By Goodman H.B. No. 3281
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to streamlining local court processing for child support
1-3 cases, contracting for certain child support enforcement functions,
1-4 strengthening the license suspension program in child support
1-5 enforcement, expanding the "most wanted" program, and improving the
1-6 filing of child support liens.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Subchapter C, Chapter 72, Government Code, is
1-9 amended by adding Section 72.028 to read as follows:
1-10 Sec. 72.028 PILOT PROGRAM: FAMILY LAW CASE PROCESSING.
1-11 (a) The office shall establish a pilot program to improve the
1-12 efficiency of court processing of family law cases, including child
1-13 support enforcement and foster care cases.
1-14 (b) The office shall award grants to at least two counties
1-15 for the development of pilot program projects during each fiscal
1-16 year. In awarding grants, the office shall give preference to
1-17 Bexar and Harris counties.
1-18 (c) To be eligible for a grant, a pilot program project must
1-19 include processes for:
1-20 (1) electronic case filing;
1-21 (2) automated case tracking;
1-22 (3) automated child support delinquency monitoring;
2-1 and
2-2 (4) automated statistical reporting to the office and
2-3 to the bureau of vital statistics at the Texas Department of
2-4 Health.
2-5 (d) As part of the pilot program, the office shall review
2-6 county assessments of needs related to processing family law case
2-7 and shall provide technical assistance to county and district
2-8 clerks as requested.
2-9 (e) The office may use a reasonable portion of the money
2-10 appropriated for the pilot program to defray the costs of
2-11 administering the program.
2-12 (f) The attorney general's office and Department of
2-13 Protective and Regulatory Services shall cooperate in the
2-14 development of the pilot program.
2-15 (g) Each state agency or local government participating in
2-16 the pilot program shall identify all pilot program parts that
2-17 qualify for federal financial assistance and seek that assistance.
2-18 (h) Not later than January 15 of each off-numbered year, the
2-19 office shall submit a report regarding the effectiveness of the
2-20 pilot program to the governor, the lieutenant governor, the speaker
2-21 of the house of representatives, and the comptroller. On request,
2-22 the office shall make the report available to any member of the
2-23 legislature.
2-24 SECTION 2. Subchapter B, Chapter 231, Family Code, is
2-25 amended by adding Section 231.1015 to read as follows:
2-26 Sec. 231.1015. REFERRAL TO PRIVATE COLLECTOR. If the
2-27 attorney general is unable to establish compliance under an order
3-1 or agreement for the payment of child support on or before the
3-2 120th day after the date the order is entered or the agreement is
3-3 reached, the attorney general shall refer the account to a private
3-4 collector under Chapter 233.
3-5 SECTION 3. Subchapter C, Chapter 231, Family Code, is
3-6 amended by adding Section 231.2025 to read as follows:
3-7 Sec. 231.2025. CONTINGENCY FEES. (a) The Title IV-D agency
3-8 may pay a contingency fee in a contract or agreement between the
3-9 agency and a private agency or individual authorized under Section
3-10 231.002(c). The contingency fee shall be paid from the state funds
3-11 recovered by the private agency or individual.
3-12 (b) The remaining funds recovered by a private agency or
3-13 individual after payment of a contingency fee may be spent by the
3-14 Title IV-D agency for child support services.
3-15 SECTION 4. Subtitle D, Title 5, Family Code, is amended by
3-16 adding Chapter 233 to read as follows:
3-17 CHAPTER 233. PRIVATE CHILD SUPPORT COLLECTION SERVICES
3-18 Sec. 233.001. DEFINITIONS. In this chapter:
3-19 (1) "Account" means a file pertaining to a specific
3-20 person liable for the payment of child support that has been
3-21 referred from the attorney general to a private collector.
3-22 (2) "Agreement" means a child support collection
3-23 agreement between a person liable for child support payments and a
3-24 private collector regarding the terms and conditions of child
3-25 support payments under Section 233.008.
3-26 (3) "Contract" means an agreement between the council
3-27 and a private collector for the enforcement and collection of
4-1 support.
4-2 (4) "Council" means the Child Support Collection
4-3 Privatization Council.
4-4 (5) "Order" means a decree or judgment of a court or
4-5 administrative body.
4-6 (6) "Private collector" means an attorney who
4-7 contracts with the council to engage in the collection of child
4-8 support payments.
4-9 Sec. 233.002. COUNCIL. The Child Support Collection
4-10 Privatization Council consists of the attorney general, the
4-11 comptroller, and the executive director of the Texas Department of
4-12 Human Services.
4-13 Sec. 233.003. POWERS AND DUTIES OF COUNCIL. (a) The
4-14 council shall:
4-15 (1) identify child support enforcement functions
4-16 performed by the attorney general that may be provided by private
4-17 service providers and contract through a competitive bidding
4-18 process;
4-19 (2) consider the benefits of the state's participation
4-20 in an electronic parent locator network or a similar national
4-21 service designed to locate parents who owe child support;
4-22 (3) develop criteria for the selection of private
4-23 collectors;
4-24 (4) divide the state into regions as provided by
4-25 Section 233.004;
4-26 (5) develop and issue a request for proposal for the
4-27 selection of private collectors;
5-1 (6) select and contract with one private collector for
5-2 each region;
5-3 (7) study the feasibility of cost recovery option in
5-4 child support collection actions for children who do not receive
5-5 public assistance; and
5-6 (8) engage in other activities necessary for the
5-7 administration of this chapter.
5-8 (b) The powers and duties under this section may be
5-9 performed by the members of the council or by employees of the
5-10 state agencies represented by the council members.
5-11 Sec. 233.004. REGIONS. (a) The council shall divide the
5-12 state into not fewer than six and not more than 10 regions for the
5-13 purpose of administering this chapter.
5-14 (b) In designating regions under this section, the council
5-15 shall consider the total dollar amount of outstanding child support
5-16 in each part of the state and attempt to make the dollar amount of
5-17 outstanding collections equal in each region.
5-18 Sec. 233.005. CONTRACT; ELIGIBILITY. (a) The council shall
5-19 contract with one private collector for each region to provide
5-20 enforcement of child support orders and collection of child support
5-21 payments. In deciding the terms of a contract, the council shall
5-22 consider the total dollar amount of outstanding child support in
5-23 the region and include terms that are economically feasible for the
5-24 region.
5-25 (b) To be eligible, a private collector must be an attorney
5-26 licensed to practice in this state with not less than five years of
5-27 experience in the legal enforcement of large-scale collections.
6-1 (c) The collection activities of a private collector are
6-2 governed by the rules of professional responsibility applicable to
6-3 attorneys in this state.
6-4 (d) A private collector may subcontract with other
6-5 collection entities in the performance of the private collector's
6-6 duties under the contract. The collection activities of a
6-7 subcontractor are subject to the same standards that are imposed on
6-8 the private collector.
6-9 (e) An initial contract with a private collector shall be
6-10 for not less than four years. The contract may not be terminated
6-11 by the council except for a material violation of the terms of the
6-12 contract or a violation by the private collector of the rules of
6-13 professional responsibility applicable to attorneys in this state.
6-14 A contract may be renewed by the council for two years without
6-15 issuing a request for proposal for a new contract.
6-16 Sec. 233.006. FEES. (a) A contract under this section must
6-17 provide for payment to the private collector of a fee of 15 percent
6-18 of the gross amount collected by the private collector. Gross
6-19 collections are determined by adding current payment collections
6-20 and delinquent payment collections.
6-21 (b) If a private collector brings a person liable for the
6-22 payment of child support into material compliance with an order or
6-23 agreement, the private collector may collect the fee allowed under
6-24 Subsection (a) for five years or during the time the person remains
6-25 in material compliance, whichever period is shorter.
6-26 (c) The council shall evaluate and recommend any change in
6-27 the fee after the first four years of the contract.
7-1 Sec. 233.007. COMPLIANCE. (a) If a private collector is
7-2 unable to bring a person liable for the payment of child support
7-3 into material compliance with the order or agreement before the
7-4 first anniversary of the date the account was referred to the
7-5 private collector by the council, the council may require the
7-6 account to be returned to the attorney general for enforcement.
7-7 (b) If a private collector brings a person liable for the
7-8 payment of child support into compliance with the order or
7-9 agreement for current child support payments but is unable to
7-10 collect delinquent child support, the private collector shall
7-11 continue to pursue collection of outstanding delinquent child
7-12 support payments until the expiration of the private collector's
7-13 contract.
7-14 Sec. 233.008. CHILD SUPPORT COLLECTION AGREEMENT. (a) The
7-15 attorney general or a private collector may enter into an agreement
7-16 with a person liable for the payment of child support. The
7-17 agreement may relate to any matter that may be adjudicated by the
7-18 court, including:
7-19 (1) the determination of paternity;
7-20 (2) the determination of the amount of child support
7-21 due;
7-22 (3) the method of making child support payments;
7-23 (4) the imposition of wage garnishment or withholding;
7-24 (5) the payment of fees;
7-25 (6) the reimbursement of costs; and
7-26 (7) other matters permitted by state or federal law.
7-27 (b) The attorney general or a private collector may, as
8-1 consideration for the agreement, agree to waive litigation costs or
8-2 agree to other matters related to the collection of child support.
8-3 The attorney general or a private collector may not agree to
8-4 collect an amount of child support that does not comply with the
8-5 child support guidelines under Subchapter C, Chapter 154, Family
8-6 Code.
8-7 Sec. 233.009. ENFORCEMENT OF AGREEMENT. (a) If a party
8-8 liable for the payment of child support fails to comply with an
8-9 agreement under this section, the attorney general or private
8-10 collector may file the agreement in the district court of Travis
8-11 County or in the county in which the person entitled to receive
8-12 child support payments resides.
8-13 (b) The court shall enforce an agreement filed in the court
8-14 in the same manner as if the agreement were an order of the court.
8-15 (c) The person liable for the payment of child support may
8-16 contest the provisions of the agreement in the court in which the
8-17 agreement is filed. The person contesting the agreement has the
8-18 burden of proof to show by clear and convincing evidence that the
8-19 agreement should be modified or declared invalid.
8-20 (d) A hearing to modify or declare an agreement invalid may
8-21 be conducted by telephone conference at the request of the person
8-22 liable for the payment of child support.
8-23 SECTION 3. Section 231.302, Family Code, is amended by
8-24 amending Subsections (a), (b), (c), and (e) and adding Subsection
8-25 (g) to read as follows:
8-26 Sec. 231.032. Information to Assist in Location of Person or
8-27 Property. (a) The Title IV-D agency of this or another state may
9-1 [shall attempt to locate a person needed to establish or enforce a
9-2 support or medical support obligation and is entitled to] request
9-3 and obtain information relating to the identity, location,
9-4 employment, compensation, benefits, income, and property holding or
9-5 other assets of any [the] person from a state or local government
9-6 agency, private company, institution, or other entity as necessary
9-7 to establish, modify, or enforce a support order [implement this
9-8 chapter].
9-9 (b) A [state] government agency, private company,
9-10 institution, or other entity shall provide the [furnishing]
9-11 information requested under Subsection (a) and shall subject to
9-12 safeguards on privacy and information security, provide the
9-13 information in the most efficient and expeditious manner available,
9-14 including electronic or automated transfer and interface. Any
9-15 individual or entity disclosing information under this section in
9-16 response to a request from a Title IV-D agency may not be held
9-17 liable in any civil action or proceeding to any person for such
9-18 disclosure of information.
9-19 (c) To assist in the administration of law relating to child
9-20 support enforcement under Parts A and D of Title IV of the federal
9-21 Social Security Act (42 U.S.C. Section 601 et seq. [-617] and 651
9-22 et seq. [-669]):
9-23 (1) each licensing authority responsible for issuing a
9-24 professional license, a commercial driver's license, or an
9-25 occupational license shall require that the social security number
9-26 of any applicant [request and each applicant] for a license be
9-27 recorded on the application [shall provide the applicant's social
10-1 security number];
10-2 (2) each agency administering a contract that provides
10-3 for a payment of state funds shall request and each individual or
10-4 entity bidding on a state contract shall provide the individual's
10-5 or entity's social security number as required by Section 231.006,
10-6 Family Code; and
10-7 (3) each agency administering a state-funded grant or
10-8 loan program shall request and each applicant for a grant or loan
10-9 shall provide the applicant's social security number as required by
10-10 Section 231.006, Family Code.
10-11 (e) Except as provided by Subsection (d), a social security
10-12 number provided under this section is confidential and may be
10-13 disclosed only for the purposes of responding to a request for
10-14 information from an agency operating under the provisions of Parts
10-15 A or [and] D of Title IV of the federal Social Security Act (42
10-16 U.S.C. Sections 601 et seq. [-617] and 651 et seq. [-669]).
10-17 (g) "Licensing authority" has the meaning given it under
10-18 Chapter 232.
10-19 SECTION 4. Section 521.044, Transportation Code, is amended
10-20 by adding Subsections (e) and (f) to read as follows:
10-21 Sec. 521.044. USE OF SOCIAL SECURITY NUMBER INFORMATION FOR
10-22 CHILD SUPPORT COLLECTION.
10-23 (h) The Department shall include a statement in all notices
10-24 to driver's license holders that if they are delinquent in child
10-25 support payments, they should make satisfactory arrangements with
10-26 the Office of the Attorney General to correct such delinquency. If
10-27 no contact or arrangements are made, the Office of the Attorney
11-1 General can commence procedure to suspend their driver's license.
11-2 (i) The department shall include performance measures on the
11-3 percentage of complete and correct social security information on
11-4 driver's licenses in their legislative appropriations requests and
11-5 budgets, in quarterly performance reports, and in audits of their
11-6 local department offices.
11-7 SECTION 5. Chapter 157, Family Code, is amended by adding
11-8 Subchapter J to read as follows:
11-9 SUBCHAPTER J. SPECIAL ENFORCEMENT METHODS
11-10 BY TITLE IV-D AGENCY
11-11 Sec. 157.471. REWARDS FOR INFORMATION. (a) The Title IV-D
11-12 agency may offer a reward to an individual who provides information
11-13 to the agency that leads to the collection of child support owed by
11-14 an obligor who is delinquent in paying support.
11-15 (b) The Title IV-D agency shall adopt rules providing for
11-16 the amounts of rewards offered under this section and the
11-17 circumstances under which an individual providing information is
11-18 entitled to receive a reward.
11-19 (c) A reward paid under this section shall be paid from the
11-20 child support retained collections account.
11-21 Sec. 157.472. PUBLIC IDENTIFICATION OF CERTAIN OBLIGORS.
11-22 (a) The Title IV-D agency shall develop a program to identify
11-23 publicly certain child support obligors who are delinquent in the
11-24 payment of child support. The program shall include the displaying
11-25 of photographs and profiles of obligors in public and private
11-26 locations and by computer.
11-27 (b) The Title IV-D agency may not disclose information under
12-1 this section that is by law required to remain confidential.
12-2 Sec. 157.473. INFORMATION ON INTERNET. The Title IV-D
12-3 agency shall place on the Internet for public access child support
12-4 information to assist the public in child support matters,
12-5 including application forms, child support collection in other
12-6 states, and profiles of certain obligors who are in arrears in
12-7 paying child support.
12-8 SECTION 6. Section 157.311, Family Code, is amended to read
12-9 as follows:
12-10 Sec. 157.311. DEFINITIONS. In this subchapter:
12-11 (1) "Claimant" means:
12-12 (A) the obligee or a private attorney
12-13 representing the obligee;
12-14 (B) the Title IV-D agency providing child
12-15 support services;
12-16 (C) a domestic relations office or local
12-17 registry; or
12-18 (D) an attorney appointed as a friend of the
12-19 court.
12-20 (2) "Lien" means a child support lien.
12-21 (3) "Court having continuing jurisdiction" is the
12-22 court of continuing, exclusive jurisdiction within this state or a
12-23 tribunal of another state having such jurisdiction under the
12-24 Uniform Interstate Family Support Act (UIFSA) or a substantially
12-25 similar act.
12-26 SECTION 7. Section 157.312. Family Code, is amended to read
12-27 as follows:
13-1 Sec. 157.312. General Provisions. (a) A claimant may
13-2 enforce child support by a lien as provided in this subchapter.
13-3 (b) The remedies provided by this subchapter do not affect
13-4 the availability of other remedies provided by law.
13-5 (c) The lien is in addition to any other lien provided by
13-6 law.
13-7 (d) A child support lien arises:
13-8 (1) by operation of law against real and personal
13-9 property of a child support obligor for all amounts of overdue
13-10 support, whether or not such amounts have been adjudicated or
13-11 otherwise determined, subject to the requirements of this
13-12 subchapter for recording and notice; or
13-13 (2) when a court having continuing jurisdiction or, in
13-14 Title IV-D cases, the Title IV-D agency determines an amount of
13-15 arrears owed by a child support obligor.
13-16 (e) A child support lie arising in another state may be
13-17 enforced in the same manner and to the same extent as a lien
13-18 arising in this state.
13-19 (f) A foreclosure action under this subchapter is not
13-20 required as a prerequisite to levy and execution on a judgment or
13-21 an administrative determination of arrears rendered after notice
13-22 and opportunity for hearing.
13-23 SECTION 8. Section 157.313, Family Code, is amended by
13-24 amending Subsection (a) to read as follows:
13-25 Sec. 157.313. Contents of Lien Notice. (a) A child support
13-26 lien notice must contain:
13-27 (1) the style, docket number, and identity of the
14-1 court having continuing jurisdiction of the child support action;
14-2 (2) the name, address, and if available, the birth
14-3 date, driver's license number, and social security number of the
14-4 obligor;
14-5 (3) the name and social security number, if available,
14-6 of the obligee and the child;
14-7 (4) the amount of child support arrearages owed by the
14-8 obligor and the date of the rendition of the court order,
14-9 administrative order or [issuance of the] writ that determined the
14-10 arrearages or the date and manner in which the arrearages were
14-11 determined;
14-12 (5) the rate of interest specified in the court order,
14-13 administrative order or writ or, in the absence of a specified
14-14 interest rate, the rate provided for by law [Subchapter F]; and
14-15 (6) the name and address of the person or agency to
14-16 whom the payment of the child support arrearages shall be made.
14-17 SECTION 9. Section 157.314, Family Code, is amended to read
14-18 as follows:
14-19 Sec. 157.314. Filing Lien Notice or Abstract of Judgment.
14-20 (a) A child support lien notice or an abstract of judgment for past
14-21 due child support may be filed by the claimant with the county
14-22 clerk of:
14-23 (1) [the county clerk of] any county in which the
14-24 obligor is believed to own nonexempt real or personal property;
14-25 (2) [or in] the county in which the obligor resides; or
14-26 (3) the county in which the court of continuing
14-27 jurisdiction sits.
15-1 (b) A child support lien notice may be filed with:
15-2 (1) [(2)] the clerk of the court in which a claim
15-3 counterclaim or suit by, or on behalf of the obligor, is pending,
15-4 provided that a copy of the lien is mailed to the attorney of
15-5 record for the obligor, if any; [or]
15-6 (2) [(3)] an attorney who represents the obligor in a
15-7 claim or counterclaim that has not been filed with a court;
15-8 (3) any other individual or organization believed to
15-9 be in possession of real or personal property of the obligor; or
15-10 (4) any governmental unit or agency that issues or
15-11 records certificates, titles, or other indicia of property.
15-12 SECTION 10. Section 157.316, Family Code, is amended to read
15-13 as follows:
15-14 Sec. 517.316. Perfection of Child Support Lien. A child
15-15 support lien is perfected [attaches] when an abstract of judgment
15-16 for past due child support or a child support lien notice is filed
15-17 with the county clerk as provided by this subchapter.
15-18 SECTION 11. Section 157.317, Family Code, is amended by
15-19 amending Subsection (a) to read as follows:
15-20 Sec. 157.317. Property to Which Lien Attaches. (a) A lien
15-21 attaches to all real and personal property not exempt under the
15-22 Texas Constitution, including a claim for negligence, personal
15-23 injury, or workers' compensation, or an insurance award for the
15-24 claim, owned by the obligor on or after the date the lien notice or
15-25 abstract of judgment is filed with the county clerk of the county
15-26 in which the property is located, with the court clerk as to
15-27 property or claims in litigation, or, as to property of the obligor
16-1 in the possession or control of a third party, from the date the
16-2 lien notice is filed with that party [attaches].
16-3 SECTION 11. Section 157.318, Family Code, is amended to read
16-4 as follows:
16-5 Sec. 157.318. DURATION AND EFFECT OF CHILD SUPPORT LIEN.
16-6 (a) A lien is effective until all current support and child
16-7 support arrearages, including interest, have been paid or the lien
16-8 is otherwise released as provided in this subchapter [for 10 years
16-9 from the date the notice is recorded in the county clerk's office
16-10 in the county where the property of the obligor is located].
16-11 (b) The lien [may be extended for an additional 10-year
16-12 period by recording a lien notice before the tenth anniversary of
16-13 the date of the original recording of the notice] secures payment
16-14 of all child support arrears owed by the obligor pursuant to the
16-15 underlying support order, including arrears which accrue after the
16-16 administrative or judicial determination of arrearages stated in
16-17 the lien notice.
16-18 (c) The filing of a lien notice or abstract of judgment with
16-19 the county clerk is a record of the notice and has the same effect
16-20 as any other lien notice with respect to real property records.
16-21 SECTION 12. Section 157.319, Family Code, is amended to read
16-22 as follows:
16-23 Sec. 157.319. EFFECT OF LIEN NOTICE [PERSONAL PROPERTY].
16-24 (a) [The filing of lien notice is a record of the notice].
16-25 [(b)] If [a lien has been filed as proved in this subchapter
16-26 and] a person having notice of the lien possesses nonexempt
16-27 personal property of the obligor that may be subject to the lien,
17-1 the property may not be paid over, released, sold, transferred,
17-2 encumbered, or conveyed unless:
17-3 (1) a release of lien signed by the claimant is
17-4 delivered to the person in possession; or
17-5 (2) a court, after notice to the claimant and hearing,
17-6 has ordered the release of the lien because arrearages do not
17-7 exist.
17-8 (b) A person having notice of a child support lien who
17-9 violates this section may be joined as a party to a foreclosure
17-10 action under this chapter and is subject to the penalties provided
17-11 by this subchapter.
17-12 SECTION 13. Section 157.321, Family Code, is amended to read
17-13 as follows:
17-14 Sec. 157.321. Discretionary Release of Lien. A claimant may
17-15 at any time release lien on all or part of the property of the
17-16 obligor or return seized property, without liability, if assurance
17-17 of payment is considered adequate by the claimant or if the release
17-18 or return will facilitate the collection of the arrearages. The
17-19 release or return may not operate to prevent future action to
17-20 collect from the same or other property owned by the obligor.
17-21 SECTION 14. Section 157.322, Family Code, is amended to read
17-22 as follows:
17-23 Sec. 157.322. Mandatory Release of Lien. (a) On payment in
17-24 full of the amount of child support due, together with any costs
17-25 and reasonable attorney's fees, the claimant shall execute and
17-26 deliver to the obligor or the obligor's attorney a release of the
17-27 child support lien.
18-1 (b) The release of lien shall be effective when filed with
18-2 the county clerk where the lien notice or abstract of judgment was
18-3 filed. a copy of the release of lien may be filed with any other
18-4 individual or organization that may have been served with a lien
18-5 notice under this subchapter. [A child support lien release shall
18-6 be filed in the same manner as the notice of lien.]
18-7 [(c) The county clerk shall immediately record a release of
18-8 lien notice or abstract of judgment that was filed with the clerk.]
18-9 [(d) On the filing of a release of lien that was filed with
18-10 the clerk of the court in which a claim, counterclaim, or suit at
18-11 law by the obligor is pending, the clerk of the court shall file
18-12 for record the release of lien in the court's proceedings and the
18-13 claimant shall mail a copy of the release of lien to the obligor or
18-14 the attorney of record for the obligor.]
18-15 [(e) A release of lien that was filed with the obligor or
18-16 the attorney who represents the obligor in a claim or counterclaim
18-17 that has not been filed with a court shall be mailed by the
18-18 claimant to the attorney or obligor.]
18-19 SECTION 15. Section 157.323, Family Code, is amended to read
18-20 as follows:
18-21 Sec. 157.323. FORECLOSURE OR SUIT TO DETERMINE ARREARS.
18-22 (a) In addition to other remedies provided by law [When a lien
18-23 notice has been filed under this subchapter], an action to
18-24 foreclose a child support lien or to dispute the amount of
18-25 arrearages stated in the lien [on nonexempt real or personal
18-26 property] may be brought in the court of continuing jurisdiction
18-27 or, if there is no court of continuing jurisdiction within this
19-1 state, in the district court of the county in which the property is
19-2 or was located and the lien was filed.
19-3 (b) The procedure for a foreclosure action under this
19-4 section shall be as provided by Subchapter B of this chapter,
19-5 except that a person or organization in possession of property of
19-6 the obligor may be joined as an additional respondent.
19-7 (c) [(b) After notice to the obligor and the claimant, the
19-8 court shall conduct a hearing and, if] If arrearages are owed by
19-9 the obligor, the court shall:
19-10 (1) render judgment against the obligor for the amount
19-11 due, plus costs and reasonable attorney's fees; [and]
19-12 (2) order any official authorized to levy execution to
19-13 satisfy the lien, costs, and attorney's fees by selling any
19-14 property on which a lien is established under this subchapter; or
19-15 (3) order an individual or organization in possession
19-16 of nonexempt personal property or cash owned by the obligor to
19-17 dispose of the property as the court may direct.
19-18 (d) [(c) In all sales contemplated] For execution and sale
19-19 under this section, publication of notice is necessary only for
19-20 three consecutive weeks in a newspaper in county where the property
19-21 is located or, if there is no newspaper in that county, in the most
19-22 convenient newspaper in circulation in the county.
19-23 SECTION 16. Section 157.324, Family Code, is amended to read
19-24 as follows:
19-25 Sec. 157.324. Liability for Failure to Comply With Order or
19-26 Lien. A person who knowingly disposes of property subject to a
19-27 lien, or after a foreclosure hearing fails to surrender on demand
20-1 nonexempt personal property as directed by a court or
20-2 administrative order [seized] under this subchapter is liable to
20-3 the claimant in an amount equal to the arrearages for which the
20-4 foreclosure judgment was issued.
20-5 SECTION 17. Section 157.325, Family Code, is amended by
20-6 amending Subsection (b) to read as follows:
20-7 Sec. 157.325. Release of Excess Funds to Debtor or Obligor.
20-8 (b) If the claimant refuses the request, the holder of the
20-9 personal property or the obligor may file suit under this
20-10 subchapter for an order determining the arrears and discharging
20-11 [petition the court of competent jurisdiction for discharge of]
20-12 excess personal property or money from the lien.
20-13 SECTION 18. Section 157.326, Family Code, is amended as
20-14 follows:
20-15 Sec. 157.326. Interest of Obligor's Spouse. (a) A spouse
20-16 of an obligor may file an affidavit with the court of continuing
20-17 jurisdiction or, if there is no court of continuing jurisdiction
20-18 within this state, in the district court of the county in which the
20-19 property is or was located and the lien was filed [a court of
20-20 competent jurisdiction] requesting that the court determine the
20-21 extent, if any, of the spouse's interest in real or personal
20-22 property that is subject to:
20-23 (1) a lien perfected under this subchapter; or
20-24 (2) an action to foreclose under this subchapter.
20-25 (b) After notice to the obligor, obligor's spouse, [and] the
20-26 claimant and the obligee, the court shall conduct a hearing and
20-27 determine the extent, if any, of the ownership interest in the
21-1 property held by the obligor's spouse. If the court finds that:
21-2 (1) the property is the separate property of the
21-3 obligor's spouse, the court shall order that the lien against the
21-4 property be released and that may action to foreclose on the
21-5 property be dismissed; or
21-6 (2) the property is jointly owned by the obligor and
21-7 the obligor's spouse, the court shall determine whether the sale of
21-8 the obligor's interest in the property would result in an
21-9 unreasonable hardship on the obligor's spouse or family and:
21-10 (A) if so, the court shall render an order that
21-11 the obligor's interest in the property not be sold and that the
21-12 lien against the property should be released; or
21-13 (B) if not, the court shall render an order
21-14 partitioning the property and directing that the property be sold
21-15 and the proceeds applied to the child support arrearages
21-16 [consistent with the provisions of this subchapter].
21-17 (c) In a proceeding under this section, [subsection in
21-18 which] the spouse claiming [of the obligor claims by affidavit] an
21-19 ownership interest in the property [, the claimant] has the burden
21-20 to prove the extent of that [the obligor's] ownership interest.
21-21 SECTION 19. The importance of this legislation and the
21-22 crowded condition of the calendars in both houses create an
21-23 emergency and an imperative public necessity that the
21-24 constitutional rule requiring bills to be read on three several
21-25 days in each house be suspended, and this rule is hereby suspended.