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 a child support payment to an obligee by electronic funds transfer into 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). (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. (c-1) Chapter 604, Business & Commerce Code, does not apply to a debit card issued under Subsection (c). (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. (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.