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


Office of House Bill AnalysisC.S.S.B. 776
By: Harris
Juvenile Justice & Family Issues
5/9/2001
Committee Report (Substituted)



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.  C.S.S.B. 776 reduces the interest rate on delinquent child
support from 12 to six percent. 

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 provide that interest accrues on
the portion of delinquent child support that is greater than the amount of
the monthly periodic support obligation at the rate of 6 rather than 12
percent simple interest per year.  The bill provides that interest accrues
on child support arrearages and a money judgment for retroactive or
lump-sum child support at the rate of 6 rather than 12 percent simple
interest. 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 776 differs from the original by removing provisions that
authorize a court to reduce the interest accrued on child support
arrearages if the parent has complied with an order for periodic payments
and provisions authorizing an obligor against whom a judgment was rendered
to file a motion requesting the court to reduce the amount of interest.
The substitute also removes provisions authorizing an obligee or the
attorney general to file a motion requesting that the court order an
obligor to pay additional interest on a money judgment as a penalty if the
obligor is found to have not substantially complied with the terms of an
order requiring periodic payments.  The substitute reduces the interest
rate on delinquent child support from 12 to six percent.