By:  Harris, Moncrief                                  S.B. No. 236
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to court-ordered medical support for certain children.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 154.181, Family Code, is amended to read
 1-5     as follows:
 1-6           Sec. 154.181.  MEDICAL SUPPORT ORDER.  (a)  In a suit
 1-7     affecting the parent-child relationship or in a proceeding under
 1-8     Chapter 159, the court shall render an order for the medical
 1-9     support of the child as provided by this section.
1-10           (b)  Before a hearing on temporary orders or a final order,
1-11     if no hearing on temporary orders is held, the court shall require
1-12     the parties to the proceedings to disclose in a pleading or other
1-13     statement:
1-14                 (1)  if private health insurance is in effect for the
1-15     child, the source and quality of the insurance including any
1-16     limitations on the coverage, which parent is responsible for
1-17     payment of any insurance premium for the coverage, and the cost of
1-18     the premium; or
1-19                 (2)  if private health insurance is not in effect for
1-20     the child, whether:
1-21                       (A)  the child is receiving medical assistance
1-22     under Chapter 32, Human Resources Code;
1-23                       (B)  the child is receiving health benefits
1-24     coverage under the Children's Health Insurance Program under
1-25     Chapter 62, Health and Safety Code, and the cost of any premium;
 2-1     and
 2-2                       (C)  either parent has access to private health
 2-3     insurance at reasonable cost to that parent.
 2-4           (c)  In rendering temporary orders, the court shall order
 2-5     that any health insurance coverage in effect for the child continue
 2-6     in effect pending the rendition of a final order, except that the
 2-7     court shall not require the continuation of any health insurance
 2-8     that is not available to the parent at reasonable cost.  If there
 2-9     is no health insurance coverage in effect for the child or if the
2-10     insurance in effect is not available at a reasonable cost and the
2-11     child is not receiving medical assistance under Chapter 32, Human
2-12     Resources Code, or coverage under the Children's Health Insurance
2-13     Program under Chapter 62, Health and Safety Code, the court shall
2-14     order health care coverage for the child as provided under Section
2-15     154.182.
2-16           (d)  Except for good cause shown, before rendering a final
2-17     order the court shall require the parent ordered to provide health
2-18     care coverage for the child as provided under Section 154.182 to
2-19     produce evidence to the court's satisfaction that the parent has
2-20     applied for or secured health insurance or has otherwise taken
2-21     necessary action to provide for health care coverage for the child,
2-22     as ordered by the court.
2-23           (e)  For the purposes of this section, "reasonable cost"
2-24     means the cost of a health insurance premium that does not exceed
2-25     10 percent of the responsible parent's net income in a month.
2-26           SECTION 2.  Subsections (b) and (c), Section 154.182, Family
 3-1     Code, are amended to read as follows:
 3-2           (b)  In [Except as provided for by Subdivision (6), in]
 3-3     determining the manner in which health insurance for the child is
 3-4     to be ordered, the court shall render its order in accordance with
 3-5     the following priorities, unless a party shows good cause why a
 3-6     particular order would not be in the best interest of the child:
 3-7                 (1)  if health insurance is available for the child
 3-8     through the obligor's employment or membership in a union, trade
 3-9     association, or other organization at reasonable cost to the
3-10     obligor, the court shall order the obligor to include the child in
3-11     the obligor's health insurance;
3-12                 (2)  if health insurance is not available for the child
3-13     through the obligor's employment but is available for the child at
3-14     a reasonable cost through the obligee's employment or membership in
3-15     a union, trade association, or other organization, the court may
3-16     order the obligee to provide health insurance for the child, and,
3-17     in such event, shall order the obligor to pay additional child
3-18     support to be withheld from earnings under Chapter 158 to the
3-19     obligee for the actual cost of the health insurance for the child; 
3-20                 (3)  if health insurance is not available for the child
3-21     under Subdivision (1) or (2), the court shall order the obligor to
3-22     provide health insurance for the child if the court finds that
3-23     health insurance is available to the obligor for the child from
3-24     another source and at reasonable cost [that the obligor is
3-25     financially able to provide it];
3-26                 (4)  if neither parent has access to private health
 4-1     insurance at a reasonable cost, the court shall order that the
 4-2     custodial parent or, to the extent permitted by law, the
 4-3     noncustodial parent immediately apply on behalf of the child for
 4-4     participation in a medical assistance program under Chapter 32,
 4-5     Human Resources Code, or the Children's Health Insurance Program
 4-6     under Chapter 62, Health and Safety Code, and that the obligor pay
 4-7     additional child support, to be withheld from income under Chapter
 4-8     158, to the obligee for the actual cost of participation of the
 4-9     child in such program [health insurance is not available for the
4-10     child under Subdivision (1), (2), or (3), the court shall order the
4-11     obligor to apply for coverage through the Texas Healthy Kids
4-12     Corporation established under Chapter 109, Health and Safety Code];
4-13     or
4-14                 (5)  if health coverage is not available for the child
4-15     under Subdivision (1), (2), (3), or (4), the court shall order the
4-16     obligor to pay the obligee, in addition to any amount ordered under
4-17     the guidelines for child support, a reasonable amount each month as
4-18     medical support for the child to be withheld from earnings under
4-19     Chapter 158[; or]
4-20                 [(6)  notwithstanding Subdivisions (1) through (3), an
4-21     obligor whose employer, union, trade association, or other
4-22     organization does not offer a child/children coverage option in
4-23     lieu of a spouse/child/children option of health insurance coverage
4-24     may elect to apply for coverage through the Texas Healthy Kids
4-25     Corporation.  An obligor required to pay additional child support
4-26     to an obligee for health insurance coverage may elect to apply for
 5-1     coverage through the Texas Healthy Kids Corporation if the
 5-2     obligee's employer, union, trade association, or other organization
 5-3     does not offer a child/children coverage option in lieu of a
 5-4     spouse/child/children option of health insurance coverage].
 5-5           (c)  As used in this section, "reasonable cost" has the
 5-6     meaning assigned by Section 154.181(e) [In establishing the amount
 5-7     of additional medical child support under Subsection (b)(5), the
 5-8     court shall presume that $38 each month is a reasonable amount for
 5-9     a child but may order a greater or lesser amount as appropriate
5-10     under the circumstances.  The Health and Human Services Commission
5-11     may promulgate guidelines for the dollar amounts of medical child
5-12     support that the court may presumptively apply in circumstances in
5-13     which the obligor is responsible for medical child support for more
5-14     than one child].
5-15           SECTION 3.  To the extent necessary to implement the
5-16     provisions of this Act, the attorney general and the Health and
5-17     Human Services Commission shall:
5-18                 (1)  request any waiver or authorization from a federal
5-19     agency with respect to the provision of medical assistance under
5-20     Chapter 32, Human Resources Code, or the operation of a state child
5-21     health plan under Chapter 62, Health and Safety Code; and
5-22                 (2)  develop and publish appropriate rules.
5-23           SECTION 4.  This Act takes effect immediately if it receives
5-24     a vote of two-thirds of all members elected to each house, as
5-25     provided by Section 39, Article III, Texas Constitution.  If this
5-26     Act does not receive the vote necessary for immediate effect, this
 6-1     Act takes effect September 1, 2002.