By Cain                                               S.B. No. 1666
         77R1159 KSD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the ineligibility of a delinquent child support obligor
 1-3     to receive state-funded or state-administered student financial
 1-4     assistance.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 231.006(a), Family Code, is amended to
 1-7     read as follows:
 1-8           (a)  A child support obligor who is more than 30 days
 1-9     delinquent in paying child support and a business entity in which
1-10     the obligor is a sole proprietor, partner, shareholder, or owner
1-11     with an ownership interest of at least 25 percent is not eligible
1-12     to:
1-13                 (1)  receive payments from state funds under a contract
1-14     to provide property, materials, or services; [or]
1-15                 (2)  receive a state-funded grant or loan, including a
1-16     scholarship, a loan associated with an educational loan repayment
1-17     program, and any other student financial assistance that is
1-18     conditioned on the performance of some service obligation after
1-19     graduation; or
1-20                 (3)  receive a federally funded educational loan that
1-21     is administered by the state.
1-22           SECTION 2. (a)  This Act takes effect September 1, 2001.
1-23           (b)  The change in law made by this Act applies only to a
1-24     contract, grant, or loan that is executed on or after the effective
 2-1     date of this Act.  A contract, grant, or loan executed before the
 2-2     effective date of this Act is covered by the law in effect on the
 2-3     date the contract, grant, or loan was executed, and the former law
 2-4     is continued in effect for that purpose.