SRC-JJJ S.B. 1164 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1164
By: Wentworth
Jurisprudence
3/18/1999
As Filed


DIGEST 

Currently, simple interest accrues on delinquent child support at the rate
of 12 percent per year from the date the support is delinquent until the
date the support is either paid or reduced to a money judgment by a court.
The result of this provision is that a small amount of child support
arrearages accrue large amounts of interest over time.  S.B. 1164 would set
the interest rate at either the auction rate quoted on a discount basis for
52-week treasury bills as most recently published before  the date the
child support order is rendered or 10 percent, whichever is less. 

PURPOSE

As proposed, S.B. 1164 establishes an interest rate on delinquent child
support accounts. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 154A, Family Code, by adding Section 154.012, as
follows: 

Sec. 154.012.  RATE OF INTEREST.  Requires an order in a suit that orders
child support to include the interest rate that applies under Section
157.265.  Requires the set interest rate to apply to the order until the
date the child support order is terminated.  Sets forth the interest rate
set by the court. 

SECTION 2.  Amends Section 157.265, Family Code, to delete text regarding
12 percent simple interest per year.  Makes conforming changes. 

SECTION 3.  Effective date: September 1, 1999. 
            Makes application of this Act prospective.

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