78R2329 KLA-D

By:  Villarreal                                                   H.B. No. 312



A BILL TO BE ENTITLED

AN ACT

relating to the accrual of interest on overdue child support.                 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 157.265, Family Code, is amended to read 
as follows:     
	Sec. 157.265.  ACCRUAL OF INTEREST ON CHILD 
SUPPORT.  (a)  Interest accrues on the portion of delinquent child 
support that is greater than the amount of the monthly periodic 
support obligation at the rate of 9 [six] percent simple interest 
per year from the date the support is delinquent until the date the 
support is paid or the arrearages are confirmed and reduced to money 
judgment.
	(b)  Interest accrues on child support arrearages that have 
been confirmed and reduced to money judgment as provided in this 
subchapter at the rate of 9 [six] percent simple interest per year 
from the date the order is rendered until the date the judgment is 
paid.
	(c)  Interest accrues on a money judgment for retroactive or 
lump-sum child support at the annual rate of 9 [six] percent simple 
interest from the date the order is rendered until the judgment is 
paid.
	SECTION 2.  (a)  Section 157.265(a), Family Code, as amended 
by this Act, applies to a child support payment that becomes due on 
or after September 1, 2003.
	(b)  Child support arrearages in existence on September 1, 
2003, and not confirmed and reduced to a money judgment before that 
date accrue interest as follows:
		(1)  before September 1, 2003, the arrearages are 
subject to the interest rate that applied to the arrearages before 
that date; and
		(2)  on and after September 1, 2003, the cumulative 
total of arrearages and interest accumulated on those arrearages 
described by Subdivision (1) of this section is subject to Section 
157.265(a), Family Code, as amended by this Act.
	(c)  Sections 157.265(b) and (c), Family Code, as amended by 
this Act, apply to a money judgment for child support rendered on or 
after September 1, 2003.  A money judgment for child support 
rendered before September 1, 2003, is governed by the law in effect 
on the date the judgment was rendered, and the former law is 
continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2003.