SRC-BWC S.B. 236 77(R)BILL ANALYSIS Senate Research CenterS.B. 236 By: Harris Jurisprudence 6/18/2001 Enrolled DIGEST AND PURPOSE Currently, the court is required to enter an order for the medical support of a child. Chapter 154 of the Family Code provides the option of the Texas Healthy Kids Corporation as a potential source of health insurance coverage, but it does not mention the Children's Health Insurance Program (CHIP) as a coverage option. S.B. 236 authorizes the use of any potential health insurance product, including CHIP, to be considered in meeting the medical support requirement under the child support system. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the attorney general and the Health and Human Services Commission in SECTION 5 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 154.181, Family Code, to require the court, in a suit affecting the parent-child relationship or in a proceeding under Chapter 159, to render an order for the medical support of the child as provided by this section and Section 154.182. Requires the court, before a hearing on temporary orders or a final order and if no hearing on temporary orders is held, to require the parties to the proceedings to disclose in a pleading or other statement under certain circumstances. Requires the court, in rendering temporary orders and except for good cause shown, to order that any health insurance coverage in effect for the child continue in effect pending the rendition of a final order, except that the court is prohibited from requiring the continuation of any health insurance that is not available to the parent at a reasonable cost. Requires the court, except for good cause shown, to order health care coverage for the child as provided under Section 154.182, if there is no health insurance coverage in effect for the child or if the insurance in effect is not available at a reasonable cost and the child is not receiving medical assistance under Chapter 32, Human Resources Code, or coverage under the state child health plan under Chapter 62, Health and Safety Code. Requires the court, except for good cause shown and on rendering a final order, to require the parent ordered to provide health care coverage for the child as provided under Section 154.182 to produce evidence to the court's satisfaction that the parent has applied for or secured health insurance or has otherwise taken necessary action to provide for health care coverage for the child, as ordered by the court. Defines "reasonable cost." SECTION 2. Amends Sections 154.182(b) and (c), Family Code, to require the court, in determining the manner in which health insurance for the child is to be ordered, to render its order in accordance with the following priorities, unless a party shows good cause why a particular order would not be in the best interest of the child: _requires the court, if neither parent has access to private health insurance at a reasonable cost, to order that the custodial parent or, to the extent permitted by law, the noncustodial parent immediately apply on behalf of the child for participation in a medical assistance program under Chapter 32, Human Resources Code, or the state child health plan under Chapter 62, Health and Safety Code, and that the obligor pay additional child support, to be withheld from income under Chapter 158, to the obligee for the actual cost of participation of the child in such program. Deletes text that requires the court to order the obligor to apply for coverage through the Texas Healthy Kids Corporation (THKC) under certain circumstances. Deletes text authorizing an obligor whose employer, union, trade association, or other organization that does not offer a child coverage option in lieu of a spouse/ child/ children option of health insurance coverage to elect to apply for coverage through THKC. Deletes text regarding an obligor required to pay additional child support to an obligee also applying for such coverage. Deletes text regarding the amount for additional medical child support. Makes conforming changes. SECTION 3. Repealer: Chapter 109 (Texas Healthy Kids Corporation), Health and Safety Code. SECTION 4. Defines "commissioner," "department," and "fund." _Requires the Department of Insurance to supervise and monitor the implementation of the dissolution plan of the Texas Healthy Kids Corporation (THKC). _Requires the comptroller of public accounts, effective August 31, 2001, to transfer all money in the fund, other than money necessary, in accordance with the Texas NonProfit Corporation Act (Article 1396-1.01 et seq., V.T.C.S.), to satisfy the financial obligations incurred by THKC before June 15, 2001, to a dedicated account in the general revenue fund. Requires the commissioner of insurance (commissioner), in consultation with the board of directors of THKC, to determine the amount of money necessary to satisfy the financial obligations of the corporation as described by this section. Provides that on the date the commissioner determines that the financial obligations described by this section are satisfied, all money remaining in the fund, including any amounts received by THKC in settlement of litigation, is transferred to the dedicated account described by Subsection (c) of this section. _Authorizes money transferred to the general revenue fund under this section to be appropriated only to the Health and Human Services Commission to provide coverage under the state child health plan established under Chapter 62, Health and Safety Code. Provides that it is the intention of the legislature that the money transferred to the general revenue fund under this section be considered to be state funds for the purposes of obtaining federal matching money under Title XXI, Social Security Act (42 U.S.C. Section 1397aa et seq.). SECTION 5. Requires the attorney general and the Health and Human Services Commission, to the extent necessary to implement the provisions of this Act, to require any waiver or authorization from a federal agency with respect to the provision of medical assistance under Chapter 32, Human Resources Code, or the operation of a state child health plan under Chapter 62, Health and Safety Code, and develop and publish appropriate rules. SECTION 6. Effective date: upon passage or September 1, 2001.