1-1 By: Bivins S.B. No. 776
1-2 (In the Senate - Filed March 2, 1999; March 3, 1999, read
1-3 first time and referred to Committee on Economic Development;
1-4 April 23, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; April 23, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 776 By: Jackson
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to interest on judgments in certain civil actions.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (c), Section 304.003, Finance Code, is
1-13 amended to read as follows:
1-14 (c) The judgment interest rate is the sum of:
1-15 (1) the auction rate quoted on a discount basis for
1-16 52-week treasury bills issued by the United States government as
1-17 most recently published by the Federal Reserve Board before the
1-18 date of the computation; and
1-19 (2) two percentage points [10 percent if the auction
1-20 rate described by Subdivision (1) is less than 10 percent; or]
1-21 [(3) 20 percent if the auction rate described by
1-22 Subdivision (1) is more than 20 percent].
1-23 SECTION 2. Subchapter B, Chapter 304, Finance Code, is
1-24 amended by adding Section 304.109 to read as follows:
1-25 Sec. 304.109. PREJUDGMENT INTEREST ON FUTURE DAMAGES
1-26 PROHIBITED. A court may not award prejudgment interest on future
1-27 damages.
1-28 SECTION 3. This Act applies only to a suit commenced on or
1-29 after the effective date of this Act. A suit commenced before the
1-30 effective date of this Act is governed by the law applicable to the
1-31 suit immediately before the effective date of this Act, and that
1-32 law is continued in effect for that purpose.
1-33 SECTION 4. To the extent of any conflict, this Act prevails
1-34 over another Act of the 76th Legislature, Regular Session, 1999,
1-35 relating to nonsubstantive additions and corrections in enacted
1-36 codes.
1-37 SECTION 5. The importance of this legislation and the
1-38 crowded condition of the calendars in both houses create an
1-39 emergency and an imperative public necessity that the
1-40 constitutional rule requiring bills to be read on three several
1-41 days in each house be suspended, and this rule is hereby suspended,
1-42 and that this Act take effect and be in force from and after its
1-43 passage, and it is so enacted.
1-44 * * * * *