Do Texas Medicaid providers have to certify they're current on child support?

Plain-English summary

Texas uses its contracting power to help collect child support. A statute makes a parent who is behind on court-ordered child support ineligible to be paid with state funds under a contract, grant, or loan, and it requires a certification to that effect on the paperwork. The Texas Department of Health asked the Attorney General whether that rule reached doctors and other health care providers who participate in the state's Medicaid program.

The wrinkle was that the law had just been rewritten. When the Department first asked, the rule lived in former Family Code section 14.52, and its certification requirement (subsection (d)) was narrow: only a "bidder for a state contract" or an "applicant for a state-funded loan or grant" had to submit the sworn statement. Medicaid providers do not bid for anything. They sign up voluntarily by filling out a provider enrollment application and signing a provider agreement, so under the old wording it was arguable the certification did not apply to them. Then the Legislature repealed section 14.52, recodified it as section 231.006, and substantially amended it. The new subsection (d) is much broader: it requires the certification statement on any "contract, bid, or application subject to the requirements of this section."

The Attorney General read that broader language to sweep in Medicaid providers. The office walked through the new statute. Subsection (a) makes ineligible both delinquent individuals and any business entity in which a delinquent person is a sole proprietor, partner, shareholder, or owner with at least a 25 percent interest, so it covers every kind of business form. And subsection (a) applies to all contracts to provide property, materials, or services paid from state funds, and to all state-funded grants and loans. Reading subsection (d)'s certification requirement to match that reach, the office concluded that section 231.006(d) applies to everyone who enters into a contract to provide property, materials, or services paid from state funds.

That settled the Medicaid question. The Department explained that it had contracted out administration of the federal Title XIX Medicaid program to a private company, that providers join voluntarily by signing a provider agreement, and that providers are paid with both federal and state funds. Because Medicaid providers are paid with at least some state funds, the office concluded that all providers who contract to participate in the Texas Medicaid program must submit the section 231.006 child-support certification statement.

Currency note

This opinion was issued in 1996. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

This opinion construes Family Code section 231.006 as it stood shortly after its 1995 enactment, along with the repealed former section 14.52. The child-support certification statute has been amended since then, the exact statement language and the ownership-percentage trigger can change, and Texas Medicaid administration has been reorganized (the Health and Human Services Commission now oversees the program). Read this page for the office's 1996 reasoning about why the certification requirement reaches state-funded contracts broadly, and verify the current Family Code section 231.006 text and current Medicaid enrollment requirements before relying on any specific rule here.

What the opinion meant at the time

For Medicaid providers (physicians, health professionals, and provider entities): The opinion meant that signing up for the Texas Medicaid program carried the same child-support certification obligation as a state contract. Because providers are paid with state funds, they had to submit the section 231.006(d) statement certifying they were not ineligible.

For the Texas Department of Health and other contracting agencies: The opinion meant the recodified statute's certification requirement was not limited to formal "bidders." It applied to all individuals and business entities entering into contracts to provide property, materials, or services paid from state funds, including voluntary program participants who sign an agreement rather than submit a bid.

For lawyers advising state contractors or providers: The opinion is a statutory-construction holding that turns on the broadened wording of section 231.006(d) ("a contract, bid, or application subject to the requirements of this section") compared with the narrower former section 14.52(d) ("each bidder . . . or applicant"). The office tied the certification's reach to the ineligibility reach of subsection (a).

Common questions

Do Texas Medicaid providers have to certify they are current on child support?
Yes, under this opinion. Because Medicaid providers are paid with at least some state funds, the office concluded they must submit the child-support certification statement required by Family Code section 231.006(d).

Didn't the old law only apply to people who submit bids?
The old version (former section 14.52(d)) did read that way, requiring a sworn statement only from a "bidder" or an "applicant" for a state grant or loan. The office noted that Medicaid providers do not bid. But the recodified section 231.006(d) is broader and requires the certification on any contract, bid, or application subject to the section.

Why does the broader wording reach providers who just sign a provider agreement?
Because the office read the certification requirement to match the ineligibility rule in subsection (a), which covers all contracts to provide property, materials, or services paid from state funds, regardless of business form. Signing a provider agreement to be paid with state funds falls within that reach.

What happens if the certification is inaccurate?
The statutory statement itself says the contract may be terminated and payment may be withheld if the certification is inaccurate. The opinion quoted that language from section 231.006(d).

Background and statutory framework

Former Family Code section 14.52 made a child-support obligor who was 30 or more days delinquent ineligible to bid on or enter a state contract or receive a state-funded grant or loan, extended that ineligibility to entities owned by such an obligor, and (in subsection (d)) required each bidder or grant/loan applicant to file a sworn non-delinquency statement. In 1995 the Legislature repealed section 14.52, recodified it as section 231.006 (Act of April 6, 1995, ch. 20), and substantially amended it (Act of May 27, 1995, ch. 751).

As amended, section 231.006(a) makes ineligible a child-support obligor more than 30 days delinquent, and a business entity in which the obligor is a sole proprietor, partner, shareholder, or owner with at least a 25 percent interest, from receiving payments from state funds under a contract to provide property, materials, or services, or receiving a state-funded grant or loan. Subsection (d) requires that "[a] contract, bid, or application subject to the requirements of this section" include a prescribed certification statement. The office concluded that, unlike the former bidder-only language, the new subsection (d) reaches all individuals and business entities entering into contracts to provide property, materials, or services paid from state funds.

The Department had delegated administration of the federal Title XIX Medicaid program to a private company; providers join voluntarily by signing a provider agreement and are paid with federal and state funds. Because providers are paid with at least some state funds, the office concluded all Texas Medicaid providers must submit the section 231.006(d) certification.

Citations

Statutes discussed:

• Family Code section 231.006 (ineligibility of delinquent child-support obligors for state-funded contracts, grants, and loans; subsection (a) ineligibility; subsection (d) required certification statement), as enacted by Act of April 6, 1995, 74th Leg., R.S., ch. 20, and amended by Act of May 27, 1995, 74th Leg., R.S., ch. 751
• Family Code former section 14.52 (predecessor provision; Act of May 27, 1993, 73d Leg., R.S., ch. 816)
• Federal Title XIX Medicaid program (referenced)

No cases were cited in this opinion.

Source

• Landing page: https://www.texasattorneygeneral.gov/opinions/dan-morales/dm-0379
• Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1996/dm0379.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain (including footnote numbering) — the linked PDF is authoritative.

Office of the Attorney General
State of Texas

DAN MORALES
ATTORNEY GENERAL

March 21, 1996

David R. Smith, M.D.
Commissioner of Health
Texas Department of Health
1100 West 49th Street
Austin, Texas 78756-3199

Opinion No. DM-379

Re: Whether section 231.006 of the Family Code, regarding eligibility of child support obligors to enter into contracts paid with state funds, applies to Medicaid providers (RQ-792)

Dear Commissioner Smith:

On behalf of the Texas Department of Health (the "department"), you asked whether former section 14.52(d) of the Family Code, Act of May 27, 1993, 73d Leg., R.S., ch. 816, § 2.01, 1993 Tex. Gen. Laws 3251, 3255, applied to Medicaid providers. Since you submitted your request, the Seventy-fourth Legislature repealed that provision and recodified it as section 231.006 of the Family Code, see Act of April 6, 1995, 74th Leg., R.S., ch. 20, § 2, 1995 Tex. Sess. Law Serv. 113, 282, which the same legislature then substantially amended, see Act of May 27, 1995, 74th Leg., R.S., ch. 751, § 82, 1995 Tex. Sess. Law Serv. 3888, 3915-16.

Former section 14.52 provided as follows:

(a) A child support obligor who is 30 or more days delinquent in paying child support is not eligible to:

(1) submit a bid or enter into a contract to provide property, materials, or services under a contract with the state; or

(2) receive a state-funded grant or loan.

(b) A sole proprietorship, partnership, corporation, or other entity in which a sole proprietor, partner, majority shareholder, or substantial owner is a delinquent obligor who is ineligible to bid on a state contract under Subsection (a)(1) of this section may not bid on a state contract as provided by this section.

(c) A child support obligor remains ineligible to submit a bid on or enter into a state contract or apply for a state-funded grant or loan under Subsection (a) of this section until:

(1) all arrearages have been paid; or

(2) the obligor is in compliance with a written repayment agreement or court order as to any existing delinquency.

(d) Each bidder for a state contract or applicant for a state-funded loan or grant under Subsection (a) of this section shall submit a signed, sworn statement accompanying any bid or application for a grant or loan affirming that the bidder or applicant is not 30 or more days delinquent in providing child support under a court order or a written repayment agreement.

(e) The attorney general and the General Services Commission may adopt rules or prescribe forms to implement any provision of this section.

Newly enacted and amended section 231.006 provides in pertinent part as follows:

(a) A child support obligor who is more than 30 days delinquent in paying child support and a business entity in which the obligor is a sole proprietor, partner, shareholder, or owner with an ownership interest of at least 25 percent is not eligible to:

(1) receive payments from state funds under a contract to provide property, materials, or services; or

(2) receive a state-funded grant or loan.

(b) A child support obligor or business entity ineligible to receive payments under Subsection (a) remains ineligible until:

(1) all arrearages have been paid; or

(2) the obligor is in compliance with a written repayment agreement or court order as to any existing delinquency.

(c) A bid or an application for a contract, grant, or loan paid from state funds must include the name and social security number of the individual or sole proprietor and each partner, shareholder, or owner with an ownership interest of at least 25 percent of the business entity submitting the bid or application.

(d) A contract, bid, or application subject to the requirements of this section must include the following statement:

"Under Section 231.006, Family Code, the vendor or applicant certifies that the individual or business entity named in this contract, bid, or application is not ineligible to receive the specified grant, loan, or payment and acknowledges that this contract may be terminated and payment may be withheld if this certification is inaccurate."

You were interested in former subsection (d) which required "[e]ach bidder for a state contract or applicant for a state-funded loan or grant" to submit "a signed, sworn statement accompanying any bid or application for a grant or loan affirming that [he or she] is not 30 or more days delinquent in providing child support under a court order or a written repayment agreement." You asked whether former subsection (d) applied to health care providers who apply to participate in the Texas Medicaid program. We assume that you are now interested in subsection (d) of section 231.006 as amended, which requires each contract, bid, or application subject to section 231.006 to include the statement that "the vendor or applicant certifies that the individual or business entity named in this contract, bid, or application is not ineligible." We address whether Medicaid providers must submit such statements.[*]

You explain that the department has delegated the administration of the federal Title XIX Medicaid program by contract to a private company. The private company solicits health care providers, including individual physicians and other health care professionals and entities, to participate in the program voluntarily. Providers do not submit bids. You state that "[t]hose wishing to participate must complete a provider enrollment application, meet provider criteria and sign a provider agreement." The "Provider Agreement with the Texas Department of Health for Participation in the Texas Medicaid Program" submitted with your request states that health care providers who enter into the contract are paid with federal and state funds. We assume that this is the case.

Former subsection (d) on its face required only a bidder for a state contract or an applicant for a state grant or loan to submit a sworn statement. By contrast, subsection (d) of section 231.006 as amended, requiring the submission of a statement, is broadly written to apply to all contracts, bids, or applications subject to the section. We believe it applies to all individuals and business entities that enter into contracts paid from state funds. First, subsection (a) makes ineligible not just delinquent individuals but also any business entity in which a delinquent individual is "a sole proprietor, partner, shareholder, or owner with an ownership interest of at least 25 percent" of the business entity. Clearly, the subsection (a) ineligibility requirements apply to all kinds of business entities, whether they are owned as sole proprietorships, partnerships, corporations or any other kind of ownership arrangements. Second, it is apparent from subsection (a)(1) and (2) that the eligibility requirements of section 231.006 apply to all contracts to provide property, materials, or services paid from state funds and all state-funded grants and loans. We believe that section 231.006(d) is intended to apply to all individuals and business entities that would be potentially ineligible under subsection (a). For this reason, we conclude that section 231.006(d) applies to all individuals and business entities who enter into contracts to provide property, materials, or services paid from state funds.

As noted above, it appears that all Medicaid providers are paid with at least some state funds. Therefore, we conclude that all providers that contract to participate in the Texas Medicaid program are required to submit statements regarding child support payments as provided by section 231.006(d).

[*] You did not respond to our request to explain how the amendments to section 231.006 affect your query. We assume you continue to be interested in the statement requirements as they apply to Medicaid providers.

SUMMARY

Providers that contract to participate in the Texas Medicaid program must submit a statement regarding child support payments pursuant to section 231.006 of the Family Code.

DAN MORALES
Attorney General of Texas

JORGE VEGA
First Assistant Attorney General

SARAH J. SHIRLEY
Chair, Opinion Committee

Prepared by Mary R. Crouter
Assistant Attorney General