HBA-KHM, JLV H.B. 1365 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1365 By: Goodman Juvenile Justice & Family Issues 2/25/2001 Introduced BACKGROUND AND PURPOSE Current law provides for the establishment and enforcement of child support obligations in suits affecting the parent-child relationship. Among the provisions are procedures for ordering medical support and enforcing support obligations through mechanisms such as income withholding and liens. House Bill 1365 provides technical corrections and textual emendations to various provisions to clarify intent and to enhance establishment and enforcement provisions. H.B. 1365 also provides for the continuation of the duty of support beyond the death of an obligee, medical support for a child for whom child support is ordered, child support lien and levy processes, and administrative processes used by the Office of the Attorney General's child support division. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1365 amends the Family Code to set forth provisions relating to the establishment, modification, and enforcement of child support. The bill provides that a child support obligation does not terminate on the death of the obligee but continues as an obligation to the child named in the support order. The bill requires that after the death of the obligee, a child support payment is to be paid proportionately for the benefit of each surviving child and not to the estate of the obligor. The bill provides that the payment of child support is free of any creditor's claim against the deceased obligee's estate. The bill requires that on the death of an obligee, current child support owed by the obligor is to be paid and a copy of the order provided to certain persons (Sec. 154.013). The court requires the obligee to provide health insurance to the child if health insurance is available through any source available to the obligee, including the children's health insurance program. The bill removes provisions requiring the obligor to apply for coverage through the Texas Healthy Kids Corporation. The bill also removes provisions establishing a specified amount of medical child support (Sec. 154.182). The bill requires an employer to automatically enroll the child on receipt of the order or notice of the medical child support order, rather than during the 31 days immediately following the receipt of the order (Sec. 154.184). The bill provides that a child support lien arises by operation of law for all amounts of child support due and owing, including any accrued interest, and provides additional requirements of the content and methods of filing all child support lien notices (Secs. 157.312, 157.313, and 157.314). The bill provides that a lien is perfected if a lien is attached to a financial institution account in which the obligor has sole or part ownership interest and the support lien notice is delivered to the financial institution holding the account and releases the institution from liability for compliance with a levy notice (Secs. 157.316 and 157.329). The bill requires the county clerk, on receipt of a child support lien notice, to immediately record the date and time the notice was filed (Sec. 157.315). The bill provides that a lien attaches to all real and personal property including an individual retirement account and the proceeds of a life insurance policy (Sec. 157.317). The bill prohibits a financial institution that receives a notice of levy from closing an account, withdrawing funds, or paying funds to the obligor. The bill requires the financial institution that receives a notice of levy to notify any other person having an ownership interest in the account, that the account has been levied on in an amount not to exceed the amount of the child support arrearages (Sec. 157.327). The bill authorizes the claimant to proceed to levy on other property of the obligor until the total amount of child support due is paid if the property or right to property does not produce sufficient funds to satisfy the amount of child support arrearages (Sec. 157.331). The bill requires a claimant to deliver a notice of levy to any financial institution possessing or controlling assets or funds of the obligor and provides requirements for notice of levy to the obligor (Sec. 157.328). The bill authorizes the court to render an order requiring the obligor to make periodic payments or that income be withheld from the disposable earnings of the obligor in an amount sufficient to discharge the judgment in not more than two years (Sec. 157.264). The bill removes provisions relating to the contents of an order or a writ of withholding (Sec. 158.103). The bill requires the obligor's employer to send a copy of the income withholding order or writ to the insurance carrier with whom the claim has been filed in order to continue the ordered withholding of income (Sec. 158.206). The bill authorizes an administrative writ of withholding to contain only information that is necessary for the employer to withhold income for child support and medical support and is required to specify the place where the withheld income is to be paid (Sec. 158.504). On issuance of administrative writ of withholding, the bill requires the Office of the Attorney General, the designated Title IV-D agency in this state, to send notice of the amount of arrearages, including accrued interest, to the obligor (Sec. 158.505). The bill removes provisions relating to findings by a jury (Secs. 160.003 and 160.006). The bill requires the court to conduct a preliminary hearing to determine whether grounds exist for a suit to proceed (Sec. 160.207). The bill requires the clerk of the court to file suit in a suit to determine parentage (Sec. 102.013). The bill requires the attorney general to use all sources of information and available records authorized by law, including the federal parent locator service to obtain information for the establishment of paternity and the establishment, modification, or enforcement of child support. The bill sets forth the persons authorized to receive information through the federal parent locator service. The bill requires a government agency, private company, institution, or other entity to provide the information requested directly to the attorney general without the requirement of payment of a fee for the information (Sec. 231.302). The bill authorizes the court to order retroactive child support for a child for a period after the termination of a previous child support order if the termination resulted from the marriage or remarriage of the child's parents (Sec. 154.009). The bill requires the court to render an order with specific requirements, directing payment of current child support amounts, arrearages, and support paid but not dispersed. The bill requires the order to be distributed to certain persons or agencies (Sec. 154.013). The bill provides that any support paid to the obligee in excess of the amount ordered is required to be returned to the obligor, if the obligor is not in arrears and the obligor's child support obligation has terminated (Sec. 154.012). The bill provides that if both parties support and sign the child support order and paternity is established, then the attorney general is authorized to present the order and waiver to the court for confirmation without conducting a negotiation conference (Secs. 233.009 and 233.0095). The bill authorizes the court to sign the order before filing the order, and requires the signed order to be immediately filed (Sec. 233.024). The bill authorizes the attorney general to enter into contracts or cooperative agreements to process through the state disbursement unit child support collections (Sec. 234.004). The bill authorizes, rather than requires, the attorney general in cooperation with a work group to adopt rules in compliance with federal law for the operation of the state case registry and the state disbursement unit (Sec. 234.006). The bill provides that a child support payment record is admissible as evidence without further authentication or verification. The bill requires that disputes involving the child support payment record are to be resolved by deposition on written interrogatories by certain individuals (Sec.154.243). The bill authorizes a court of this state to modify an order of child support rendered by an appropriate tribunal of another state after registration of the order (Sec. 156.408). The bill provides that a notice of a motion for modification of an order may be served by mailing a copy of the citation to the respondent with a copy of the motion and provides additional notice requirements (Sec. 156.409). The bill authorizes the attorney general to enforce a support order rendered by a tribunal of another state (Sec. 158.501). EFFECTIVE DATE September 1, 2001.