HBA-MSH S.B. 776 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 776 By: Harris Juvenile Justice & Family Issues 5/3/2001 Engrossed BACKGROUND AND PURPOSE Currently, if an individual fails to pay child support, a money judgment may be obtained through the court against that parent. The court judgment may include interest which may create an undue financial hardship on the individual. Current law also does not provide for any decrease in the interest if an individual complies with an order to make periodic payments. Senate Bill 776 authorizes the court a year after the judgment to reduce the amount of interest if the parent has complied with an order for periodic payments. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 776 amends the Family Code to authorize a court on or after the first anniversary of the date a court renders a money judgment in a contempt proceeding to reduce the interest accrued on child support arrearages included in a money judgment to an amount that will not create an undue hardship on the obligor or the obligor's family if the obligor has substantially complied with the terms of an order requiring periodic payments toward the money judgment (order). The bill requires the court to state in the order reducing the amount of interest owed that the amount by which the interest is reduced may be included in a subsequent cumulative money judgment if the obligor does not comply with the order. The bill authorizes the obligee or the office of the attorney general to file a motion requesting the court order the obligor to pay additional interest at a rate of 13 percent simple interest per year on the money judgment as penalty if the court finds that the obligor did not substantially comply with the terms of an order. EFFECTIVE DATE September 1, 2001.