| 1 | 1 | | 89R5761 KRM-D |
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| 2 | 2 | | By: Dutton H.B. No. 4213 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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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 the accrual of interest on overdue child support. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Sections 157.265(a), (b), and (c), Family Code, |
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| 12 | 12 | | are amended to read as follows: |
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| 13 | 13 | | (a) Interest accrues on the portion of delinquent child |
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| 14 | 14 | | support that is greater than the amount of the monthly periodic |
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| 15 | 15 | | support obligation at the rate of three [six] percent simple |
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| 16 | 16 | | interest per year from the date the support is delinquent until the |
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| 17 | 17 | | date the support is paid or the arrearages are confirmed and reduced |
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| 18 | 18 | | to money judgment. |
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| 19 | 19 | | (b) Interest accrues on child support arrearages that have |
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| 20 | 20 | | been confirmed and reduced to money judgment as provided in this |
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| 21 | 21 | | subchapter at the rate of three [six] percent simple interest per |
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| 22 | 22 | | year from the date the order is rendered until the date the judgment |
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| 23 | 23 | | is paid. |
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| 24 | 24 | | (c) Interest accrues on a money judgment for retroactive or |
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| 25 | 25 | | lump-sum child support at the annual rate of three [six] percent |
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| 26 | 26 | | simple interest from the date the order is rendered until the |
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| 27 | 27 | | judgment is paid. |
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| 28 | 28 | | SECTION 2. Sections 157.265(d), (e), and (f), Family Code, |
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| 29 | 29 | | are repealed. |
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| 30 | 30 | | SECTION 3. (a) Section 157.265(a), Family Code, as amended |
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| 31 | 31 | | by this Act, applies to a child support payment that becomes due on |
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| 32 | 32 | | or after January 1, 2026. |
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| 33 | 33 | | (b) Child support arrearages in existence on January 1, |
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| 34 | 34 | | 2026, that were not confirmed and reduced to a money judgment on or |
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| 35 | 35 | | before that date accrue interest as follows: |
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| 36 | 36 | | (1) before January 1, 2002, the arrearages are subject |
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| 37 | 37 | | to the interest rate that applied to the arrearages before that |
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| 38 | 38 | | date; |
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| 39 | 39 | | (2) on or after January 1, 2002, but before January 1, |
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| 40 | 40 | | 2026, the arrearages are subject to the interest rate that applied |
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| 41 | 41 | | to the arrearages immediately before the effective date of this |
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| 42 | 42 | | Act; and |
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| 43 | 43 | | (3) on or after January 1, 2026, the cumulative total |
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| 44 | 44 | | of arrearages and interest accumulated on the arrearages described |
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| 45 | 45 | | by Subdivisions (1) and (2) of this subsection is subject to Section |
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| 46 | 46 | | 157.265(a), Family Code, as amended by this Act. |
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| 47 | 47 | | (c) Sections 157.265(b) and (c), Family Code, as amended by |
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| 48 | 48 | | this Act, apply only to a money judgment for child support rendered |
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| 49 | 49 | | on or after January 1, 2026. A money judgment rendered before that |
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| 50 | 50 | | date is governed by the law in effect on the date the judgment was |
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| 51 | 51 | | rendered, and the former law is continued in effect for that |
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| 52 | 52 | | purpose. |
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| 53 | 53 | | SECTION 4. This Act takes effect September 1, 2025. |
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