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