1-1 By: Harris S.B. No. 776
1-2 (In the Senate - Filed February 19, 2001; February 20, 2001,
1-3 read first time and referred to Committee on Jurisprudence;
1-4 April 10, 2001, reported favorably by the following vote: Yeas 6,
1-5 Nays 0; April 10, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the collection of accrued interest on child support
1-9 arrearages; providing a penalty.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 157.262, Family Code, is amended to read
1-12 as follows:
1-13 Sec. 157.262. REDUCTION OF ARREARAGES. (a) Except as
1-14 provided by Subsection (b), in [In] a contempt proceeding or in
1-15 rendering a money judgment, the court may not reduce or modify the
1-16 amount of child support arrearages.
1-17 (b) On or after the first anniversary of the date the court
1-18 renders a money judgment, the court may reduce the interest accrued
1-19 on child support arrearages included in that judgment if the
1-20 obligor meets the requirements of Section 157.270.
1-21 (c) The money judgment for arrearages rendered by the court
1-22 may be subject to a counterclaim or offset as provided by this
1-23 subchapter.
1-24 SECTION 2. Subchapter F, Chapter 157, Family Code, is
1-25 amended by adding Sections 157.270 and 157.271 to read as follows:
1-26 Sec. 157.270. REDUCTION OF ACCRUED INTEREST. (a) On or
1-27 after the first anniversary of the date a court renders a money
1-28 judgment under Section 157.263, the obligor against whom the
1-29 judgment was rendered may file a motion requesting that the court
1-30 reduce the amount of interest that was confirmed in the judgment
1-31 and owed on the child support arrearages.
1-32 (b) On finding that the obligor has substantially complied
1-33 with the terms of an order requiring periodic payments toward the
1-34 money judgment rendered under Section 157.263, the court may render
1-35 an order reducing the interest to be paid by an amount that results
1-36 in the repayment of an amount that will not create an undue
1-37 hardship on the obligor or the obligor's family.
1-38 (c) The court shall state in the order reducing the amount
1-39 of interest owed that the amount by which the interest is reduced
1-40 may be included in a subsequent cumulative money judgment if the
1-41 obligor does not comply with an order to make periodic payments for
1-42 current support and child support arrearages.
1-43 Sec. 157.271. PENALTY FOR NONPAYMENT. (a) On or after the
1-44 first anniversary of the date a court renders a money judgment
1-45 under Section 157.263, the obligee or the Title IV-D agency may
1-46 file a motion requesting that the court order the obligor to pay
1-47 additional interest on the money judgment as a penalty if the court
1-48 finds that the obligor did not substantially comply with the terms
1-49 of an order requiring periodic payments toward the money judgment.
1-50 (b) Notwithstanding Section 157.265(b), the court, on making
1-51 the finding required by Subsection (a), may order that interest
1-52 accrues on the child support arrearages confirmed and reduced to a
1-53 money judgment at the rate of 13 percent simple interest per year
1-54 from the date the court rendered the money judgment under Section
1-55 157.263 until the date the judgment is paid.
1-56 SECTION 3. This Act takes effect September 1, 2001.
1-57 * * * * *