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