HBA-AMW, LJP H.B. 586 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 586 By: Brown, Betty Juvenile Justice & Family Issues 2/18/2001 Introduced BACKGROUND AND PURPOSE Although federal and state governments have increased initiatives to collect delinquent child support payments, many child support debts continue to go unpaid. According to the Department of Health and Human Services, child support payments are being made in only 37 percent of the nation's 16.4 million child support cases. Last year, Texas collected child support payments in 19 percent of the cases in which support was owed. To encourage payment of child support, House Bill 586 provides that a delinquent child support obligor or a business entity in which a delinquent obligor has certain interests is ineligible to receive specified state funds, grants, or loans. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 586 amends the Family Code to provide that certain delinquent child support obligors and business entities in which a delinquent obligor has certain interests are not eligible to receive a state-funded grant or loan. This includes scholarships, loans associated with an educational loan repayment program, federally funded educational loans administrated by the state, and any other student financial assistance that is conditioned on the performance of some service obligation after graduation. EFFECTIVE DATE September 1, 2001.