S*1358(Rat #0556, Act #0481)  General Bill, By Leatherman, Glover, Martin, 
Matthews, McGill, Peeler and J.V. Smith

Similar(H 5095)
 A Bill to amend Subarticle 6, Article 9, Chapter 7, Title 20, Code of Laws of
 South Carolina, 1976, relating to income withholding for child support by
 adding Sections 20-7-1200, 20-7-1210, 20-7-1220, 20-7-1230, 20-7-1240,
 20-7-1250, 20-7-1260, 20-7-1270, and 20-7-1280, so as to provide procedures
 for medical child support and income withholding, including provisions
 required in a court order if a parent is required to provide health coverage;
 employers' and health insurers' obligations upon receipt of an order requiring
 a parent to provide health coverage, including the withholding of wages for
 the cost of health insurance premiums; authority for the state medicaid agency
 to seek income withholding for reimbursement for expenditures on behalf of a
 child; the priority of medical income withholding over other legal processes;
 prohibiting an employer from taking action against an employee because of an
 income withholding order for health coverage and to provide penalties; by
 adding Section 38-71-143 so as to provide circumstances under which health
 insurance coverage must be provided for an adopted child or a child placed for
 adoption; by adding Section 38-71-245 so as to provide circumstances under
 which a health insurer is prohibited from denying a child enrollment in a
 health plan; by adding Section 38-71-250 so as to require a health insurer to
 enroll a child and provide coverage if the child's parent is ordered to
 provide coverage and is eligible for family coverage; by adding Section
 38-71-255 so as to prohibit a health insurer from treating the state medicaid
 agency differently from other individuals if the agency has been assigned the
 rights of a person covered under the insured's plan; by adding Section
 38-71-260 so as to require a health insurer to provide certain information and
 rights to a noncustodial parent who provides coverage of their child through
 that insurer; by adding Section 38-71-265 so as to prohibit an insurer from
 considering a person's eligibility for medicaid when enrolling a person or
 making payments under its plan and to assign the rights to the State for third
 party reimbursement when the State has made payments under medicaid on behalf
 of a person; and by adding Section 43-7-460 so as to direct the Health and
 Human Services Finance Commission to seek recovery from the estate of a person
 for whom medical assistance was paid for under medicaid and to provide certain
 conditions and procedures for seeking the recovery; to amend Section 43-7-410,
 relating to definitions pertaining to reimbursement for medicaid services, so
 as to revise the definition of "private insurer"; to amend Section 43-7-440,
 relating to the enforcement and assignment of rights of medicaid recipients,
 so as to prohibit an issuer from taking into account that an applicant is
 eligible for medicaid and to provide that the State acquires the rights of an
 individual for medical payments when the person received medical assistance
 paid for under medicaid; to amend Section 62-3-805, relating to classification
 of creditors' claims from a decedent's estate, so as to include medical
 assistance paid for under medicaid; to designate Sections 20-7-1315 through
 20-7-1329 as Part II, Subarticle 6, Article 9, Chapter 7, Title 20 entitled
 "Income Withholding to Enforce Support Obligations"; and to rename Subarticle
 6, Article 9, Chapter 7, Title 20 "Income Withholding"; to add Section 44-7-77
 so as to require the Department of Health and Environmental Control and the
 Department of Social Services to develop a program promoting obtaining
 in-hospital paternity acknowledgements; and to amend Section 20-7-956,
 relating to evidence admissible in a paternity hearing, so as to provide that
 a voluntary acknowledgement of paternity creates a conclusive presumption of
 paternity.-amended title

   04/14/94  Senate Introduced and read first time SJ-9
   04/14/94  Senate Referred to Committee on Banking and Insurance SJ-9
   04/26/94  Senate Recalled from Committee on Banking and Insurance SJ-7
   04/26/94  Senate Read second time SJ-7
   04/26/94  Senate Unanimous consent for third reading on next
                     legislative day SJ-7
   04/27/94  Senate Read third time and sent to House SJ-41
   04/27/94  Senate Reconsidered SJ-43
   04/27/94  Senate Ordered to third reading with notice of
                     amendments SJ-43
   04/28/94  Senate Amended SJ-39
   04/28/94  Senate Read third time and sent to House SJ-47
   05/03/94  House  Introduced and read first time HJ-13
   05/03/94  House  Referred to Committee on Ways and Means HJ-15
   05/18/94  House  Recalled from Committee on Ways and Means HJ-37
   05/26/94  House  Debate adjourned until Tuesday, May 31, 1994 HJ-80
   06/01/94  House  Amended HJ-98
   06/01/94  House  Read second time HJ-101
   06/01/94  House  Unanimous consent for third reading on next
                     legislative day HJ-101
   06/02/94  House  Read third time and returned to Senate with
                     amendments HJ-19
   06/02/94  Senate Concurred in House amendment and enrolled SJ-34
   06/02/94         Ratified R 556
   07/14/94         Signed By Governor
   07/14/94         Effective date 07/14/94
   07/26/94         Copies available

AN ACT TO AMEND SUBARTICLE 6, ARTICLE 9, CHAPTER 7, TITLE 20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INCOME WITHHOLDING FOR CHILD SUPPORT BY ADDING SECTIONS 20-7-1200, 20-7-1210, 20-7-1220, 20-7-1230, 20-7-1240, 20-7-1250, 20-7-1260, 20-7-1270, AND 20-7-1280, SO AS TO PROVIDE PROCEDURES FOR MEDICAL CHILD SUPPORT AND INCOME WITHHOLDING, INCLUDING PROVISIONS REQUIRED IN A COURT ORDER IF A PARENT IS REQUIRED TO PROVIDE HEALTH COVERAGE; EMPLOYERS' AND HEALTH INSURERS' OBLIGATIONS UPON RECEIPT OF AN ORDER REQUIRING A PARENT TO PROVIDE HEALTH COVERAGE, INCLUDING THE WITHHOLDING OF WAGES FOR THE COST OF HEALTH INSURANCE PREMIUMS; AUTHORITY FOR THE STATE MEDICAID AGENCY TO SEEK INCOME WITHHOLDING FOR REIMBURSEMENT FOR EXPENDITURES ON BEHALF OF A CHILD; THE PRIORITY OF MEDICAL INCOME WITHHOLDING OVER OTHER LEGAL PROCESSES; PROHIBITING AN EMPLOYER FROM TAKING ACTION AGAINST AN EMPLOYEE BECAUSE OF AN INCOME WITHHOLDING ORDER FOR HEALTH COVERAGE AND TO PROVIDE PENALTIES; BY ADDING SECTION 38-71-143 SO AS TO PROVIDE CIRCUMSTANCES UNDER WHICH HEALTH INSURANCE COVERAGE MUST BE PROVIDED FOR AN ADOPTED CHILD OR A CHILD PLACED FOR ADOPTION; BY ADDING SECTION 38-71-245 SO AS TO PROVIDE CIRCUMSTANCES UNDER WHICH A HEALTH INSURER IS PROHIBITED FROM DENYING A CHILD ENROLLMENT IN A PARENT'S HEALTH PLAN; BY ADDING SECTION 38-71-250 SO AS TO REQUIRE A HEALTH INSURER TO ENROLL A CHILD AND PROVIDE COVERAGE IF THE CHILD'S PARENT IS ORDERED TO PROVIDE COVERAGE AND IS ELIGIBLE FOR FAMILY COVERAGE; BY ADDING SECTION 38-71-255 SO AS TO PROHIBIT A HEALTH INSURER FROM TREATING THE STATE MEDICAID AGENCY DIFFERENTLY FROM OTHER INDIVIDUALS IF THE AGENCY HAS BEEN ASSIGNED THE RIGHTS OF A PERSON COVERED UNDER THE INSURED'S PLAN; BY ADDING SECTION 38-71-260 SO AS TO REQUIRE A HEALTH INSURER TO PROVIDE CERTAIN INFORMATION AND RIGHTS TO A NONCUSTODIAL PARENT WHO PROVIDES COVERAGE OF THEIR CHILD THROUGH THAT INSURER; BY ADDING SECTION 38-71-265 SO AS TO PROHIBIT AN INSURER FROM CONSIDERING A PERSON'S ELIGIBILITY FOR MEDICAID WHEN ENROLLING A PERSON OR MAKING PAYMENTS UNDER ITS PLAN AND TO ASSIGN THE RIGHTS TO THE STATE FOR THIRD PARTY REIMBURSEMENT WHEN THE STATE HAS MADE PAYMENTS UNDER MEDICAID ON BEHALF OF A PERSON; AND BY ADDING SECTION 43-7-460 SO AS TO DIRECT THE HEALTH AND HUMAN SERVICES FINANCE COMMISSION TO SEEK RECOVERY FROM THE ESTATE OF A PERSON FOR WHOM MEDICAL ASSISTANCE WAS PAID FOR UNDER MEDICAID AND TO PROVIDE CERTAIN CONDITIONS AND PROCEDURES FOR SEEKING THE RECOVERY; TO AMEND SECTION 43-7-410, RELATING TO DEFINITIONS PERTAINING TO REIMBURSEMENT FOR MEDICAID SERVICES, SO AS TO REVISE THE DEFINITION OF "PRIVATE INSURER"; TO AMEND SECTION 43-7-440, RELATING TO THE ENFORCEMENT AND ASSIGNMENT OF RIGHTS OF THE HEALTH AND HUMAN SERVICES FINANCE COMMISSION AND INSURANCE CONTRACT RIGHTS OF MEDICAID RECIPIENTS, SO AS TO PROHIBIT AN ISSUER FROM TAKING INTO ACCOUNT THAT AN APPLICANT IS ELIGIBLE FOR MEDICAID AND TO PROVIDE THAT THE STATE ACQUIRES THE RIGHTS OF AN INDIVIDUAL FOR MEDICAL PAYMENTS WHEN THE PERSON RECEIVED MEDICAL ASSISTANCE PAID FOR UNDER MEDICAID; TO AMEND SECTION 62-3-805, RELATING TO CLASSIFICATION OF CREDITORS' CLAIMS FROM A DECEDENT'S ESTATE, SO AS TO INCLUDE MEDICAL ASSISTANCE PAID FOR UNDER MEDICAID; TO CHANGE REFERENCES TO CONFORM TO ACT 181 OF 1993, RESTRUCTURING OF STATE GOVERNMENT; TO DESIGNATE SECTIONS 20-7-1315 THROUGH 20-7-1329 AS PART II, SUBARTICLE 6, ARTICLE 9, CHAPTER 7, TITLE 20 ENTITLED "INCOME WITHHOLDING TO ENFORCE SUPPORT OBLIGATIONS"; TO RENAME SUBARTICLE 6, ARTICLE 9, CHAPTER 7, TITLE 20 "INCOME WITHHOLDING"; TO ADD SECTION 44-7-77 SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL AND THE DEPARTMENT OF SOCIAL SERVICES TO DEVELOP A PROGRAM PROMOTING OBTAINING IN-HOSPITAL PATERNITY ACKNOWLEDGEMENTS; AND TO AMEND SECTION 20-7-956, RELATING TO EVIDENCE ADMISSIBLE IN A PATERNITY HEARING, SO AS TO PROVIDE THAT A VOLUNTARY ACKNOWLEDGEMENT OF PATERNITY CREATES A CONCLUSIVE PRESUMPTION OF PATERNITY.

Be it enacted by the General Assembly of the State of South Carolina:

Income withholding for payment of medical expenses for children

SECTION 1. Subarticle 6, Article 9, Chapter 7, Title 20 of the 1976 Code is amended by adding:

Section 20-7-1200. To be enforced pursuant to this part of Subarticle 6, a court order which requires a parent to provide health coverage for a child must:

(1) clearly specify:

(a) the name, social security number, and last known mailing address, if any, of the parent and the name, social security number, date of birth, and mailing address of each child covered by the order;

(b) a reasonable description of the type of coverage to be provided by the plan to each child or the manner in which the type of coverage is to be determined;

(c) the period to which the order applies;

(d) each plan to which the order applies; and

(2) not require a plan to provide a type or form of benefit or an option, not otherwise provided under the plan, except to the extent necessary to meet the requirements of this part of Subarticle 6.

Section 20-7-1210. If a court order requiring a parent to provide health coverage to a child is received by an employer or a health insurer, including a group health plan as defined in Section 607(1) of the Employee Retirement Income Security Act of 1974 or health maintenance organization as defined in Section 38-33-20:

(1) the employer or health insurer promptly shall notify the parent and each child of the receipt of the order and the employer's or insurer's procedures for determining whether the order is covered by this part of Subarticle 6;

(2) within a reasonable period after receipt of the order, the employer or insurer shall determine whether the order is covered by this part of Subarticle 6 and notify the parent and each child of the determination;

(3) shall establish reasonable procedures to determine whether the order is covered by this part of Subarticle 6 and to administer the provision of benefits under qualified orders. The procedures must:

(a) be in writing;

(b) provide for the notification of each person specified in the order as eligible to receive benefits, at the address included in the order, of these procedures promptly upon receipt by the employer or insurer of the order; and

(c) permit the court or the child's legal guardian to designate a representative for receipt of copies of notices that are sent with respect to a medical child support order.

Section 20-7-1220. (A) If a parent is required by a court order to provide health coverage for a child and the parent is eligible for family health coverage through an employer in this State, notice and a copy of the order must be sent to the employer. The notice and copy of the order may be sent by first class mail. The notice must explain all of the employer's legal obligations under this part of Subarticle 6. Upon receipt of notice and the order, the employer shall:

(1) permit the parent to enroll, under the family coverage, a child who is otherwise eligible for the coverage without regard to any enrollment season restrictions;

(2) if the parent is enrolled but fails to make application to obtain coverage for the child, enroll the child under family coverage upon application of:

(a) the child's other parent;

(b) the state agency administering the Medicaid program; or

(c) the state agency administering 42 U.S.C. Sections 651 to 669, the child support enforcement program; and

(3) continue coverage of the child unless the employer:

(a) is provided satisfactory written evidence that the court order is no longer in effect or that the child is or will be enrolled in comparable health coverage through another insurer which will take effect not later than the effective date of disenrollment; or

(b) has eliminated family health coverage for all of its employees.

(B) An employer who has received a copy of a court order pursuant to this section is bound by the order until further notice by the court. The employer shall notify the court within twenty days after the parent named in the order is no longer employed and shall provide the parent's last known address and the name and address of the parent's new employer, if known.

Section 20-7-1230. If a court order requires a parent to provide and maintain health coverage for a child and the parent is eligible for family health coverage through an employer, the order shall include a provision directing the employer to withhold from money, income, or periodic earnings due the parent an amount which is sufficient to provide for premiums for the health coverage offered through the employer unless:

(1) the court finds that under regulations promulgated by the Secretary of the Department of Health and Human Services, circumstances exist warranting withholding less than the employee's share of the premiums; or (2) the amount withheld exceeds the maximum amount permitted to be withheld under the federal Consumer Credit Protection Act.

Income withholding takes effect immediately upon completion of enrollment requirements.

Section 20-7-1240. To the extent necessary to reimburse the state agency administering the Medicaid program for expenditures on behalf of a child, the agency may petition the court seeking withholding of employment income or state tax refunds from a person who:

(1) is required by a court order to provide and maintain health coverage for a child who is eligible for medical assistance under a State Plan for Medical Assistance pursuant to Title XIX of the Social Security Act;

(2) has received payment from a third party for the costs of health care items or services; and

(3) has not used the payment to reimburse, as appropriate, either the other parent or guardian of the child or the provider of the items or services.

Claims for current or past due child support take priority over claims filed pursuant to this section.

Section 20-7-1250. (A) A court order which requires income withholding pursuant to this part of Subarticle 6 has priority over all other legal processes under state law against money, income, or periodic earnings of the noncustodial parent except an order of income withholding for child support.

(B) A person under a court order to provide and maintain health care coverage as of July 1, 1994, is subject to the income withholding for health coverage provisions of this part of Subarticle 6. The only ground to contest an order of income withholding for health coverage is a mistake of fact. If the person contests the withholding because of a mistake of fact, the court shall provide the person an opportunity to present his or her case. The court shall determine whether to order withholding and shall notify the person of the determination and, if appropriate, the time period in which withholding will commence.

Section 20-7-1260. Within thirty days after receipt of an order requiring the obligated parent to provide health care coverage for a child, the parent or employer must provide the child's other parent written proof that the insurance has been obtained or that an application for insurance has been made. Proof of insurance coverage consists of, at a minimum:

(1) the name of the insurer;

(2) the policy number;

(3) an insurance card;

(4) the address to which claims must be mailed;

(5) a description of any restriction on usage including, but not limited to, prior approval for hospital admission and the manner in which to obtain prior approval;

(6) description of all deductibles;

(7) five copies of claim forms.

Section 20-7-1270. An employer is prohibited from discharging, refusing to employ, or taking other disciplinary action against a person because of an income withholding order for health coverage. The person has the burden of proving that income withholding for health coverage was the sole reason for the employer's action.

Section 20-7-1280. An employer or insurer who violates any provision of this part of Subarticle 6 is subject to the contempt power of the court issuing the order and may be fined up to fifty dollars per day."

Health insurance for children placed for adoption

SECTION 2. The 1976 Code is amended by adding:

"Section 38-71-143. (A) If an individual or group health plan provides coverage for dependent children of participants or beneficiaries, the plan shall provide benefits to dependent children placed with participants or beneficiaries for adoption under the same terms and conditions as apply to the natural, dependent children of the participants and beneficiaries, irrespective of whether the adoption has become final.

(B) A group health plan may not restrict coverage under the plan of a dependent child adopted by a participant or beneficiary or placed with a participant or beneficiary for adoption solely on the basis of a preexisting condition of the child at the time that the child would otherwise become eligible for coverage under the plan, if the adoption or placement for adoption occurs while the participant or beneficiary is eligible for coverage under the plan.

(C) For the purposes of this section:

(1) `child' means, in connection with an adoption or placement for adoption of the child, an individual who has not attained age eighteen as of the date of the adoption or placement for adoption;

(2) `placement for adoption' means the assumption and retention by a person of a legal obligation for total or partial support of a child in anticipation of the adoption of the child. The child's placement with a person terminates upon the termination of the legal obligations."

Insurers' obligations to provide coverage to children under parent's policy

SECTION 3. The 1976 Code is amended by adding:

"Section 38-71-245. No health insurer, including a group health plan, as defined in Section 607(1) of the Employee Retirement Income Security Act of 1974 or health maintenance organization as defined in Section 38-33-20, may deny enrollment of a child under the health plan of the child's parent on the grounds that the child:

(1) was born out of wedlock;

(2) is not claimed as a dependent on the parent's federal tax return; or

(3) does not reside with the parent or in the insurer's service area.

Section 38-71-250. If, pursuant to a court order which meets the specifications of Section 20-7-1200, a parent is required to provide health coverage for a child and the parent is eligible for family health coverage through a health insurer, including a group health plan as defined in Section 607(1) of the Employee Retirement Income Security Act of 1974 or health maintenance organization as defined in Section 38-33-20, the insurer shall:

(1) permit the parent to enroll, under the family coverage, a child who is otherwise eligible for the coverage without regard to any enrollment season restrictions;

(2) if the parent is enrolled but fails to make application to obtain coverage for the child, enroll the child under family coverage upon application of:

(a) the child's other parent;

(b) the state agency administering the Medicaid program; or (c) the state agency administering 42 U.S.C. Sections 651 to 669, the child support enforcement program; and

(3) continue coverage of the child unless the insurer is provided satisfactory written evidence that the:

(a) court order is no longer in effect;

(b) child is or will be enrolled in comparable health coverage through another insurer which will take effect not later than the effective date of disenrollment; or

(c) employer has eliminated family health coverage for all of its employees.

Section 38-71-255. A health insurer, including a group health plan as defined in Section 607(1) of the Employee Retirement Income Security Act of 1974 or health maintenance organization as defined in Section 38-33-20, may not impose requirements on a state agency, which has been assigned the rights of an individual eligible for medical assistance under Medicaid who is also covered under a plan issued by the health insurer, that are different from requirements applicable to an agent or assignee of any other individual so covered.

Section 38-71-260. If a child has health coverage through the health insurer including a group health plan, as defined in Section 607(1) of the Employee Retirement Income Security Act of 1974 or health maintenance organization as defined in Section 38-33-20, of a noncustodial parent, the insurer shall:

(1) provide information to the custodial parent as may be necessary for the child to obtain benefits through that coverage;

(2) permit the custodial parent or the health care provider, with the custodial parent's approval, to submit claims for covered services without the approval of the noncustodial parent; and

(3) make payments on claims submitted in accordance with item (2) directly to the custodial parent, the provider, or the state Medicaid agency.

Section 38-71-265. (A) In enrolling a person or in making any payments for benefits to a person or on behalf of a person, no health insurer, including a group health plan as defined in Section 607(1) of the Employee Retirement Income Security Act of 1974 or health maintenance organization as defined in Section 38-33-20, may take into account that the person is eligible for or is provided medical assistance under a State Plan for Medical Assistance pursuant to Title XIX of the Social Security Act.

(B) In a case where a health insurer, including a group health plan as defined in Section 607(1) of the Employee Retirement Income Security Act of 1974 or health maintenance organization as defined in Section 38-33-20, has a legal liability to make payments for medical assistance to or on behalf of a person, to the extent that payment has been made under a State Plan for Medical Assistance pursuant to Title XIX of the Social Security Act for health care items or services furnished to the person, the State is considered to have acquired the rights of the person to the payment for the health care items or services."

Commission to seek medicaid reimbursement from estate

SECTION 4. The 1976 Code is amended by adding:

"Section 43-7-460. (A) The State Health and Human Services Finance Commission shall seek recovery of medical assistance paid under the Title XIX State Plan for Medical Assistance from the estate of an individual who:

(1) at the time of death was an inpatient in a nursing facility, intermediate care facility for the mentally retarded, or other medical institution if the individual is required, as a condition of receiving services in the facility under the state plan, to spend for costs of medical care all but a minimal amount of the person's income required for personal needs; or

(2) was fifty-five years of age or older when the individual received medical assistance consisting of any item or service provided under the state plan.

(B) Recovery under this section may be made only after the death of the decedent's surviving spouse, if any, and only at a time when the decedent has no surviving child under age twenty-one or no child who is blind or permanently and totally disabled as defined in Title XVI of the Social Security Act.

(C) This section may be waived by the commission upon proof of undue hardship as established by the Secretary of Health and Human Services pursuant to 42 U.S.C. 1396p(b)(3).

(D) Recovery of medical assistance payments under this section applies to medical assistance paid after June 30, 1994. (E) Claims against an estate under this section have priority as established in Section 62-3-805(a)(2)(ii).

(F) For purposes of this section:

(1) `estate' means all real and personal property and other assets included within the individual's estate as defined in Section 62-1-201(11);

(2) the `state plan' means Title XIX State Plan for Medical Assistance in effect at the decedent's death."

Definition revised

SECTION 5. Section 43-7-410(F) of the 1976 Code is amended to read:

"(F) `Private insurer' means:

(1) a commercial insurance company offering health or casualty insurance to individuals or groups, including experienced-rated contracts and indemnity contracts;

(2) a profit or nonprofit prepaid plan offering either medical services or full or partial payment for the diagnosis or treatment of an injury, disease, or disability;

(3) an organization administering health or casualty insurance plans for professional associations, unions, fraternal groups, employer-employee benefit plans, and any similar organization offering these plans or services, including self-insured and self-funded plans; or

(4) a group health plan, as defined in Section 607(1) of the Employee Retirement Income Security Act of 1974, a service benefit plan, or a health maintenance organization."

Medicaid eligibility may not be considered

SECTION 6. Section 43-7-440(C) of the 1976 Code is amended by adding at the end:

"In enrolling a person or in making payments for benefits to a person or on behalf of a person, no private insurer may take into account that the person is eligible for or is provided medical assistance under a State Plan for Medical Assistance pursuant to Title XIX of the Social Security Act."

Commission acquires individual's right to payment

SECTION 7. Section 43-7-440(D) of the 1976 Code is amended by adding at the end:

"In a case where a third party has a legal liability to make payments for medical assistance to or on behalf of a person, to the extent that payment has been made under a State Plan for Medical Assistance pursuant to Title XIX of the Social Security Act for health care items or services furnished to the person, the State is considered to have acquired the rights of the person to payment by any other party for the health care items or services."

Priority of creditor's claims

SECTION 8. Section 62-3-805(a) of the 1976 Code is amended to read:

"(a) If the applicable assets of the estate are insufficient to pay all claims in full, the personal representative shall make payment in the following order:

(1) costs and expenses of administration, including attorney's fees, and reasonable funeral expenses;

(2) (i) reasonable and necessary medical and hospital expenses of the last illness of the decedent, including compensation of persons attending the decedent;

(ii) medical assistance paid under Title XIX State Plan for Medical Assistance as provided for in Section 43-7-460;

(3) debts and taxes with preference under federal law;

(4) debts and taxes with preference under other laws of this State, in the order of their priority;

(5) all other claims."

References to conform to restructuring

SECTION 9. As of July 1, 1995, references to the Health and Human Services Finance Commission as contained in this act mean the State Department of Health and Human Services and the Code Commissioner is directed to change these references in the 1976 Code subject to the availability of funds.

Sections designated Part II; subarticle renamed

SECTION 10. Sections 20-7-1315 through 20-7-1329 are designated as Part II, Subarticle 6, Article 9, Chapter 7, Title 20, entitled "Income Withholding to Enforce Support Obligations" and Subarticle 6, Article 9, Chapter 7, Title 20 is renamed "Income Withholding".

In-hospital paternity acknowledgement program

SECTION 11. The 1976 Code is amended by adding:

"Section 44-7-77. The Department of Health and Environmental Control, and the Department of Social Services, in conjunction with the South Carolina Hospital Association, shall develop and implement a program to promote obtaining the voluntary acknowledgments of paternity before a newborn is released from the hospital."

Conclusive presumption of paternity created

SECTION 12. Section 20-7-956(6) of the 1976 Code is amended to read:

"(6) A verified voluntary acknowledgment of paternity which creates a rebuttable presumption of the putative father's paternity.

(7) Any other relevant and competent evidence deemed admissible in the discretion of the court."

Time effective

SECTION 13. This act takes effect upon approval by the Governor.

Approved the 14th day of July, 1994.