SRC-JEC S.B. 776 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 776
77R6509 KLA-DBy: Harris
Jurisprudence
4/4/2001
As Filed


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.  As proposed, S.B. 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.  If, after a year, the
individual has failed to make periodic payments, the court is authorized to
increase the amount of interest on the arrearages to 13 percent. 

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 157.262, Family Code, as follows:

(a) Prohibits a court from reducing or modifying the amount of child
support arrearages in a contempt proceeding or in rendering a money
judgment, except as provided by Subsection (b).   

(b)  Authorizes the court, on or after the first anniversary of the date
the court renders a money judgment,  to reduce the interest accrued on
child support arrearages included in the judgment if the obligor meets the
requirements of Section 157.270. 

SECTION 2.  Amends Chapter 157F, Family Code, by adding Sections 157.270
and 157.271, as follows: 

Sec. 157.270.  REDUCTION OF ACCRUED INTEREST.  (a)  Authorizes an obligor,
on or after the first anniversary of the date a court renders a money
judgment under Section 157.263, to file a motion requesting that the court
reduce the amount of interest that was confirmed in the judgment and owed
on the child support arrearages. 

(b)  Authorizes the court, on finding that the obligor has substantially
complied with the terms of an order requiring periodic payments toward the
money judgment rendered under Section 157.263, to render an order reducing
the interest to be paid by an amount that results in the repayment of an
amount that will not create an undue hardship on the obligor or the
obligor's family. 

(c)  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 an order to make periodic payments for current support and
child support arrearages. 

Sec. 157.271.  PENALTY FOR NONPAYMENT.  (a)  Authorizes an obligee or Title
IV-D agency, on or after the first anniversary of a court-rendered money
judgment under Section  157.263, to file a motion requesting that the court
order the obligor to pay additional interest on the judgment as a penalty
if the court finds that the obligor did not comply with the terms of an
order requiring periodic payments toward the judgment. 

(b)  Authorizes the court, notwithstanding Section 157.265(b), on making
the finding required by Subsection (a), to order that interest accrues on
the child support arrearages confirmed and reduced to a money judgment at
the rate of 13 percent simple interest per year from the date the court
rendered the money judgment under Section 157.263 until the date the
judgment is paid. 

SECTION 3.  Effective date: September 1, 2001.