1-1 AN ACT
1-2 relating to child support, including the accrual of interest on
1-3 child support and the treatment of overpayments.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 157.265, Family Code, is amended to read
1-6 as follows:
1-7 Sec. 157.265. ACCRUAL OF INTEREST ON CHILD SUPPORT.
1-8 (a) Interest accrues on the portion of delinquent child support
1-9 that is greater than the amount of the monthly periodic support
1-10 obligation at the rate of six [12] percent simple interest per year
1-11 from the date the support is delinquent until the date the support
1-12 is paid or the arrearages are confirmed and reduced to money
1-13 judgment.
1-14 (b) Interest accrues on child support arrearages that have
1-15 been confirmed and reduced to money judgment as provided in this
1-16 subchapter at the rate of six [12] percent simple interest per year
1-17 from the date the order is rendered until the date the judgment is
1-18 paid.
1-19 (c) Interest accrues on a money judgment for retroactive or
1-20 lump-sum child support at the annual rate of six [12] percent
1-21 simple interest from the date the order is rendered until the
1-22 judgment is paid.
1-23 SECTION 2. (a) Subchapter A, Chapter 154, Family Code, is
1-24 amended by adding Section 154.013 to read as follows:
1-25 Sec. 154.013. PAYMENTS IN EXCESS OF COURT-ORDERED AMOUNT.
2-1 (a) If a child support agency or local child support registry
2-2 receives from an obligor who is not in arrears a child support
2-3 payment in an amount that exceeds the court-ordered amount, the
2-4 agency or registry, to the extent possible, shall give effect to
2-5 any expressed intent of the obligor for the application of the
2-6 amount that exceeds the court-ordered amount.
2-7 (b) If the obligor does not express an intent for the
2-8 application of the amount paid in excess of the court-ordered
2-9 amount, the agency or registry shall:
2-10 (1) credit the excess amount to the obligor's future
2-11 child support obligation; and
2-12 (2) promptly disburse the excess amount to the
2-13 obligee.
2-14 (c) This section does not apply to an obligee who is a
2-15 recipient of public assistance under Chapter 31, Human Resources
2-16 Code.
2-17 (b) Notwithstanding any other section of this Act, the
2-18 change in law made by Section 154.013, Family Code, as added by
2-19 this section, takes effect September 1, 2001, and applies only to a
2-20 child support payment made on or after that date. A child support
2-21 payment made before September 1, 2001, is governed by the law in
2-22 effect on the date the payment was made, and the former law is
2-23 continued in effect for that purpose.
2-24 SECTION 3. (a) This Act takes effect January 1, 2002.
2-25 (b) The change in law made by this Act applies only to:
2-26 (1) a child support payment that becomes due on or
3-1 after the effective date of this Act; and
3-2 (2) unpaid child support that became due before the
3-3 effective date of this Act and for which a court has not confirmed
3-4 the amount of arrearages and rendered a money judgment.
3-5 (c) A money judgment for child support rendered before the
3-6 effective date of this Act is governed by the law in effect on the
3-7 date the judgment was rendered, and the former law is continued in
3-8 effect for that purpose.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 776 passed the Senate on
April 26, 2001, by the following vote: Yeas 30, Nays 0, one
present not voting; and that the Senate concurred in House
amendments on May 25, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 776 passed the House, with
amendments, on May 18, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor