By:  Bivins                                            S.B. No. 776
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to interest on judgments in certain civil actions.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Subsection (c), Section 304.003, Finance Code, is
 1-4     amended to read as follows:
 1-5           (c)  The judgment interest rate is the sum of:
 1-6                 (1)  the auction rate quoted on a discount basis for
 1-7     52-week treasury bills issued by the United States government as
 1-8     most recently published by the Federal Reserve Board before the
 1-9     date of the computation; and
1-10                 (2)  two percentage points [10 percent if the auction
1-11     rate described by Subdivision (1) is less than 10 percent; or]
1-12                 [(3)  20 percent if the auction rate described by
1-13     Subdivision (1) is more than 20 percent].
1-14           SECTION 2.  Subchapter B, Chapter 304, Finance Code, is
1-15     amended by adding Section 304.109 to read as follows:
1-16           Sec. 304.109.  PREJUDGMENT INTEREST ON FUTURE DAMAGES
1-17     PROHIBITED. A court may not award prejudgment interest on future
1-18     damages.
1-19           SECTION 3.  This Act applies only to a suit commenced on or
1-20     after the effective date of this Act.  A suit commenced before the
1-21     effective date of this Act is governed by the law applicable to the
1-22     suit immediately before the effective date of this Act, and that
1-23     law is continued in effect for that purpose.
1-24           SECTION 4.  To the extent of any conflict, this Act prevails
 2-1     over another Act of the 76th Legislature, Regular Session, 1999,
 2-2     relating to nonsubstantive additions and corrections in enacted
 2-3     codes.
 2-4           SECTION 5.  The importance of this legislation and the
 2-5     crowded condition of the calendars in both houses create an
 2-6     emergency and an imperative public necessity that the
 2-7     constitutional rule requiring bills to be read on three several
 2-8     days in each house be suspended, and this rule is hereby suspended,
 2-9     and that this Act take effect and be in force from and after its
2-10     passage, and it is so enacted.