By Luna                                          S.B. No. 165

      75R811 JMM-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the imposition of interest on delinquent child support

 1-3     payments.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 157.261, Family Code, is amended to read

 1-6     as follows:

 1-7           Sec. 157.261.  UNPAID CHILD SUPPORT AS JUDGMENT.  A child

 1-8     support payment not timely made constitutes a final judgment for

 1-9     the amount due and owing, including interest, if ordered by the

1-10     court, as provided in this chapter.

1-11           SECTION 2.  Section 157.263(b), Family Code, is amended to

1-12     read as follows:

1-13           (b)  A cumulative money judgment includes:

1-14                 (1)  unpaid child support not previously confirmed;

1-15                 (2)  the balance owed on previously confirmed

1-16     arrearages or lump sum or retroactive support judgments;

1-17                 (3)  interest on the arrearages, if ordered by the

1-18     court;  and

1-19                 (4)  a statement that it is a cumulative judgment.

1-20           SECTION 3.  Section 157.265, Family Code, is amended to read

1-21     as follows:

1-22           Sec. 157.265.  ACCRUAL OF INTEREST ON CHILD SUPPORT.  (a) A

1-23     final judgment for delinquent child support may include the payment

1-24     of interest on the delinquent child support if ordered by the

 2-1     court.  Interest accrues on delinquent child support at the rate

 2-2     determined by the court [of 12 percent simple interest per year]

 2-3     from the  date the support is delinquent until the date the support

 2-4     is paid or the arrearages are confirmed and reduced to money

 2-5     judgment.

 2-6           (b)  If ordered by the court, interest [Interest] accrues on

 2-7     child support arrearages that have been confirmed and reduced to

 2-8     money judgment as provided in this subchapter at the rate

 2-9     determined by the court [of 12 percent simple interest per year]

2-10     from the date the order is rendered until the date the judgment is

2-11     paid.

2-12           (c)  If ordered by the court, interest [Interest] accrues on

2-13     a money judgment for retroactive or lump-sum child support at the

2-14     annual rate ordered by the court [of 12 percent simple interest]

2-15     from the date the order is rendered until the judgment is paid.

2-16           SECTION 4.  Section 157.266(a), Family Code, is amended to

2-17     read as follows:

2-18           (a)  A child support payment is delinquent for the purpose of

2-19     accrual of interest ordered by the court if the payment is not

2-20     received before the 31st day after the payment date stated in the

2-21     order by:

2-22                 (1)  the local registry or Title IV-D registry;  or

2-23                 (2)  the obligee or entity specified in the order, if

2-24     payments are not made through a registry.

2-25           SECTION 5.  Section 157.267, Family Code, is amended to read

2-26     as follows:

2-27           Sec. 157.267.  INTEREST ENFORCED AS CHILD SUPPORT.  Accrued

 3-1     interest ordered by the court is part of the child support

 3-2     obligation and may be enforced by any means provided for the

 3-3     collection of child support.

 3-4           SECTION 6.  Section 157.268, Family Code, is amended to read

 3-5     as follows:

 3-6           Sec. 157.268.  APPLICATION OF CHILD SUPPORT PAYMENT.  Child

 3-7     support collected shall be applied in the following order of

 3-8     priority:

 3-9                 (1)  current child support;

3-10                 (2)  non-delinquent child support owed;

3-11                 (3)  interest on the principal amounts specified in

3-12     Subdivisions (4) and (5), if ordered by the court;

3-13                 (4)  the principal amount of child support that has not

3-14     been confirmed and reduced to money judgment;  and

3-15                 (5)  the principal amount of child support that has

3-16     been confirmed and reduced to money judgment.

3-17           SECTION 7.  Section 157.313(a), Family Code, is amended to

3-18     read as follows:

3-19           (a)  A child support lien notice must contain:

3-20                 (1)  the style, docket number, and identity of the

3-21     court having continuing jurisdiction of the child support action;

3-22                 (2)  the name, address, and, if available, the birth

3-23     date, driver's license number, and social security number of the

3-24     obligor;

3-25                 (3)  the name and social security number, if available,

3-26     of the obligee and the child;

3-27                 (4)  the amount of child support arrearages owed by the

 4-1     obligor and the date of the rendition of the court order or

 4-2     issuance of the writ that determined the arrearages;

 4-3                 (5)  the rate of interest specified in the court order

 4-4     or writ [or, in the absence of a specified interest rate, the rate

 4-5     provided for by Subchapter F]; and

 4-6                 (6)  the name and address of the person or agency to

 4-7     whom the payment of the child support arrearages shall be made.

 4-8           SECTION 8.  Section 158.003(a), Family Code, is amended to

 4-9     read as follows:

4-10           (a)  In addition to income withheld for the current support

4-11     of a child, the court shall order that income be withheld from the

4-12     disposable earnings of the obligor to be applied toward the

4-13     liquidation of any child support arrearages, including accrued

4-14     interest, if ordered by the court, as provided in Chapter 157.

4-15           SECTION 9.  Section 231.0011(c), Family Code, is amended to

4-16     read as follows:

4-17           (c)  The attorney general shall, in cooperation with the work

4-18     group established by this section, develop technical standards for

4-19     participation in the unified child support system, including

4-20     standard required data elements for effective monitoring of child

4-21     support and medical support orders [and for the imposition of

4-22     interest on delinquent child support].

4-23           SECTION 10.  This Act takes effect September 1, 1997, and

4-24     applies only to a child support payment that first becomes due on

4-25     or after the effective date of this Act.  A child support payment

4-26     due before the effective date of this Act is governed by the law in

4-27     effect on the date the payment became due, and the former law is

 5-1     continued in effect for this purpose.

 5-2           SECTION 11.  The importance of this legislation and the

 5-3     crowded condition of the calendars in both houses create an

 5-4     emergency and an imperative public necessity that the

 5-5     constitutional rule requiring bills to be read on three several

 5-6     days in each house be suspended, and this rule is hereby suspended.