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. 1-48 * * * * *