1-1     By:  Luna, Wentworth                                   S.B. No. 165

 1-2           (In the Senate - Filed January 2, 1997; January 14, 1997,

 1-3     read first time and referred to Committee on Jurisprudence;

 1-4     April 16, 1997, reported adversely, with favorable Committee

 1-5     Substitute; May 7, 1997, recommitted to Committee on Jurisprudence;

 1-6     May 14, 1997, reported adversely, with favorable Committee

 1-7     Substitute by the following vote:  Yeas 5, Nays 2; May 14, 1997.)

 1-8     COMMITTEE SUBSTITUTE FOR S.B. No. 165                     By:  Luna

 1-9                            A BILL TO BE ENTITLED

1-10                                   AN ACT

1-11     relating to the interest on delinquent child support payments.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Section 157.265, Family Code, is amended by

1-14     amending Subsections (b) and (c) and adding Subsections (d) and (e)

1-15     to read as follows:

1-16           (b)  Interest accrues on child support arrearages that have

1-17     been confirmed and reduced to money judgment as provided in this

1-18     subchapter at the rate of 12 percent simple interest per year from

1-19     the date the order is rendered until the date the judgment is paid,

1-20     unless a lower interest rate is specified by the court on the face

1-21     of the money judgment order.

1-22           (c)  Interest accrues on a money judgment for retroactive or

1-23     lump-sum child support at the annual rate of 12 percent simple

1-24     interest from the date the order is rendered until the judgment is

1-25     paid, unless a lower interest rate is specified by the court on the

1-26     face of the money judgment order.

1-27           (d)  The court may specify an interest rate lower than 12

1-28     percent on a money judgment order for child support arrearages

1-29     under Subsection (b) or for retroactive or lump-sum child support

1-30     under Subsection (c) only after determining that the net resources

1-31     of the obligor at the time the judgment is rendered are such that a

1-32     12 percent rate of interest will impose undue financial hardship on

1-33     the obligor or the obligor's family.

1-34           (e)  If the court has specified an interest rate lower than

1-35     12 percent on a money judgment order and subsequently finds that

1-36     the obligor has been delinquent in the payment of child support on

1-37     one or more occasions after the imposition of the lower rate, or

1-38     that the obligor has the financial capacity to pay interest at the

1-39     rate of 12 percent, the court shall impose the 12 percent interest

1-40     rate under Subsections (b) and (c) on the outstanding balances

1-41     remaining on the money judgment.

1-42           SECTION 2.  This Act takes effect September 1, 1997.

1-43           SECTION 3.  The importance of this legislation and the

1-44     crowded condition of the calendars in both houses create an

1-45     emergency and an imperative public necessity that the

1-46     constitutional rule requiring bills to be read on three several

1-47     days in each house be suspended, and this rule is hereby suspended.

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