| 1 | 1 | | 81R29359 KKA-D |
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| 2 | 2 | | By: Wentworth S.B. No. 432 |
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| 3 | 3 | | Substitute the following for S.B. No. 432: |
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| 4 | 4 | | By: Hughes C.S.S.B. No. 432 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to liability for failure to comply with a child support |
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| 10 | 10 | | lien, court order, or notice of levy. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 157.324, Family Code, is amended to read |
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| 13 | 13 | | as follows: |
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| 14 | 14 | | Sec. 157.324. LIABILITY FOR FAILURE TO COMPLY WITH ORDER OR |
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| 15 | 15 | | LIEN. (a) A person, other than a financial institution, who pays |
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| 16 | 16 | | over, releases, sells, transfers, encumbers, conveys, or otherwise |
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| 17 | 17 | | [knowingly] disposes of property subject to a child support lien or |
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| 18 | 18 | | who, after a foreclosure hearing, fails to surrender on demand |
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| 19 | 19 | | nonexempt personal property as directed by a court under this |
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| 20 | 20 | | subchapter is liable to the claimant in an amount equal to the |
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| 21 | 21 | | greater of three times the value of the property paid over, |
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| 22 | 22 | | released, sold, transferred, encumbered, conveyed, or otherwise |
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| 23 | 23 | | disposed of or not surrendered or $5,000, but not to exceed the |
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| 24 | 24 | | amount of the child support arrearages for which the lien or |
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| 25 | 25 | | foreclosure judgment was issued. |
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| 26 | 26 | | (b) A financial institution that pays over, releases, |
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| 27 | 27 | | sells, transfers, encumbers, conveys, or otherwise disposes of |
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| 28 | 28 | | property subject to a child support lien or that, after a |
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| 29 | 29 | | foreclosure hearing, fails to surrender on demand nonexempt |
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| 30 | 30 | | personal property as directed by a court under this subchapter is |
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| 31 | 31 | | liable to the claimant in an amount equal to the greater of one and |
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| 32 | 32 | | one-half times the value of the property paid over, released, sold, |
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| 33 | 33 | | transferred, encumbered, conveyed, or otherwise disposed of or not |
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| 34 | 34 | | surrendered or $5,000, but not to exceed the amount of the child |
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| 35 | 35 | | support arrearages for which the lien or foreclosure judgment was |
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| 36 | 36 | | issued. |
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| 37 | 37 | | (c) A claimant may recover costs and reasonable attorney's |
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| 38 | 38 | | fees incurred in an action under this section. |
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| 39 | 39 | | (d) Fifty percent of the amount paid to the claimant under |
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| 40 | 40 | | Subsection (a) or (b) shall be credited against the child support |
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| 41 | 41 | | arrearages owed by the obligor. |
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| 42 | 42 | | (e) A financial institution is not liable under this section |
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| 43 | 43 | | for the disposition of assets in an account if the child support |
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| 44 | 44 | | lien does not contain either the account number or the social |
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| 45 | 45 | | security number of an account owner of record. |
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| 46 | 46 | | SECTION 2. Section 157.330, Family Code, is amended by |
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| 47 | 47 | | amending Subsection (a) and adding Subsections (a-1), (c), and (d) |
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| 48 | 48 | | to read as follows: |
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| 49 | 49 | | (a) A person, other than a financial institution, who |
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| 50 | 50 | | possesses or has a right to property that is the subject of a notice |
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| 51 | 51 | | of levy delivered to the person and who refuses or fails to timely |
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| 52 | 52 | | surrender the property or right to property that should have been |
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| 53 | 53 | | paid or delivered to the claimant on demand is liable to the |
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| 54 | 54 | | claimant in an amount equal to the greater of three times the value |
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| 55 | 55 | | of the property or right to property that should have been paid or |
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| 56 | 56 | | delivered or $5,000, [not surrendered] but [that does] not to |
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| 57 | 57 | | exceed the amount of the child support arrearages for which the |
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| 58 | 58 | | notice of levy has been filed. |
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| 59 | 59 | | (a-1) A financial institution that possesses or has a right |
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| 60 | 60 | | to property that is the subject of a notice of levy delivered to the |
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| 61 | 61 | | financial institution and that refuses or fails to timely surrender |
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| 62 | 62 | | the property or right to property that should have been paid or |
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| 63 | 63 | | delivered to the claimant on demand is liable to the claimant in an |
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| 64 | 64 | | amount equal to the greater of one and one-half times the value of |
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| 65 | 65 | | the property or right to property that should have been paid or |
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| 66 | 66 | | delivered or $5,000, but not to exceed the amount of the child |
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| 67 | 67 | | support arrearages for which the notice of levy has been filed. |
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| 68 | 68 | | (c) Fifty percent of the amount paid to the claimant under |
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| 69 | 69 | | Subsection (a) or (a-1) shall be credited against the child support |
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| 70 | 70 | | arrearages owed by the obligor. |
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| 71 | 71 | | (d) A financial institution is not liable under this section |
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| 72 | 72 | | for the disposition of assets in an account if the notice of levy |
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| 73 | 73 | | does not contain either the account number or the social security |
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| 74 | 74 | | number of an account owner of record. |
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| 75 | 75 | | SECTION 3. This Act takes effect September 1, 2009. |
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