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.