82R1706 KSD-D
By: McClendon H.B. No. 2918
A BILL TO BE ENTITLED
AN ACT
relating to debt collection for unpaid child support against
student financial assistance proceeds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 56, Education Code, is
amended by adding Section 56.005 to read as follows:
Sec. 56.005. DEBT COLLECTION AGAINST STUDENT FINANCIAL
ASSISTANCE PROCEEDS FOR UNPAID CHILD SUPPORT PROHIBITED; REQUIRED
NOTICE REGARDING RISK OF COMMINGLING STUDENT FINANCIAL ASSISTANCE
PROCEEDS WITH OTHER FINANCIAL ASSETS. (a) In this section,
"account" and "financial institution" have the meanings assigned by
Section 157.311, Family Code.
(b) To the extent permitted under federal law, student
financial assistance proceeds received by a student, including
student loan, grant, and scholarship proceeds, are exempt from debt
collection to satisfy a judgment for unpaid child support under
Subchapter F, Chapter 157, Family Code.
(c) Student loan lenders, student loan guarantors, and
financial aid offices of institutions of higher education shall
make diligent efforts to notify a student financial assistance
recipient that:
(1) under federal law, assets of a child support
obligor held in an account in a financial institution are subject to
debt collection to satisfy a judgment for unpaid child support
under Subchapter F, Chapter 157, Family Code; and
(2) the commingling of the recipient's student
financial assistance proceeds with other money in an account may
subject those proceeds to debt collection for the purpose described
by Subdivision (1).
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.