By:  Wentworth                                        S.B. No. 1164
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the interest rate on delinquent child support accounts.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Subchapter A, Chapter 154, Family Code, is
 1-4     amended by adding Section 154.012 to read as follows:
 1-5           Sec. 154.012.  RATE OF INTEREST.  (a)  An order in a suit
 1-6     that orders child support shall include the interest rate that
 1-7     applies under Section 157.265.  The interest rate set as provided
 1-8     by Subsection (b) shall apply to the order until the date the child
 1-9     support order is terminated.
1-10           (b)  The interest rate set by the court under Subsection (a)
1-11     is:
1-12                 (1)  the auction rate quoted on a discount basis for
1-13     52-week treasury bills issued by the United States government as
1-14     most recently published by the Federal Reserve Board before the
1-15     date the child support order is rendered; or
1-16                 (2)  10 percent if the rate described by Subdivision
1-17     (1) is more than 10 percent.
1-18           SECTION 2.  Section 157.265, Family Code, is amended to read
1-19     as follows:
1-20           Sec. 157.265.  ACCRUAL OF INTEREST ON CHILD SUPPORT.
1-21     (a)  Interest accrues on delinquent child support at the rate
1-22     provided by Section 154.012 [of 12 percent simple interest per
 2-1     year] from the date the support is delinquent until the date the
 2-2     support is paid or the arrearages are confirmed and reduced to
 2-3     money judgment.
 2-4           (b)  Interest accrues on child support arrearages that have
 2-5     been confirmed and reduced to money judgment as provided in this
 2-6     subchapter at the rate provided by Section 154.012 [of 12 percent
 2-7     simple interest per year] from the date the order is rendered until
 2-8     the date the judgment is paid.
 2-9           (c)  Interest accrues on a money judgment for retroactive or
2-10     lump-sum child support at the annual rate provided by Section
2-11     154.012 [of 12 percent simple interest] from the date the order is
2-12     rendered until the date the judgment is paid.
2-13           SECTION 3.  This Act takes effect September 1, 1999, and
2-14     applies only to a suit affecting the parent-child relationship
2-15     commenced on or after that date.  A suit affecting the parent-child
2-16     relationship commenced before the effective date of this Act is
2-17     governed by the law in effect at the time the suit was commenced,
2-18     and the former law is continued in effect for that purpose.