Texas Senate Bill SB432

Texas 2009 - 81st Regular

• Out of Senate Committee: 3/20/09
• Voted on by Senate: 4/2/09
• Out of House Committee: 5/19/09

Caption

Relating to liability for failure to comply with a child support lien, court order, or notice of levy.

Impact

The impact of this legislation on state laws is significant, particularly in its enforcement of child support obligations. By establishing clear liabilities for non-compliance, the bill aims to improve accountability and ensure that child support payments are made in accordance with court mandates. This is likely to strengthen the measures available to claimants in pursuing enforcement actions against obligors who do not fulfill their financial responsibilities, thereby reinforcing the state's commitment to support families who rely on such payments for their well-being.

Summary

Senate Bill 432 aims to address liability issues related to the non-compliance with child support liens, court orders, and notices of levy. The bill amends sections of the Family Code to impose significant financial penalties on individuals who fail to comply with such directives. Specifically, it establishes that a person who knowingly disposes of property subject to a child support lien could face penalties amounting to three times the value of the property or $5,000, whichever is greater, while ensuring that such penalties cannot be credited against any child support arrears owed by the obligor. Additionally, financial institutions are exempted from liability in particular circumstances regarding the disposition of assets when the necessary identifying information is not present in the lien or notice of levy.

Contention

Notable points of contention may arise from the increased penalties linked to non-compliance, as some may argue that the financial burdens placed on individuals can be overly harsh, particularly during economic hardship. The exemption for financial institutions could also lead to discussions around the responsibilities of banks and similar entities in facilitating compliance with child support orders. Potential challenges might occur regarding the interpretation of what constitutes ‘knowingly’ disposing of property, leading to possible legal disputes related to due diligence in compliance with the law.