BILL ANALYSIS

 

 

Senate Research Center

C.S.H.B. 3845

85R31455 KSD-D

By: Raymond (Creighton)

 

State Affairs

 

5/19/2017

 

Committee Report (Substituted)

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Under current law, the Attorney General's Child Support Division operates a program through which insurers assist in identifying citizens who owe child support payments in order for the Child Support Division to intercept awards or claims to satisfy the child support payments owed. Currently in statute certain insurance claims are exempted from the reporting requirements of the program.

 

H.B. 3845 amends Section 231.015, Family Code, to create an exemption for claims assigned to be paid under an insurance policy funding prepaid funeral benefits. H.B. 3845 also creates exemptions for claims assigned to be paid to a health care provider or facility for medical expenses owed by the insured, and certain limited benefit insurance policy claims. (Original Author's / Sponsor's Statement of Intent)

 

H.B. 3845 amends current law relating to the insurance reporting program operated by the Title IV-D agency to enforce certain child support obligations.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 231.015(c), Family Code, as follows:

 

(c) Prohibits an insurer from being required to report or identify the following types of claims:

 

(1) and (2) makes nonsubstantive changes;

 

(3) a claim for benefits, or a portion of a claim for benefits, assigned to be paid to a funeral service provider or facility for actual funeral expenses owed by the insured that are not otherwise paid or reimbursed;

 

(4)  a claim for benefits assigned to be paid to a health care provider or facility for actual medical expenses owed by the insured that are not otherwise paid or reimbursed; or

 

(5)  a claim for benefits to be paid under a limited benefit insurance policy that provides coverage for one or more specified diseases or illnesses, dental or vision benefits, or hospital indemnity or other fixed indemnity coverage, or accident insurance.

 

SECTION 2. Effective date: upon passage or September 1, 2017.