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.