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78R1989 KSD-D

By:  Brown of Kaufman                                             H.B. No. 529



A BILL TO BE ENTITLED

AN ACT

relating to the ineligibility of a delinquent child support obligor 
to receive state-funded or state-administered student financial 
assistance.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 231.006(a), Family Code, is amended to 
read as follows:  
	(a)  A child support obligor who is more than 30 days 
delinquent in paying child support and a business entity in which 
the obligor is a sole proprietor, partner, shareholder, or owner 
with an ownership interest of at least 25 percent is not eligible 
to:
		(1)  receive payments from state funds under a contract 
to provide property, materials, or services; [or]
		(2)  receive a state-funded grant or loan, including a 
scholarship, a loan associated with an educational loan repayment 
program, and any other student financial assistance that is 
conditioned on the performance of some service obligation after 
graduation; or
		(3)  receive a federally funded educational loan that 
is administered by the state.
	SECTION 2.  (a)  This Act takes effect September 1, 2003.                      
	(b)  The change in law made by this Act applies only to a 
contract, grant, or loan that is executed on or after the effective 
date of this Act.  A contract, grant, or loan executed before the 
effective date of this Act is covered by the law in effect on the 
date the contract, grant, or loan was executed, and the former law 
is continued in effect for that purpose.