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.