By Bivins S.B. No. 776
76R7285 DAK-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to interest on judgments in certain civil actions.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 304.003(c), Finance Code, is amended to
1-5 read as follows:
1-6 (c) The judgment interest rate is[:]
1-7 [(1)] the auction rate quoted on a discount basis for
1-8 52-week treasury bills issued by the United States government as
1-9 most recently published by the Federal Reserve Board before the
1-10 date of the computation[;]
1-11 [(2) 10 percent if the auction rate described by
1-12 Subdivision (1) is less than 10 percent; or]
1-13 [(3) 20 percent if the auction rate described by
1-14 Subdivision (1) is more than 20 percent].
1-15 SECTION 2. Subchapter B, Chapter 304, Finance Code, is
1-16 amended by adding Section 304.109 to read as follows:
1-17 Sec. 304.109. PREJUDGMENT INTEREST ON FUTURE DAMAGES
1-18 PROHIBITED. A court may not award prejudgment interest on future
1-19 damages.
1-20 SECTION 3. This Act applies only to a suit commenced on or
1-21 after the effective date of this Act. A suit commenced before the
1-22 effective date of this Act is governed by the law applicable to the
1-23 suit immediately before the effective date of this Act, and that
1-24 law is continued in effect for that purpose.
2-1 SECTION 4. To the extent of any conflict, this Act prevails
2-2 over another Act of the 76th Legislature, Regular Session, 1999,
2-3 relating to nonsubstantive additions and corrections in enacted
2-4 codes.
2-5 SECTION 5. The importance of this legislation and the
2-6 crowded condition of the calendars in both houses create an
2-7 emergency and an imperative public necessity that the
2-8 constitutional rule requiring bills to be read on three several
2-9 days in each house be suspended, and this rule is hereby suspended,
2-10 and that this Act take effect and be in force from and after its
2-11 passage, and it is so enacted.