Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Goodman H.B. No. 3282
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the imposition of interest on child support obligation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 101, Family Code, is amended to add
1-5 Sections 101.0011 and 101.0081 to read as follows:
1-6 Section 101.0011. ARREARAGE. An "arrearage" means:
1-7 (1) a past-due and unpaid child support obligation;
1-8 (2) the unpaid balance on a judgment for child
1-9 support; or
1-10 (3) accrued interest on child support arrearages.
1-11 Section 101.0081. LUMP SUM ARREARAGE. A "lump sum
1-12 arrearage" means a past-due and unpaid lump sum child support
1-13 obligation.
1-14 SECTION 2. Section 157.261, Family Code, is amended to read
1-15 as follows:
1-16 Sec. 157.261. Unpaid Child Support as Judgment. A child
1-17 support obligation [payment] not timely paid [made] constitutes a
1-18 final judgment for the amount due and owing, including interest as
1-19 provided by [in] this subchapter [chapter].
1-20 SECTION 3. Section 157.262, Family Code, is amended by
1-21 amending Subsection (b) and by adding Subsections (c) and (d) to
1-22 read as follows:
1-23 (b) The money judgment for arrearages rendered by the court
1-24 may be subject to a counterclaim or offset as provided under
2-1 Section 157.008 [by this subchapter].
2-2 (c) If the court confirms a counterclaim or offset against
2-3 child support arrearages, the court may order that any interest on
2-4 arrearages be adjusted to reflect the credit. The court may use
2-5 the following table in determining the amount of such credit:
2-6 NUMBER OF CREDIT NUMBER OF CREDIT NUMBER OF CREDIT
2-7 MONTHS FOR PLUS MONTHS FOR PLUS MONTHS FOR PLUS
2-8 WHICH INTEREST WHICH INTEREST WHICH INTEREST
2-9 INTEREST WAS (IN INTEREST WAS (IN INTEREST WAS (IN
2-10 CALCULATED DOLLARS) CALCULATED DOLLARS) CALCULATED DOLLARS)
2-11 ON A CREDIT ON A CREDIT ON A CREDIT
2-12 OF $1 OF $1 OF $1
2-13 1 1.01 41 1.503752 81 2.238882
2-14 2 1.0201 42 1.51879 82 2.261271
2-15 3 1.030301 43 1.533978 83 2.283884
2-16 4 1.040604 44 1.549318 84 2.306723
2-17 5 1.05101 45 1.564811 85 2.32979
2-18 6 1.06152 46 1.580459 86 2.353088
2-19 7 1.072135 47 1.596263 87 2.376619
2-20 8 1.082857 48 1.612226 88 2.400385
2-21 9 1.093685 49 1.628348 89 2.424389
2-22 10 1.104622 50 1.644632 90 2.448633
2-23 11 1.115668 51 1.661078 91 2.473119
2-24 12 1.126825 52 1.677689 92 2.49785
2-25 13 1.138093 53 1.694466 93 2.522829
2-26 14 1.149474 54 1.71141 94 2.548057
2-27 15 1.160969 55 1.728525 95 2.573538
2-28 16 1.172579 56 1.74581 96 2.599273
2-29 17 1.184304 57 1.763268 97 2.625266
2-30 18 1.196147 58 1.780901 98 2.651518
3-1 19 1.208109 59 1.79871 99 2.678033
3-2 20 1.22019 60 1.816697 100 2.704814
3-3 21 1.232392 61 1.834864 101 2.731862
3-4 22 1.244716 62 1.853212 102 2.759181
3-5 23 1.257163 63 1.871744 103 2.786772
3-6 24 1.269735 64 1.890462 104 2.81464
3-7 25 1.282432 65 1.909366 105 2.842787
3-8 26 1.295256 66 1.92846 106 2.871214
3-9 27 1.308209 67 1.947745 107 2.899927
3-10 28 1.321291 68 1.967222 108 2.928926
3-11 29 1.334504 69 1.986894 109 2.958215
3-12 30 1.347849 70 2.006763 110 2.987797
3-13 31 1.361327 71 2.026831 111 3.017675
3-14 32 1.374941 72 2.047099 112 3.047852
3-15 33 1.38869 73 2.06757 113 3.07833
3-16 34 1.402577 74 2.088246 114 3.109114
3-17 35 1.416603 75 2.109128 115 3.140205
3-18 36 1.430769 76 2.13022 116 3.171607
3-19 37 1.445076 77 2.151522 117 3.203323
3-20 38 1.459527 78 2.173037 118 3.235356
3-21 39 1.474123 79 2.194768 119 3.26771
3-22 40 1.488864 80 2.216715 120 3.300387
3-23 SECTION 4. Section 157.263, Family Code, is amended by
3-24 amending Subsection (b) to read as follows:
3-25 Sec. 157.263. CONFIRMATION OF ARREARAGES.
3-26 (b) A cumulative money judgment includes:
3-27 (1) [unpaid] child support arrearages not previously
3-28 confirmed;
3-29 (2) the balance owed on previously confirmed
3-30 arrearages [or lump sum or retroactive support judgments];
4-1 (3) interest on the arrearages; and
4-2 (4) a statement that it is a cumulative judgment and
4-3 that arrearages included in the judgment accrue as of a date
4-4 specified in the judgment.
4-5 SECTION 5. Section 157.265, Family Code, is amended to read
4-6 as follows:
4-7 (a) Interest accrues on [delinquent] child support
4-8 arrearages at the rate of 1 [12] percent [simple interest] per
4-9 month compound interest [year from the date the support is
4-10 delinquent until the date the support is paid or the arrearages are
4-11 confirmed and reduced to money judgment].
4-12 (b) Interest [accrues] on child support arrearages shall be
4-13 calculated and shall accrue at the end of each calendar month [that
4-14 have been confirmed and reduced to money judgment as provided in
4-15 this subchapter at the rate of 12 percent simple interest per year
4-16 from the date the order is rendered until the date the judgment is
4-17 paid].
4-18 SECTION 6. Section 157.268, Family Code, is amended as
4-19 follows:
4-20 Sec. 157.268. Application of Child Support Payment. A child
4-21 [Child] support payment [support] shall be applied first to the
4-22 child support obligation of the current month [in the following
4-23 order of priority:]
4-24 [(1) current child support;]
4-25 [(2) non-delinquent child support owed;]
4-26 [(3) interest on the principal amounts specified in
4-27 Subdivisions (4) and (5);]
4-28 [(4) the principal amount of child support that has
4-29 not been confirmed and reduced to money judgment; and]
4-30 [(5) the principal amount of child support that has
5-1 been confirmed and reduced to money judgment.]
5-2 SECTION 7. Sections 157.266 and 157.265(c), Family Code, as
5-3 added by Chapter 751, Acts of the 74th Legislature, Regular
5-4 Session, are repealed.
5-5 SECTION 8. (a) This Act takes effect September 1, 1997.
5-6 (b) The change in law made by this Act applies to:
5-7 (1) child support obligations due after August 31,
5-8 1997;
5-9 (2) child support arrearages that have not been
5-10 reduced to a money judgment and any interest arrearages accruing on
5-11 past-due and unpaid child support obligations; or
5-12 (3) interest arrearages accruing at a simple interest
5-13 rate from a money judgment that are unpaid as of August 31, 1997
5-14 and interest arrearages accruing from such a money judgment after
5-15 August 31, 1997.
5-16 (c) Interest on a judgment rendered prior to the effective
5-17 date of this Act is governed by the law in effect at the time the
5-18 judgment was rendered, and the former law is continued in effect
5-19 for that purpose.
5-20 SECTION 9. The importance of this legislation and the
5-21 crowded condition of the calendars in both houses create an
5-22 emergency and an imperative public necessity that the
5-23 constitutional rule requiring bills to be read on three several
5-24 days in each house be suspended, and this rule is hereby suspended.