HBA-MSH S.B. 776 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 776
By: Harris
Juvenile Justice & Family Issues
5/3/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, if an individual fails to pay child support, a money judgment
may be obtained through the court against that parent. The court judgment
may include interest which may create an undue financial hardship on the
individual.  Current law also does not provide for any decrease in the
interest if an individual complies with an order to make periodic payments.
Senate Bill 776 authorizes the court a year after the judgment to reduce
the amount of interest if the parent has complied with an order for
periodic payments. 

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

Senate Bill 776 amends the Family Code to authorize a court on or after the
first anniversary of the date a court renders a money judgment in a
contempt proceeding to reduce the interest accrued on child support
arrearages included in a money judgment to an amount that will not create
an undue hardship on the obligor or the obligor's family if the obligor has
substantially complied with the terms of an order requiring periodic
payments toward the money judgment (order).  The bill requires the court to
state in the order reducing the amount of interest owed that the amount by
which the interest is reduced may be included in a subsequent cumulative
money judgment if the obligor does not comply with the order.   

The bill authorizes the obligee or the office of the attorney general to
file a motion requesting the court order the obligor to pay additional
interest at a rate of 13 percent simple interest per year on the money
judgment as penalty if the court finds that the obligor did not
substantially comply with the terms of an order. 

EFFECTIVE DATE

September 1, 2001.