SRC-BWC H.B. 586 77(R) BILL ANALYSIS Senate Research Center H.B. 586 77R1159 KSD-DBy: Brown, Betty (Cain) Jurisprudence 5/2/2001 Engrossed DIGEST AND PURPOSE Although federal and state governments have increased initiatives to collect delinquent child support payments, many child support debts continue to go unpaid. According to the Department of Health and Human Services, child support payments are being made in only 37 percent of the nation's 16.4 million child support cases. Last year, Texas collected child support payments in 19 percent of the cases in which support was owed. As proposed, H.B. 586 provides that, in order to encourage payment of child support, a delinquent child support obligor or a business entity in which a delinquent obligor has certain interests is ineligible to receive specified state funds, grants, or loans. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 231.006(a), Family Code, to provide that a child support obligor who is more than 30 days delinquent in paying child support and a business entity in which the obligor is a sole proprietor, partner, shareholder, or owner with an ownership interest of at least 25 percent is not eligible to receive a state-funded grant or loan, including a scholarship, a loan associated with an educational loan repayment program, and any other student financial assistance that is conditioned on the performance of some service obligation after graduation; or receive a federally funded educational loan that is administered by the state. SECTION 2. Effective date: September 1, 2001. Makes application of this Act prospective.