  25-18  review order without a hearing would not be in the best interests
  25-19  of a child who is the subject of the order, the court may schedule
  25-20  a hearing.  The order setting the hearing on the confirmation of
  25-21  the order shall state the court's specific reasons for conducting
  25-22  the hearing.>
  25-23        Sec. 231.424.  CONFIRMATION WITHOUT HEARING.  Not later than
  25-24  the 30th day after the date a petition for confirmation that
  25-25  includes waivers by all parties is filed or after the date of
  25-26  service is made on the last party required to be served for a
  25-27  petition for confirmation that does not include waivers, whichever
   26-1  is later, the court shall confirm the child support review order by
   26-2  signing an order of confirmation unless a party has filed a timely
   26-3  request for hearing or the court has scheduled a hearing.
   26-4        Sec. 231.425.  EFFECT OF REQUEST FOR HEARING; PLEADING.
   26-5  (a)  A request for hearing or an order setting a hearing on
   26-6  confirmation stays confirmation of the order pending the hearing.
   26-7        (b)  At a hearing on confirmation, all issues in the child
   26-8  support review order shall be heard in a trial de novo.
   26-9        (c)  The petition for confirmation and the child support
  26-10  review order constitute a sufficient pleading by the child support
  26-11  agency for relief on any issue addressed in the petition and order.
  26-12        (d)  The request for hearing may limit the scope of the de
  26-13  novo hearing by specifying the issues that are in dispute.
  26-14        Sec. 231.426.  TIME FOR COURT HEARING.  A court shall hold a
  26-15  hearing on the confirmation of a child support review order not
  26-16  later than the 30th day after the date the <court determines that a
  26-17  hearing should be held or the> last party to be served files a
  26-18  timely request for a court hearing.
  26-19        Sec. 231.427.  ORDER AFTER HEARING; EFFECT OF CONFIRMATION
  26-20  ORDER.  (a)  After the hearing on the confirmation of a child
  26-21  support review order, the court shall:
  26-22              (1)  if the court finds that the order should be
  26-23  confirmed, immediately sign a confirmation order and enter the
  26-24  order as an order of the court;
  26-25              (2)  if the court finds that the relief granted in the
  26-26  child support review order is inappropriate, sign an appropriate
  26-27  order at the conclusion of the hearing or as soon after the
   27-1  conclusion of the hearing as is practical and enter the order as an
   27-2  order of the court; or
   27-3              (3)  if the court finds that all relief should be
   27-4  denied, enter an order that denies relief and includes specific
   27-5  findings explaining the reasons that relief is denied.
   27-6        (b)  On the signing of a confirmation order by the judge of
   27-7  the court, the child support review order becomes a final order
   27-8  <judgment> of the court.
   27-9        Sec. 231.428.  SPECIAL CHILD SUPPORT REVIEW PROCEDURES
  27-10  RELATING TO ESTABLISHMENT OF PARENTAGE <PATERNITY>.  (a)  If the
  27-11  parentage <paternity> of a child has not been established <by court
  27-12  order>, the notice of child support review served on the parties
  27-13  must include an allegation that the recipient <alleged father> is a
  27-14  <the> biological parent <father> of the child.  The notice shall
  27-15  inform the parties that the alleged father of the child may sign a
  27-16  statement of paternity and that any party may request that
  27-17  scientifically accepted parentage <paternity> testing be conducted
  27-18  to assist in determining the identities of <whether the alleged
  27-19  father is> the child's parents <father>.
  27-20        (b)  A negotiation conference shall be conducted to resolve
  27-21  any issues of support in an action in which all parties agree as to
  27-22  <that the alleged father is> the child's parentage <biological
  27-23  father>.
  27-24        (c)  If a party denies parentage <that the alleged father is
  27-25  the child's biological father or, in the case of a presumed father,
  27-26  if either party files a verified denial of paternity>, the child
  27-27  support agency may schedule parentage <paternity> testing.  If
   28-1  either party fails or refuses to participate in administrative
   28-2  parentage testing, the child support agency may file a child
   28-3  support review order with a request for court-ordered parentage
   28-4  testing.  The court shall follow the procedures and may impose the
   28-5  sanctions provided by this code to obtain compliance with the
   28-6  parentage testing order.  The court shall confirm the child support
   28-7  review order as a temporary or final order of the court only after
   28-8  an opportunity for parentage testing has been provided.
   28-9        (d)  If parentage <paternity> testing does not exclude the
  28-10  alleged parent and <father from being the child's father and a
  28-11  party continues to deny that the alleged father is the child's
  28-12  biological father, the child support agency may schedule a
  28-13  negotiation conference as provided by this subchapter.  If> the
  28-14  results of a verified written report of a parentage <paternity>
  28-15  testing expert meet the requirements of Chapter 160 for issuing a
  28-16  temporary order, the child support agency may issue a child support
  28-17  review order.
  28-18        (e)  If the results of parentage <paternity> testing exclude
  28-19  an <the> alleged parent <or presumed father> from being the
  28-20  biological parent <father> of the child, the child support agency
  28-21  shall issue a child support review order that declares that the
  28-22  excluded person <alleged or presumed father> is not a parent <the
  28-23  father> of the child.
  28-24        (f)  Any party may file a petition for confirmation of a
  28-25  child support review order issued under this section.
  28-26        Sec. 231.429.  ADMINISTRATIVE PROCEDURE LAW NOT APPLICABLE.
  28-27  The child support review process under this chapter is not governed
   29-1  by the administrative procedure law, Chapter 2001, Government Code.
   29-2        Sec. 231.430.  EXPIRATION OF SUBCHAPTER.  This subchapter
   29-3  expires September 1, 1997.
   29-4        Sec. 231.431.  STUDY OF CHILD SUPPORT REVIEW PROCESS.  The
   29-5  attorney general as the Title IV-D agency shall conduct a study to
   29-6  determine and compare the cost of child support enforcement through
   29-7  use of the child support review process authorized by this
   29-8  subchapter and the cost of child support enforcement by the
   29-9  attorney general through use of other enforcement mechanisms
  29-10  available under this chapter.  The attorney general shall report
  29-11  the results of this study to the governor and the legislature not
  29-12  later than September 1, 1996, and shall include in the report
  29-13  recommendations regarding statutory amendments for improving
  29-14  judicial and administrative processes for child support
  29-15  enforcement.  This section expires September 2, 1996.
  29-16        SECTION 2.05.  Subsection (a), Section 71.035, Government
  29-17  Code, is amended to read as follows:
  29-18        (a)  The council shall gather judicial statistics and other
  29-19  pertinent information from the several state judges and other court
  29-20  officials of this state.  In addition, the council shall implement
  29-21  a monthly tracking system to ensure accountability for counties and
  29-22  courts which participate in the statewide integrated system for
  29-23  child support and medical support enforcement established under
  29-24  Section 231.0011, Family Code.  As a duty of office, the district
  29-25  clerks and county clerks serving the affected courts shall report
  29-26  monthly such information as may be required by the council,
  29-27  including, at a minimum, the time required to enforce cases from
   30-1  date of delinquency, from date of filing, and from date of service
   30-2  until date of disposition.  Such information as is necessary to
   30-3  complete the report and not directly within the control of the
   30-4  district or county clerk, such as date of delinquency, shall be
   30-5  provided to the clerk by the child support registry or by the
   30-6  enforcement agency providing Title IV-D enforcement services in the
   30-7  court.  The monthly report shall be transmitted to the Office of
   30-8  Court Administration of the Texas Judicial System no later than the
   30-9  20th day of the month following the month reported, in such form as
  30-10  may be prescribed by the Office of Court Administration, which may
  30-11  include electronic data transfer.  Copies of such reports shall be
  30-12  maintained in the office of the appropriate district or county
  30-13  clerk for a period of at least two years and shall be available to
  30-14  the public for inspection and reproduction.
  30-15            ARTICLE 3.  INTERAGENCY COOPERATION AND STUDIES
  30-16        SECTION 3.01.  MONITORING IMPLEMENTATION OF THE STATEWIDE
  30-17  INTEGRATED SYSTEM FOR CHILD SUPPORT ENFORCEMENT.  (a)  The attorney
  30-18  general shall establish a work group to monitor the progress toward
  30-19  implementation of the statewide integrated system for child support
  30-20  and medical support enforcement established by Section 1.01 of this
  30-21  Act and determine the effect of that effort as it relates to:
  30-22              (1)  maximizing federal assistance for county-based
  30-23  child support collection efforts; and
  30-24              (2)  replacing the existing state child support
  30-25  enforcement application system with an automatic enforcement system
  30-26  that does not require an applicant to file a complaint.
  30-27        (b)  The work group established by this section shall report
   31-1  its findings and recommendations to the attorney general and shall
   31-2  notify the governor, the comptroller, and the legislature of the
   31-3  filing of the report not later than September 1, 1996, and annually
   31-4  thereafter.
   31-5        SECTION 3.02.  AGREEMENT FOR CASH INCENTIVES FOR MEDICAL
   31-6  ASSISTANCE.  (a)  The attorney general as the Title IV-D agency and
   31-7  the Texas Department of Health shall negotiate an agreement
   31-8  regarding the payment by the department of a cash incentive to the
   31-9  agency for each child eligible for medical assistance under the
  31-10  state Medicaid program that the agency causes to be enrolled in a
  31-11  private health insurance plan and for payment of a portion of the
  31-12  state share of costs recovered or saved as a result of the efforts
  31-13  of the agency.
  31-14        (b)  The attorney general and the Texas Department of Health
  31-15  shall report to the legislature the results of negotiations
  31-16  conducted under this section not later than October 1, 1996.
  31-17        SECTION 3.03.  STUDY ON MEDICAL SUPPORT.  (a)  The attorney
  31-18  general, the state Medicaid administrator, and the commissioner of
  31-19  insurance shall initiate a study regarding establishment of a
  31-20  health insurance purchasing alliance to purchase insurance coverage
  31-21  for children for whom a child support obligation is established or
  31-22  enforced under Part D of Title IV of the federal Social Security
  31-23  Act (42 U.S.C. Section 651 et seq.).
  31-24        (b)  Not later than October 1, 1996, the attorney general,
  31-25  the state Medicaid administrator, and the commissioner of insurance
  31-26  shall prepare and file a report summarizing the results of the
  31-27  study required by this section and shall give notice of filing the
   32-1  report to the:
   32-2              (1)  governor;
   32-3              (2)  lieutenant governor;
   32-4              (3)  speaker of the house of representatives;
   32-5              (4)  attorney general; and
   32-6              (5)  commissioner of health and human services.
   32-7        SECTION 3.04.  USE OF PRIVATE ENTITIES TO ASSIST IN CHILD
   32-8  SUPPORT ENFORCEMENT.  (a)  The Office of the Attorney General is
   32-9  strongly encouraged to expand the cost-effective use of private
  32-10  contractors to perform Title IV-D program functions.
  32-11        (b)  The Office of the Attorney General shall, not later than
  32-12  July 1, 1996, perform a cost analysis such as that used by the
  32-13  State Council on Competitive Government, for a standardized
  32-14  comparison of similar activities performed by private firms and the
  32-15  Office of the Attorney General.  If the costs of the Office of the
  32-16  Attorney General for identified activities of the Title IV-D agency
  32-17  are higher than a private contractor's costs and the contractor
  32-18  could deliver services as effectively as the Title IV-D agency, the
  32-19  agency may consider the contractor to perform the activities.  This
  32-20  section does not limit the authority of the Title IV-D agency to
  32-21  contract for services.
  32-22        (c)  The attorney general shall coordinate with the State
  32-23  Council on Competitive Government and may employ private
  32-24  consultants to develop the methodology and evaluate the activities
  32-25  being considered for privatization.
  32-26        (d)  The attorney general shall report the results of the
  32-27  efforts made under this section and notify the governor, the
   33-1  comptroller, and the legislature of the filing of the report not
   33-2  later than December 1, 1996.
   33-3        SECTION 3.05.  CHILD SUPPORT COLLECTION PRIVATIZATION
   33-4  COUNCIL.  (a)  To assist counties implementing the integrated
   33-5  system of child support and medical support enforcement established
   33-6  by Section 1.01 of this Act, the attorney general shall convene a
   33-7  Child Support Privatization Council, which shall include
   33-8  representatives of state and county officials, including fiscal
   33-9  officers.
  33-10        (b)  The council shall assist the attorney general, subject
  33-11  to federal approval, in implementing the provisions of this Act by
  33-12  helping to:
  33-13              (1)  develop criteria and standards for the selection
  33-14  of private collectors of child support to provide services under
  33-15  subcontract with the participating counties;
  33-16              (2)  develop and provide for use by the counties a
  33-17  model request for proposal for the selection of private child
  33-18  support collectors, which shall take into account the funding and
  33-19  cost-effectiveness of the program;
  33-20              (3)  establish guidelines and suggest minimum
  33-21  qualifications of private collectors, which shall include a
  33-22  recommendation that private collectors performing legal work should
  33-23  be attorneys licensed to practice in this state with not less than
  33-24  five years of experience in suits affecting the parent-child
  33-25  relationship;
  33-26              (4)  suggest procedures and models, consistent with
  33-27  federal requirements for the Title IV-D program, for the effective
   34-1  participation of private child support collectors in the unified
   34-2  enforcement system; and
   34-3              (5)  engage in other activities necessary to encourage
   34-4  the cost-effective utilization of private collectors in the
   34-5  integrated system established by this Act.
   34-6        SECTION 3.06.  Subsection (b), Section 151.0036, Tax Code, is
   34-7  amended to read as follows:
   34-8        (b)  "Debt collection service" does not include the
   34-9  collection of:
  34-10              (1)  a judgment by an attorney or by a partnership or
  34-11  professional corporation of attorneys if the attorney, partnership,
  34-12  or corporation represented the person in the suit from which the
  34-13  judgment arose; or
  34-14              (2)  court-ordered child support or medical child
  34-15  support.
  34-16                     ARTICLE 4.  HEALTH INSURANCE
  34-17        SECTION 4.01.  Chapter 3, Insurance Code, is amended by
  34-18  adding Subchapter J to read as follows:
  34-19                 SUBCHAPTER J.  MEDICAL CHILD SUPPORT
  34-20        Art. 3.96-1.  DEFINITIONS.  In this subchapter:
  34-21              (1)  "Child" has the meaning assigned by Subsections
  34-22  (a) and (b), Section 101.003, Family Code.
  34-23              (2)  "Child support agency" has the meaning assigned by
  34-24  Section 101.004, Family Code.
  34-25              (3)  "Custodial parent" means:
  34-26                    (A)  a managing conservator of a child or a
  34-27  possessory conservator of a child who is a parent of the child; or
   35-1                    (B)  a guardian of the person of a child, or
   35-2  another custodian of a child if the guardian or custodian is
   35-3  designated by a court or administrative agency of this or another
   35-4  state.
   35-5              (4)  "Health insurer" means any insurance company,
   35-6  group hospital service corporation, or health maintenance
   35-7  organization that delivers or issues for delivery an individual,
   35-8  group, blanket, or franchise insurance policy or insurance
   35-9  agreement, a group hospital service contract, or an evidence of
  35-10  coverage that provides benefits for medical or surgical expenses
  35-11  incurred as a result of an accident or sickness.
  35-12              (5)  "Insurer" means:
  35-13                    (A)  a health insurer;
  35-14                    (B)  a governmental entity subject to:
  35-15                          (i)  Article 3.51-1, 3.51-2, 3.51-4,
  35-16  3.51-5, or 3.51-5A of this code; or
  35-17                          (ii)  Section 1, Chapter 123, Acts of the
  35-18  60th Legislature, Regular Session, 1967 (Article 3.51-3, Vernon's
  35-19  Texas Insurance Code);
  35-20                    (C)  a multiple employer welfare arrangement, as
  35-21  that term is defined by Article 3.95-1 of this code; or
  35-22                    (D)  a group health plan, as defined by Section
  35-23  607(1), Employee Retirement Income Security Act of 1974 (29 U.S.C.
  35-24  Section 1167).
  35-25              (6)  "Medical assistance" means medical assistance
  35-26  under the state Medicaid program.
  35-27        Art. 3.96-2.  DENIAL OF ENROLLMENT PROHIBITED.  An insurer
   36-1  may not deny enrollment of a child under the health insurance
   36-2  coverage of the child's parent on the ground that the child:
   36-3              (1)  has a preexisting condition;
   36-4              (2)  was born out of wedlock;
   36-5              (3)  is not claimed as a dependent on the parent's
   36-6  federal income tax return;
   36-7              (4)  does not reside with the parent or in the
   36-8  insurer's service area; or
   36-9              (5)  is or has been an applicant for or recipient of
  36-10  medical assistance.
  36-11        Art. 3.96-3.  ENROLLMENT REQUIRED.  (a)  If a parent eligible
  36-12  for dependent health coverage through an insurer is required by a
  36-13  court or administrative order to provide health coverage for a
  36-14  child, the insurer shall permit the parent to enroll the child
  36-15  without regard to any enrollment period restriction.
  36-16        (b)  If a parent eligible for dependent health coverage
  36-17  through an insurer is required by a court or administrative order
  36-18  to provide health coverage for a child and fails to apply to obtain
  36-19  the health insurance coverage for the child, the insurer shall
  36-20  enroll the child on application of a custodial parent of the child,
  36-21  a child support agency having a duty to collect or enforce support
  36-22  for the child, or the child.
  36-23        Art. 3.96-4.  CANCELLATION OR NONRENEWAL PROHIBITED.  (a)  An
  36-24  insurer may not cancel or refuse to renew insurance coverage of a
  36-25  child entitled to enrollment or enrolled under this subchapter
  36-26  unless satisfactory written evidence is filed with the insurer that
  36-27  shows that:
   37-1              (1)  the court order or administrative order that
   37-2  required the coverage is no longer in effect; or
   37-3              (2)  the child is enrolled in comparable health
   37-4  insurance coverage or will be enrolled in comparable coverage that
   37-5  will take effect not later than the effective date of the
   37-6  cancellation or nonrenewal.
   37-7        (b)  As used in this section, "a child entitled to enrollment
   37-8  or enrolled under this subchapter" does not include a child whose
   37-9  eligibility has terminated because the parent eligible for
  37-10  dependent health coverage is no longer eligible for such coverage.
  37-11        Art. 3.96-5.  NOTICE OF AVAILABILITY OF CONTINUATION OR
  37-12  CONVERSION COVERAGE.  If dependent health coverage being terminated
  37-13  pursuant to Subsection (b), Article 3.96-4, of this code contains
  37-14  provisions for the continuation or conversion of such coverage for
  37-15  the child, the insurer shall notify the custodial parent and the
  37-16  child support agency of the costs and other requirements for
  37-17  extending or converting such coverage, and shall enroll or continue
  37-18  enrollment of the child on application of a parent of the child, a
  37-19  child support agency, or the child.
  37-20        Art. 3.96-6.  EFFECT OF ASSIGNMENT OF MEDICAL SUPPORT RIGHTS
  37-21  TO STATE AGENCY; INFORMATION.  (a)  An insurer may not impose
  37-22  requirements on a state agency that has been assigned the rights of
  37-23  an individual eligible for medical assistance and covered for
  37-24  health benefits from the insurer that are different from the
  37-25  requirements applicable to an agent or assignee of any other
  37-26  covered individual.
  37-27        (b)  An insurer shall provide to a state agency providing
   38-1  medical assistance, or to a child support agency enforcing medical
   38-2  support, information as necessary to facilitate reimbursement of
   38-3  medical services provided to or paid on behalf of a child.
   38-4        Art. 3.96-7.  RIGHTS OF CUSTODIAL PARENT AND ADULT CHILD.
   38-5  (a)  If a child receives health insurance coverage through the
   38-6  insurer of a parent of the child, that insurer must provide
   38-7  information and documents to each custodial parent or an adult
   38-8  child as necessary for the child to obtain benefits through that
   38-9  coverage, including:
  38-10              (1)  the name of the insurer;
  38-11              (2)  the number of the policy;
  38-12              (3)  a copy of the policy and schedule of benefits;
  38-13              (4)  a health insurance membership card;
  38-14              (5)  claim forms; and
  38-15              (6)  any other information or document necessary to
  38-16  submit a claim in accordance with the insurer's policies and
  38-17  procedures.
  38-18        (b)  The insurer shall permit a custodial parent, a health
  38-19  care provider, adult child, or a state agency that has been
  38-20  assigned medical support rights to submit claims for covered
  38-21  services without the approval of the insured parent.
  38-22        (c)  The insurer shall make payments on covered claims
  38-23  submitted in accordance with this article directly to the custodial
  38-24  parent, health care provider, adult child, or state agency making
  38-25  the claim.
  38-26        Art. 3.96-8.  SERVICE AREA RESTRICTIONS PROHIBITED.  An
  38-27  insurer may not enforce otherwise applicable provisions that would
   39-1  deny, limit, or reduce payment for claims for a covered child who
   39-2  lives outside the insurer's coverage territory but inside the
   39-3  United States.
   39-4        Art. 3.96-9.  PENALTIES; REMEDIES.  An insurer that violates
   39-5  this subchapter is subject to the same penalties, and an injured
   39-6  party has the same rights and remedies, as those provided by
   39-7  Section 16, Article 21.21, of this code.
   39-8        Art. 3.96-10.  RULES.  The commissioner shall adopt
   39-9  reasonable rules as necessary to implement this subchapter and the
  39-10  requirements of 42 U.S.C. Section 1396a(a)(60), including rules
  39-11  defining acts that constitute unfair or deceptive practices under
  39-12  Section 13, Article 21.21, of this code.
  39-13        SECTION 4.02.  Section 101.012, Family Code, as added by H.B.
  39-14  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  39-15  amended to read as follows:
  39-16        Sec. 101.012.  EMPLOYER.  "Employer" means a person,
  39-17  corporation, partnership, workers' compensation insurance carrier,
  39-18  governmental entity, and the United States, and includes, for
  39-19  purposes of enrolling dependents in a group health insurance plan,
  39-20  a union, trade association, or other similar organization.
  39-21        SECTION 4.03.  Section 154.184, Family Code, as added by H.B.
  39-22  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  39-23  amended to read as follows:
  39-24        Sec. 154.184.  EFFECT OF ORDER.  (a)  Receipt of <For
  39-25  purposes of enrolling a child in a health insurance program under
  39-26  this subchapter,> a medical support order requiring that health
  39-27  insurance be provided for a child shall be considered a change in
   40-1  the family circumstances of the employee or member, for health
   40-2  insurance purposes, <covered person> equivalent to the birth or
   40-3  adoption of a child <by the covered person>.
   40-4        (b)  The <On receipt of the order by the employer, the> child
   40-5  shall be automatically enrolled for the first 31 days after the
   40-6  receipt of the order by the employer on the same terms and
   40-7  conditions as apply to any other <a> dependent child.
   40-8        (c)  The <On receipt of the order by the employer, the>
   40-9  employer shall notify the insurer of the automatic enrollment.
  40-10        (d)  During the 31-day period, the employer and insurer shall
  40-11  complete all necessary forms and procedures to make the enrollment
  40-12  permanent or shall report in accordance with this subchapter the
  40-13  reasons the coverage cannot be made permanent <policyholder shall
  40-14  apply for coverage for the child in accordance with the medical
  40-15  support order>.
  40-16        SECTION 4.04.  Section 154.186, Family Code, as added by H.B.
  40-17  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  40-18  amended to read as follows:
  40-19        Sec. 154.186.  NOTICE TO EMPLOYER.  The obligee, obligor, or
  40-20  a child support <local domestic relations office, or Title IV-D>
  40-21  agency may send a <certified> copy of the order requiring an
  40-22  employee to provide health insurance coverage for a <the> child to
  40-23  the employer <by certified mail, return receipt requested.  The
  40-24  order is binding on the employer on receipt>.
  40-25        SECTION 4.05.  Section 154.187, Family Code, as added by H.B.
  40-26  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  40-27  amended by amending Subsections (a) and (c) and by adding
   41-1  Subsection (g) to read as follows:
   41-2        (a)  An order to an employer directing that health insurance
   41-3  coverage be provided to a child of an employee or member is binding
   41-4  on the employer on receipt.  If the employee or member is eligible
   41-5  for dependent health coverage for the child, the <On receipt of an
   41-6  order directing that health insurance coverage be extended to a
   41-7  child of an employee, an> employer shall immediately enroll the
   41-8  child in a health insurance plan <available to the employee.  If
   41-9  the employer is not able to immediately enroll the child, the
  41-10  employer shall enroll the child at the next available enrollment
  41-11  period as a dependent of the employee>.  If dependent coverage is
  41-12  not available to the employee or member through the employer's
  41-13  health insurance plan or<,> the employer <is responsible for
  41-14  providing notice of this fact but> is not responsible or otherwise
  41-15  liable for providing such coverage, the employer shall provide
  41-16  notice to the sender in accordance with Subsection (c).
  41-17        (c)  An employer who has received an order under this
  41-18  subchapter shall provide to the sender, by first class mail not
  41-19  later than the 30th day after the date the employer receives the
  41-20  order, a statement that the child:
  41-21              (1)  has been enrolled in a health insurance plan; or
  41-22              (2)  <will be enrolled in a health insurance plan at
  41-23  the next available enrollment period and provide the expected date
  41-24  of such enrollment; or>
  41-25              <(3)>  cannot be enrolled in a health insurance plan
  41-26  and provide the reason why coverage cannot be provided.
  41-27        (g)  An employer who fails to enroll a child, fails to
   42-1  withhold or remit premiums or cash medical support, or
   42-2  discriminates in hiring or employment on the basis of a medical
   42-3  support order shall be subject to the penalties and fines in
   42-4  Subchapter C, Chapter 158.
   42-5        SECTION 4.06.  Section 154.192, Family Code, as added by H.B.
   42-6  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   42-7  amended to read as follows:
   42-8        Sec. 154.192.  CANCELLATION OR ELIMINATION OF INSURANCE
   42-9  COVERAGE FOR CHILD <HEALTH MAINTENANCE ORGANIZATION>.  (a)  Unless
  42-10  the employee or member ceases to be eligible for dependent
  42-11  coverage, or the employer has eliminated dependent health coverage
  42-12  for all of the employer's employees or members, the employer may
  42-13  not cancel or eliminate coverage of a child enrolled under this
  42-14  subchapter until the employer is provided satisfactory written
  42-15  evidence that:
  42-16              (1)  the court order or administrative order requiring
  42-17  the coverage is no longer in effect; or
  42-18              (2)  the child is enrolled in comparable health
  42-19  insurance coverage or will be enrolled in comparable coverage that
  42-20  will take effect not later than the effective date of the
  42-21  cancellation or elimination of the employer's coverage.  <This
  42-22  subchapter does not require a health maintenance organization to
  42-23  provide coverage to a child who resides outside the geographic
  42-24  service area.>
  42-25        SECTION 4.07.  Subsection (a), Section 158.206, Family Code,
  42-26  as added by H.B. No. 655, Acts of the 74th Legislature, Regular
  42-27  Session, 1995, is amended to read as follows:
   43-1        (a)  An employer receiving an order or writ of withholding,
   43-2  including an order directing that health insurance be provided to a
   43-3  child, who complies with the order or writ is not liable to the
   43-4  obligor for the amount of income withheld and paid as provided in
   43-5  the order or writ.
   43-6    ARTICLE 5.  EFFECTIVE DATE AND TRANSITION PROVISIONS; EMERGENCY
   43-7        SECTION 5.01.  (a)  This Act takes effect September 1, 1995.
   43-8        (b)  Subchapter J, Chapter 3, Insurance Code, as added by
   43-9  Section 4.01 of this Act, applies only to an insurance policy or
  43-10  evidence of coverage that is delivered, issued for delivery, or
  43-11  renewed on or after January 1, 1996.  A policy or evidence of
  43-12  coverage that is delivered, issued for delivery, or renewed before
  43-13  January 1, 1996, is governed by the law as it existed immediately
  43-14  before the effective date of this Act, and that law is continued in
  43-15  effect for that purpose.
  43-16        (c)  The Office of the Attorney General may exercise the
  43-17  contracting authority granted in Section 231.0011, Family Code, as
  43-18  added by Section 1.01 of this Act, to provide for a phased
  43-19  implementation of the statewide integrated system for child support
  43-20  and medical support enforcement, and shall implement the system to
  43-21  the extent that locally generated funds and federal reimbursement
  43-22  related to such funds are sufficient to pay for implementation.
  43-23        (d)  The Office of Court Administration of the Texas Judicial
  43-24  System may phase in the monthly report required by Section 71.035,
  43-25  Government Code, as amended by Section 2.05 of this Act, to
  43-26  correspond with the phased implementation of the statewide
  43-27  integrated system for child support and medical support enforcement
   44-1  described in Section 231.0011, Family Code, as added by Section
   44-2  1.01 of this Act.  The Office of Court Administration shall
   44-3  cooperate with the implementation work group established by this
   44-4  Act to consolidate the new report with existing required reports in
   44-5  order to minimize duplicate data entry and shall not require the
   44-6  report under this Act until sufficient automation is in place to
   44-7  prevent manual reporting by the responsible clerks.
   44-8        (e)  If before implementing any provision of this Act, the
   44-9  attorney general, the Texas Department of Health, the Texas
  44-10  Department of Human Services, or another affected agency determines
  44-11  that a waiver or authorization from a federal agency is necessary
  44-12  for implementation of that provision, the affected agency shall
  44-13  promptly apply for a waiver, and the provision shall take effect
  44-14  when necessary waivers have been granted.  A copy of each waiver
  44-15  request shall be provided to the governor, the lieutenant governor,
  44-16  and the speaker of the house of representatives.
  44-17        (f)  For the purpose of implementing the statewide integrated
  44-18  system established by Section 231.0011, Family Code, as added by
  44-19  Section 1.01 of this Act and Section 71.035, Government Code, as
  44-20  amended by Section 2.05 of this Act, all funds received from the
  44-21  federal government as reimbursement for expenses directly related
  44-22  to the integrated system, including the federal match for locally
  44-23  generated funds, shall be in excess of any amount appropriated to
  44-24  the attorney general by other Acts of the 74th Legislature, and are
  44-25  hereby appropriated to the attorney general for the fiscal years
  44-26  ending August 31, 1996, and August 31, 1997.
  44-27        SECTION 5.02.  Not later than December 1, 1996, the attorney
   45-1  general shall report to the legislature an estimate of the cost
   45-2  savings to the state and effectiveness of the expansion of child
   45-3  support enforcement services and of privatization efforts.
   45-4        SECTION 5.03.  (a)  The Office of the Attorney General, in
   45-5  conjunction with the Texas Department of Human Services, shall
   45-6  develop and implement a plan to assign a representative to work
   45-7  with department eligibility workers in department offices or
   45-8  facilities that are located in the same geographic region as
   45-9  offices or facilities of the attorney general.  The plan shall:
  45-10              (1)  include a schedule for implementation; and
  45-11              (2)  provide that the Office of the Attorney General
  45-12  may make a work assignment under this subsection only if the
  45-13  anticipated increased collection of child support for public
  45-14  assistance cases is greater than the cost of placing the
  45-15  representative in a department office or facility.
  45-16        (b)  Not later than October 1, 1995, the attorney general
  45-17  shall complete the plan required by this section and send notice of
  45-18  filing the completed plan to the governor, the lieutenant governor,
  45-19  and the speaker of the house of representatives.
  45-20        (c)  The attorney general and the Texas Department of Human
  45-21  Services shall prepare the initial memorandum of understanding
  45-22  required by Section 1.07 of this Act not later than December 1,
  45-23  1995.
  45-24        SECTION 5.04.  The change in law made by Subchapter E,
  45-25  Chapter 231, Family Code, as amended by this Act, applies only to a
  45-26  child support review for which notice is given on or after the
  45-27  effective date of this Act.  A child support review for which
   46-1  notice is given before that date is governed by the law in effect
   46-2  at the time notice was given, and the former law is continued in
   46-3  effect for that purpose.
   46-4        SECTION 5.05.  (a)  Section 3.01 of this Act expires
   46-5  September 2, 1997.
   46-6        (b)  Subsection (b), Section 3.02, and Section 3.03 of this
   46-7  Act expire January 1, 1997.
   46-8        SECTION 5.06.  The importance of this legislation and the
   46-9  crowded condition of the calendars in both houses create an
  46-10  emergency and an imperative public necessity that the
  46-11  constitutional rule requiring bills to be read on three several
  46-12  days in each house be suspended, and this rule is hereby suspended.