1-1 By: Goodman, et al. (Senate Sponsor - Harris) H.B. No. 1365
1-2 (In the Senate - Received from the House April 9, 2001;
1-3 April 9, 2001, read first time and referred to Committee on
1-4 Jurisprudence; May 11, 2001, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 4, Nays 0;
1-6 May 11, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 1365 By: Jackson
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the establishment, modification, and enforcement of
1-11 child support.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 101.015, Family Code, is amended to read
1-14 as follows:
1-15 Sec. 101.015. HEALTH INSURANCE. "Health insurance" means
1-16 insurance coverage that provides basic health care services,
1-17 including usual physician services, office visits, hospitalization,
1-18 and laboratory, X-ray, and emergency services, that may be provided
1-19 through a health maintenance organization or other private or
1-20 public organization, other than medical assistance under Chapter
1-21 32, Human Resources Code.
1-22 SECTION 2. Section 102.013, Family Code, is amended by adding
1-23 Subsection (c) to read as follows:
1-24 (c) In a suit to determine parentage under this title in
1-25 which the court has rendered an order relating to an earlier born
1-26 child of the same parents, the clerk shall file the suit and all
1-27 other papers relating to the suit under the same docket number as
1-28 the prior parentage action. For all other purposes, including the
1-29 assessment of fees and other costs, the suit is a separate suit.
1-30 SECTION 3. Section 154.008, Family Code, is amended to read
1-31 as follows:
1-32 Sec. 154.008. PROVISION FOR MEDICAL SUPPORT [HEALTH
1-33 INSURANCE COVERAGE]. The court shall order medical support [health
1-34 insurance coverage] for the child as provided by Subchapters B and
1-35 D.
1-36 SECTION 4. Section 154.009, Family Code, is amended by adding
1-37 Subsections (d) and (e) to read as follows:
1-38 (d) Notwithstanding Subsection (a), the court may order a
1-39 parent subject to a previous child support order to pay retroactive
1-40 child support if:
1-41 (1) the previous child support order terminated as a
1-42 result of the marriage or remarriage of the child's parents;
1-43 (2) the child's parents separated after the marriage
1-44 or remarriage; and
1-45 (3) a new child support order is sought after the date
1-46 of the separation.
1-47 (e) In rendering an order under Subsection (d), the court
1-48 may order retroactive child support back to the date of the
1-49 separation of the child's parents.
1-50 SECTION 5. Section 154.012, Family Code, is amended to read
1-51 as follows:
1-52 Sec. 154.012. SUPPORT PAID IN EXCESS [AFTER TERMINATION] OF
1-53 SUPPORT ORDER. (a) If an [the] obligor is not in arrears and the
1-54 obligor's child support obligation has terminated, the [an] obligee
1-55 shall return to the [an] obligor a child support payment made by
1-56 the obligor that exceeds the amount of support ordered, regardless
1-57 of whether the payment was made before, on, or after the date the
1-58 child support obligation [order has] terminated.
1-59 (b) An obligor may file a suit to recover a child support
1-60 payment under Subsection (a). If the court finds that the obligee
1-61 failed to return a child support payment under Subsection (a), the
1-62 court shall order the obligee to pay to the obligor attorney's fees
1-63 and all court costs in addition to the amount of support paid after
1-64 the date the child support order terminated. For good cause shown,
2-1 the court may waive the requirement that the obligee pay attorney's
2-2 fees and costs if the court states the reasons supporting that
2-3 finding.
2-4 SECTION 6. Subchapter A, Chapter 154, Family Code, is amended
2-5 by adding Section 154.013 to read as follows:
2-6 Sec. 154.013. CONTINUATION OF DUTY TO PAY SUPPORT AFTER
2-7 DEATH OF OBLIGEE. (a) A child support obligation does not
2-8 terminate on the death of the obligee but continues as an
2-9 obligation to the child named in the support order, as required by
2-10 this section.
2-11 (b) Notwithstanding any provision of the Probate Code, a
2-12 child support payment held by the Title IV-D agency, a local
2-13 registry, or the state disbursement unit or any uncashed check or
2-14 warrant representing a child support payment made before, on, or
2-15 after the date of death of the obligee shall be paid
2-16 proportionately for the benefit of each surviving child named in
2-17 the support order and not to the estate of the obligee. The
2-18 payment is free of any creditor's claim against the deceased
2-19 obligee's estate and may be disbursed as provided by Subsection
2-20 (c).
2-21 (c) On the death of the obligee, current child support owed
2-22 by the obligor for the benefit of the child or any amount described
2-23 by Subsection (b) shall be paid to:
2-24 (1) a person, other than a parent, who is appointed as
2-25 managing conservator of the child;
2-26 (2) a person, including the obligor, who has assumed
2-27 actual care, control, and possession of the child, if a managing
2-28 conservator or guardian of the child has not been appointed;
2-29 (3) the county clerk, as provided by Section 887,
2-30 Texas Probate Code, in the name of and for the account of the child
2-31 for whom the support is owed;
2-32 (4) a guardian of the child appointed under Chapter
2-33 XIII, Texas Probate Code, as provided by that code; or
2-34 (5) the surviving child, if the child is an adult or
2-35 has otherwise had the disabilities of minority removed.
2-36 (d) On presentation of the obligee's death certificate, the
2-37 court shall render an order directing payment of child support paid
2-38 but not disbursed to be made as provided by Subsection (c). A copy
2-39 of the order shall be provided to:
2-40 (1) the obligor;
2-41 (2) as appropriate:
2-42 (A) the person having actual care, control, and
2-43 possession of the child;
2-44 (B) the county clerk; or
2-45 (C) the managing conservator or guardian of the
2-46 child, if one has been appointed;
2-47 (3) the local registry or state disbursement unit and,
2-48 if appropriate, the Title IV-D agency; and
2-49 (4) the child named in the support order, if the child
2-50 is an adult or has otherwise had the disabilities of minority
2-51 removed.
2-52 (e) The order under Subsection (d) must contain:
2-53 (1) a statement that the obligee is deceased and that
2-54 child support amounts otherwise payable to the obligee shall be
2-55 paid for the benefit of a surviving child named in the support
2-56 order as provided by Subsection (c);
2-57 (2) the name and age of each child named in the
2-58 support order; and
2-59 (3) the name and mailing address of, as appropriate:
2-60 (A) the person having actual care, control, and
2-61 possession of the child;
2-62 (B) the county clerk; or
2-63 (C) the managing conservator or guardian of the
2-64 child, if one has been appointed.
2-65 (f) On receipt of the order required under this section, the
2-66 local registry, state disbursement unit, or Title IV-D agency shall
2-67 disburse payments as required by the order.
2-68 SECTION 7. Section 154.064, Family Code, is amended to read
2-69 as follows:
3-1 Sec. 154.064. MEDICAL SUPPORT [HEALTH INSURANCE] FOR CHILD
3-2 PRESUMPTIVELY PROVIDED BY OBLIGOR. The guidelines for support of a
3-3 child are based on the assumption that the court will order the
3-4 obligor to provide medical support [health insurance coverage] for
3-5 the child in addition to the amount of child support calculated in
3-6 accordance with those guidelines.
3-7 SECTION 8. Section 154.130, Family Code, is amended by adding
3-8 Subsection (c) to read as follows:
3-9 (c) The application of the guidelines under Section 154.129
3-10 does not constitute a variance from the child support guidelines
3-11 requiring specific findings by the court under this section.
3-12 SECTION 9. Section 154.131, Family Code, is amended to read
3-13 as follows:
3-14 Sec. 154.131. [APPLICATION OF GUIDELINES TO] RETROACTIVE
3-15 CHILD SUPPORT. (a) The child support guidelines are intended to
3-16 guide the court in determining the amount of retroactive child
3-17 support, if any, to be ordered.
3-18 (b) In ordering retroactive child support, the court shall
3-19 consider the net resources of the obligor during the relevant time
3-20 period and whether:
3-21 (1) the mother of the child had made any previous
3-22 attempts to notify the obligor [biological father] of his paternity
3-23 or probable paternity;
3-24 (2) the obligor [biological father] had knowledge of
3-25 his paternity or probable paternity;
3-26 (3) the order of retroactive child support will impose
3-27 an undue financial hardship on the obligor or the obligor's family;
3-28 and
3-29 (4) the obligor has provided actual support or other
3-30 necessaries before the filing of the action.
3-31 (c) It is presumed that a court order limiting the amount of
3-32 retroactive child support to an amount that does not exceed the
3-33 total amount of support that would have been due for the four years
3-34 preceding the date the petition seeking support was filed is
3-35 reasonable and in the best interest of the child.
3-36 (d) The presumption created under this section may be
3-37 rebutted by evidence that the obligor:
3-38 (1) knew or should have known that the obligor was the
3-39 father of the child for whom support is sought; and
3-40 (2) sought to avoid the establishment of a support
3-41 obligation to the child.
3-42 (e) An order under this section limiting the amount of
3-43 retroactive support does not constitute a variance from the
3-44 guidelines requiring the court to make specific findings under
3-45 Section 154.130.
3-46 SECTION 10. Section 154.185, Family Code, is amended to read
3-47 as follows:
3-48 Sec. 154.185. PARENT TO FURNISH INFORMATION. (a) The court
3-49 shall order a parent providing health insurance to furnish to
3-50 either the obligee, obligor, [local domestic relations office,] or
3-51 child support [Title IV-D] agency the following information not
3-52 later than the 30th day after the date the notice of rendition of
3-53 the order is received:
3-54 (1) the social security number of the parent;
3-55 (2) the name and address of the parent's employer;
3-56 (3) whether the employer is self-insured or has health
3-57 insurance available;
3-58 (4) proof that health insurance has been provided for
3-59 the child;
3-60 (5) if the employer has health insurance available,
3-61 the name of the health insurance carrier, the number of the policy,
3-62 a copy of the policy and schedule of benefits, a health insurance
3-63 membership card, claim forms, and any other information necessary
3-64 to submit a claim; and
3-65 (6) if the employer is self-insured, a copy of the
3-66 schedule of benefits, a membership card, claim forms, and any other
3-67 information necessary to submit a claim.
3-68 (b) The court shall also order a parent providing health
3-69 insurance to furnish the obligor, obligee, [local domestic
4-1 relations office,] or child support [Title IV-D] agency with
4-2 additional information regarding health insurance coverage not
4-3 later than the 15th day after the date the information is received
4-4 by the parent.
4-5 SECTION 11. Section 155.205, Family Code, is amended to read
4-6 as follows:
4-7 Sec. 155.205. TRANSFER OF CHILD SUPPORT REGISTRY. (a) On
4-8 rendition of an order transferring continuing, exclusive
4-9 jurisdiction to another court, the transferring court shall also
4-10 order that all future payments of child support be made to the
4-11 local registry of the transferee court[, the Title IV-D agency,]
4-12 or, if payments have previously been directed to the state
4-13 disbursement unit, to the state disbursement unit.
4-14 (b) The transferring court's local registry[, the Title IV-D
4-15 agency,] or the state disbursement unit shall continue to receive,
4-16 record, and forward child support payments to the payee until it
4-17 receives notice that the transferred case has been docketed by the
4-18 transferee court.
4-19 (c) After receiving notice of docketing from the transferee
4-20 court, the transferring court's local registry shall send a
4-21 certified copy of the child support payment record to the clerk of
4-22 the transferee court and shall forward any payments received to the
4-23 transferee court's local registry or to the state disbursement
4-24 unit, as appropriate.
4-25 SECTION 12. Sections 155.207(a), (c), and (d), Family Code,
4-26 are amended to read as follows:
4-27 (a) On rendition of an order of transfer, the clerk of the
4-28 court transferring a proceeding shall send to the proper court in
4-29 the county to which transfer is being made:
4-30 (1) the complete files in all matters affecting the
4-31 child in any pending proceeding;
4-32 (2) certified copies of all entries in the minutes;
4-33 (3) a certified copy of any order of dissolution of
4-34 marriage rendered in a suit joined with the suit affecting the
4-35 parent-child relationship; and
4-36 (4) a certified copy of each order rendered.
4-37 (c) On receipt of the files, documents, and orders from the
4-38 transferring court, the clerk of the transferee court shall docket
4-39 the suit and shall notify all parties, the clerk of the
4-40 transferring court, and, if appropriate, the transferring court's
4-41 local registry that the suit has been docketed.
4-42 (d) The clerk of the transferring court shall send a
4-43 certified copy of the order directing payments to the transferee
4-44 court, to any party or employer affected by that order, and, if
4-45 appropriate, to the local registry of the transferee court.
4-46 SECTION 13. Section 156.408(b), Family Code, is amended to
4-47 read as follows:
4-48 (b) If both parties and the child reside in this state, a
4-49 court of this state may modify an order of child support rendered
4-50 by an appropriate tribunal of another state after registration of
4-51 the order as provided by [and any aspect of conservatorship as
4-52 provided by this chapter without reference to] Chapter 159.
4-53 SECTION 14. Section 156.409, Family Code, is amended to read
4-54 as follows:
4-55 Sec. 156.409. CHANGE IN PHYSICAL POSSESSION. (a) If the
4-56 sole managing conservator of a child or the joint managing
4-57 conservator who designates the child's primary residence has
4-58 voluntarily relinquished the actual care, control, and possession
4-59 of the child for at least six months, the court may modify an order
4-60 providing for the support of the child to provide that the person
4-61 having physical possession of the child shall have the right to
4-62 receive and give receipt for payments of support for the child and
4-63 to hold or disburse money for the benefit of the child.
4-64 (b) Notice of a motion for modification under this section
4-65 may be served in the manner for serving a notice under Section
4-66 157.065.
4-67 SECTION 15. Section 157.262, Family Code, is amended to read
4-68 as follows:
4-69 Sec. 157.262. REDUCTION OF ARREARAGES; ABEYANCE OF
5-1 ENFORCEMENT. (a) Except as provided by this section, in [In] a
5-2 contempt proceeding or in rendering a money judgment, the court may
5-3 not reduce or modify the amount of child support arrearages.
5-4 (b) In an enforcement action under this chapter, the court
5-5 may, with the agreement of the Title IV-D agency, hold in abeyance
5-6 the enforcement of any arrearages, including interest, assigned to
5-7 the Title IV-D agency under Section 231.104(a) if, for the period
5-8 of the court's order of abeyance of enforcement, the obligor:
5-9 (1) timely and fully pays the obligor's current child
5-10 support under a court or administrative order; and
5-11 (2) is involved in the life of the child for whom
5-12 support is ordered through the exercise of the obligor's right of
5-13 possession of or access to the child.
5-14 (c) If the court orders an abeyance of enforcement of
5-15 arrearages under this section, the court may require the obligor to
5-16 obtain counseling on parenting skills, work skills, job placement,
5-17 financial planning, conflict resolution, substance abuse, or other
5-18 matters causing the obligor to fail to obey the child support
5-19 order.
5-20 (d) If the court finds in a subsequent hearing that the
5-21 obligor has not met the conditions set by the court's order under
5-22 this section, the court shall terminate the abeyance of enforcement
5-23 of the arrearages.
5-24 (e) On the expiration of the child support order, the court
5-25 may, with the agreement of the Title IV-D agency, reduce the amount
5-26 of the arrearages assigned to the Title IV-D agency under Section
5-27 231.104(a) if the court finds that the obligor has complied with
5-28 the conditions set by the court under this section.
5-29 (f) The money judgment for arrearages rendered by the court
5-30 may be subject to a counterclaim or offset as provided by this
5-31 subchapter.
5-32 SECTION 16. Section 157.264, Family Code, is amended to read
5-33 as follows:
5-34 Sec. 157.264. ENFORCEMENT OF JUDGMENT [BY INCOME
5-35 WITHHOLDING]. (a) A money judgment rendered as provided in this
5-36 subchapter may be enforced by any means available for the
5-37 enforcement of a judgment for debts.
5-38 (b) The court may render [and by] an order requiring:
5-39 (1) that income be withheld from the disposable
5-40 earnings of the obligor in an amount sufficient to discharge the
5-41 judgment in not more than two years; or
5-42 (2) if the obligor is not subject to income
5-43 withholding, that the obligor make periodic payments to the obligee
5-44 in an amount sufficient to discharge the judgment within a
5-45 reasonable time.
5-46 SECTION 17. Section 157.268, Family Code, is amended to read
5-47 as follows:
5-48 Sec. 157.268. APPLICATION OF CHILD SUPPORT PAYMENT. Child
5-49 support collected shall be applied in the following order of
5-50 priority:
5-51 (1) current child support;
5-52 (2) non-delinquent child support owed;
5-53 (3) interest on the principal amounts specified in
5-54 Subdivisions (4) and (5);
5-55 (4) the principal amount of child support that has not
5-56 been confirmed and reduced to money judgment; [and]
5-57 (5) the principal amount of child support that has
5-58 been confirmed and reduced to money judgment; and
5-59 (6) the amount of any ordered attorney's fees or
5-60 costs.
5-61 SECTION 18. Section 157.311, Family Code, is amended to read
5-62 as follows:
5-63 Sec. 157.311. DEFINITIONS. In this subchapter:
5-64 (1) "Account" means:
5-65 (A) any type of a demand deposit account,
5-66 checking or negotiable withdrawal order account, savings account,
5-67 time deposit account, money market mutual fund account, certificate
5-68 of deposit, or any other instrument of deposit in which an
5-69 individual has a beneficial ownership either in its entirety or on
6-1 a shared or multiple party basis, including any accrued interest
6-2 and dividends; and
6-3 (B) a life insurance policy in which an
6-4 individual has a beneficial ownership or liability insurance
6-5 against which an individual has filed a claim or counterclaim,
6-6 including for workers' compensation.
6-7 (2) "Claimant" means:
6-8 (A) the obligee or a private attorney
6-9 representing the obligee;
6-10 (B) the Title IV-D agency providing child
6-11 support services;
6-12 (C) a domestic relations office or local
6-13 registry; or
6-14 (D) an attorney appointed as a friend of the
6-15 court.
6-16 (3) [(2)] "Court having continuing jurisdiction" is
6-17 the court of continuing, exclusive jurisdiction in this state or a
6-18 tribunal of another state having jurisdiction under the Uniform
6-19 Interstate Family Support Act or a substantially similar act.
6-20 (4) "Financial institution" has the meaning assigned
6-21 by 42 U.S.C. Section 669a(d)(1) and includes a depository
6-22 institution, credit union, benefit association, liability or life
6-23 insurance company, workers' compensation insurer, money market
6-24 mutual fund, and any similar entity authorized to do business in
6-25 this state.
6-26 (5) [(3)] "Lien" means a child support lien issued in
6-27 this or another state.
6-28 SECTION 19. Sections 157.312(d) and (f), Family Code, are
6-29 amended to read as follows:
6-30 (d) A child support lien arises[:]
6-31 [(1)] by operation of law against real and personal
6-32 property of an obligor for all amounts of child [overdue] support
6-33 due and owing, including any accrued interest, regardless of
6-34 whether the amounts have been adjudicated or otherwise determined,
6-35 subject to the requirements of this subchapter for perfection of
6-36 the lien [recording and notice; or]
6-37 [(2) when a court having continuing jurisdiction or,
6-38 in a Title IV-D case, the Title IV-D agency determines an amount of
6-39 arrears owed by a child support obligor].
6-40 (f) A foreclosure action under this subchapter is not
6-41 required as a prerequisite to levy and execution on a judicial
6-42 [judgment] or [an] administrative determination of arrearages as
6-43 provided by Section 157.327 [arrears rendered after notice and
6-44 opportunity for hearing].
6-45 SECTION 20. Section 157.313, Family Code, is amended to read
6-46 as follows:
6-47 Sec. 157.313. CONTENTS OF CHILD SUPPORT LIEN NOTICE. (a)
6-48 Except as provided by Subsection (e), a [A] child support lien
6-49 notice must contain:
6-50 (1) the name and address of the person to whom the
6-51 notice is being sent;
6-52 (2) the style, docket or cause number, and identity of
6-53 the tribunal of this or another state having continuing
6-54 jurisdiction of the child support action and, if the case is a
6-55 Title IV-D case, the case number;
6-56 (3) [(2)] the full name, address, and, if known
6-57 [available], the birth date, driver's license number, [and] social
6-58 security number, and any aliases of the obligor;
6-59 (4) [(3)] the full name and, if known, social security
6-60 number[, if available,] of the obligee [and the child];
6-61 (5) [(4)] the amount of the current or prospective
6-62 child support obligation, the frequency with which current or
6-63 prospective child support is ordered to be paid, and the amount of
6-64 child support arrearages owed by the obligor and the date of the
6-65 signing of the court order, administrative order, or writ that
6-66 determined the arrearages or the date and manner in which the
6-67 arrearages were determined;
6-68 (6) [(5)] the rate of interest specified in the court
6-69 order, administrative order, or writ or, in the absence of a
7-1 specified interest rate, the rate provided for by law;
7-2 (7) [(6)] the name and address of the person or agency
7-3 asserting the lien; [and]
7-4 (8) [(7)] the motor vehicle identification number as
7-5 shown on the obligor's title if the property is a motor vehicle;
7-6 (9) a statement that the lien attaches to all
7-7 nonexempt real and personal property of the obligor that is located
7-8 or recorded in the state, including any property specifically
7-9 identified in the notice;
7-10 (10) a statement that any ordered child support not
7-11 timely paid in the future constitutes a final judgment for the
7-12 amount due and owing, including interest, and accrues up to an
7-13 amount that may not exceed the lien amount; and
7-14 (11) a statement that the obligor is being provided a
7-15 copy of the lien notice and that the obligor may dispute the
7-16 arrearage amount by filing suit under Section 157.323.
7-17 (b) A claimant may include any other information that the
7-18 claimant considers necessary.
7-19 (c) The lien notice must be verified.
7-20 (d) A claimant must file a notice for each after-acquired
7-21 motor vehicle.
7-22 (e) A notice of a lien for child support under this section
7-23 may be in the form authorized by federal law or regulation.
7-24 SECTION 21. Section 157.314, Family Code, is amended to read
7-25 as follows:
7-26 Sec. 157.314. FILING LIEN NOTICE OR ABSTRACT OF JUDGMENT;
7-27 NOTICE TO OBLIGOR. (a) A child support lien notice or an abstract
7-28 of judgment for past due child support may be filed by the claimant
7-29 with the county clerk of:
7-30 (1) any county in which the obligor is believed to own
7-31 nonexempt real or personal property;
7-32 (2) the county in which the obligor resides; or
7-33 (3) the county in which the court having continuing
7-34 jurisdiction has venue of the suit affecting the parent-child
7-35 relationship.
7-36 (b) A child support lien notice may be filed with or
7-37 delivered to the following, as appropriate:
7-38 (1) the clerk of the court in which a claim,
7-39 counterclaim, or suit by, or on behalf of, the obligor, including a
7-40 claim or potential right to proceeds from an estate as an heir,
7-41 beneficiary, or creditor, is pending, provided that a copy of the
7-42 lien is mailed to the attorney of record for the obligor, if any;
7-43 (2) an attorney who represents the obligor in a claim
7-44 or counterclaim that has not been filed with a court;
7-45 (3) any other individual or organization believed to
7-46 be in possession of real or personal property of the obligor; or
7-47 (4) any governmental unit or agency that issues or
7-48 records certificates, titles, or other indicia of property
7-49 ownership.
7-50 (c) Not later than the 21st day after the date of filing or
7-51 delivering the child support lien notice, the claimant shall
7-52 provide a copy of the notice to the obligor by first class or
7-53 certified mail, return receipt requested, addressed to the obligor
7-54 at the obligor's last known address. If another person is known to
7-55 have an ownership interest in the property subject to the lien, the
7-56 claimant shall provide a copy of the lien notice to that person at
7-57 the time notice is provided to the obligor.
7-58 (d) If a child support lien notice is delivered to a
7-59 financial institution with respect to an account of the obligor,
7-60 the institution shall immediately:
7-61 (1) provide the claimant with the last known address
7-62 of the obligor; and
7-63 (2) notify any other person having an ownership
7-64 interest in the account that the account has been frozen in an
7-65 amount not to exceed the amount of the child support arrearage
7-66 identified in the notice.
7-67 SECTION 22. Subchapter G, Chapter 157, Family Code, is
7-68 amended by adding Section 157.3145 to read as follows:
7-69 Sec. 157.3145. SERVICE ON FINANCIAL INSTITUTION. Service of
8-1 a child support lien notice on a financial institution relating to
8-2 property held by the institution in the name of, or in behalf of,
8-3 an obligor is governed by Section 59.008, Finance Code, if the
8-4 institution is subject to that law, or may be delivered to the
8-5 registered agent, the institution's main business office in this
8-6 state, or another address provided by the institution under Section
8-7 231.307.
8-8 SECTION 23. Section 157.315, Family Code, is amended to read
8-9 as follows:
8-10 Sec. 157.315. RECORDING AND INDEXING LIEN. (a) On receipt
8-11 of a child support lien notice, the county clerk shall immediately
8-12 record the notice in the county judgment records as provided in
8-13 Chapter 52, Property Code.
8-14 (b) The county clerk may not charge the Title IV-D agency, a
8-15 domestic relations office, a friend of the court, or any other
8-16 party a fee for recording the notice of a lien. To qualify for
8-17 this exemption, the lien notice must be styled "Notice of Child
8-18 Support Lien[.]" or be in the form authorized by federal law or
8-19 regulation.
8-20 (c) The county clerk may not charge the Title IV-D agency, a
8-21 domestic relations office, or a friend of the court a fee for
8-22 recording the release of a child support lien. The lien release
8-23 must be styled "Release of Child Support Lien."
8-24 SECTION 24. Section 157.316(a), Family Code, is amended to
8-25 read as follows:
8-26 (a) Except as provided by Subsection (b), a child support
8-27 lien is perfected when an abstract of judgment for past due child
8-28 support or a child support lien notice is filed or delivered [with
8-29 the county clerk] as provided by Section 157.314 [this subchapter].
8-30 SECTION 25. Section 157.317(a), Family Code, is amended to
8-31 read as follows:
8-32 (a) A child support lien attaches to all real and personal
8-33 property not exempt under the Texas Constitution or other law,
8-34 including an [a depository] account in a financial institution,
8-35 [including a mutual fund money market account, or] a retirement
8-36 plan, including an individual retirement account, the proceeds of a
8-37 life insurance policy, a claim for negligence, personal injury, or
8-38 workers' compensation, or an insurance settlement or award for the
8-39 claim, due to or owned by the obligor on or after the date the lien
8-40 notice or abstract of judgment is filed with the county clerk of
8-41 the county in which the property is located, with the court clerk
8-42 as to property or claims in litigation, or, as to property of the
8-43 obligor in the possession or control of a third party, from the
8-44 date the lien notice is filed with that party. [Service of a lien
8-45 notice on a financial institution relating to property held by the
8-46 financial institution in the name of or on behalf of an obligor who
8-47 is a customer of the financial institution is governed by Section
8-48 59.008, Finance Code.]
8-49 SECTION 26. Sections 157.318(a) and (b), Family Code, are
8-50 amended to read as follows:
8-51 (a) A lien is effective until all current support and child
8-52 support arrearages, including interest and any costs and reasonable
8-53 attorney's fees, have been paid or the lien is otherwise released
8-54 as provided by this subchapter.
8-55 (b) The lien secures payment of all child support arrearages
8-56 owed by the obligor under the underlying child support order,
8-57 including arrearages that accrue after the [administrative or
8-58 judicial determination of arrearages stated in the] lien notice was
8-59 filed or delivered as provided by Section 157.314.
8-60 SECTION 27. Section 157.319, Family Code, is amended by
8-61 adding Subsection (c) to read as follows:
8-62 (c) This section does not affect the validity or priority of
8-63 a lien of a health care provider, a lien for attorney's fees, or a
8-64 lien of a holder of a security interest. This section does not
8-65 affect the assignment of rights or subrogation of a claim under
8-66 Title XIX of the federal Social Security Act (42 U.S.C. Section
8-67 1396 et seq.), as amended.
8-68 SECTION 28. Section 157.321, Family Code, is amended to read
8-69 as follows:
9-1 Sec. 157.321. DISCRETIONARY RELEASE OF LIEN. A child support
9-2 lien claimant may at any time release a lien on all or part of the
9-3 property of the obligor or return seized property, without
9-4 liability, if assurance of payment is considered adequate by the
9-5 claimant or if the release or return will facilitate the collection
9-6 of the arrearages. The release or return may not operate to
9-7 prevent future action to collect from the same or other property
9-8 owned by the obligor.
9-9 SECTION 29. Section 157.322, Family Code, is amended to read
9-10 as follows:
9-11 Sec. 157.322. MANDATORY RELEASE OF LIEN. (a) On payment in
9-12 full of the amount of child support due, together with any costs
9-13 and reasonable attorney's fees, the child support lien claimant
9-14 shall execute and deliver to the obligor or the obligor's attorney
9-15 a release of the child support lien.
9-16 (b) The release of the child support lien is effective when:
9-17 (1) filed with the county clerk with whom the lien
9-18 notice or abstract of judgment was filed; or
9-19 (2) delivered to[. A copy of the release of lien may
9-20 be filed with] any other individual or organization that may have
9-21 been served with a lien notice under this subchapter.
9-22 SECTION 30. Sections 157.323(a) and (b), Family Code, are
9-23 amended to read as follows:
9-24 (a) In addition to any other remedy provided by law, an
9-25 action to foreclose a child support lien, [or] to dispute the
9-26 amount of arrearages stated in the lien, or to resolve issues of
9-27 ownership interest with respect to property subject to a child
9-28 support lien may be brought in:
9-29 (1) the court in which the lien notice was filed under
9-30 Section 157.314(b)(1);
9-31 (2) [of continuing jurisdiction or, if there is no
9-32 court of continuing jurisdiction in this state, in] the district
9-33 court of the county in which the property is or was located and the
9-34 lien was filed; or
9-35 (3) the court of continuing jurisdiction.
9-36 (b) The procedures provided by Subchapter B apply to a
9-37 foreclosure action under this section, except that a person or
9-38 organization in possession of the property of the obligor or known
9-39 to have an ownership interest in property that is subject to the
9-40 lien may be joined as an additional respondent.
9-41 SECTION 31. Section 157.324, Family Code, is amended to read
9-42 as follows:
9-43 Sec. 157.324. LIABILITY FOR FAILURE TO COMPLY WITH ORDER OR
9-44 LIEN. A person who knowingly disposes of property subject to a
9-45 child support lien, [or] who, after a foreclosure hearing, fails to
9-46 surrender on demand nonexempt personal property as directed by a
9-47 court or administrative order under this subchapter, or who fails
9-48 to comply with a notice of levy under this subchapter is liable to
9-49 the claimant in an amount equal to the arrearages for which the
9-50 lien, notice of levy, or foreclosure judgment was issued.
9-51 SECTION 32. Section 157.325(a), Family Code, is amended to
9-52 read as follows:
9-53 (a) If a person has in the person's possession earnings,
9-54 deposits, accounts, [or] balances, or other funds or assets of the
9-55 obligor, including the proceeds of a judgment or other settlement
9-56 of a claim or counterclaim due to the obligor that are in excess of
9-57 the amount of arrearages specified in the child support lien, the
9-58 holder of the nonexempt personal property or the obligor may
9-59 request that the claimant release any excess amount from the lien.
9-60 The claimant shall grant the request and discharge any lien on the
9-61 excess amount unless the security for the arrearages would be
9-62 impaired.
9-63 SECTION 33. Section 157.326, Family Code, is amended to read
9-64 as follows:
9-65 Sec. 157.326. INTEREST OF OBLIGOR'S SPOUSE OR ANOTHER PERSON
9-66 HAVING OWNERSHIP INTEREST. (a) A spouse of an obligor or another
9-67 person having an ownership interest in property that is subject to
9-68 a child support lien may file suit under Section 157.323 to [an
9-69 affidavit with the court of continuing jurisdiction or, if there is
10-1 no court of continuing jurisdiction in this state, in the district
10-2 court of the county in which the property is or was located and the
10-3 lien was filed requesting that the court] determine the extent, if
10-4 any, of the spouse's or other person's interest in real or personal
10-5 property that is subject to:
10-6 (1) a lien perfected under this subchapter; or
10-7 (2) an action to foreclose under this subchapter.
10-8 (b) After notice to the obligor, the obligor's spouse, any
10-9 other person alleging an ownership interest, the claimant, and the
10-10 obligee, the court shall conduct a hearing and determine the
10-11 extent, if any, of the ownership interest in the property held by
10-12 the obligor's spouse or other person. If the court finds that:
10-13 (1) the property is the separate property of the
10-14 obligor's spouse or the other person, the court shall order that
10-15 the lien against the property be released and that any action to
10-16 foreclose on the property be dismissed; [or]
10-17 (2) the property is jointly owned by the obligor and
10-18 the obligor's spouse, the court shall determine whether the sale of
10-19 the obligor's interest in the property would result in an
10-20 unreasonable hardship on the obligor's spouse or family and:
10-21 (A) if so, the court shall render an order that
10-22 the obligor's interest in the property not be sold and that the
10-23 lien against the property should be released; or
10-24 (B) if not, the court shall render an order
10-25 partitioning the property and directing that the property be sold
10-26 and the proceeds applied to the child support arrearages; or
10-27 (3) the property is owned in part by another person,
10-28 other than the obligor's spouse, the court shall render an order
10-29 partitioning the property and directing that the obligor's share of
10-30 the property be applied to the child support arrearages.
10-31 (c) In a proceeding under this section, the spouse or other
10-32 person claiming an ownership interest in the property has the
10-33 burden to prove the extent of that ownership interest.
10-34 SECTION 34. Subchapter G, Chapter 157, Family Code, is
10-35 amended by adding Sections 157.327-157.331 to read as follows:
10-36 Sec. 157.327. EXECUTION AND LEVY ON FINANCIAL ASSETS OF
10-37 OBLIGOR. (a) Notwithstanding any other provision of law, if a
10-38 judgment or administrative determination of arrearages has been
10-39 rendered, a claimant may deliver a notice of levy to any financial
10-40 institution possessing or controlling assets or funds owned by, or
10-41 owed to, an obligor and subject to a child support lien, including
10-42 a lien for child support arising in another state.
10-43 (b) The notice under this section must:
10-44 (1) identify the amount of child support arrearages
10-45 owing at the time the amount of arrearages was determined; and
10-46 (2) direct the financial institution to pay to the
10-47 claimant, not earlier than the 15th day or later than the 21st day
10-48 after the date of delivery of the notice, an amount from the assets
10-49 of the obligor or from funds due to the obligor that are held or
10-50 controlled by the institution, not to exceed the amount of the
10-51 child support arrearages identified in the notice, unless:
10-52 (A) the institution is notified by the claimant
10-53 that the obligor has paid the arrearages or made arrangements
10-54 satisfactory to the claimant for the payment of the arrearages;
10-55 (B) the obligor or another person files a suit
10-56 under Section 157.323 requesting a hearing by the court; or
10-57 (C) if the claimant is the Title IV-D agency,
10-58 the obligor has requested an agency review under Section 157.328.
10-59 (c) A financial institution that receives a notice of levy
10-60 under this section may not close an account in which the obligor
10-61 has an ownership interest, permit a withdrawal from any account the
10-62 obligor owns, in whole or in part, or pay funds to the obligor so
10-63 that any amount remaining in the account is less than the amount of
10-64 the arrearages identified in the notice, plus any fees due to the
10-65 institution and any costs of the levy identified by the claimant.
10-66 (d) A financial institution that receives a notice of levy
10-67 under this section shall notify any other person having an
10-68 ownership interest in an account in which the obligor has an
10-69 ownership interest that the account has been levied on in an amount
11-1 not to exceed the amount of the child support arrearages identified
11-2 in the notice of levy.
11-3 (e) The notice of levy may be delivered to a financial
11-4 institution as provided by Section 59.008, Finance Code, if the
11-5 institution is subject to that law or may be delivered to the
11-6 registered agent, the institution's main business office in this
11-7 state, or another address provided by the institution under Section
11-8 231.307.
11-9 Sec. 157.328. NOTICE OF LEVY SENT TO OBLIGOR. (a) At the
11-10 time the notice of levy under Section 157.327 is delivered to a
11-11 financial institution, the claimant shall serve the obligor with a
11-12 copy of the notice.
11-13 (b) The notice of levy delivered to the obligor must inform
11-14 the obligor that:
11-15 (1) the claimant will not proceed with levy if, not
11-16 later than the 10th day after the date of receipt of the notice,
11-17 the obligor pays in full the amount of arrearages identified in the
11-18 notice or otherwise makes arrangements acceptable to the claimant
11-19 for the payment of the arrearage amounts; and
11-20 (2) the obligor may contest the levy by filing suit
11-21 under Section 157.323 not later than the 10th day after the date of
11-22 receipt of the notice.
11-23 (c) If the claimant is the Title IV-D agency, the obligor
11-24 receiving a notice of levy may request review by the agency not
11-25 later than the 10th day after the date of receipt of the notice to
11-26 resolve any issue in dispute regarding the existence or amount of
11-27 the arrearages. The agency shall provide an opportunity for a
11-28 review, by telephone conference or in person, as appropriate to the
11-29 circumstances, not later than the fifth business day after the date
11-30 an oral or written request from the obligor for the review is
11-31 received. If the review fails to resolve any issue in dispute, the
11-32 obligor may file suit under Section 157.323 for a hearing by the
11-33 court not later than the fifth day after the date of the conclusion
11-34 of the agency review. If the obligor fails to timely file suit, the
11-35 Title IV-D agency may request the financial institution to release
11-36 and remit the funds subject to levy.
11-37 (d) The notice under this section may be delivered to the
11-38 last known address of the obligor by first class mail, certified
11-39 mail, or registered mail.
11-40 Sec. 157.329. NO LIABILITY FOR COMPLIANCE WITH NOTICE OF
11-41 LEVY. A financial institution that possesses or has a right to an
11-42 obligor's assets for which a notice of levy has been delivered and
11-43 that surrenders the assets or right to assets to a child support
11-44 lien claimant is not liable to the obligor or any other person for
11-45 the property or rights surrendered.
11-46 Sec. 157.330. FAILURE TO COMPLY WITH NOTICE OF LEVY. A
11-47 person who possesses or has a right to property that is the
11-48 subject of a notice of levy delivered to the person and who refuses
11-49 to surrender the property or right to property to the claimant on
11-50 demand is liable to the claimant in an amount equal to the value of
11-51 the property or right to property not surrendered but that does not
11-52 exceed the amount of the child support arrearages for which the
11-53 notice of levy has been filed.
11-54 Sec. 157.331. ADDITIONAL LEVY TO SATISFY ARREARAGES. If the
11-55 property or right to property on which a notice of levy has been
11-56 filed does not produce money sufficient to satisfy the amount of
11-57 child support arrearages identified in the notice of levy, the
11-58 claimant may proceed to levy on other property of the obligor until
11-59 the total amount of child support due is paid.
11-60 SECTION 35. Subchapter A, Chapter 158, Family Code, is
11-61 amended by adding Section 158.0051 to read as follows:
11-62 Sec. 158.0051. ORDER FOR WITHHOLDING FOR COSTS AND FEES. (a)
11-63 In addition to an order for income to be withheld for child
11-64 support, including child support and child support arrearages, the
11-65 court may render an order that income be withheld from the
11-66 disposable earnings of the obligor to be applied towards the
11-67 satisfaction of any ordered attorney's fees and costs resulting
11-68 from an action to enforce child support under this title.
11-69 (b) An order rendered under this section is subordinate to
12-1 an order or writ of withholding for child support under this
12-2 chapter and is subject to the maximum amount allowed to be withheld
12-3 under Section 158.009.
12-4 (c) The court shall order that amounts withheld for fees and
12-5 costs under this section be remitted directly to the person
12-6 entitled to the ordered attorney's fees or costs or be paid through
12-7 a local registry for disbursement to that person.
12-8 SECTION 36. Section 158.103, Family Code, is amended to read
12-9 as follows:
12-10 Sec. 158.103. CONTENTS OF ORDER OR WRIT OF WITHHOLDING. An
12-11 order of withholding or writ of withholding issued under this
12-12 chapter must contain the information required by the forms
12-13 prescribed by the Title IV-D agency under Section 158.106 [that is
12-14 necessary for an employer or other entity to comply with the
12-15 existing child support order, including:]
12-16 [(1) the style, cause number, and court having
12-17 continuing jurisdiction of the suit;]
12-18 [(2) the name, address, and, if available, the social
12-19 security number of the obligor;]
12-20 [(3) the amount and duration of the child support
12-21 payments and medical support payments or other provisions for
12-22 medical support, the amount of arrearages, accrued interest, and
12-23 ordered fees and costs;]
12-24 [(4) the name, address, and, if available, the social
12-25 security numbers of the child and the obligee;]
12-26 [(5) the name and address of the person or agency to
12-27 whom the payments shall be made;]
12-28 [(6) the amount of income to be withheld and remitted;
12-29 and]
12-30 [(7) whether the child is to be enrolled in health
12-31 insurance coverage available through the obligor's employment].
12-32 SECTION 37. Sections 158.105(b)-(d), Family Code, are amended
12-33 to read as follows:
12-34 (b) [In order to inform the employer, the clerk shall attach
12-35 a copy of Subchapter C to the order or writ.]
12-36 [(c)] The clerk shall issue and mail the certified copy of
12-37 the order or judicial writ not later than the fourth working day
12-38 after the date the order is signed or the request is filed,
12-39 whichever is later.
12-40 (c) [(d)] An order or judicial writ of withholding shall be
12-41 delivered to the employer by first class mail or, if requested, by
12-42 certified or registered mail, return receipt requested, electronic
12-43 transmission, or by service of citation to:
12-44 (1) the person authorized to receive service of
12-45 process for the employer in civil cases generally; or
12-46 (2) a person designated by the employer, by written
12-47 notice to the clerk, to receive orders or writs of withholding.
12-48 SECTION 38. Section 158.106(a), Family Code, is amended to
12-49 read as follows:
12-50 (a) The Title IV-D agency shall prescribe forms as required
12-51 [authorized] by federal law in a standard format entitled order or
12-52 notice to withhold income for child support.
12-53 SECTION 39. Section 158.206, Family Code, is amended to read
12-54 as follows:
12-55 Sec. 158.206. LIABILITY AND OBLIGATION OF EMPLOYER; WORKERS'
12-56 COMPENSATION CLAIMS [FOR PAYMENTS]. (a) An employer receiving an
12-57 order or a writ of withholding under this chapter, including an
12-58 order or writ directing that health insurance be provided to a
12-59 child, who complies with the order or writ is not liable to the
12-60 obligor for the amount of income withheld and paid as required by
12-61 the order or writ.
12-62 (b) An employer receiving an order or writ of withholding
12-63 who does not comply with the order or writ is liable:
12-64 (1) to the obligee for the amount not paid in
12-65 compliance with the order or writ, including the amount the obligor
12-66 is required to pay for health insurance under Chapter 154;
12-67 (2) to the obligor for:
12-68 (A) the amount withheld and not paid as required
12-69 by the order or writ; and
13-1 (B) an amount equal to the interest that accrues
13-2 under Section 157.265 on the amount withheld and not paid; and
13-3 (3) for reasonable attorney's fees and court costs.
13-4 (c) If an obligor has filed a claim for workers'
13-5 compensation, the obligor's employer shall send a copy of the
13-6 income withholding order or writ to the insurance carrier with whom
13-7 the claim has been filed in order to continue the ordered
13-8 withholding of income.
13-9 SECTION 40. Section 158.501, Family Code, is amended by
13-10 adding Subsection (c) to read as follows:
13-11 (c) The Title IV-D agency may use the procedures authorized
13-12 by this subchapter to enforce a support order rendered by a
13-13 tribunal of another state regardless of whether the order has been
13-14 registered under Chapter 159.
13-15 SECTION 41. Section 158.502(c), Family Code, is amended to
13-16 read as follows:
13-17 (c) The Title IV-D agency may issue an administrative writ
13-18 of withholding as a reissuance of an existing withholding order on
13-19 file with the court of continuing jurisdiction or a tribunal of
13-20 another state. The administrative writ under this subsection is
13-21 not subject to the contest provisions of Sections 158.505(a)(2) and
13-22 158.506.
13-23 SECTION 42. Section 158.503(b), Family Code, is amended to
13-24 read as follows:
13-25 (b) Not later than the third business day after the date of
13-26 delivery of the administrative writ of withholding to an employer,
13-27 the Title IV-D agency shall file a copy of the writ, together with
13-28 a signed certificate of service, in the court of continuing
13-29 jurisdiction. The certificate of service may be signed
13-30 electronically. This subsection does not apply to the enforcement
13-31 under Section 158.501(c) of a support order rendered by a tribunal
13-32 of another state.
13-33 SECTION 43. Section 158.504(b), Family Code, is amended to
13-34 read as follows:
13-35 (b) An administrative writ of withholding issued under this
13-36 subchapter may contain only the information that is necessary for
13-37 the employer to withhold income for child support and medical
13-38 support and shall specify the place where the withheld income is to
13-39 be paid [comply with the existing support order, including the
13-40 amount of current support and medical support, the amount of
13-41 arrearages, accrued interest, and the amount of earnings to be
13-42 withheld].
13-43 SECTION 44. Section 158.505(a), Family Code, is amended to
13-44 read as follows:
13-45 (a) On issuance of an administrative writ of withholding,
13-46 the Title IV-D agency shall send the obligor:
13-47 (1) notice that the withholding has commenced,
13-48 including, if the writ is issued as provided by Section 158.502(b),
13-49 the amount of the arrearages, including accrued interest;
13-50 (2) except as provided by Section 158.502(c), notice
13-51 of the procedures to follow if the obligor desires to contest
13-52 withholding on the grounds that the identity of the obligor or the
13-53 existence or amount of arrearages is incorrect; and
13-54 (3) a copy of the administrative writ, including the
13-55 information concerning income withholding provided to the employer.
13-56 SECTION 45. Section 160.005(b), Family Code, is amended to
13-57 read as follows:
13-58 (b) Except as provided under Section 154.131, on [On] a
13-59 finding of parentage, the court may order support retroactive to
13-60 the time of the birth of the child and, on a proper showing, may
13-61 order a party to pay an equitable portion of all prenatal and
13-62 postnatal health care expenses of the mother and child.
13-63 SECTION 46. Section 201.104, Family Code, is amended by
13-64 adding Subsection (e) to read as follows:
13-65 (e) Only the referring court may render an order for
13-66 postjudgment relief, including an order for a new trial.
13-67 SECTION 47. Section 201.1041(b), Family Code, is amended to
13-68 read as follows:
13-69 (b) A master's report that recommends enforcement by
14-1 contempt or the immediate incarceration of a party becomes an order
14-2 of the referring court only if:
14-3 (1) the referring court signs an order adopting the
14-4 master's recommendation; and
14-5 (2) the order meets the requirements of Section
14-6 157.166.
14-7 SECTION 48. Section 201.1042, Family Code, is amended by
14-8 adding Subsection (g) to read as follows:
14-9 (g) Until a hearing is held on a timely filed appeal under
14-10 this section, a master may not hold a hearing on the respondent's
14-11 compliance with conditions in the master's report for suspension of
14-12 incarceration.
14-13 SECTION 49. Subchapter B, Chapter 201, Family Code, is
14-14 amended by adding Section 201.113 to read as follows:
14-15 Sec. 201.113. VISITING CHILD SUPPORT MASTER. (a) If a child
14-16 support master appointed under this subchapter is temporarily
14-17 unable to perform the master's official duties because of absence
14-18 resulting from family circumstances, illness, injury, or
14-19 disability, the presiding judge of the administrative judicial
14-20 region in which the master serves may appoint a visiting child
14-21 support master to perform the duties of the master during the
14-22 period the master is unable to perform the master's duties.
14-23 (b) A person is not eligible for appointment under this
14-24 section unless the person has served as a child support master or
14-25 associate judge for at least two years before the date of
14-26 appointment.
14-27 (c) A visiting master appointed under this section is
14-28 subject to each provision of this chapter that applies to a child
14-29 support master serving under a regular appointment. A visiting
14-30 master appointed under this section is entitled to compensation to
14-31 be determined by a majority vote of the presiding judges of the
14-32 administrative judicial regions through use of funds under Section
14-33 201.105(b). A visiting judge is not considered a state employee
14-34 for any purpose.
14-35 SECTION 50. Sections 203.004(a) and (c), Family Code, are
14-36 amended to read as follows:
14-37 (a) A domestic relations office may:
14-38 (1) collect and disburse child support payments that
14-39 are ordered by a court to be paid through a domestic relations
14-40 registry;
14-41 (2) maintain records of payments and disbursements
14-42 made under Subdivision (1);
14-43 (3) file a suit, including a suit to:
14-44 (A) establish paternity;
14-45 (B) enforce a court order for child support or
14-46 for possession of and access to a child; and
14-47 (C) modify or clarify an existing child support
14-48 order;
14-49 (4) provide an informal forum in which:
14-50 (A) mediation is used to resolve disputes in an
14-51 action under Subdivision (3); or
14-52 (B) an agreed repayment schedule for delinquent
14-53 child support is negotiated as an alternative to filing a suit to
14-54 enforce a court order for child support under Subdivision (3);
14-55 (5) prepare a court-ordered social study;
14-56 (6) represent a child as guardian ad litem in a suit
14-57 in which:
14-58 (A) termination of the parent-child relationship
14-59 is sought; or
14-60 (B) conservatorship of or access to a child is
14-61 contested;
14-62 (7) serve as a friend of the court;
14-63 (8) provide predivorce counseling ordered by a court;
14-64 (9) provide community supervision services under
14-65 Chapter 157; [and]
14-66 (10) provide information to assist a party in
14-67 understanding, complying with, or enforcing the party's duties and
14-68 obligations under Subdivision (3); and
14-69 (11) provide, directly or through a contract,
15-1 visitation services, including supervision of court-ordered
15-2 visitation, visitation exchange, or other similar services.
15-3 (c) A domestic relations office may:
15-4 (1) hire or contract for the services of attorneys to
15-5 assist the office in providing services under this chapter; and
15-6 (2) employ community supervision officers or court
15-7 monitors.
15-8 SECTION 51. Section 203.005(a), Family Code, is amended to
15-9 read as follows:
15-10 (a) The administering entity may authorize a domestic
15-11 relations office to assess and collect:
15-12 (1) an initial operations fee not to exceed $15 to be
15-13 paid to the domestic relations office on the filing of a suit;
15-14 (2) in a county that has a child support enforcement
15-15 cooperative agreement with the Title IV-D agency, an initial child
15-16 support service fee not to exceed $36 to be paid to the domestic
15-17 relations office on the filing of a suit;
15-18 (3) a reasonable application fee to be paid by an
15-19 applicant requesting services from the office;
15-20 (4) a reasonable attorney's fee and court costs
15-21 incurred or ordered by the court;
15-22 (5) a monthly [child support] service fee not to
15-23 exceed $3 to be paid annually in advance by a managing conservator
15-24 and possessory conservator for whom the domestic relations office
15-25 provides services [acts as a local child support registry];
15-26 (6) community supervision fees as provided by Chapter
15-27 157 if community supervision officers are employed by the domestic
15-28 relations office; and
15-29 (7) a reasonable fee for preparation of a
15-30 court-ordered social study.
15-31 SECTION 52. Subchapter A, Chapter 231, Family Code, is
15-32 amended by adding Section 231.015 to read as follows:
15-33 Sec. 231.015. INSURANCE REPORTING PILOT PROGRAM. (a) In
15-34 consultation with the Texas Department of Insurance and
15-35 representatives of the insurance industry in this state, including
15-36 insurance trade associations, the Title IV-D agency by rule shall
15-37 establish a pilot program to improve the use of child support liens
15-38 under Chapter 157. The pilot program shall develop processes under
15-39 which insurance companies may voluntarily cooperate with the Title
15-40 IV-D agency in identifying obligors who are subject to liens for
15-41 child support arrearages to intercept certain liability insurance
15-42 settlements or awards for claims in satisfaction of the arrearage
15-43 amounts.
15-44 (b) An insurance company that provides information or
15-45 otherwise responds to a notice of child support lien or levy under
15-46 Subchapter G, Chapter 157, or acts in good faith to comply with
15-47 procedures established in the pilot program under this section is
15-48 not liable for those acts under any law to any person.
15-49 SECTION 53. Section 231.104(a), Family Code, is amended to
15-50 read as follows:
15-51 (a) To the extent authorized by federal law, the approval of
15-52 an application for or the receipt of financial assistance as
15-53 provided by Chapter 31, Human Resources Code, constitutes an
15-54 assignment to the Title IV-D agency of any rights to support from
15-55 any other person that the applicant or recipient may have
15-56 personally or for a child for whom the applicant or recipient is
15-57 claiming assistance[, including the right to the amount accrued at
15-58 the time the application is filed or the assistance is received].
15-59 SECTION 54. Sections 231.105(a) and (b), Family Code, are
15-60 amended to read as follows:
15-61 (a) Child support payments for the benefit of a child whose
15-62 support rights have been assigned to the Title IV-D agency under
15-63 Section 231.104 shall be made payable to [and transmitted to] the
15-64 Title IV-D agency and transmitted to the state disbursement unit as
15-65 provided by Chapter 234.
15-66 (b) If a court has ordered support payments to be made to an
15-67 applicant for or recipient of financial assistance or to an [a
15-68 person other than the] applicant for or recipient of Title IV-D
15-69 services, the Title IV-D agency shall, on providing notice to the
16-1 obligee and the obligor, direct the obligor or other payor to make
16-2 support payments payable to the Title IV-D agency and to transmit
16-3 the payments to the state disbursement unit [agency]. The Title
16-4 IV-D agency shall file a copy of the notice with the court ordering
16-5 the payments and with the child support registry. The notice must
16-6 include:
16-7 (1) a statement that the child is an applicant for or
16-8 recipient of financial assistance, or a child other than a
16-9 recipient child for whom Title IV-D services are provided;
16-10 (2) the name of the child and the caretaker for whom
16-11 support has been ordered by the court;
16-12 (3) the style and cause number of the case in which
16-13 support was ordered; and
16-14 (4) instructions for the payment of ordered support to
16-15 the agency.
16-16 SECTION 55. Section 231.204, Family Code, is amended to read
16-17 as follows:
16-18 Sec. 231.204. PROHIBITED FEES IN TITLE IV-D CASES. Except as
16-19 provided by this subchapter, an appellate court, a clerk of an
16-20 appellate court, a district or county clerk, sheriff, constable, or
16-21 other government officer or employee may not charge the Title IV-D
16-22 agency or a private attorney or political subdivision that has
16-23 entered into a contract to provide Title IV-D services any fees or
16-24 other amounts otherwise imposed by law for services rendered in, or
16-25 in connection with, a Title IV-D case, including:
16-26 (1) a fee payable to a district clerk for:
16-27 (A) performing services related to the estates
16-28 of deceased persons or minors;
16-29 (B) certifying copies; or
16-30 (C) comparing copies to originals;
16-31 (2) a court reporter fee, except as provided by
16-32 Section 231.209;
16-33 (3) a judicial fund fee;
16-34 (4) a fee for a child support registry, enforcement
16-35 office, or domestic relations office; [and]
16-36 (5) a fee for alternative dispute resolution services;
16-37 and
16-38 (6) a filing fee or other costs payable to a clerk of
16-39 an appellate court.
16-40 SECTION 56. Section 231.302(b), Family Code, is amended to
16-41 read as follows:
16-42 (b) A government agency, private company, institution, or
16-43 other entity shall provide the information requested under
16-44 Subsection (a) directly to the Title IV-D agency, without the
16-45 requirement of payment of a fee for the information, and shall,
16-46 subject to safeguards on privacy and information security, provide
16-47 the information in the most efficient and expeditious manner
16-48 available, including electronic or automated transfer and
16-49 interface. Any individual or entity disclosing information under
16-50 this section in response to a request from a Title IV-D agency may
16-51 not be held liable in any civil action or proceeding to any person
16-52 for the disclosure of information under this subsection.
16-53 SECTION 57. Section 231.307, Family Code, is amended by
16-54 amending Subsections (a) and (e) and adding Subsection (f) to read
16-55 as follows:
16-56 (a) The Title IV-D agency shall develop a system meeting the
16-57 requirements of federal law (42 U.S.C. Sections 666(a)(4) and (17))
16-58 [42 U.S.C. Section 666(a)(17)] for the [quarterly] exchange of data
16-59 with financial institutions doing business in the state to identify
16-60 an account of an obligor owing past-due child support and to
16-61 enforce support obligations against the obligor, including the
16-62 imposition of a lien and a levy and execution on an obligor's
16-63 assets held in financial institutions as required by federal law
16-64 (42 U.S.C. Section 666(c)(1)(G)).
16-65 (e) In this section:
16-66 (1) "Financial institution" has the meaning assigned
16-67 by [42 U.S.C.] Section 157.311 [669a(d)(1)]; and
16-68 (2) "Account" has the meaning assigned by Section
16-69 157.311 [means a demand deposit account, checking or negotiable
17-1 withdrawal order account, savings account, time deposit account, or
17-2 money market mutual fund account].
17-3 (f) A financial institution participating in data matches
17-4 authorized by this section may provide the Title IV-D agency an
17-5 address for the purpose of service of notices or process required
17-6 in actions under this section or Subchapter G, Chapter 157.
17-7 SECTION 58. Section 232.001(4), Family Code, is amended to
17-8 read as follows:
17-9 (4) "Subpoena" means a judicial or administrative
17-10 subpoena issued in a parentage determination or child support
17-11 proceeding under this title.
17-12 SECTION 59. Section 232.003, Family Code, is amended to read
17-13 as follows:
17-14 Sec. 232.003. SUSPENSION OF LICENSE. (a) A court or the
17-15 Title IV-D agency may issue an order suspending a license as
17-16 provided by this chapter if an individual who is an obligor:
17-17 (1) owes overdue [has a] child support in an amount
17-18 [arrearage] equal to or greater than the total support due for
17-19 three months [90 days] under a support order;
17-20 (2) has been provided an opportunity to make payments
17-21 toward the overdue child support [arrearage] under a court-ordered
17-22 [court order] or [an] agreed repayment schedule; and
17-23 (3) has failed to comply with the repayment schedule.
17-24 (b) A court or the Title IV-D agency may issue an order
17-25 suspending a license as provided by this chapter if a parent or
17-26 alleged parent [an individual] has failed, after receiving
17-27 appropriate notice, to comply with a subpoena.
17-28 SECTION 60. Section 232.005(a), Family Code, is amended to
17-29 read as follows:
17-30 (a) A petition under this chapter must state that license
17-31 suspension is required under Section 232.003 and allege:
17-32 (1) the name and, if known, social security number of
17-33 the individual;
17-34 (2) with regard to each license, the type, and if
17-35 known, number of any license the individual is believed to hold and
17-36 the name of the licensing authority that issued the license; and
17-37 (3) the amount of arrearages owed under the child
17-38 support order or the facts associated with the individual's failure
17-39 to comply with a subpoena.
17-40 SECTION 61. Section 232.009, Family Code, is amended to read
17-41 as follows:
17-42 Sec. 232.009. DEFAULT ORDER. The court or Title IV-D agency
17-43 shall consider the allegations of the petition for suspension to be
17-44 admitted and shall render an order suspending the license of an
17-45 obligor without the requirement of a hearing if the court or Title
17-46 IV-D agency determines that the individual failed to[:]
17-47 [(1)] respond to a notice issued under Section 232.006
17-48 by:
17-49 (1) requesting[;]
17-50 [(2) request] a hearing; or
17-51 (2) appearing [(3) appear] at a scheduled hearing.
17-52 SECTION 62. Section 232.011, Family Code, is amended by
17-53 adding Subsection (i) to read as follows:
17-54 (i) An order issued under this chapter to suspend a license
17-55 applies to each license issued by the licensing authority subject
17-56 to the order for which the obligor is eligible. The licensing
17-57 authority may not issue or renew any other license for the obligor
17-58 until the court or the Title IV-D agency renders an order vacating
17-59 or staying an order suspending license.
17-60 SECTION 63. Section 232.015(b), Family Code, is amended to
17-61 read as follows:
17-62 (b) A licensing authority shall provide the requested
17-63 information in the form and manner identified [agreed to] by the
17-64 Title IV-D agency [and the licensing authority].
17-65 SECTION 64. Section 233.006, Family Code, is amended to read
17-66 as follows:
17-67 Sec. 233.006. CONTENTS OF NOTICE OF CHILD SUPPORT REVIEW.
17-68 (a) The notice of child support review issued by the Title IV-D
17-69 agency must:
18-1 (1) describe the procedure for a child support review,
18-2 including the procedures for requesting a negotiation conference;
18-3 (2) inform the recipient that the recipient may be
18-4 represented by legal counsel during the review process or at a
18-5 court hearing; and
18-6 (3) inform the recipient that the recipient may refuse
18-7 to participate or cease participation in the child support review
18-8 process, but that the refusal by the recipient to participate will
18-9 not prevent the completion of the process or the filing of a child
18-10 support review order[;]
18-11 [(4) include an affidavit of financial resources to be
18-12 executed by the recipient; and]
18-13 [(5) include a request that the recipient designate,
18-14 on a form provided by the Title IV-D agency, an address for mailing
18-15 any subsequent notice to the recipient].
18-16 (b) In addition to the information required by Subsection
18-17 (a), the notice of child support review may [must] inform the
18-18 recipient that:
18-19 (1) an affidavit of financial resources included with
18-20 the notice must be executed by the recipient and [the information
18-21 requested on the form must be] returned to the Title IV-D agency
18-22 not later than the 15th day after the date the notice is received
18-23 or delivered; and
18-24 (2) if the requested affidavit of financial resources
18-25 [information] is not returned as required, the agency may:
18-26 (A) proceed with the review using the
18-27 information that is available to the agency; and
18-28 (B) file a legal action without further notice
18-29 to the recipient, except as otherwise required by law.
18-30 SECTION 65. Section 233.009, Family Code, is amended by
18-31 adding Subsection (f) to read as follows:
18-32 (f) Notwithstanding any other provision of this chapter, if
18-33 the parties have agreed to the terms of a proposed child support
18-34 review order and each party has signed the order, including a
18-35 waiver of the right to service of process as provided by Section
18-36 233.018, the Title IV-D agency may immediately present the order
18-37 and waiver to the court for confirmation without conducting a
18-38 negotiation conference or requiring the production of financial
18-39 information.
18-40 SECTION 66. Section 233.0095, Family Code, is amended by
18-41 adding Subsection (f) to read as follows:
18-42 (f) Notwithstanding any other provision of this chapter, if
18-43 paternity has been acknowledged, the parties have agreed to the
18-44 terms of a proposed child support review order, and each party has
18-45 signed the order, including a waiver of the right to service of
18-46 process as provided by Section 233.018, the Title IV-D agency may
18-47 immediately present the order and waiver to the court for
18-48 confirmation without conducting a negotiation conference or
18-49 requiring the production of financial information.
18-50 SECTION 67. Section 233.018(a), Family Code, is amended to
18-51 read as follows:
18-52 (a) If a negotiation conference results in an agreement of
18-53 the parties, each party must sign the child support review order
18-54 and the order must contain as to each party:
18-55 (1) a waiver by the party of the right to service of
18-56 process and a court hearing and the making of a record on the
18-57 petition for confirmation;
18-58 (2) the mailing address of the party; and
18-59 (3) the following statement printed on the order in
18-60 boldfaced type, in capital letters, or underlined:
18-61 "I ACKNOWLEDGE THAT I HAVE READ AND UNDERSTAND [KNOW THAT I
18-62 DO NOT HAVE TO SIGN] THIS CHILD SUPPORT REVIEW ORDER. I UNDERSTAND
18-63 THAT IF I SIGN THIS ORDER, IT WILL BE CONFIRMED BY THE COURT
18-64 WITHOUT FURTHER NOTICE TO ME. I KNOW THAT I HAVE A RIGHT TO
18-65 REQUEST THAT A COURT RECONSIDER THE ORDER BY FILING A MOTION FOR A
18-66 NEW TRIAL AT ANY TIME BEFORE THE 30TH DAY AFTER THE DATE OF THE
18-67 CONFIRMATION OF THE ORDER BY THE COURT. I KNOW THAT IF I DO NOT
18-68 OBEY THE TERMS OF THIS ORDER I MAY BE HELD IN CONTEMPT OF COURT."
18-69 SECTION 68. Section 233.024(a), Family Code, is amended to
19-1 read as follows:
19-2 (a) If the court finds that all parties have appropriately
19-3 agreed to a child support review order and that there is waiver of
19-4 service, the court shall sign the order not later than the third
19-5 day after the filing of the order. The court may sign the order
19-6 before filing the order, but the signed order shall immediately be
19-7 filed.
19-8 SECTION 69. Section 234.001, Family Code, is amended by
19-9 amending Subsections (a) and (c) and adding Subsection (d) to read
19-10 as follows:
19-11 (a) The Title IV-D agency shall establish and operate a
19-12 state case registry and state disbursement unit meeting the
19-13 requirements of 42 U.S.C. Sections 654a(e) and 654b and this
19-14 subchapter.
19-15 (c) The state disbursement unit shall:
19-16 (1) receive, maintain, and furnish records of child
19-17 support payments in Title IV-D cases and other cases as authorized
19-18 [required] by law;
19-19 (2) forward child support payments as authorized
19-20 [required] by law;
19-21 (3) maintain child support payment records made
19-22 through the state disbursement unit; and
19-23 (4) make available to a local registry each day in a
19-24 manner determined by the Title IV-D agency with the assistance of
19-25 the work group established under Section 234.003 the following
19-26 information:
19-27 (A) the cause number of the suit under which
19-28 withholding is required;
19-29 (B) the payor's name and social security number;
19-30 (C) the payee's name and, if available, social
19-31 security number;
19-32 (D) the date the disbursement unit received the
19-33 payment;
19-34 (E) the amount of the payment; and
19-35 (F) the instrument identification information.
19-36 (d) A certified child support payment record produced by the
19-37 state disbursement unit is admissible as evidence of the truth of
19-38 the information contained in the record and does not require
19-39 further authentication or verification.
19-40 SECTION 70. Section 234.004, Family Code, is amended to read
19-41 as follows:
19-42 Sec. 234.004. CONTRACTS AND COOPERATIVE AGREEMENTS. (a) The
19-43 Title IV-D agency may enter into contracts and cooperative
19-44 agreements as necessary to establish and operate the state case
19-45 registry and state disbursement unit authorized under this
19-46 subchapter.
19-47 (b) To the extent funds are available for this purpose, the
19-48 Title IV-D agency may enter into contracts or cooperative
19-49 agreements to process through the state disbursement unit child
19-50 support collections in cases not otherwise eligible under 42 U.S.C.
19-51 Section 654b.
19-52 SECTION 71. Section 234.006, Family Code, as added by Chapter
19-53 556, Acts of the 76th Legislature, Regular Session, 1999, is
19-54 amended to read as follows:
19-55 Sec. 234.006. EFFECTIVE DATE AND PROCEDURES. The Title IV-D
19-56 agency [shall], in cooperation with the work group established
19-57 under Section 234.003, may adopt rules[,] in compliance with
19-58 federal law[, that establish the definitions for, and the date of
19-59 and the procedures] for[:]
19-60 [(1)] the operation of the state case registry and the
19-61 state disbursement unit[; and]
19-62 [(2) the return of payments made in error or delivered
19-63 to the state disbursement unit with insufficient information for
19-64 disbursement].
19-65 SECTION 72. Section 730.005, Transportation Code, is amended
19-66 to read as follows:
19-67 Sec. 730.005. REQUIRED DISCLOSURE. Personal information
19-68 obtained by an agency in connection with a motor vehicle record
19-69 shall be disclosed for use in connection with any matter of:
20-1 (1) motor vehicle or motor vehicle operator safety;
20-2 (2) motor vehicle theft;
20-3 (3) motor vehicle emissions;
20-4 (4) motor vehicle product alterations, recalls, or
20-5 advisories;
20-6 (5) performance monitoring of motor vehicles or motor
20-7 vehicle dealers by a motor vehicle manufacturer; [or]
20-8 (6) removal of nonowner records from the original
20-9 owner records of a motor vehicle manufacturer to carry out the
20-10 purposes of:
20-11 (A) the Automobile Information Disclosure Act,
20-12 15 U.S.C. Section 1231 et seq.;
20-13 (B) 49 U.S.C. Chapters 301, 305, 323, 325, 327,
20-14 329, and 331;
20-15 (C) the Anti Car Theft Act of 1992, 18 U.S.C.
20-16 Sections 553, 981, 982, 2119, 2312, 2313, and 2322, 19 U.S.C.
20-17 Sections 1646b and 1646c, and 42 U.S.C. Section 3750a et seq., all
20-18 as amended;
20-19 (D) the Clean Air Act, 42 U.S.C. Section 7401 et
20-20 seq., as amended; and
20-21 (E) any other statute or regulation enacted or
20-22 adopted under or in relation to a law included in Paragraphs
20-23 (A)-(D); or
20-24 (7) child support enforcement under Chapter 231,
20-25 Family Code.
20-26 SECTION 73. Title 5, Finance Code, is amended by adding
20-27 Chapter 396 to read as follows:
20-28 CHAPTER 396. PRIVATE CHILD SUPPORT ENFORCEMENT AGENCIES
20-29 SUBCHAPTER A. GENERAL PROVISIONS
20-30 Sec. 396.001. DEFINITIONS. In this chapter:
20-31 (1) "Child support enforcement" means an action,
20-32 conduct, or practice in enforcing, or in soliciting for
20-33 enforcement, a child support obligation, including the collection
20-34 of an amount owed under a child support obligation.
20-35 (2) "Child support obligation" means an obligation for
20-36 the payment of financial support for a child under an order or writ
20-37 issued by a court or other tribunal.
20-38 (3) "Department" means the Texas Department of
20-39 Banking.
20-40 (4) "Foreign agency" means a private child support
20-41 enforcement agency that engages in business in this state solely by
20-42 use of telephone, mail, the Internet, facsimile transmission, or
20-43 any other means of interstate communication.
20-44 (5) "Obligee" means the person identified in an order
20-45 for child support issued by a court or other tribunal as the payee
20-46 to whom an obligor's amounts of ordered child support are due.
20-47 (6) "Obligor" means the person identified in an order
20-48 for child support issued by a court or other tribunal as the
20-49 individual required to make payment under the terms of a support
20-50 order for a child.
20-51 (7) "Private child support enforcement agency" means
20-52 an individual or nongovernmental entity who engages in the
20-53 enforcement of child support ordered by a court or other tribunal
20-54 for a fee or other consideration. The term does not include:
20-55 (A) an attorney enforcing a child support
20-56 obligation on behalf of, and in the name of, a client unless the
20-57 attorney has an employee who is not an attorney and who on behalf
20-58 of the attorney:
20-59 (i) regularly solicits for child support
20-60 enforcement; or
20-61 (ii) regularly contacts child support
20-62 obligees or obligors for the purpose of child support enforcement;
20-63 (B) a state agency designated to serve as the
20-64 state's Title IV-D agency in accordance with Part D, Title IV,
20-65 Social Security Act (42 U.S.C. Section 651 et seq.), as amended; or
20-66 (C) a contractor awarded a contract to engage in
20-67 child support enforcement on behalf of a governmental agency,
20-68 including a contractor awarded a contract:
20-69 (i) under Chapter 236, Family Code; or
21-1 (ii) by a political subdivision of this or
21-2 another state that is authorized by law to enforce a child support
21-3 obligation.
21-4 (8) "Registered agency" means a private child support
21-5 enforcement agency, including a foreign agency, that is registered
21-6 under this chapter.
21-7 (Sections 396.002-396.050 reserved for expansion
21-8 SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT
21-9 Sec. 396.051. ADMINISTRATIVE AND RULEMAKING AUTHORITY. (a)
21-10 The department shall administer this chapter.
21-11 (b) The Finance Commission of Texas shall adopt rules as
21-12 necessary for the administration of this chapter.
21-13 Sec. 396.052. FILING FEE. (a) The department shall charge
21-14 each applicant for a certificate of registration, or renewal of a
21-15 certificate, a nonrefundable fee of $500 for each certificate.
21-16 (b) The application fee is due on the date the applicant
21-17 submits an application for registration. The renewal fee is due on
21-18 the date a certificate holder submits an application to renew a
21-19 registration.
21-20 Sec. 396.053. COST OF REGULATION. The department may charge
21-21 each registered private child support enforcement agency an annual
21-22 fee not to exceed $500 to cover the cost of enforcing this chapter.
21-23 (Sections 396.054-396.100 reserved for expansion
21-24 SUBCHAPTER C. REGISTRATION
21-25 Sec. 396.101. REGISTRATION REQUIRED. Except as otherwise
21-26 provided by this chapter, a private child support enforcement
21-27 agency must register with the department to engage in child support
21-28 enforcement in this state.
21-29 Sec. 396.102. RECOGNITION OF AUTHORIZATION ISSUED BY ANOTHER
21-30 STATE. (a) The department may waive any prerequisite to obtaining
21-31 a registration for a foreign agency:
21-32 (1) after reviewing the applicant's credentials and
21-33 determining that the applicant holds a valid registration or other
21-34 authorization from another state whose requirements are
21-35 substantially equivalent to those imposed under this chapter; or
21-36 (2) after determining the applicant has a valid
21-37 registration or other authorization from another state with which
21-38 this state has a reciprocity agreement.
21-39 (b) The department may enter into an agreement with another
21-40 state to permit registration by reciprocity.
21-41 Sec. 396.103. APPLICATION REQUIREMENTS. (a) An applicant
21-42 for registration as a private child support enforcement agency must
21-43 file with the department an application on a form and in the manner
21-44 prescribed by the department.
21-45 (b) The application must state:
21-46 (1) the name of the applicant;
21-47 (2) the name under which the applicant is doing or
21-48 intends to do business in this state, if different from the
21-49 applicant's name;
21-50 (3) the address of the applicant's principal business
21-51 office, including the state, municipality, and numeric street
21-52 address; and
21-53 (4) any Internet or other electronic mail address and
21-54 business telephone number of the applicant.
21-55 (c) The chief executive officer of the applicant agency
21-56 shall state in a notarized statement that the application is
21-57 accurate and truthful in all respects.
21-58 Sec. 396.104. FINANCIAL AND OTHER DISCLOSURES. The
21-59 department shall require an applicant for registration or renewal
21-60 of registration as a private child support enforcement agency to
21-61 provide:
21-62 (1) a certified financial statement demonstrating the
21-63 financial solvency of the agency for which registration or renewal
21-64 of registration is sought; and
21-65 (2) any other information the department may
21-66 reasonably require the applicant to provide to establish that the
21-67 requirements and qualifications for registration or renewal of
21-68 registration have been fulfilled by the applicant.
21-69 Sec. 396.105. SURETY BOND OR OTHER DEPOSIT REQUIRED. (a)
22-1 An application for registration must be accompanied by a surety
22-2 bond approved by the department.
22-3 (b) The surety bond must be:
22-4 (1) issued by a surety authorized to do business in
22-5 this state;
22-6 (2) in the amount of $50,000;
22-7 (3) in favor of the state for the benefit of a person
22-8 damaged by a violation of this chapter; and
22-9 (4) conditioned on the private child support
22-10 enforcement agency's compliance with this chapter and the faithful
22-11 performance of the obligations under the agency's agreements with
22-12 its clients.
22-13 (c) The surety bond must be filed with and held by the
22-14 department.
22-15 (d) Instead of a surety bond, the department may accept a
22-16 deposit of money in an amount determined by the department not to
22-17 exceed $50,000. The department shall deposit any amounts received
22-18 under this subsection in an insured depository account designated
22-19 for that purpose.
22-20 Sec. 396.106. ISSUANCE OF CERTIFICATE OF REGISTRATION. (a)
22-21 The department shall issue a certificate of registration and mail
22-22 the certificate to the applicant on receipt of:
22-23 (1) a completed application;
22-24 (2) evidence of financial solvency;
22-25 (3) the surety bond or deposit of money required by
22-26 Section 396.105; and
22-27 (4) the required registration fee.
22-28 (b) If a single application is used to register more than
22-29 one registered location, the department shall:
22-30 (1) issue a certificate of registration for each
22-31 registered location; and
22-32 (2) mail all of the certificates to the principal
22-33 business location stated in the application.
22-34 Sec. 396.107. DUTY TO UPDATE APPLICATION INFORMATION. A
22-35 certificate holder shall notify the department of any material
22-36 change in the information provided in an application for
22-37 registration not later than the 60th day after the date on which
22-38 the information changes.
22-39 Sec. 396.108. TERM OF REGISTRATION; RENEWAL. (a) A private
22-40 child support enforcement agency's certificate of registration
22-41 expires on the third anniversary of the date of issuance.
22-42 (b) A certificate of registration may be renewed for another
22-43 three-year period as provided by department rule.
22-44 (Sections 396.109-396.150 reserved for expansion)
22-45 SUBCHAPTER D. AUTHORITY OF FOREIGN AGENCY TO ENGAGE IN
22-46 BUSINESS IN THIS STATE
22-47 Sec. 396.151. APPLICATION TO OPERATE UNDER OTHER
22-48 AUTHORIZATION INSTEAD OF REGISTRATION. (a) To engage in business
22-49 in this state, a foreign agency that is exempt from registration as
22-50 prescribed by Section 396.102 may file an application with the
22-51 department to operate under that authorization by filing:
22-52 (1) the information required for an application for
22-53 registration under Section 396.103;
22-54 (2) a surety bond or deposit of money that meets the
22-55 requirements of Section 396.105 unless the agency provides proof to
22-56 the satisfaction of the department that the agency maintains in the
22-57 state in which that agency has its principal office an adequate
22-58 bond or similar instrument for purposes similar to the purposes
22-59 required for the filing of a surety bond under Section 396.105; and
22-60 (3) a copy of the license or other authorization
22-61 issued by the state in which that agency is authorized to operate.
22-62 (b) The department may charge a single administrative fee in
22-63 a reasonable amount that is sufficient to cover the costs of the
22-64 department in processing and acting on the application.
22-65 Sec. 396.152. ACCEPTANCE OF OTHER AUTHORIZATION INSTEAD OF
22-66 REGISTRATION. The department shall issue a certificate to operate
22-67 under another state's authorization in this state to a foreign
22-68 agency that files an application with the department under Section
22-69 396.151 if:
23-1 (1) the agency submits all of the information required
23-2 by Section 396.151(a)(1);
23-3 (2) the department determines that the agency has met
23-4 the requirements of Section 396.151(a)(2);
23-5 (3) the agency remits any required administrative fee
23-6 under Section 396.151(b); and
23-7 (4) the department verifies that the registration or
23-8 other authorization issued by another state is active and in good
23-9 standing.
23-10 Sec. 396.153. NOTIFICATION OF UPDATED INFORMATION OR CHANGE
23-11 IN STATUS OF OTHER AUTHORIZATION. Not later than the 30th day
23-12 after the date on which the change occurs, a foreign private child
23-13 support enforcement agency that is issued a certificate to operate
23-14 in this state under this subchapter shall notify the department of
23-15 any change in:
23-16 (1) the information provided in an application
23-17 submitted under Section 396.152; or
23-18 (2) the status of the agency's authorization in the
23-19 other state.
23-20 Sec. 396.154. WITHDRAWAL OF APPROVAL TO OPERATE UNDER OTHER
23-21 AUTHORIZATION. A holder of a certificate issued under this
23-22 subchapter may not engage in business in this state as a private
23-23 child support enforcement agency if another state has revoked or
23-24 withdrawn the person's authority to operate as a private child
23-25 support enforcement agency in that state unless the department
23-26 grants the agency a registration under this chapter.
23-27 (Sections 396.155-396.200 reserved for expansion)
23-28 SUBCHAPTER E. REQUIRED BUSINESS PRACTICES
23-29 Sec. 396.201. REGISTRATION PREREQUISITE TO SUIT. A private
23-30 child support enforcement agency may not bring an action to enforce
23-31 a child support obligation in this state unless the agency is
23-32 registered or otherwise authorized to engage in business in this
23-33 state as provided by this chapter.
23-34 Sec. 396.202. RECORDS. (a) A registered agency shall
23-35 maintain records of all child support collections made on behalf
23-36 of, and disbursed to, a client who is an obligee, including:
23-37 (1) the name of any obligor who made child support
23-38 payments collected by the agency;
23-39 (2) the amount of support collected by the agency for
23-40 each client, including:
23-41 (A) the date on which the amount was collected;
23-42 and
23-43 (B) the date on which each amount due the client
23-44 by the obligor was paid to the client;
23-45 (3) a copy of the order establishing the child support
23-46 obligation under which a collection was made by the agency; and
23-47 (4) any other pertinent information relating to the
23-48 child support obligation, including any case, cause, or docket
23-49 number of the court having jurisdiction over the matter.
23-50 (b) The records required under this section must be updated
23-51 at least monthly and must be maintained by the registered agency
23-52 for a period of four years from the date of the last support
23-53 payment collected by the agency on behalf of an obligee.
23-54 Sec. 396.203. CONTRACT FOR SERVICES. (a) A registered
23-55 agency and foreign agency authorized to engage in business under
23-56 this chapter shall execute a written contract for the enforcement
23-57 of child support for each client of the agency that is residing in
23-58 this state.
23-59 (b) The contract required under this section must:
23-60 (1) be in writing, dated, and signed by both parties
23-61 to the contract; and
23-62 (2) specify its terms in clear language.
23-63 (Sections 396.204-396.250 reserved for expansion
23-64 SUBCHAPTER F. PROHIBITED PRACTICES
23-65 Sec. 396.251. THREATS OR COERCION. (a) In enforcing a
23-66 child support obligation, a registered agency may not use threats,
23-67 coercion, or attempts to coerce that employ any of the following
23-68 practices:
23-69 (1) using or threatening to use violence or other
24-1 criminal means to cause harm to an obligor or property of the
24-2 obligor;
24-3 (2) accusing falsely or threatening to accuse falsely
24-4 an obligor of a violation of state or federal child support laws;
24-5 (3) taking or threatening to take an enforcement
24-6 action against an obligor that is not authorized by law; or
24-7 (4) intentionally representing to a person that the
24-8 agency is a governmental agency authorized to enforce a child
24-9 support obligation.
24-10 (b) Subsection (a) does not prevent a registered agency
24-11 from:
24-12 (1) informing an obligor that the obligor may be
24-13 subject to penalties prescribed by law for failure to pay a child
24-14 support obligation; or
24-15 (2) taking, or threatening to take, an action
24-16 authorized by law for the enforcement of a child support obligation
24-17 by the agency.
24-18 Sec. 396.252. FRAUDULENT, DECEPTIVE, OR MISLEADING
24-19 REPRESENTATIONS. In enforcing a child support obligation, a
24-20 registered agency or employee of the agency may not:
24-21 (1) identify the registered agency by any name other
24-22 than one by which the agency is registered with the department;
24-23 (2) falsely represent the nature of the child support
24-24 enforcement activities in which the agency is authorized by law to
24-25 engage; or
24-26 (3) falsely represent that an oral or written
24-27 communication is the communication of an attorney.
24-28 (Sections 396.253-396.300 reserved for expansion
24-29 SUBCHAPTER G. ADMINISTRATIVE ENFORCEMENT
24-30 Sec. 396.301. REVOCATION OF REGISTRATION. (a) After notice
24-31 and hearing, the department may revoke the registration of a
24-32 registered agency that:
24-33 (1) fails to comply with this chapter or a rule
24-34 adopted under this chapter;
24-35 (2) does not pay a fee or other charge imposed by the
24-36 department under this chapter; and
24-37 (3) fails to maintain and produce at the request of
24-38 the department records attesting to the financial solvency of the
24-39 registered agency or other business records concerning client
24-40 accounts.
24-41 (b) The department may permit a registered agency to take an
24-42 appropriate action to correct a failure to comply with this chapter
24-43 and not revoke the registration of the agency.
24-44 Sec. 396.302. ADMINISTRATIVE HEARING ON DENIAL, SUSPENSION,
24-45 OR REVOCATION OF REGISTRATION. (a) The department may not deny or
24-46 suspend the registration of a private child support enforcement
24-47 agency under this chapter without first conducting an
24-48 administrative hearing.
24-49 (b) A hearing under this section or Section 396.301 is
24-50 subject to Chapter 2001, Government Code.
24-51 Sec. 396.303. BONA FIDE ERROR. A registered agency does not
24-52 violate this chapter if the action complained of resulted from a
24-53 bona fide error that occurred notwithstanding the use of reasonable
24-54 procedures to avoid the error.
24-55 Sec. 396.304. ADMINISTRATIVE INVESTIGATION OF COMPLAINT.
24-56 (a) A person may file with the department a written complaint
24-57 against a registered agency for a violation of this chapter.
24-58 (b) Not later than the 30th day after the date on which the
24-59 department receives a complaint under this section, the department
24-60 shall initiate an investigation into the merits of the complaint.
24-61 (c) The department may appoint a hearings officer to conduct
24-62 the investigation.
24-63 (d) A hearings officer appointed by the department to
24-64 investigate a complaint may arrange for the services of a qualified
24-65 mediator and attempt to:
24-66 (1) resolve the complaint and any differences between
24-67 the parties; and
24-68 (2) reach a settlement without the requirement of
24-69 further investigation.
25-1 (e) The department may delegate to a hearings officer
25-2 appointed to investigate a complaint under this section the
25-3 authority to dismiss the complaint, after an initial investigation
25-4 and after notice to each affected party and an opportunity for
25-5 hearing, for lack of sufficient evidentiary basis.
25-6 (f) An individual aggrieved by a decision of the department
25-7 or hearings officer under this section may appeal the decision to a
25-8 district court in Travis County.
25-9 (g) The department shall provide for an annual public
25-10 inspection of an investigation report of a complaint filed under
25-11 this section.
25-12 (Sections 396.305-396.350 reserved for expansion
25-13 SUBCHAPTER H. CIVIL REMEDIES
25-14 Sec. 396.351. CIVIL ACTION. (a) In addition to any other
25-15 remedy provided by this chapter, a person may bring an action for:
25-16 (1) injunctive relief to enjoin or restrain a
25-17 violation of this chapter; and
25-18 (2) actual damages incurred as a result of a violation
25-19 of this chapter.
25-20 (b) A person who prevails in an action brought under this
25-21 section is entitled to recover court costs and reasonable
25-22 attorney's fees.
25-23 (c) On a finding by a court that an action under this
25-24 section was brought in bad faith or for purposes of harassment, the
25-25 court shall award the defendant attorney's fees reasonably related
25-26 to the work performed and costs.
25-27 Sec. 396.352. SERVICE OF PROCESS OUTSIDE STATE. (a) A
25-28 registered agency that is located in another state or a private
25-29 child support enforcement agency that engages in the business of
25-30 child support enforcement in this state in violation of this
25-31 chapter is considered to have submitted to the jurisdiction of the
25-32 courts of this state with respect to an action brought under this
25-33 chapter.
25-34 (b) A foreign agency engaging in business in this state in
25-35 violation of this chapter is considered to have appointed the
25-36 department as the agency's agent for service of process in any
25-37 action, suit, or proceeding arising from a violation of this
25-38 chapter.
25-39 Sec. 396.353. REMEDIES UNDER OTHER LAW. (a) A violation of
25-40 this chapter is a deceptive trade practice under Subchapter E,
25-41 Chapter 17, Business & Commerce Code, and is actionable under that
25-42 subchapter.
25-43 (b) This chapter does not affect or alter a remedy at law or
25-44 in equity otherwise available to an obligor, obligee, governmental
25-45 entity, or other legal entity.
25-46 SECTION 74. Section 411.127, Government Code, is amended to
25-47 read as follows:
25-48 Sec. 411.127. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:
25-49 APPLICANTS FOR EMPLOYMENT AND CONTRACTORS. (a) The Title IV-D
25-50 agency is entitled to obtain from the Department of Public Safety,
25-51 the Federal Bureau of Investigation identification division, or
25-52 another law enforcement agency criminal history record information
25-53 maintained by the department or agency that relates to a person who
25-54 is an applicant for a position of employment with the Title IV-D
25-55 agency, or an applicant to serve as a consultant, intern, or
25-56 volunteer, that involves the performance of duties under Chapter
25-57 231, Family Code. The Title IV-D agency may not request the
25-58 information unless a supervisory employee of the agency has
25-59 recommended that the applicant be hired or serve as an intern or
25-60 volunteer.
25-61 (b) The Title IV-D agency is entitled to obtain from the
25-62 Department of Public Safety, Federal Bureau of Investigation
25-63 identification division, or another law enforcement agency criminal
25-64 history record information maintained by the department or agency
25-65 that relates to a person who proposes to enter into a contract with
25-66 or that has a contract with the Title IV-D agency to supply goods
25-67 or services to the Title IV-D agency. The authorization under this
25-68 subsection to obtain criminal history record information about a
25-69 person includes information relating to an employee or
26-1 subcontractor of the person or an employee of the person's
26-2 subcontractor.
26-3 (c) Criminal history record information obtained by the
26-4 Title IV-D agency under Subsection (a) or (b) may not be released
26-5 or disclosed to any person except on court order or with the
26-6 consent of the person who is the subject of the criminal history
26-7 record information.
26-8 (d) [(c)] The Title IV-D agency shall destroy criminal
26-9 history record information that relates to a person after the
26-10 information is used for its authorized purpose.
26-11 (e) [(d)] In this section, "Title IV-D agency" has the
26-12 meaning assigned by Section 101.033, Family Code.
26-13 SECTION 75. Section 3, Article 21.22, Insurance Code, is
26-14 amended to read as follows:
26-15 Sec. 3. The exemptions provided by Section 1 of this article
26-16 do not apply to:
26-17 (1) premium payments made in fraud of creditors
26-18 subject to the applicable statute of limitations for the recovery
26-19 of the premium payments; [or]
26-20 (2) a debt of the insured or beneficiary secured by a
26-21 pledge of the policy or its proceeds; or
26-22 (3) a child support lien or levy under Chapter 157,
26-23 Family Code.
26-24 SECTION 76. Sections 158.508 and 231.010, Family Code, are
26-25 repealed.
26-26 SECTION 77. (a) This Act takes effect September 1, 2001.
26-27 (b) A change in law made by this Act relating to a court
26-28 order establishing the obligation to pay child support applies only
26-29 to a suit affecting the parent-child relationship that is commenced
26-30 on or after the effective date of this Act. A suit affecting the
26-31 parent-child relationship commenced before the effective date of
26-32 this Act is governed by the law in effect on the date the suit was
26-33 filed, and the former law is continued in effect for that purpose.
26-34 (c) A change in law made by this Act relating to the
26-35 modification or enforcement of a child support order rendered
26-36 before the effective date of this Act applies only to a proceeding
26-37 for modification or enforcement that is commenced on or after the
26-38 effective date of this Act. A modification or enforcement
26-39 proceeding commenced before the effective date of this Act is
26-40 governed by the law in effect on the date the proceeding was
26-41 commenced, and the former law is continued in effect for that
26-42 purpose.
26-43 (d) The requirement of Chapter 396, Finance Code, as added
26-44 by this Act, that a private child support enforcement agency be
26-45 registered applies only on or after January 1, 2002.
26-46 * * * * *