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A BILL TO BE ENTITLED
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AN ACT
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relating to the enforcement of unpaid child support. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (g), Section 157.312, Family Code, is |
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amended to read as follows: |
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(g) A child support lien under this subchapter may not be |
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directed to an employer in lieu of an order or writ under Chapter |
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158 to withhold child support from [attach to] the disposable |
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earnings of an obligor [paid by the employer]. |
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SECTION 2. Section 157.314, Family Code, is amended by |
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amending Subsection (d) and adding Subsection (e) to read as |
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follows: |
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(d) If a child support lien notice is delivered to a |
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financial institution with respect to an account of the obligor, |
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the institution shall immediately: |
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(1) provide the claimant with the last known address |
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of the obligor and disclose to the claimant the amount in the |
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account at the time of receipt of the notice; and |
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(2) notify any other person having an ownership |
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interest in the account that the account has been frozen in an |
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amount not to exceed the amount of the child support arrearage |
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identified in the notice. |
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(e) On request, a financial institution to which a child |
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support lien notice has been delivered shall provide the claimant |
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with a statement showing all transactions involving the obligor's |
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account that occurred from the date of receipt of the child support |
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lien notice to the date of receipt of the request for information. |
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SECTION 3. Subsections (b) and (f), Section 157.327, Family |
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Code, are amended to read as follows: |
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(b) The notice under this section must: |
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(1) identify the amount of child support arrearages |
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owing at the time the amount of arrearages was determined or, if the |
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amount is less, the amount of arrearages owing at the time the |
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notice is prepared and delivered to the financial institution; and |
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(2) direct the financial institution to pay to the |
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claimant, not earlier than the 15th day or later than the 21st day |
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after the date of delivery of the notice, an amount from the assets |
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of the obligor or from funds due to the obligor at the time the levy |
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is paid that are held or controlled by the institution or that |
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should have been held or controlled by the institution, not to |
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exceed the amount of the child support arrearages identified in the |
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notice, unless: |
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(A) the institution is notified by the claimant |
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that the obligor has paid the arrearages or made arrangements |
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satisfactory to the claimant for the payment of the arrearages; |
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(B) the obligor or another person files, not |
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later than the 10th day after the date of delivery of the notice |
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required by Section 157.328, a suit under Section 157.323 |
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requesting a hearing by the court; or |
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(C) if the claimant is the Title IV-D agency, the |
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obligor has requested an agency review under Section 157.328. |
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(f) A financial institution may collect any fees and costs |
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identified in Subsection (c) from the obligor but may not deduct |
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those [the] fees and costs [identified in Subsection (c)] from the |
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obligor's assets before paying the appropriate amount to the |
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claimant. |
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SECTION 4. Subchapter G, Chapter 157, Family Code, is |
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amended by adding Section 157.332 to read as follows: |
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Sec. 157.332. LIEN AND LEVY ON CERTAIN THIRD-PARTY ASSETS. |
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(a) If a claimant has reason to believe that an obligor's |
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financial assets have been directed to a depository account of |
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another individual in an attempt to protect those assets from a |
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child support lien and levy under this subchapter, the claimant may |
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file suit to obtain a judicial determination of the extent, if any, |
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to which the account contains assets owned by the obligor. |
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(b) On filing suit under this section, the claimant shall |
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also deliver a child support lien notice under this subchapter to |
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the financial institution in which the account is maintained. On |
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receipt of the notice, the financial institution shall immediately: |
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(1) freeze all assets in the account, except for |
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assets that exceed the amount of the child support arrearage |
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identified in the notice, until a judicial determination is made in |
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accordance with this section; and |
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(2) inform the account holder that the assets have |
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been frozen and the account may not be closed until a judicial |
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determination is made in accordance with this section. |
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(c) A child support lien notice required under Subsection |
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(b) may be served on a financial institution in the manner |
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authorized by Section 157.3145. |
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(d) Except as otherwise provided by this section, the |
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procedures provided by Subchapter B apply to a suit under this |
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section. The obligor must be joined as an additional respondent. |
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(e) After providing notice to the obligor, the account |
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holder, any other person alleging an ownership interest in the |
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account, the claimant, and the obligee, the court shall hold a |
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hearing to determine the extent, if any, to which the account |
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contains assets owned by the obligor that are subject to a child |
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support lien and levy under this subchapter. The hearing must be |
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held not later than the 30th day after the date suit is filed under |
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this section. |
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(f) In the hearing required by Subsection (e), the claimant |
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has the burden of proving the extent of the obligor's ownership |
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interest in assets held in the account. |
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(g) Following the hearing required by Subsection (e): |
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(1) if the court determines that the account does not |
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contain any of the obligor's assets that are subject to a child |
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support lien and levy under this subchapter, the court shall: |
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(A) order the release of the lien against the |
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account; and |
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(B) prohibit any action to levy on the account; |
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or |
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(2) if the court determines that the account contains |
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any of the obligor's assets that are subject to a child support lien |
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and levy under this subchapter, the court shall: |
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(A) specify the amount of assets in the account |
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determined by the court to be the obligor's assets subject to a |
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child support lien and levy under this subchapter; and |
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(B) order that the amount specified under |
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Paragraph (A) be applied against child support arrearages owed by |
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the obligor. |
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(h) A financial institution that freezes assets under |
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Subsection (b)(1) or surrenders assets in compliance with a court |
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order under Subsection (g)(2) is not liable to the obligor, the |
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account holder, or any other person for the assets frozen or |
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surrendered. |
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(i) In a suit filed under this section, the court may award |
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attorney's fees and costs to the prevailing party. |
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SECTION 5. Section 34.001, Civil Practice and Remedies |
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Code, is amended by adding Subsection (c) to read as follows: |
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(c) This section does not apply to a child support judgment |
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or any other child support collection remedy authorized by the |
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Family Code. |
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SECTION 6. The changes in law made by this Act to Section |
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157.312, Family Code, apply only to a child support lien notice |
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filed on or after the effective date of this Act. A child support |
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lien notice filed before the effective date of this Act is governed |
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by the law in effect on the date the lien notice was filed, and the |
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former law is continued in effect for that purpose. |
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SECTION 7. The changes in law made by this Act to Section |
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157.314 and Subsection (f), Section 157.327, Family Code, apply |
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only to a financial institution that receives a lien notice or |
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notice of levy under those sections on or after the effective date |
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of this Act. A financial institution that receives a lien notice or |
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notice of levy under those sections before the effective date of |
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this Act is governed by the law in effect on the date the lien notice |
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or notice of levy is received, and the former law is continued in |
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effect for that purpose. |
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SECTION 8. The changes in law made by this Act to Section |
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34.001, Civil Practice and Remedies Code, apply to each child |
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support judgment or collection remedy, regardless of the date on |
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which the judgment is rendered or the remedy is sought. |
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SECTION 9. This Act takes effect September 1, 2009. |
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