81R29359 KKA-D
By: Wentworth S.B. No. 432
Substitute the following for S.B. No. 432:
By: Hughes C.S.S.B. No. 432
A BILL TO BE ENTITLED
AN ACT
relating to liability for failure to comply with a child support
lien, court order, or notice of levy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 157.324, Family Code, is amended to read
as follows:
Sec. 157.324. LIABILITY FOR FAILURE TO COMPLY WITH ORDER OR
LIEN. (a) A person, other than a financial institution, who pays
over, releases, sells, transfers, encumbers, conveys, or otherwise
[knowingly] disposes of property subject to a child support lien or
who, after a foreclosure hearing, fails to surrender on demand
nonexempt personal property as directed by a court under this
subchapter is liable to the claimant in an amount equal to the
greater of three times the value of the property paid over,
released, sold, transferred, encumbered, conveyed, or otherwise
disposed of or not surrendered or $5,000, but not to exceed the
amount of the child support arrearages for which the lien or
foreclosure judgment was issued.
(b) A financial institution that pays over, releases,
sells, transfers, encumbers, conveys, or otherwise disposes of
property subject to a child support lien or that, after a
foreclosure hearing, fails to surrender on demand nonexempt
personal property as directed by a court under this subchapter is
liable to the claimant in an amount equal to the greater of one and
one-half times the value of the property paid over, released, sold,
transferred, encumbered, conveyed, or otherwise disposed of or not
surrendered or $5,000, but not to exceed the amount of the child
support arrearages for which the lien or foreclosure judgment was
issued.
(c) A claimant may recover costs and reasonable attorney's
fees incurred in an action under this section.
(d) Fifty percent of the amount paid to the claimant under
Subsection (a) or (b) shall be credited against the child support
arrearages owed by the obligor.
(e) A financial institution is not liable under this section
for the disposition of assets in an account if the child support
lien does not contain either the account number or the social
security number of an account owner of record.
SECTION 2. Section 157.330, Family Code, is amended by
amending Subsection (a) and adding Subsections (a-1), (c), and (d)
to read as follows:
(a) A person, other than a financial institution, who
possesses or has a right to property that is the subject of a notice
of levy delivered to the person and who refuses or fails to timely
surrender the property or right to property that should have been
paid or delivered to the claimant on demand is liable to the
claimant in an amount equal to the greater of three times the value
of the property or right to property that should have been paid or
delivered or $5,000, [not surrendered] but [that does] not to
exceed the amount of the child support arrearages for which the
notice of levy has been filed.
(a-1) A financial institution that possesses or has a right
to property that is the subject of a notice of levy delivered to the
financial institution and that refuses or fails to timely surrender
the property or right to property that should have been paid or
delivered to the claimant on demand is liable to the claimant in an
amount equal to the greater of one and one-half times the value of
the property or right to property that should have been paid or
delivered or $5,000, but not to exceed the amount of the child
support arrearages for which the notice of levy has been filed.
(c) Fifty percent of the amount paid to the claimant under
Subsection (a) or (a-1) shall be credited against the child support
arrearages owed by the obligor.
(d) A financial institution is not liable under this section
for the disposition of assets in an account if the notice of levy
does not contain either the account number or the social security
number of an account owner of record.
SECTION 3. This Act takes effect September 1, 2009.