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.