By: Harris S.B. No. 1777
A BILL TO BE ENTITLED
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.