| 1 | 1 | | 81R3134 KKA-F |
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| 2 | 2 | | By: Villarreal H.B. No. 447 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to liability for failure to comply with a child support |
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| 8 | 8 | | lien, court order, or notice of levy. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 157.324, Family Code, is amended to read |
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| 11 | 11 | | as follows: |
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| 12 | 12 | | Sec. 157.324. LIABILITY FOR FAILURE TO COMPLY WITH ORDER OR |
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| 13 | 13 | | LIEN. (a) A person who knowingly pays over, releases, sells, |
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| 14 | 14 | | transfers, encumbers, conveys, or otherwise disposes of property |
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| 15 | 15 | | subject to a child support lien or who, after a foreclosure hearing, |
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| 16 | 16 | | fails to surrender on demand nonexempt personal property as |
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| 17 | 17 | | directed by a court under this subchapter is liable to the claimant |
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| 18 | 18 | | in an amount equal to the greater of three times the value of the |
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| 19 | 19 | | property paid over, released, sold, transferred, encumbered, |
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| 20 | 20 | | conveyed, or otherwise disposed of or not surrendered or $5,000, |
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| 21 | 21 | | but not to exceed the amount of the child support arrearages for |
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| 22 | 22 | | which the lien or foreclosure judgment was issued. |
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| 23 | 23 | | (b) A claimant may recover costs and reasonable attorney's |
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| 24 | 24 | | fees incurred in an action under this section. |
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| 25 | 25 | | (c) A penalty paid by a person under this section may not be |
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| 26 | 26 | | credited against the child support arrearages owed by the obligor. |
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| 27 | 27 | | (d) A financial institution is not liable under this section |
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| 28 | 28 | | for the disposition of assets in an account if the child support |
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| 29 | 29 | | lien does not contain either the account number or the social |
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| 30 | 30 | | security number of an account owner of record. |
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| 31 | 31 | | SECTION 2. Section 157.330, Family Code, is amended by |
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| 32 | 32 | | amending Subsection (a) and adding Subsections (c) and (d) to read |
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| 33 | 33 | | as follows: |
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| 34 | 34 | | (a) A person who possesses or has a right to property that is |
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| 35 | 35 | | the subject of a notice of levy delivered to the person and who |
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| 36 | 36 | | refuses or fails to timely surrender the property or right to |
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| 37 | 37 | | property that should have been paid or delivered to the claimant on |
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| 38 | 38 | | demand is liable to the claimant in an amount equal to the greater |
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| 39 | 39 | | of three times the value of the property or right to property that |
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| 40 | 40 | | should have been paid or delivered or $5,000, [not surrendered] but |
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| 41 | 41 | | [that does] not to exceed the amount of the child support arrearages |
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| 42 | 42 | | for which the notice of levy has been filed. |
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| 43 | 43 | | (c) A penalty paid by a person under this section may not be |
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| 44 | 44 | | credited against the child support arrearages owed by the obligor. |
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| 45 | 45 | | (d) A financial institution is not liable under this section |
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| 46 | 46 | | for the disposition of assets in an account if the notice of levy |
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| 47 | 47 | | does not contain either the account number or the social security |
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| 48 | 48 | | number of an account owner of record. |
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| 49 | 49 | | SECTION 3. This Act takes effect September 1, 2009. |
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