1-1        By:  Harris                                      S.B. No. 793
    1-2        (In the Senate - Filed February 27, 1995; February 28, 1995,
    1-3  read first time and referred to Committee on Jurisprudence;
    1-4  May 3, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 6, Nays 0; May 3, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 793                   By:  Harris
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the enforcement of certain child support and medical
   1-11  support obligations; appropriating certain federal funds.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13           ARTICLE 1.  POWERS AND DUTIES OF ATTORNEY GENERAL
   1-14        SECTION 1.01.  Subchapter A, Chapter 231, Family Code, as
   1-15  added by H.B. No. 655, Acts of the 74th Legislature, Regular
   1-16  Session, 1995, is amended by adding Section 231.0011 to read as
   1-17  follows:
   1-18        Sec. 231.0011.  DEVELOPMENT OF STATEWIDE INTEGRATED SYSTEM
   1-19  FOR CHILD SUPPORT AND MEDICAL SUPPORT ENFORCEMENT.  (a)  The
   1-20  attorney general, as the Title IV-D agency for the State of Texas
   1-21  shall have final approval authority on any contract or proposal for
   1-22  delivery of Title IV-D services under this section and in
   1-23  coordination with the Texas Judicial Council, the Office of Court
   1-24  Administration of the Texas Judicial System, the federal Office of
   1-25  Child Support Enforcement, and state, county, and local officials,
   1-26  shall develop and implement a statewide integrated system for child
   1-27  support and medical support enforcement, employing federal, state,
   1-28  local, and private resources to:
   1-29              (1)  unify child support registry functions;
   1-30              (2)  record and track all child support orders entered
   1-31  in the state;
   1-32              (3)  establish an automated enforcement process which
   1-33  will use delinquency monitoring, billing, and other enforcement
   1-34  techniques to ensure the payment of current support;
   1-35              (4)  incorporate existing enforcement resources into
   1-36  the system to obtain  maximum benefit from state and federal
   1-37  funding; and
   1-38              (5)  ensure accountability for all participants in the
   1-39  process, including state, county, and local officials, private
   1-40  contractors, and the judiciary.
   1-41        (b)  The attorney general shall convene a workgroup to
   1-42  determine a process and develop a timetable for implementation of a
   1-43  unified registry system and to identify any barriers to completion
   1-44  of the project.  The workgroup shall include representatives of the
   1-45  judiciary, district clerks, and domestic relations offices, as well
   1-46  as other interested agencies, organizations, and individuals.  The
   1-47  workgroup shall report the results of its deliberations to the
   1-48  governor, lieutenant governor, speaker of the house of
   1-49  representatives, and attorney general on or before January 15,
   1-50  1996.
   1-51        (c)  The attorney general shall, in cooperation with the
   1-52  workgroup established by this section, develop technical standards
   1-53  for participation in the unified child support system, including
   1-54  standard required data elements for effective monitoring of child
   1-55  support and medical support orders and for the imposition of
   1-56  interest on delinquent child support.
   1-57        (d)  Counties and other providers of child support services
   1-58  shall be required, as a condition of participation in the unified
   1-59  system, to enter into a contract with the attorney general, to
   1-60  comply with all federal requirements for the Title IV-D program,
   1-61  and to maintain at least the current level of funding for
   1-62  activities which are proposed to be included in the integrated
   1-63  child support system.
   1-64        (e)  The attorney general shall identify federal
   1-65  requirements, apply for necessary federal waivers, and provide
   1-66  technical system requirements and other information concerning
   1-67  participation in the system to counties and other providers of
   1-68  child support services not later than January 15, 1996.  Counties
    2-1  shall notify the attorney general of existing resources and options
    2-2  for participation not later than May 1, 1996.
    2-3        (f)  Not later than June 1, 1996, the attorney general shall
    2-4  produce a procurement and implementation plan for hardware and
    2-5  software necessary to implement in phases a unified statewide
    2-6  registry and enforcement system.
    2-7        (g)  Effective January 15, 1996, the attorney general may
    2-8  contract with any county meeting technical system requirements
    2-9  necessary to comply with federal law for provision of Title IV-D
   2-10  services in that county.  All new cases in which support orders are
   2-11  entered in such county after the effective date of a monitoring
   2-12  contract shall be Title IV-D cases.  Any other case in the county,
   2-13  subject to federal requirements and the agreement of the county and
   2-14  the attorney general, may be included as a Title IV-D case.  Any
   2-15  obligee under a support order may refuse Title IV-D enforcement
   2-16  services unless required to accept such services pursuant to other
   2-17  law.
   2-18        (h)  Counties participating in the unified enforcement system
   2-19  shall monitor all child support registry cases and on delinquency
   2-20  may, subject to the approval of the Title IV-D agency, provide
   2-21  enforcement services through:
   2-22              (1)  direct provision of services by county personnel;
   2-23              (2)  subcontracting all or portions of the services to
   2-24  private entities or attorneys; or
   2-25              (3)  such other methods as may be approved by the Title
   2-26  IV-D agency.
   2-27        (i)  The attorney general shall undertake a least-cost review
   2-28  of its child support operations and shall use the information
   2-29  developed in such review to determine what, if any, contribution of
   2-30  program funds generated through other Title IV-D activities should
   2-31  be made to the participating counties.  The attorney general, in
   2-32  cooperation with the counties and the federal Office of Child
   2-33  Support Enforcement shall develop a cost allocation methodology to
   2-34  assist the counties in identifying county contributions which may
   2-35  qualify for federal financial participation.
   2-36        (j)  The attorney general may phase in the integrated child
   2-37  support registry and enforcement system, and the requirement to
   2-38  implement the system shall be contingent on the receipt of locally
   2-39  generated funds and federal reimbursement.  Locally generated funds
   2-40  include but are not limited to funds contributed by counties and
   2-41  cities.
   2-42        (k)  The attorney general shall adopt rules to implement this
   2-43  section.
   2-44        (l)  Participation in the statewide integrated system for
   2-45  child support and medical support enforcement by a county is
   2-46  voluntary, and nothing in this section shall be construed to
   2-47  mandate participation.
   2-48        SECTION 1.02.  Subsections (b) and (d), Section 231.109,
   2-49  Family Code, as added by H.B. No. 655, Acts of the 74th
   2-50  Legislature, Regular Session, 1995, are amended to read as follows:
   2-51        (b)  The Title IV-D agency may contract with private
   2-52  attorneys, other private entities, or political subdivisions of the
   2-53  state to provide services in Title IV-D cases <represent this state
   2-54  or another state in an action brought under the authority of
   2-55  federal law and this chapter>.
   2-56        (d)  An attorney employed to provide Title IV-D services <by
   2-57  the Title IV-D agency or as otherwise provided by this chapter>
   2-58  represents the interest of the state and not the interest of any
   2-59  other party.  The provision of services by an attorney under this
   2-60  chapter does not create an attorney-client relationship between the
   2-61  attorney and any other party.  The agency shall, at the time an
   2-62  application for child support services is made, inform the
   2-63  applicant that neither the Title IV-D agency nor any attorney who
   2-64  provides services under this chapter is the applicant's attorney
   2-65  and that the attorney providing services under this chapter does
   2-66  not provide legal representation to the applicant.
   2-67        SECTION 1.03.  Subchapter B, Chapter 231, Family Code, as
   2-68  added by H.B. No. 655, Acts of the 74th Legislature, Regular
   2-69  Session, 1995, is amended by adding Section 231.113 to read as
   2-70  follows:
    3-1        Sec. 231.113.  ENFORCEMENT OF SUPPORT OBLIGATIONS IN PUBLIC
    3-2  ASSISTANCE CASES.  To the extent possible, the Title IV-D agency
    3-3  shall enforce a child support obligation in a case involving a
    3-4  child who receives financial assistance under Chapter 31, Human
    3-5  Resources Code, not later than the first anniversary of the date
    3-6  the agency receives from the Texas Department of Human Services the
    3-7  information the department is required to provide to assist in the
    3-8  enforcement of that obligation.
    3-9        SECTION 1.04.  Section 231.202, Family Code, as added by H.B.
   3-10  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   3-11  amended to read as follows:
   3-12        Sec. 231.202.  AUTHORIZED COSTS AND FEES IN TITLE IV-D CASES.
   3-13  In a Title IV-D case filed under this title, the Title IV-D agency
   3-14  shall pay:
   3-15              (1)  filing fees and fees for issuance and service of
   3-16  process as provided by Chapter 110 of this code and by Sections
   3-17  51.317, 51.318(b)(2), and 51.319(4), Government Code;
   3-18              (2)  fees for transfer as provided by Chapter 110;
   3-19              (3)  fees for the issuance and delivery of orders and
   3-20  writs of income withholding in the amounts provided by Chapter 110;
   3-21  and
   3-22              (4)  a fee of $45 for each item of process to each
   3-23  individual on whom service is required, including service by
   3-24  certified or registered mail, to be paid to a sheriff, constable,
   3-25  or clerk whenever service of process is required<; and>
   3-26              <(5)  mileage costs incurred by a sheriff or constable
   3-27  when traveling out of the county to execute an outstanding warrant
   3-28  or capias, to be reimbursed at a rate not to exceed the rate
   3-29  provided for mileage incurred by state employees in the General
   3-30  Appropriations Act>.
   3-31        SECTION 1.05.  Section 231.209, Family Code, as added by H.B.
   3-32  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   3-33  amended to read as follows:
   3-34        Sec. 231.209.  PAYMENT FOR SERVICES NOT AFFECTED BY THIS
   3-35  SUBCHAPTER.  Without regard to this subchapter and specifically
   3-36  Section 231.205, the Title IV-D agency may pay the costs for:
   3-37              (1)  the services of an official court reporter for the
   3-38  preparation of statements of facts;
   3-39              (2)  <and> the costs for the publication of citation
   3-40  served by publication; and
   3-41              (3)  mileage or other reasonable travel costs incurred
   3-42  by a sheriff or constable when traveling out of the county to
   3-43  execute an outstanding warrant or capias, to be reimbursed at a
   3-44  rate not to exceed the rate provided for mileage or other costs
   3-45  incurred by state employees in the General Appropriations Act.
   3-46        SECTION 1.06.  Section 231.304, Family Code, as added by H.B.
   3-47  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   3-48  amended by amending Subsections (b) and (h) and by adding
   3-49  Subsections (j), (k), (l), and (m) to read as follows:
   3-50        (b)  The Title IV-D agency, the Texas Department of Human
   3-51  Services, the Texas Workers' Compensation Commission, and the Texas
   3-52  Employment Commission shall create and develop a voluntary ENHR
   3-53  program to provide a means for employers to assist in the state's
   3-54  efforts to prevent fraud in the welfare, workers' compensation, and
   3-55  unemployment insurance programs, locate absent parents who owe
   3-56  child support, and collect support from those parents by reporting
   3-57  information concerning newly hired and rehired employees directly
   3-58  to a centralized state database <the child support enforcement
   3-59  program>.  In order to encourage use of the ENHR program, employer
   3-60  reporting requirements shall be simplified and standardized.
   3-61        (h)  Subject to approval of the agencies involved and any
   3-62  requirements of federal law, the centralized database shall make
   3-63  the information on <For> each employee reported under the ENHR
   3-64  program available for:
   3-65              (1)  purposes directly connected with the
   3-66  administration of a plan or program for unemployment benefits,
   3-67  workers' compensation benefits, child support, or public
   3-68  assistance;
   3-69              (2)  an investigation or a civil or criminal
   3-70  prosecution relating to the administration of such plan or program;
    4-1  or
    4-2              (3)  the administration of any other federal or
    4-3  federally assisted program which provides assistance, in cash or in
    4-4  kind, or services, directly to individuals on the basis of need<,
    4-5  the Title IV-D agency shall retain the information only if the
    4-6  agency is responsible for establishing, enforcing, or collecting a
    4-7  support obligation or debt of the employee or reporting to a court,
    4-8  domestic relations office, or a friend of the court the location of
    4-9  a parent who is denying possession of or access to a person with a
   4-10  valid possession order.  If the agency does not have any of those
   4-11  responsibilities, the agency may not create a record regarding the
   4-12  employee and the information contained in the notice shall be
   4-13  promptly destroyed>.
   4-14        (j)  An employer participating in the ENHR program is
   4-15  strongly encouraged to report information about health insurance
   4-16  coverage available through the employer in which a dependent child
   4-17  may be enrolled under Subchapter D, Chapter 154.
   4-18        (k)  To expand the ENHR program, the Title IV-D agency shall
   4-19  work closely with the Texas Employment Commission, the Texas
   4-20  Workers' Compensation Commission, the comptroller, the Texas
   4-21  Department of Commerce, the secretary of state, and employer
   4-22  groups.  Efforts to expand the program shall include:
   4-23              (1)  regularly sending to employers solicitations for
   4-24  participation in the program and promotional information about the
   4-25  program that includes information on:
   4-26                    (A)  the program's impact on child support and
   4-27  medical support enforcement;
   4-28                    (B)  savings in public assistance payments
   4-29  attributable to the program;
   4-30                    (C)  benefits to employers and taxpayers of the
   4-31  fraud prevention aspects of the program;
   4-32                    (D)  participation requirements; and
   4-33                    (E)  awards available for business participation;
   4-34  and
   4-35              (2)  developing a public awareness program that:
   4-36                    (A)  stresses the importance of securing
   4-37  financial support for all children; and
   4-38                    (B)  informs the public about the ENHR program.
   4-39        (l)  The affected agencies may pool resources, develop a cost
   4-40  allocation plan, determine the most cost-effective means of
   4-41  establishing and funding the required database, and issue rules,
   4-42  solicit bids, or enter into contracts to carry out the purposes of
   4-43  this section.
   4-44        (m)  The affected agencies shall implement the plan to create
   4-45  the ENHR database, if cost-effective, using existing funding and
   4-46  considering savings and revenue gains that may result from the use
   4-47  of such system.
   4-48        SECTION 1.07.  Subchapter D, Chapter 231, Family Code, as
   4-49  added by H.B. No. 655, Acts of the 74th Legislature, Regular
   4-50  Session, 1995, is amended by adding Section 231.305 to read as
   4-51  follows:
   4-52        Sec. 231.305.  MEMORANDUM OF UNDERSTANDING ON CHILD SUPPORT
   4-53  FOR CHILDREN RECEIVING PUBLIC ASSISTANCE.  (a)  The Title IV-D
   4-54  agency and the Texas Department of Human Services by rule shall
   4-55  adopt a memorandum of understanding governing the establishment and
   4-56  enforcement of court-ordered child support in cases involving
   4-57  children who receive financial assistance under Chapter 31, Human
   4-58  Resources Code.  The memorandum shall require the agency and the
   4-59  department to:
   4-60              (1)  develop procedures to ensure that the information
   4-61  the department is required to collect to establish and enforce
   4-62  child support:
   4-63                    (A)  is collected from the person applying to
   4-64  receive the financial assistance at the time the application is
   4-65  filed;
   4-66                    (B)  is accurate and complete when the department
   4-67  forwards the information to the agency; and
   4-68                    (C)  is not information previously reported to
   4-69  the agency;
   4-70              (2)  develop procedures to ensure that the agency does
    5-1  not duplicate the efforts of the department in gathering necessary
    5-2  information;
    5-3              (3)  clarify each agency's responsibilities in the
    5-4  establishment and enforcement of child support; and
    5-5              (4)  develop guidelines for use by eligibility workers
    5-6  and child support enforcement officers in obtaining from an
    5-7  applicant the information required to establish and enforce child
    5-8  support for that child.
    5-9        (b)  The Title IV-D agency and the Texas Department of Human
   5-10  Services semiannually shall review and renew or modify the
   5-11  memorandum as necessary.
   5-12         ARTICLE 2.  ENFORCEMENT OF CHILD SUPPORT AND MEDICAL
   5-13                          SUPPORT OBLIGATIONS
   5-14        SECTION 2.01.  Section 101.005, Family Code, as added by H.B.
   5-15  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   5-16  amended to read as follows:
   5-17        Sec. 101.005.  CHILD SUPPORT REVIEW OFFICER.  "Child support
   5-18  review officer" means an individual designated and trained by a
   5-19  child support agency to conduct reviews under this title <who has
   5-20  received family law mediation training>.
   5-21        SECTION 2.02.  Section 102.007, Family Code, as added by H.B.
   5-22  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   5-23  amended to read as follows:
   5-24        Sec. 102.007.  STANDING OF TITLE IV-D AGENCY.  In providing
   5-25  services authorized by Chapter 231, the Title IV-D agency or a
   5-26  political subdivision contracting with the attorney general to
   5-27  provide Title IV-D services under this title may file a child
   5-28  support action authorized under this title, including a suit for
   5-29  modification or a motion for enforcement.
   5-30        SECTION 2.03.  Subchapter D, Chapter 231, Family Code, as
   5-31  added by H.B. No. 655, Acts of the 74th Legislature, Regular
   5-32  Session, 1995, is amended by adding Section 231.306 to read as
   5-33  follows:
   5-34        Sec. 231.306.  MAXIMIZING MEDICAL SUPPORT ESTABLISHMENT AND
   5-35  COLLECTION BY THE TITLE IV-D AGENCY.  (a)  On the installation of
   5-36  an automated child support enforcement system, the Title IV-D
   5-37  agency is strongly encouraged to:
   5-38              (1)  maximize the collection of medical support; and
   5-39              (2)  establish cash medical support orders for children
   5-40  eligible for medical assistance under the state Medicaid program
   5-41  for whom private insurance coverage is not available.
   5-42        (b)  In this section, "medical support" has the meaning
   5-43  assigned by Section 101.020.
   5-44        SECTION 2.04.  Subchapter E, Chapter 231, Family Code, as
   5-45  added by H.B. No. 655, Acts of the 74th Legislature, Regular
   5-46  Session, 1995, is amended to read as follows:
   5-47      SUBCHAPTER E.  CHILD SUPPORT REVIEW PROCESS TO ESTABLISH OR
   5-48                      ENFORCE SUPPORT OBLIGATIONS
   5-49        Sec. 231.401.  Purpose.  The purpose of the child support
   5-50  review process authorized by this subchapter is to provide child
   5-51  support agencies an opportunity to resolve routine child support
   5-52  actions through <negotiation,> agreement of the parties<,> or
   5-53  uncontested orders.
   5-54        Sec. 231.402.  AGREEMENTS ENCOURAGED.  To the extent
   5-55  permitted by this subchapter, child support agencies shall make the
   5-56  child support review process understandable to all parties and
   5-57  shall encourage agreements <through mediation>.
   5-58        Sec. 231.403.  Bilingual Forms Required.  A notice or other
   5-59  form used to implement the child support review process shall be
   5-60  printed in both Spanish and English.
   5-61        Sec. 231.404.  INTERPRETER REQUIRED.  If a party
   5-62  participating in a negotiation conference does not speak English or
   5-63  is hearing impaired, the child support agency shall provide for
   5-64  interpreter services at no charge to the parties.
   5-65        Sec. 231.405.  Initiating Child Support Review.  <(a)  A
   5-66  child support agency may review and assess the financial resources
   5-67  of a child's parent or of a person presumed or alleged to be the
   5-68  child's father from whom child support is requested to determine
   5-69  the resources that are available for the support of the child and
   5-70  to determine what action is appropriate.>
    6-1        <(b)>  An administrative action under this subchapter may be
    6-2  initiated by issuing a notice of child support review to each party
    6-3  entitled to notice <the parents and to the presumed or alleged
    6-4  father of a child>.
    6-5        Sec. 231.406.  CONTENTS OF NOTICE OF CHILD SUPPORT REVIEW.
    6-6  (a)  The notice of child support review must:
    6-7              (1)  describe the procedure for a child support review;
    6-8              (2)  inform the recipient that the recipient <is not
    6-9  required to participate in the child support review and> may be
   6-10  represented by legal counsel during the review process or at a
   6-11  court hearing;
   6-12              (3)  inform the recipient that the recipient may refuse
   6-13  to participate or cease participation in the child support review
   6-14  process, but that the refusal by the recipient to participate will
   6-15  not prevent the completion of the process or the filing of a child
   6-16  support review order <during any stage of the review but that the
   6-17  review will continue to completion and that afterward the recipient
   6-18  may request a court hearing>;
   6-19              (4)  include an affidavit of financial resources; and
   6-20              (5)  include a request that the recipient designate, on
   6-21  a form provided by the child support agency, an address for mailing
   6-22  any additional notice to the recipient.
   6-23        (b)  In addition to the information required by Subsection
   6-24  (a), the notice of child support review must inform the recipient
   6-25  that:
   6-26              (1)  the information requested on the form must be
   6-27  returned to the child support agency not later than the 15th day
   6-28  after the date the notice is received or delivered; and
   6-29              (2)  if the requested information is not returned as
   6-30  required, the child support agency:
   6-31                    (A)  may proceed with the review using the
   6-32  information that is available to the agency; and
   6-33                    (B)  may file a legal action without further
   6-34  notice to the recipient, except as otherwise required by law.
   6-35        Sec. 231.407.  Notice by Mail.  (a)  A notice required in an
   6-36  administrative action under this subchapter must be delivered or
   6-37  served by first class mail or certified mail on each party entitled
   6-38  to citation or notice as provided by Chapter 102.
   6-39        (b)  <If notice is served by mail, three days must be added
   6-40  to the time in which the person is required to respond.>
   6-41        <(c)>  This section does not apply to notice required on
   6-42  filing of a child support review order or to later judicial
   6-43  actions.
   6-44        Sec. 231.408.  Administrative Subpoena in Child Support
   6-45  Review.  (a)  In a child support review under this subchapter, a
   6-46  child support agency may issue an administrative subpoena to <a
   6-47  parent, a person presumed or alleged to be the father of a child
   6-48  for whom support is requested, or> any individual or organization
   6-49  believed to have information on the financial resources of the
   6-50  parent or presumed or alleged father.
   6-51        (b)  A court may compel compliance with an administrative
   6-52  subpoena and award attorney's fees and costs to a child support
   6-53  agency enforcing an administrative subpoena on proof that an
   6-54  individual or organization failed to comply with the subpoena
   6-55  without good cause.
   6-56        Sec. 231.409.  SCHEDULING AND CONDUCTING NEGOTIATION
   6-57  CONFERENCE.  (a)  The child support agency may schedule a
   6-58  negotiation conference without a request from a party.
   6-59        (b)  The child support agency shall schedule a negotiation
   6-60  conference on the timely request of a party <person who completes
   6-61  and returns an affidavit of financial resources>.
   6-62        (c)  A negotiation conference, or any part of a negotiation
   6-63  conference, may be conducted by telephone conference call, by video
   6-64  conference, or in person.  The negotiation conference may be
   6-65  adjourned for a reasonable time to permit mediation of issues that
   6-66  cannot be resolved by the parties and the child support agency.
   6-67        Sec. 231.410.  TIME FOR NEGOTIATION CONFERENCE; NOTICE
   6-68  REQUIRED.  <(a)  A child support review or negotiation conference
   6-69  under this subchapter shall be conducted not later than the 45th
   6-70  day after the date all notices of child support review have been
    7-1  sent to the parties to the action.>
    7-2        <(b)>  All parties entitled to notice of the negotiation
    7-3  conference shall be notified of the date, time, and place of the
    7-4  negotiation conference not later than the 10th day before the date
    7-5  of the negotiation conference.
    7-6        Sec. 231.411.  RESCHEDULING NEGOTIATION CONFERENCE; NOTICE
    7-7  REQUIRED.  A negotiation conference may be rescheduled or adjourned
    7-8  on the request of any party at the discretion of the child support
    7-9  review officer.  All parties must be given notice of the
   7-10  rescheduling not later than the third day before the date of the
   7-11  rescheduled negotiation conference.
   7-12        Sec. 231.412.  INFORMATION REQUIRED TO BE PROVIDED AT
   7-13  NEGOTIATION CONFERENCE.  At the beginning of the negotiation
   7-14  conference, the child support review officer shall review with the
   7-15  <inform all> parties participating in the conference information
   7-16  provided in the notice of child support review and inform the
   7-17  parties <in attendance> that:
   7-18              (1)  the purpose of the negotiation conference is to
   7-19  provide an opportunity <attempt> to reach an agreement on a
   7-20  <regarding> child support order <payments>;
   7-21              (2)  <a party does not have to participate in the
   7-22  negotiation conference and may request a court hearing;>
   7-23              <(3)  a party may be represented by an attorney chosen
   7-24  by the party;>
   7-25              <(4)  the parties may stop participating in the
   7-26  negotiation conference at any time but that the child support
   7-27  review will continue until completed, and, if a child support
   7-28  review order is issued, a party may request a court hearing;>
   7-29              <(5)>  if the parties reach an agreement, the review
   7-30  officer will prepare an agreed review order <for the parties'
   7-31  signatures>;
   7-32              (3) <(6)>  a party does not have to sign a review order
   7-33  prepared by the child support review officer; and
   7-34              (4) <(7)  even though> a party <signs an agreed review
   7-35  order, the party> may request a court hearing at any time before
   7-36  the 20th day after the date a petition for confirmation of the
   7-37  order is filed <child support review order is confirmed by a
   7-38  court>.
   7-39        Sec. 231.413.  DETERMINING SUPPORT AMOUNT; MODIFICATION.
   7-40  (a)  A child support agency may use any information obtained by the
   7-41  agency from the parties or any other source and shall apply the
   7-42  child support guidelines provided by this code to determine the
   7-43  appropriate amount of child support.
   7-44        (b)  If the child support agency determines that the support
   7-45  amount in an existing child support order is not in substantial
   7-46  compliance with the guidelines, the child support agency shall
   7-47  issue an appropriate child support review order, including a review
   7-48  order that has the effect of modifying an existing order for child
   7-49  support without the necessity of filing a motion to modify.
   7-50        Sec. 231.414.  Record Not Required.  (a)  For the purposes of
   7-51  this subchapter, documentary evidence relied on by the child
   7-52  support review officer, including an <a written> affidavit of a
   7-53  party, together with<, the written findings, and> the child support
   7-54  review order is <from a negotiation conference are> a sufficient
   7-55  record of the proceedings.
   7-56        (b)  A child support agency is not required to make any other
   7-57  record or transcript of the negotiation conference.
   7-58        Sec. 231.415.  ISSUANCE OF CHILD SUPPORT REVIEW ORDER OR
   7-59  FINDING THAT NO ORDER SHOULD BE ISSUED; EFFECT.  (a)  If the
   7-60  negotiation conference does not result in agreement by all parties
   7-61  to the <an agreed> child support review order, the review officer
   7-62  shall promptly issue and sign a final decision in the form of a
   7-63  child support review order<,> or a determination that a child
   7-64  support review order should not be issued, not later than the fifth
   7-65  day after the date of the negotiation conference.
   7-66        (b)  If <On the day that a child support review order is
   7-67  issued or> a determination is made that a child support order will
   7-68  not be issued, each party to a child support review proceeding
   7-69  shall be furnished immediately by hand delivery or by mail notice
   7-70  of <a copy of the order or> the determination.
    8-1        (c)  A determination that a child support order should not be
    8-2  issued must include a statement of the reasons that an order is not
    8-3  being issued and does not affect the right of the agency or a party
    8-4  to request any other remedy provided by law.
    8-5        Sec. 231.416.  VACATING CHILD SUPPORT REVIEW ORDER.  (a)  The
    8-6  review officer may vacate a child support review order on the
    8-7  officer's own motion at any time before the order is filed with the
    8-8  court.
    8-9        (b)  A new negotiation conference, with notice to all
   8-10  parties, may <shall> be scheduled or the officer may make a
   8-11  determination that a child support review order should not be
   8-12  issued and give notice of that determination as provided by this
   8-13  subchapter <to take place not later than the 10th day after the
   8-14  date the child support review order was vacated>.
   8-15        Sec. 231.417.  CONTENTS OF CHILD SUPPORT REVIEW ORDER.
   8-16  (a)  An agreed child support review order must contain all
   8-17  provisions that are appropriate for an order under this title.
   8-18        (b)  A child support review order that is not agreed to must
   8-19  include child support and medical support provisions, including a
   8-20  determination of arrearages or retroactive support.
   8-21        (c)  A child support review order providing for the
   8-22  enforcement of an order may not contain a provision that imposes
   8-23  incarceration or a fine or contains a finding of contempt.
   8-24        (d)  A child support review order that establishes or
   8-25  modifies an amount of previously ordered support must include the
   8-26  findings required by Section 154.130.
   8-27        (e)  A child support review order that is not agreed to by
   8-28  all the parties may specify and reserve for the court at the
   8-29  confirmation hearing unresolved issues relating to conservatorship
   8-30  or possession of a child.
   8-31        Sec. 231.418.  ADDITIONAL CONTENTS OF AGREED CHILD SUPPORT
   8-32  REVIEW ORDER.  If a negotiation conference results in an agreement
   8-33  <by all parties>, the <a> child support review order must be signed
   8-34  by each party who agrees to the order, must contain the provisions
   8-35  required by Section 231.417, <all parties to the action> and, as to
   8-36  each party in agreement with the order, must contain:
   8-37              (1)  a waiver by the <each> party of the right to
   8-38  service <and> of process and <the right to> a court hearing and the
   8-39  making of a record on the petition for confirmation;
   8-40              (2)  the mailing address of the <each> party; and
   8-41              (3)  the following statement printed on the order in
   8-42  boldface or in all capital letters:
   8-43        "I KNOW THAT I DO NOT HAVE TO SIGN THIS <AGREED> CHILD
   8-44  SUPPORT REVIEW ORDER.  I KNOW THAT I HAVE A RIGHT TO BE PERSONALLY
   8-45  SERVED WITH THE PETITION FOR CONFIRMATION OF THIS ORDER <HAVE A
   8-46  COURT HEAR EVIDENCE AND MAKE A DECISION IN THIS MATTER>.  I KNOW
   8-47  THAT I HAVE A RIGHT TO CHANGE MY MIND AND WITHDRAW MY AGREEMENT TO
   8-48  THE TERMS OF THIS ORDER AND REQUEST THAT A COURT DECIDE THIS MATTER
   8-49  BY FILING A REQUEST FOR COURT HEARING AT ANY TIME BEFORE THE 20TH
   8-50  DAY AFTER THE DATE THE PETITION FOR CONFIRMATION OF THE ORDER IS
   8-51  FILED WITH THE CLERK OF THE COURT.  I KNOW THAT IF I FAIL TO FILE A
   8-52  REQUEST FOR A COURT HEARING A COURT MAY CONFIRM AND APPROVE THIS
   8-53  ORDER WITHOUT A HEARING, AND THE ORDER WILL BECOME A VALID COURT
   8-54  ORDER.  I KNOW THAT IF I DO NOT OBEY THE TERMS OF THIS ORDER I MAY
   8-55  BE HELD IN CONTEMPT OF COURT."
   8-56        Sec. 231.419.  FILING OF PETITION FOR CONFIRMATION.  (a)  The
   8-57  child support agency shall file a petition for confirmation with
   8-58  the clerk of the court having continuing jurisdiction of the child
   8-59  who is the subject of the order.
   8-60        (b)  If there is not a court of continuing jurisdiction, the
   8-61  child support agency shall file the petition for confirmation with
   8-62  the clerk of a court having jurisdiction under this title.
   8-63        Sec. 231.420.  CONTENTS OF PETITION FOR CONFIRMATION;
   8-64  DOCUMENTARY EVIDENCE TO BE FILED WITH PETITION.  (a)  A petition
   8-65  for confirmation shall <must> include the final child support
   8-66  review order as an attachment to the petition.
   8-67        (b)  Documentary evidence relied on by the child support
   8-68  agency, including, if applicable, a <verified written report of a
   8-69  paternity testing expert concerning the results of paternity
   8-70  testing conducted in the case or a> statement of paternity or a
    9-1  written report of a parentage testing expert, shall be filed with
    9-2  the clerk as exhibits to the petition, but are not required to be
    9-3  served on the parties.  The petition must identify the exhibits
    9-4  that are filed with the clerk.
    9-5        Sec. 231.421.  DUTIES OF CLERK OF COURT.  (a)  On the filing
    9-6  of a petition for confirmation, the clerk of court shall endorse on
    9-7  the petition the date and time that the petition is filed <and sign
    9-8  the endorsement>.
    9-9        (b)  If the petition is for an original action, the clerk
   9-10  shall endorse the appropriate court and cause number on the
   9-11  petition.
   9-12        (c)  If the petition is to confirm an agreed child support
   9-13  review order under this subchapter, the child support agency
   9-14  <clerk> shall mail to each party that agreed to the order, at the
   9-15  address shown on the order, a copy of the petition with <and
   9-16  written notice of the filing of the petition that states> the
   9-17  court, filing date, and cause number of the case.  The clerk shall
   9-18  note on the docket that the notice was mailed.  The child support
   9-19  agency shall file a certificate of service showing the date of the
   9-20  mailing to each party.
   9-21        (d)  The <If the petition is to confirm an order other than
   9-22  an agreed order, the> clerk shall issue service of citation,
   9-23  including a copy of the petition and the child support review
   9-24  order, to each party entitled to service who has not waived
   9-25  service.
   9-26        (e)  A clerk of a district court is entitled to collect in a
   9-27  child support review case the fees authorized in a Title IV-D case
   9-28  by this chapter <a fee for:>
   9-29              <(1)  the filing of a petition under this section as
   9-30  provided by Section 51.317(b)(1), Government Code;>
   9-31              <(2)  the issuance of notice or process as provided by
   9-32  Section 51.317(b)(4), Government Code; and>
   9-33              <(3)  service of notice or citation as provided by
   9-34  Section 51.319(4), Government Code, or as otherwise provided by
   9-35  law>.
   9-36        Sec. 231.422.  FORM TO REQUEST A COURT HEARING.  (a)  A court
   9-37  shall consider any responsive pleading that is intended as an
   9-38  objection to confirmation of a child support review order,
   9-39  including a general denial, as a request for a court hearing.
   9-40        (b)  The <A> child support agency shall:
   9-41              (1)  <attach a copy of a form to request a court
   9-42  hearing to each party's copy of the petition for confirmation of a
   9-43  child support review order;>
   9-44              <(2)>  make available to each clerk of court copies of
   9-45  the form to request a court hearing; and
   9-46              (2) <(3)>  provide the form to request a court hearing
   9-47  to a party to the child support review proceeding on request.
   9-48        (c)  The clerk shall furnish the form to a party to a
   9-49  proceeding under this subchapter on the request of the party.
   9-50        Sec. 231.423.  TIME TO REQUEST A COURT HEARING<; HEARING SUA
   9-51  SPONTE>.  <(a)>  A party may file a request for a court hearing not
   9-52  later than the 20th day after the date the petition for
   9-53  confirmation of a child support review order is served or mailed as
   9-54  provided by this subchapter <an agreed administrative order is
   9-55  filed or not later than the Monday following the 20th day after the
   9-56  date the party received service of citation in a case involving the
   9-57  confirmation of any other type of order>.
   9-58        <(b)  If the court finds that confirmation of a child support
   9-59  review order without a hearing would not be in the best interests
   9-60  of a child who is the subject of the order, the court may schedule
   9-61  a hearing.  The order setting the hearing on the confirmation of
   9-62  the order shall state the court's specific reasons for conducting
   9-63  the hearing.>
   9-64        Sec. 231.424.  CONFIRMATION WITHOUT HEARING.  Not later than
   9-65  the 30th day after the date a petition for confirmation that
   9-66  includes waivers by all parties is filed or after the date of
   9-67  service is made on the last party required to be served for a
   9-68  petition for confirmation that does not include waivers, whichever
   9-69  is later, the court shall confirm the child support review order by
   9-70  signing an order of confirmation unless a party has filed a timely
   10-1  request for hearing or the court has scheduled a hearing.
   10-2        Sec. 231.425.  EFFECT OF REQUEST FOR HEARING; PLEADING.
   10-3  (a)  A request for hearing or an order setting a hearing on
   10-4  confirmation stays confirmation of the order pending the hearing.
   10-5        (b)  At a hearing on confirmation, all issues in the child
   10-6  support review order shall be heard in a trial de novo.
   10-7        (c)  The petition for confirmation and the child support
   10-8  review order constitute a sufficient pleading by the child support
   10-9  agency for relief on any issue addressed in the petition and order.
  10-10        (d)  The request for hearing may limit the scope of the de
  10-11  novo hearing by specifying the issues that are in dispute.
  10-12        Sec. 231.426.  TIME FOR COURT HEARING.  A court shall hold a
  10-13  hearing on the confirmation of a child support review order not
  10-14  later than the 30th day after the date the <court determines that a
  10-15  hearing should be held or the> last party to be served files a
  10-16  timely request for a court hearing.
  10-17        Sec. 231.427.  ORDER AFTER HEARING; EFFECT OF CONFIRMATION
  10-18  ORDER.  (a)  After the hearing on the confirmation of a child
  10-19  support review order, the court shall:
  10-20              (1)  if the court finds that the order should be
  10-21  confirmed, immediately sign a confirmation order and enter the
  10-22  order as an order of the court;
  10-23              (2)  if the court finds that the relief granted in the
  10-24  child support review order is inappropriate, sign an appropriate
  10-25  order at the conclusion of the hearing or as soon after the
  10-26  conclusion of the hearing as is practical and enter the order as an
  10-27  order of the court; or
  10-28              (3)  if the court finds that all relief should be
  10-29  denied, enter an order that denies relief and includes specific
  10-30  findings explaining the reasons that relief is denied.
  10-31        (b)  On the signing of a confirmation order by the judge of
  10-32  the court, the child support review order becomes a final order
  10-33  <judgment> of the court.
  10-34        Sec. 231.428.  SPECIAL CHILD SUPPORT REVIEW PROCEDURES
  10-35  RELATING TO ESTABLISHMENT OF PARENTAGE <PATERNITY>.  (a)  If the
  10-36  parentage <paternity> of a child has not been established <by court
  10-37  order>, the notice of child support review served on the parties
  10-38  must include an allegation that the recipient <alleged father> is a
  10-39  <the> biological parent <father> of the child.  The notice shall
  10-40  inform the parties that the alleged father of the child may sign a
  10-41  statement of paternity and that any party may request that
  10-42  scientifically accepted parentage <paternity> testing be conducted
  10-43  to assist in determining the identities of <whether the alleged
  10-44  father is> the child's parents <father>.
  10-45        (b)  A negotiation conference shall be conducted to resolve
  10-46  any issues of support in an action in which all parties agree as to
  10-47  <that the alleged father is> the child's parentage <biological
  10-48  father>.
  10-49        (c)  If a party denies parentage <that the alleged father is
  10-50  the child's biological father or, in the case of a presumed father,
  10-51  if either party files a verified denial of paternity>, the child
  10-52  support agency may schedule parentage <paternity> testing.  If
  10-53  either party fails or refuses to participate in administrative
  10-54  parentage testing, the child support agency may file a child
  10-55  support review order with a request for court-ordered parentage
  10-56  testing.  The court shall follow the procedures and may impose the
  10-57  sanctions provided by this code to obtain compliance with the
  10-58  parentage testing order.  The court shall confirm the child support
  10-59  review order as a temporary or final order of the court only after
  10-60  an opportunity for parentage testing has been provided.
  10-61        (d)  If parentage <paternity> testing does not exclude the
  10-62  alleged parent and <father from being the child's father and a
  10-63  party continues to deny that the alleged father is the child's
  10-64  biological father, the child support agency may schedule a
  10-65  negotiation conference as provided by this subchapter.  If> the
  10-66  results of a verified written report of a parentage <paternity>
  10-67  testing expert meet the requirements of Chapter 160 for issuing a
  10-68  temporary order, the child support agency may issue a child support
  10-69  review order.
  10-70        (e)  If the results of parentage <paternity> testing exclude
   11-1  an <the> alleged parent <or presumed father> from being the
   11-2  biological parent <father> of the child, the child support agency
   11-3  shall issue a child support review order that declares that the
   11-4  excluded person <alleged or presumed father> is not a parent <the
   11-5  father> of the child.
   11-6        (f)  Any party may file a petition for confirmation of a
   11-7  child support review order issued under this section.
   11-8        Sec. 231.429.  ADMINISTRATIVE PROCEDURE LAW NOT APPLICABLE.
   11-9  The child support review process under this chapter is not governed
  11-10  by the administrative procedure law, Chapter 2001, Government Code.
  11-11        Sec. 231.430.  EXPIRATION OF SUBCHAPTER.  This subchapter
  11-12  expires September 1, 1997.
  11-13        Sec. 231.431.  STUDY OF CHILD SUPPORT REVIEW PROCESS.  The
  11-14  attorney general as the Title IV-D agency shall conduct a study to
  11-15  determine and compare the cost of child support enforcement through
  11-16  use of the child support review process authorized by this
  11-17  subchapter and the cost of child support enforcement by the
  11-18  attorney general through use of other enforcement mechanisms
  11-19  available under this chapter.  The attorney general shall report
  11-20  the results of this study to the governor and the legislature not
  11-21  later than September 1, 1996, and shall include in the report
  11-22  recommendations regarding statutory amendments for improving
  11-23  judicial and administrative processes for child support
  11-24  enforcement.  This section expires September 2, 1996.
  11-25        SECTION 2.05.  Subsection (a), Section 71.035, Government
  11-26  Code, is amended to read as follows:
  11-27        (a)  The council shall gather judicial statistics and other
  11-28  pertinent information from the several state judges and other court
  11-29  officials of this state.  In addition, the council shall implement
  11-30  a monthly tracking system to ensure accountability for counties and
  11-31  courts which participate in the statewide integrated system for
  11-32  child support and medical support enforcement established under
  11-33  Section 231.0011, Family Code.  As a duty of office, the district
  11-34  clerks and county clerks serving the affected courts shall report
  11-35  monthly such information as may be required by the council,
  11-36  including, at a minimum, the time required to enforce cases from
  11-37  date of delinquency, from date of filing, and from date of service
  11-38  until date of disposition.  Such information as is necessary to
  11-39  complete the report and not directly within the control of the
  11-40  district or county clerk, such as date of delinquency, shall be
  11-41  provided to the clerk by the child support registry or by the
  11-42  enforcement agency providing Title IV-D enforcement services in the
  11-43  court.  The monthly report shall be transmitted to the Office of
  11-44  Court Administration of the Texas Judicial System no later than the
  11-45  20th day of the month following the month reported, in such form as
  11-46  may be prescribed by the Office of Court Administration, which may
  11-47  include electronic data transfer.  Copies of such reports shall be
  11-48  maintained in the office of the appropriate district or county
  11-49  clerk for a period of at least two years and shall be available to
  11-50  the public for inspection and reproduction.
  11-51            ARTICLE 3.  INTERAGENCY COOPERATION AND STUDIES
  11-52        SECTION 3.01.  MONITORING IMPLEMENTATION OF THE STATEWIDE
  11-53  INTEGRATED SYSTEM FOR CHILD SUPPORT ENFORCEMENT.  (a)  The attorney
  11-54  general shall establish a work group to monitor the progress toward
  11-55  implementation of the statewide integrated system for child support
  11-56  and medical support enforcement established by Section 1.01 of this
  11-57  Act and determine the effect of that effort as it relates to:
  11-58              (1)  maximizing federal assistance for county-based
  11-59  child support collection efforts; and
  11-60              (2)  replacing the existing state child support
  11-61  enforcement application system with an automatic enforcement system
  11-62  that does not require an applicant to file a complaint.
  11-63        (b)  The work group established by this section shall report
  11-64  its findings and recommendations to the attorney general and shall
  11-65  notify the governor, the comptroller, and the legislature of the
  11-66  filing of the report not later than September 1, 1996, and annually
  11-67  thereafter.
  11-68        SECTION 3.02.  AGREEMENT FOR CASH INCENTIVES FOR MEDICAL
  11-69  ASSISTANCE.  (a)  The attorney general as the Title IV-D agency and
  11-70  the Texas Department of Health shall negotiate an agreement
   12-1  regarding the payment by the department of a cash incentive to the
   12-2  agency for each child eligible for medical assistance under the
   12-3  state Medicaid program that the agency causes to be enrolled in a
   12-4  private health insurance plan and for payment of a portion of the
   12-5  state share of costs recovered or saved as a result of the efforts
   12-6  of the agency.
   12-7        (b)  The attorney general and the Texas Department of Health
   12-8  shall report to the legislature the results of negotiations
   12-9  conducted under this section not later than October 1, 1996.
  12-10        SECTION 3.03.  STUDY ON MEDICAL SUPPORT.  (a)  The attorney
  12-11  general, the state Medicaid administrator, and the commissioner of
  12-12  insurance shall initiate a study regarding establishment of a
  12-13  health insurance purchasing alliance to purchase insurance coverage
  12-14  for children for whom a child support obligation is established or
  12-15  enforced under Part D of Title IV of the federal Social Security
  12-16  Act (42 U.S.C. Section 651 et seq.).
  12-17        (b)  Not later than October 1, 1996, the attorney general,
  12-18  the state Medicaid administrator, and the commissioner of insurance
  12-19  shall prepare and file a report summarizing the results of the
  12-20  study required by this section and shall give notice of filing the
  12-21  report to the:
  12-22              (1)  governor;
  12-23              (2)  lieutenant governor;
  12-24              (3)  speaker of the house of representatives;
  12-25              (4)  attorney general; and
  12-26              (5)  commissioner of health and human services.
  12-27        SECTION 3.04.  USE OF PRIVATE ENTITIES TO ASSIST IN CHILD
  12-28  SUPPORT ENFORCEMENT.  (a)  The Office of the Attorney General is
  12-29  strongly encouraged to expand the cost-effective use of private
  12-30  contractors to perform Title IV-D program functions.
  12-31        (b)  The Office of the Attorney General shall, not later than
  12-32  July 1, 1996, perform a cost analysis such as that used by the
  12-33  State Council on Competitive Government, for a standardized
  12-34  comparison of similar activities performed by private firms and the
  12-35  Office of the Attorney General.  If the costs of the Office of the
  12-36  Attorney General for identified activities of the Title IV-D agency
  12-37  are higher than a private contractor's costs and the contractor
  12-38  could deliver services as effectively as the Title IV-D agency, the
  12-39  agency may consider the contractor to perform the activities.  This
  12-40  section does not limit the authority of the Title IV-D agency to
  12-41  contract for services.
  12-42        (c)  The attorney general shall coordinate with the State
  12-43  Council on Competitive Government and may employ private
  12-44  consultants to develop the methodology and evaluate the activities
  12-45  being considered for privatization.
  12-46        (d)  The attorney general shall report the results of the
  12-47  efforts made under this section and notify the governor, the
  12-48  comptroller, and the legislature of the filing of the report not
  12-49  later than December 1, 1996.
  12-50                     ARTICLE 4.  HEALTH INSURANCE
  12-51        SECTION 4.01.  Chapter 3, Insurance Code, is amended by
  12-52  adding Subchapter J to read as follows:
  12-53                 SUBCHAPTER J.  MEDICAL CHILD SUPPORT
  12-54        Art. 3.96-1.  DEFINITIONS.  In this subchapter:
  12-55              (1)  "Child" has the meaning assigned by Section
  12-56  101.003(a) and (b), Family Code.
  12-57              (2)  "Child support agency" has the meaning assigned by
  12-58  Section 101.004, Family Code.
  12-59              (3)  "Custodial parent" means:
  12-60                    (A)  a managing conservator of a child or a
  12-61  possessory conservator of a child who is a parent of the child; or
  12-62                    (B)  a guardian of the person of a child, or
  12-63  another custodian of a child if the guardian or custodian is
  12-64  designated by a court or administrative agency of this or another
  12-65  state.
  12-66              (4)  "Health insurer" means any insurance company,
  12-67  group hospital service corporation, or health maintenance
  12-68  organization that delivers or issues for delivery an individual,
  12-69  group, blanket, or franchise insurance policy or insurance
  12-70  agreement, a group hospital service contract, or an evidence of
   13-1  coverage that provides benefits for medical or surgical expenses
   13-2  incurred as a result of an accident or sickness.
   13-3              (5)  "Insurer" means:
   13-4                    (A)  a health insurer;
   13-5                    (B)  a governmental entity subject to:
   13-6                          (i)  Article 3.51-1, 3.51-2, 3.51-4,
   13-7  3.51-5, or 3.51-5A of this code; or
   13-8                          (ii)  Section 1, Chapter 123, Acts of the
   13-9  60th Legislature, Regular Session, 1967 (Article 3.51-3, Vernon's
  13-10  Texas Insurance Code);
  13-11                    (C)  a multiple employer welfare arrangement, as
  13-12  that term is defined by Article 3.95-1 of this code; or
  13-13                    (D)  a group health plan, as defined by Section
  13-14  607(1), Employee Retirement Income Security Act of 1974 (29 U.S.C.
  13-15  Section 1167).
  13-16              (6)  "Medical assistance" means medical assistance
  13-17  under the state Medicaid program.
  13-18        Art. 3.96-2.  DENIAL OF ENROLLMENT PROHIBITED.  An insurer
  13-19  may not deny enrollment of a child under the health insurance
  13-20  coverage of the child's parent on the ground that the child:
  13-21              (1)  has a preexisting condition;
  13-22              (2)  was born out of wedlock;
  13-23              (3)  is not claimed as a dependent on the parent's
  13-24  federal income tax return;
  13-25              (4)  does not reside with the parent or in the
  13-26  insurer's service area; or
  13-27              (5)  is or has been an applicant for or recipient of
  13-28  medical assistance.
  13-29        Art. 3.96-3.  ENROLLMENT REQUIRED.  (a)  If a parent eligible
  13-30  for dependent health coverage through an insurer is required by a
  13-31  court or administrative order to provide health coverage for a
  13-32  child, the insurer shall permit the parent to enroll the child
  13-33  without regard to any enrollment period restriction.
  13-34        (b)  If a parent eligible for dependent health coverage
  13-35  through an insurer is required by a court or administrative order
  13-36  to provide health coverage for a child and fails to apply to obtain
  13-37  the health insurance coverage for the child, the insurer shall
  13-38  enroll the child on application of a custodial parent of the child,
  13-39  a child support agency having a duty to collect or enforce support
  13-40  for the child, or the child.
  13-41        Art. 3.96-4.  CANCELLATION OR NONRENEWAL PROHIBITED.  (a)  An
  13-42  insurer may not cancel or refuse to renew insurance coverage of a
  13-43  child entitled to enrollment or enrolled under this subchapter
  13-44  unless satisfactory written evidence is filed with the insurer that
  13-45  shows that:
  13-46              (1)  the court order or administrative order that
  13-47  required the coverage is no longer in effect; or
  13-48              (2)  the child is enrolled in comparable health
  13-49  insurance coverage or will be enrolled in comparable coverage that
  13-50  will take effect not later than the effective date of the
  13-51  cancellation or nonrenewal.
  13-52        (b)  As used in this section, "a child entitled to enrollment
  13-53  or enrolled under this subchapter" does not include a child whose
  13-54  eligibility has terminated because the parent eligible for
  13-55  dependent health coverage is no longer eligible for such coverage.
  13-56        Art. 3.96-5.  NOTICE OF AVAILABILITY OF CONTINUATION OR
  13-57  CONVERSION COVERAGE.  If dependent health coverage being terminated
  13-58  pursuant to Subsection (b), Article 3.96-4, of this code contains
  13-59  provisions for the continuation or conversion of such coverage for
  13-60  the child, the insurer shall notify the custodial parent and the
  13-61  child support agency of the costs and other requirements for
  13-62  extending or converting such coverage and shall enroll or continue
  13-63  enrollment of the child on application of a parent of the child, a
  13-64  child support agency, or the child.
  13-65        Art. 3.96-6.  EFFECT OF ASSIGNMENT OF MEDICAL SUPPORT RIGHTS
  13-66  TO STATE AGENCY; INFORMATION.  (a)  An insurer may not impose
  13-67  requirements on a state agency that has been assigned the rights of
  13-68  an individual eligible for medical assistance and covered for
  13-69  health benefits from the insurer that are different from the
  13-70  requirements applicable to an agent or assignee of any other
   14-1  covered individual.
   14-2        (b)  An insurer shall provide to a state agency providing
   14-3  medical assistance, or to a child support agency enforcing medical
   14-4  support, information as necessary to facilitate reimbursement of
   14-5  medical services provided to or paid on behalf of a child.
   14-6        Art. 3.96-7.  RIGHTS OF CUSTODIAL PARENT AND ADULT CHILD.
   14-7  (a)  If a child receives health insurance coverage through the
   14-8  insurer of a parent of the child, that insurer must provide
   14-9  information and documents to each custodial parent or an adult
  14-10  child as necessary for the child to obtain benefits through that
  14-11  coverage, including:
  14-12              (1)  the name of the insurer;
  14-13              (2)  the number of the policy;
  14-14              (3)  a copy of the policy and schedule of benefits;
  14-15              (4)  a health insurance membership card;
  14-16              (5)  claim forms; and
  14-17              (6)  any other information or document necessary to
  14-18  submit a claim in accordance with the insurer's policies and
  14-19  procedures.
  14-20        (b)  The insurer shall permit a custodial parent, a health
  14-21  care provider, adult child, or a state agency that has been
  14-22  assigned medical support rights to submit claims for covered
  14-23  services without the approval of the insured parent.
  14-24        (c)  The insurer shall make payments on covered claims
  14-25  submitted in accordance with this article directly to the custodial
  14-26  parent, health care provider, adult child, or state agency making
  14-27  the claim.
  14-28        Art. 3.96-8.  SERVICE AREA RESTRICTIONS PROHIBITED.  An
  14-29  insurer may not enforce otherwise applicable provisions that would
  14-30  deny, limit, or reduce payment for claims for a covered child who
  14-31  lives outside the insurer's coverage territory but inside the
  14-32  United States.
  14-33        Art. 3.96-9.  PENALTIES; REMEDIES.  An insurer that violates
  14-34  this subchapter is subject to the same penalties, and an injured
  14-35  party has the same rights and remedies, as those provided by
  14-36  Section 16, Article 21.21, of this code.
  14-37        Art. 3.96-10.  RULES.  The commissioner shall adopt
  14-38  reasonable rules as necessary to implement this subchapter and the
  14-39  requirements of 42 U.S.C. Section 1396a(a)(60), including rules
  14-40  defining acts that constitute unfair or deceptive practices under
  14-41  Section 13, Article 21.21, of this code.
  14-42        SECTION 4.02.  Section 101.012, Family Code, as added by H.B.
  14-43  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  14-44  amended to read as follows:
  14-45        Sec. 101.012.  EMPLOYER.  "Employer" means a person,
  14-46  corporation, partnership, workers' compensation insurance carrier,
  14-47  governmental entity, and the United States, and includes, for
  14-48  purposes of enrolling dependents in a group health insurance plan,
  14-49  a union, trade association, or other similar organization.
  14-50        SECTION 4.03.  Section 154.184, Family Code, as added by H.B.
  14-51  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  14-52  amended to read as follows:
  14-53        Sec. 154.184.  EFFECT OF ORDER.  (a)  Receipt of <For
  14-54  purposes of enrolling a child in a health insurance program under
  14-55  this subchapter,> a medical support order requiring that health
  14-56  insurance be provided for a child shall be considered a change in
  14-57  the family circumstances of the employee or member, for health
  14-58  insurance purposes, <covered person> equivalent to the birth or
  14-59  adoption of a child <by the covered person>.
  14-60        (b)  The <On receipt of the order by the employer, the> child
  14-61  shall be automatically enrolled for the first 31 days after the
  14-62  receipt of the order by the employer on the same terms and
  14-63  conditions as apply to any other <a> dependent child.
  14-64        (c)  The <On receipt of the order by the employer, the>
  14-65  employer shall notify the insurer of the automatic enrollment.
  14-66        (d)  During the 31-day period, the employer and insurer shall
  14-67  complete all necessary forms and procedures to make the enrollment
  14-68  permanent or shall report in accordance with this subchapter the
  14-69  reasons the coverage cannot be made permanent <policyholder shall
  14-70  apply for coverage for the child in accordance with the medical
   15-1  support order>.
   15-2        SECTION 4.04.  Section 154.186, Family Code, as added by H.B.
   15-3  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
   15-4  amended to read as follows:
   15-5        Sec. 154.186.  NOTICE TO EMPLOYER.  The obligee, obligor, or
   15-6  a child support <local domestic relations office, or Title IV-D>
   15-7  agency may send a <certified> copy of the order requiring an
   15-8  employee to provide health insurance coverage for a <the> child to
   15-9  the employer <by certified mail, return receipt requested.  The
  15-10  order is binding on the employer on receipt>.
  15-11        SECTION 4.05.  Section 154.187, Family Code, as added by H.B.
  15-12  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  15-13  amended by amending Subsections (a) and (c) and by adding
  15-14  Subsection (g) to read as follows:
  15-15        (a)  An order to an employer directing that health insurance
  15-16  coverage be provided to a child of an employee or member is binding
  15-17  on the employer on receipt.  If the employee or member is eligible
  15-18  for dependent health coverage for the child, the <On receipt of an
  15-19  order directing that health insurance coverage be extended to a
  15-20  child of an employee, an> employer shall immediately enroll the
  15-21  child in a health insurance plan <available to the employee.  If
  15-22  the employer is not able to immediately enroll the child, the
  15-23  employer shall enroll the child at the next available enrollment
  15-24  period as a dependent of the employee>.  If dependent coverage is
  15-25  not available to the employee or member through the employer's
  15-26  health insurance plan or<,> the employer <is responsible for
  15-27  providing notice of this fact but> is not responsible or otherwise
  15-28  liable for providing such coverage, the employer shall provide
  15-29  notice to the sender in accordance with Subsection (c).
  15-30        (c)  An employer who has received an order under this
  15-31  subchapter shall provide to the sender, by first class mail not
  15-32  later than the 30th day after the date the employer receives the
  15-33  order, a statement that the child:
  15-34              (1)  has been enrolled in a health insurance plan; or
  15-35              (2)  <will be enrolled in a health insurance plan at
  15-36  the next available enrollment period and provide the expected date
  15-37  of such enrollment; or>
  15-38              <(3)>  cannot be enrolled in a health insurance plan
  15-39  and provide the reason why coverage cannot be provided.
  15-40        (g)  An employer who fails to enroll a child, fails to
  15-41  withhold or remit premiums or cash medical support, or
  15-42  discriminates in hiring or employment on the basis of a medical
  15-43  support order shall be subject to the penalties and fines in
  15-44  Subchapter C, Chapter 158.
  15-45        SECTION 4.06.  Section 154.192, Family Code, as added by H.B.
  15-46  No. 655, Acts of the 74th Legislature, Regular Session, 1995, is
  15-47  amended to read as follows:
  15-48        Sec. 154.192.  CANCELLATION OR ELIMINATION OF INSURANCE
  15-49  COVERAGE FOR CHILD <HEALTH MAINTENANCE ORGANIZATION>.  (a)  Unless
  15-50  the employee or member ceases to be eligible for dependent coverage
  15-51  or the employer has eliminated dependent health coverage for all of
  15-52  the employer's employees or members, the employer may not cancel or
  15-53  eliminate coverage of a child enrolled under this subchapter until
  15-54  the employer is provided satisfactory written evidence that:
  15-55              (1)  the court order or administrative order requiring
  15-56  the coverage is no longer in effect; or
  15-57              (2)  the child is enrolled in comparable health
  15-58  insurance coverage or will be enrolled in comparable coverage that
  15-59  will take effect not later than the effective date of the
  15-60  cancellation or elimination of the employer's coverage.  <This
  15-61  subchapter does not require a health maintenance organization to
  15-62  provide coverage to a child who resides outside the geographic
  15-63  service area.>
  15-64        SECTION 4.07.  Subsection (a), Section 158.206, Family Code,
  15-65  as added by H.B. No. 655, Acts of the 74th Legislature, Regular
  15-66  Session, 1995, is amended to read as follows:
  15-67        (a)  An employer receiving an order or writ of withholding,
  15-68  including an order directing that health insurance be provided to a
  15-69  child, who complies with the order or writ is not liable to the
  15-70  obligor for the amount of income withheld and paid as provided in
   16-1  the order or writ.
   16-2    ARTICLE 5.  EFFECTIVE DATE AND TRANSITION PROVISIONS; EMERGENCY
   16-3        SECTION 5.01.  (a)  This Act takes effect September 1, 1995.
   16-4        (b)  Subchapter J, Chapter 3, Insurance Code, as added by
   16-5  Section 4.01 of this Act, applies only to an insurance policy or
   16-6  evidence of coverage that is delivered, issued for delivery, or
   16-7  renewed on or after January 1, 1996.  A policy or evidence of
   16-8  coverage that is delivered, issued for delivery, or renewed before
   16-9  January 1, 1996, is governed by the law as it existed immediately
  16-10  before the effective date of this Act, and that law is continued in
  16-11  effect for that purpose.
  16-12        (c)  The Office of the Attorney General may exercise the
  16-13  contracting authority granted in Section 231.0011, Family Code, as
  16-14  added by Section 1.01 of this Act, to provide for a phased
  16-15  implementation of the statewide integrated system for child support
  16-16  and medical support enforcement, and shall implement the system to
  16-17  the extent that locally generated funds and federal reimbursement
  16-18  related to such funds are sufficient to pay for implementation.
  16-19        (d)  The Office of Court Administration of the Texas Judicial
  16-20  System may phase in the monthly report required by Section 71.035,
  16-21  Government Code, as amended by Section 2.05 of this Act, to
  16-22  correspond with the phased implementation of the statewide
  16-23  integrated system for child support and medical support enforcement
  16-24  described in Section 231.0011, Family Code, as added by Section
  16-25  1.01 of this Act.
  16-26        (e)  If before implementing any provision of this Act, the
  16-27  attorney general, the Texas Department of Health, the Texas
  16-28  Department of Human Services, or another affected agency determines
  16-29  that a waiver or authorization from a federal agency is necessary
  16-30  for implementation of that provision, the affected agency shall
  16-31  promptly apply for a waiver, and the provision shall take effect
  16-32  when necessary waivers have been granted.  A copy of each waiver
  16-33  request shall be provided to the governor, the lieutenant governor,
  16-34  and the speaker of the house of representatives.
  16-35        (f)  For the purpose of implementing the integrated system
  16-36  established by Section 231.0011, Family Code, as added by Section
  16-37  1.01 of this Act and Section 71.035, Government Code, as amended by
  16-38  Section 2.05 of this Act, all funds received from the federal
  16-39  government as reimbursement for expenses directly related to the
  16-40  integrated system, including the federal match for locally
  16-41  generated funds, shall be in excess of any amount appropriated to
  16-42  the attorney general by other Acts of the 74th Legislature, and are
  16-43  hereby appropriated to the attorney general for the fiscal years
  16-44  ending August 31, 1996, and August 31, 1997.
  16-45        SECTION 5.02.  Not later than December 1, 1996, the attorney
  16-46  general shall report to the legislature an estimate of the cost
  16-47  savings to the state and effectiveness of the expansion of child
  16-48  support enforcement services and of privatization efforts.
  16-49        SECTION 5.03.  (a)  The Office of the Attorney General, in
  16-50  conjunction with the Texas Department of Human Services, shall
  16-51  develop and implement a plan to assign a representative to work
  16-52  with department eligibility workers in department offices or
  16-53  facilities that are located in the same geographic region as
  16-54  offices or facilities of the attorney general.  The plan shall:
  16-55              (1)  include a schedule for implementation; and
  16-56              (2)  provide that the Office of the Attorney General
  16-57  may make a work assignment under this subsection only if the
  16-58  anticipated increased collection of child support for public
  16-59  assistance cases is greater than the cost of placing the
  16-60  representative in a department office or facility.
  16-61        (b)  Not later than October 1, 1995, the attorney general
  16-62  shall complete the plan required by this section and send notice of
  16-63  filing the completed plan to the governor, the lieutenant governor,
  16-64  and the speaker of the house of representatives.
  16-65        (c)  The attorney general and the Texas Department of Human
  16-66  Services shall prepare the initial memorandum of understanding
  16-67  required by Section 1.07 of this Act not later than December 1,
  16-68  1995.
  16-69        SECTION 5.04.  The change in law made by Subchapter E,
  16-70  Chapter 231, Family Code, as amended by this Act, applies only to a
   17-1  child support review for which notice is given on or after the
   17-2  effective date of this Act.  A child support review for which
   17-3  notice is given before that date is governed by the law in effect
   17-4  at the time notice was given, and the former law is continued in
   17-5  effect for that purpose.
   17-6        SECTION 5.05.  (a)  Section 3.01 of this Act expires
   17-7  September 2, 1997.
   17-8        (b)  Subsection (b), Section 3.02, and Section 3.03 of this
   17-9  Act expire January 1, 1997.
  17-10        SECTION 5.06.  The importance of this legislation and the
  17-11  crowded condition of the calendars in both houses create an
  17-12  emergency and an imperative public necessity that the
  17-13  constitutional rule requiring bills to be read on three several
  17-14  days in each house be suspended, and this rule is hereby suspended.
  17-15                               * * * * *
  17-16  constitutional rule requiring bills to be read on three several
  17-17  days in each house be suspended, and this rule is hereby suspended.
  17-18                               * * * * *