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A BILL TO BE ENTITLED
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AN ACT
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relating to debt collection for unpaid child support against |
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student financial assistance proceeds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 56, Education Code, is |
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amended by adding Section 56.005 to read as follows: |
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Sec. 56.005. DEBT COLLECTION AGAINST STUDENT FINANCIAL |
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ASSISTANCE PROCEEDS FOR UNPAID CHILD SUPPORT PROHIBITED; REQUIRED |
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NOTICE REGARDING RISK OF COMMINGLING STUDENT FINANCIAL ASSISTANCE |
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PROCEEDS WITH OTHER FINANCIAL ASSETS. (a) In this section, |
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"account" and "financial institution" have the meanings assigned by |
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Section 157.311, Family Code. |
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(b) To the extent permitted under federal law, student |
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financial assistance proceeds received by a student, including |
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student loan, grant, and scholarship proceeds, are exempt from debt |
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collection to satisfy a judgment for unpaid child support under |
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Subchapter F, Chapter 157, Family Code. |
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(c) Student loan lenders, student loan guarantors, and |
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financial aid offices of institutions of higher education shall |
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make diligent efforts to notify a student financial assistance |
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recipient that: |
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(1) under federal law, assets of a child support |
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obligor held in an account in a financial institution are subject to |
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debt collection to satisfy a judgment for unpaid child support |
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under Subchapter F, Chapter 157, Family Code; and |
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(2) the commingling of the recipient's student |
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financial assistance proceeds with other money in an account may |
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subject those proceeds to debt collection for the purpose described |
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by Subdivision (1). |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |