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.