By Moreno of El Paso                                  H.B. No. 1950
         76R2873 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to charging a late fee for child support arrearages.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter D, Chapter 157, Family Code, is
 1-5     amended by adding Section 157.169 to read as follows:
 1-6           Sec. 157.169.  IMPOSITION OF LATE FEE.  (a)  The court may
 1-7     impose a late fee against an obligor whose child support obligation
 1-8     is in  arrears.
 1-9           (b)  The court shall follow the Title IV-D agency's late fee
1-10     schedule.
1-11           (c)  In determining whether to assess a late fee, the court
1-12     shall consider whether:
1-13                 (1)  the obligor knew that the obligor's child support
1-14     obligation was in arrears;
1-15                 (2)  the payment of the late fee would cause
1-16     unreasonable hardship to the obligor, the obligor's family, or
1-17     other children of the obligor whom the obligor has a duty to
1-18     support; and
1-19                 (3)  the obligor is paying the obligor's current child
1-20     support obligation.
1-21           SECTION 2.  The subchapter heading to Subchapter F, Chapter
1-22     157, Family Code, is amended to read as follows:
1-23               SUBCHAPTER F.  JUDGMENT AND LATE FEE [INTEREST]
1-24           SECTION 3.  Section 157.261, Family Code, is amended to read
 2-1     as follows:
 2-2           Sec. 157.261.  UNPAID CHILD SUPPORT AS JUDGMENT.  [(a)]  A
 2-3     child support payment not timely made constitutes a final judgment
 2-4     for the amount due and owing, including a late fee [interest] as
 2-5     provided in this chapter.
 2-6           [(b)  For the purposes of this subchapter, interest begins to
 2-7     accrue on the date the judge signs the order for the judgment
 2-8     unless the order contains a statement that the order is rendered on
 2-9     another specific date.]
2-10           SECTION 4.  Section 157.263(b), Family Code, is amended to
2-11     read as follows:
2-12           (b)  A cumulative money judgment includes:
2-13                 (1)  unpaid child support not previously confirmed;
2-14                 (2)  the balance owed on previously confirmed
2-15     arrearages or lump sum or retroactive support judgments;
2-16                 (3)  a late fee [interest on the arrearages]; and
2-17                 (4)  a statement that it is a cumulative judgment.
2-18           SECTION 5.  Section 157.265, Family Code, is amended to read
2-19     as follows:
2-20           Sec. 157.265.  LATE FEE [ACCRUAL OF INTEREST ON CHILD
2-21     SUPPORT].  The Title IV-D agency shall by rule adopt a schedule for
2-22     assessing a late fee [(a)  Interest accrues on delinquent child
2-23     support at the rate of 12 percent simple interest per year from the
2-24     date the support is delinquent until the date the support is paid
2-25     or the arrearages are confirmed and reduced to money judgment].
2-26           [(b)  Interest accrues on child support arrearages that have
2-27     been confirmed and reduced to money judgment as provided in this
 3-1     subchapter at the rate of 12 percent simple interest per year from
 3-2     the date the order is rendered until the date the judgment is paid.]
 3-3           [(c)  Interest accrues on a money judgment for retroactive or
 3-4     lump-sum child support at the annual rate of 12 percent simple
 3-5     interest from the date the order is rendered until the judgment is
 3-6     paid.]
 3-7           SECTION 6.  Section 157.266(a), Family Code, is amended to
 3-8     read as follows:
 3-9           (a)  A child support payment is delinquent for the purpose of
3-10     assessing a late fee [accrual of interest] if the payment is not
3-11     received before the 31st day after the payment date stated in the
3-12     order by:
3-13                 (1)  the local registry or Title IV-D registry; or
3-14                 (2)  the obligee or entity specified in the order, if
3-15     payments are not made through a registry.
3-16           SECTION 7.  Section 157.267, Family Code, is amended to read
3-17     as follows:
3-18           Sec. 157.267.  LATE FEE [INTEREST] ENFORCED AS CHILD SUPPORT.
3-19     A late fee [Accrued interest] is part of the child support
3-20     obligation and may be enforced by any means provided for the
3-21     collection of child support.
3-22           SECTION 8.  Section 157.268, Family Code, is amended to read
3-23     as follows:
3-24           Sec. 157.268.  APPLICATION OF CHILD SUPPORT PAYMENT.  Child
3-25     support collected shall be applied in the following order of
3-26     priority:
3-27                 (1)  current child support;
 4-1                 (2)  non-delinquent child support owed;
 4-2                 (3)  late fees [interest on the principal amounts
 4-3     specified in Subdivisions (4) and (5)];
 4-4                 (4)  the [principal] amount of child support arrearage
 4-5     that has not been confirmed and reduced to money judgment; and
 4-6                 (5)  the [principal] amount of child support arrearage
 4-7     that has been confirmed and reduced to money judgment.
 4-8           SECTION 9.  Section 157.313(a), Family Code, is amended to
 4-9     read as follows:
4-10           (a)  A child support lien notice must contain:
4-11                 (1)  the style, docket number, and identity of the
4-12     tribunal of this or another state having continuing jurisdiction of
4-13     the child support action;
4-14                 (2)  the name, address, and, if available, the birth
4-15     date, driver's license number, and social security number of the
4-16     obligor;
4-17                 (3)  the name and social security number, if available,
4-18     of the obligee and the child;
4-19                 (4)  the amount of child support arrearages owed by the
4-20     obligor and the date of the signing of the court order,
4-21     administrative order, or writ that determined the arrearages or the
4-22     date and manner in which the arrearages were determined;
4-23                 (5)  [the rate of interest specified in the court
4-24     order, administrative order, or writ or, in the absence of a
4-25     specified interest rate, the rate provided for by law;]
4-26                 [(6)]  the name and address of the person or agency
4-27     asserting the lien; and
 5-1                 (6) [(7)]  the motor vehicle identification number as
 5-2     shown on the obligor's title if the property is a motor vehicle.
 5-3           SECTION 10.  Section 157.318(a), Family Code, is amended to
 5-4     read as follows:
 5-5           (a)  A lien is effective until all current support and child
 5-6     support arrearages, including a late fee [interest], have been paid
 5-7     or the lien is otherwise released as provided by this subchapter.
 5-8           SECTION 11.  Section 158.003(a), Family Code, is amended to
 5-9     read as follows:
5-10           (a)  In addition to income withheld for the current support
5-11     of a child, the court shall order that income be withheld from the
5-12     disposable earnings of the obligor to be applied toward the
5-13     liquidation of any child support arrearages, including a late fee
5-14     [accrued interest] as provided in Chapter 157.
5-15           SECTION 12.  Section 158.004, Family Code, is amended to read
5-16     as follows:
5-17           Sec. 158.004.  WITHHOLDING FOR ARREARAGES WHEN NO CURRENT
5-18     SUPPORT IS DUE.  If current support is no longer owed, the court
5-19     shall order that income be withheld for arrearages, including a
5-20     late fee [accrued interest] as provided in Chapter 157, in an
5-21     amount sufficient to discharge those arrearages in not more than
5-22     two years.
5-23           SECTION 13.  Section 158.102, Family Code, is amended to read
5-24     as follows:
5-25           Sec. 158.102.  TIME LIMITATIONS.  The court retains
5-26     jurisdiction to render an order that provides for income to be
5-27     withheld from the disposable earnings of the obligor until all
 6-1     current support and child support arrearages, including a late fee
 6-2     [interest], have been paid.
 6-3           SECTION 14.  Section 158.302, Family Code, is amended to read
 6-4     as follows:
 6-5           Sec. 158.302.  CONTENTS OF NOTICE OF APPLICATION FOR JUDICIAL
 6-6     WRIT OF WITHHOLDING.  The notice of application for judicial writ
 6-7     of withholding shall be verified and:
 6-8                 (1)  state the amount of monthly support due, including
 6-9     medical support, the amount of arrearages or anticipated
6-10     arrearages, including a late fee [accrued interest], and the amount
6-11     of wages that will be withheld in accordance with a judicial writ
6-12     of withholding;
6-13                 (2)  state that the withholding applies to each current
6-14     or subsequent employer or period of employment;
6-15                 (3)  state that if the obligor does not contest the
6-16     withholding within 10 days after the date of receipt of the notice,
6-17     the obligor's employer will be notified to begin the withholding;
6-18                 (4)  describe the procedures for contesting the
6-19     issuance and delivery of a writ of withholding;
6-20                 (5)  state that if the obligor contests the
6-21     withholding, the obligor will be afforded an opportunity for a
6-22     hearing by the court not later than the 30th day after the date of
6-23     receipt of the notice of contest;
6-24                 (6)  state that the sole ground for successfully
6-25     contesting the issuance of a writ of withholding is a dispute
6-26     concerning the identity of the obligor or the existence or amount
6-27     of the arrearages, including a late fee [accrued interest];
 7-1                 (7)  describe the actions that may be taken if the
 7-2     obligor contests the notice of application for judicial writ of
 7-3     withholding, including the procedures for suspending issuance of a
 7-4     writ of withholding; and
 7-5                 (8)  include with the notice a suggested form for the
 7-6     motion to stay issuance and delivery of the judicial writ of
 7-7     withholding that the obligor may file with the clerk of the
 7-8     appropriate court.
 7-9           SECTION 15.  Section 158.309(c), Family Code, is amended to
7-10     read as follows:
7-11           (c)  Upon hearing, the court shall:
7-12                 (1)  render an order for income withholding that
7-13     includes a determination of the amount of child support arrearages,
7-14     including medical support and a late fee [interest]; or
7-15                 (2)  grant the motion to stay.
7-16           SECTION 16.  Section 158.504(b), Family Code, is amended to
7-17     read as follows:
7-18           (b)  An administrative writ of withholding issued under this
7-19     subchapter may contain only the information that is necessary for
7-20     the employer to comply with the existing withholding order,
7-21     including the amount of current support and medical support, the
7-22     amount of arrearages, late fee [accrued interest], and the amount
7-23     of earnings to be withheld.
7-24           SECTION 17.  Section 231.007(b), Family Code, is amended to
7-25     read as follows:
7-26           (b)  The debt of a person in debt to the state as provided by
7-27     Subsection (a) is equal to the amount of the child support that is
 8-1     past due and not paid and any late fee [interest], fees, court
 8-2     costs, or other amounts owed by the person as a result of the
 8-3     person's failure to pay the child support.
 8-4           SECTION 18.  This Act takes effect September 1, 1999, and
 8-5     applies only to a child support payment that first becomes due on
 8-6     or after the effective date of this Act.  A child support payment
 8-7     due before the effective date of this Act is governed by the law in
 8-8     effect on the date the payment became due, and the former law is
 8-9     continued in effect for that purpose.
8-10           SECTION 19.  The importance of this legislation and the
8-11     crowded condition of the calendars in both houses create an
8-12     emergency and an imperative public necessity that the
8-13     constitutional rule requiring bills to be read on three several
8-14     days in each house be suspended, and this rule is hereby suspended.