By: Harris S.B. No. 776
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the collection of accrued interest on child support
1-3 arrearages; providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 157.262, Family Code, is amended to read
1-6 as follows:
1-7 Sec. 157.262. REDUCTION OF ARREARAGES. (a) Except as
1-8 provided by Subsection (b), in [In] a contempt proceeding or in
1-9 rendering a money judgment, the court may not reduce or modify the
1-10 amount of child support arrearages.
1-11 (b) On or after the first anniversary of the date the court
1-12 renders a money judgment, the court may reduce the interest accrued
1-13 on child support arrearages included in that judgment if the
1-14 obligor meets the requirements of Section 157.270.
1-15 (c) The money judgment for arrearages rendered by the court
1-16 may be subject to a counterclaim or offset as provided by this
1-17 subchapter.
1-18 SECTION 2. Subchapter F, Chapter 157, Family Code, is
1-19 amended by adding Sections 157.270 and 157.271 to read as follows:
1-20 Sec. 157.270. REDUCTION OF ACCRUED INTEREST. (a) On or
1-21 after the first anniversary of the date a court renders a money
1-22 judgment under Section 157.263, the obligor against whom the
1-23 judgment was rendered may file a motion requesting that the court
1-24 reduce the amount of interest that was confirmed in the judgment
1-25 and owed on the child support arrearages.
2-1 (b) On finding that the obligor has substantially complied
2-2 with the terms of an order requiring periodic payments toward the
2-3 money judgment rendered under Section 157.263, the court may render
2-4 an order reducing the interest to be paid by an amount that results
2-5 in the repayment of an amount that will not create an undue
2-6 hardship on the obligor or the obligor's family.
2-7 (c) The court shall state in the order reducing the amount
2-8 of interest owed that the amount by which the interest is reduced
2-9 may be included in a subsequent cumulative money judgment if the
2-10 obligor does not comply with an order to make periodic payments for
2-11 current support and child support arrearages.
2-12 Sec. 157.271. PENALTY FOR NONPAYMENT. (a) On or after the
2-13 first anniversary of the date a court renders a money judgment
2-14 under Section 157.263, the obligee or the Title IV-D agency may
2-15 file a motion requesting that the court order the obligor to pay
2-16 additional interest on the money judgment as a penalty if the court
2-17 finds that the obligor did not substantially comply with the terms
2-18 of an order requiring periodic payments toward the money judgment.
2-19 (b) Notwithstanding Section 157.265(b), the court, on making
2-20 the finding required by Subsection (a), may order that interest
2-21 accrues on the child support arrearages confirmed and reduced to a
2-22 money judgment at the rate of 13 percent simple interest per year
2-23 from the date the court rendered the money judgment under Section
2-24 157.263 until the date the judgment is paid.
2-25 SECTION 3. This Act takes effect September 1, 2001.