SRC-TNM C.S.S.B. 165 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 165
By: Luna
Jurisprudence
5-13-97
Committee Report (Substituted)


DIGEST 

Currently, laws governing child support payments administer penalties for
past due child support payments are mandated at 12 percent.  C.S.S.B. 165
authorizes the presiding judge on a delinquent child support order to set
interest on delinquent child support payments in addition to the support
payment at a rate of the judge's discretion. 

PURPOSE

As proposed, C.S.S.B. 165 outlines provisions relating to interest on
delinquent child support payments. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 157.265, Family Code, by amending Subsections
(b) and (c) and adding Subsections (d) and (e), to provide that interest
accrues on child support arrearages that have been confirmed  and reduced
to money judgment at 12 percent interest per year unless a lower interest
rate is specified by the court on the face of the money judgment order.
Authorizes the court to specify an interest rate lower than 12 percent on
a money judgment order for child support arrearages under Subsection (b)
or for retroactive or lump-sum child support under Subsection (c) only
after determining that the net resources of the obligor at the time the
judgment is rendered are such that a 12 percent rate of interest will
impose undue financial hardship on the obligor or the obligor's family.
Requires the court to impose the 12 percent interest rate under
Subsections (b) and (c) on the outstanding balances remaining on the money
judgment if the court has specified an interest rate lower than 12 percent
on a money judgment order and subsequently finds that the obligor has been
delinquent in the payment of child support on one or more occasions after
the imposition of the lower rate, or that the obligor has the financial
capacity to pay interest at the rate of 12 percent. 

SECTION 2. Effective date: September 1, 1997.  
  
SECTION 3. Emergency clause. 


SUMMARY OF COMMITTEE CHANGES

Amends SECTION 1, Sections 157.265, Family Code, by amending Subsections
(b) and (c) and adding Subsections (d) and (e), regarding interest rates
on child support arrearages.