S.B. No. 1777

	AN ACT
	relating to disbursement of child support payments in Title IV-D
	cases.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 234.010, Family Code, is amended to read
	as follows:
	Sec. 234.010.  DIRECT DEPOSIT AND ELECTRONIC BENEFITS
	TRANSFER OF CHILD SUPPORT PAYMENTS. (a)  The state disbursement
	unit authorized under this chapter may make a direct deposit of
	[transmit] a child support payment to an obligee by electronic
	funds transfer into [if the obligee maintains] an account with a
	financial institution maintained by the obligee. It is the
	responsibility of the obligee to notify the state disbursement unit
	of:
	(1)  the existence of an account;
	(2)  the appropriate routing information for direct
	deposit by electronic funds transfer into an account; and
	(3)  any modification to account information
	previously provided to the state disbursement unit, including
	information that an account has been closed.
	(b)  Except as provided by Subsection (d), the state
	disbursement unit shall deposit a child support payment by
	electronic funds transfer into a debit card account established for
	the obligee by the Title IV-D agency if the obligee:
	(1)  does not maintain an account with a financial
	institution;
	(2)  fails to notify the state disbursement unit of the
	existence of an account maintained with a financial institution; or
	(3)  closes an account maintained with a financial
	institution previously used to accept direct deposit of a child
	support payment without establishing a new account and notifying
	the state disbursement unit of the new account in accordance with
	Subsection (a) [The work group convened under this subchapter may
	develop a plan to assist an obligee who does not have an account
	with a financial institution to obtain an account].
	(c)  The Title IV-D agency shall:
	(1)  issue a debit card to each obligee for whom a debit
	card account is established under Subsection (b); and
	(2)  provide the obligee with instructions for
	activating and using the debit card [work group may determine
	whether it is feasible and cost-effective for the state to
	administer an electronic benefits transfer system for child support
	obligees and may recommend implementation of such a system to the
	Title IV-D agency].
	(d)  An obligee may decline in writing to receive child
	support payments by electronic funds transfer into an account with
	a financial institution or a debit card account and request that
	payments be provided by paper warrants if the obligee alleges that
	receiving payments by electronic funds transfer would impose a
	substantial hardship [After receiving any recommendations by the
	work group under Subsection (c), the Title IV-D agency or the vendor
	selected by the Title IV-D agency to operate the state disbursement
	unit may provide for electronic benefits transfer, if the request
	for proposals issued by the Title IV-D agency and any contract
	resulting from the selection of a vendor to provide the services
	specified in the request for proposals provides for electronic
	benefits transfer].
	(e)  A child support payment disbursed by the state
	disbursement unit by electronic funds transfer into an account with
	a financial institution maintained by the obligee or into a debit
	card account established for the obligee under Subsection (b) is
	solely the property of the obligee [The work group may recommend and
	the Title IV-D agency may establish procedures to implement this
	section.
	[(f)     The Title IV-D agency, after receiving the
	recommendation of the work group, may require an obligee to receive
	payments by direct deposit to the obligee's bank account or by
	electronic benefits transfer to an account established by the Title
	IV-D agency or the state disbursement unit if the account is
	established at no cost to the obligee].
	SECTION 2.  Section 72.101, Property Code, is amended by
	adding Subsection (e) to read as follows:
	(e)  This section does not apply to money collected as child
	support that:
	(1)  is being held for disbursement by the state
	disbursement unit under Chapter 234, Family Code, or a local
	registry, as defined by Section 101.018, Family Code, pending
	identification and location of the person to whom the money is owed;
	or
	(2)  has been disbursed by the state disbursement unit
	under Chapter 234, Family Code, by electronic funds transfer into a
	child support debit card account established for an individual
	under Section 234.010, Family Code, but not activated by the
	individual.
	SECTION 3.  Subdivision (1), Subsection (a), Section 73.001,
	Property Code, is amended to read as follows:
	(1)  "Account" means funds deposited with a depository
	in an interest-bearing account, a checking or savings account, or a
	child support debit card account established under Section 234.010,
	Family Code, or funds received by a depository in exchange for the
	purchase of a stored value card.
	SECTION 4.  Section 234.011, Family Code, is repealed.
	SECTION 5.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2009.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1777 passed the Senate on
	April 23, 2009, by the following vote:  Yeas 30, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1777 passed the House on
	May 26, 2009, by the following vote:  Yeas 145, Nays 0, two present
	not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor