SRC-JEC S.B. 776 77(R)BILL ANALYSIS Senate Research CenterS.B. 776 By: Harris Jurisprudence 6/20/2001 Enrolled DIGEST 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. S.B. 776 reduces the interest rate on delinquent child support payments. It also makes provisions relating to payments in excess of the court-ordered amount. 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 157.265, Family Code, to reduce the rate of accrual of interest on child support arrearage from 12 to six percent simple interest per year. SECTION 2. (a) Amends Chapter 154A, Family Code, by adding Section 154.013, as follows: Sec. 154.013. PAYMENTS IN EXCESS OF COURT-ORDERED AMOUNT. (a) Requires a child support agency or local child support registry, if it receives from an obligor who is not in arrears a child support payment in an amount that exceeds the court-ordered amount, to the extent possible, to give effect to any expressed intent of the obligor for the application of the amount that exceeds the court-ordered amount. (b) Requires the agency or registry, if the obligor does not express an intent for the application of the amount paid in excess of the court-ordered amount, to credit the excess amount to the obligor's future child support obligation and promptly disburse the excess amount to the obligee. (c) Provides that this section does not apply to an obligee who is a recipient of public assistance under Chapter 31, Human Resources Code. (b) Provides that, notwithstanding any other section of this Act, the change in law made by Section 154.013, Family Code, as added by this section, takes effect September 1, 2001, and is prospective to that date. SECTION 3. Effective date: January 1, 3003. Makes application of this Act prospective.