HBA-MSH H.B. 1063 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1063
By: Uher
Civil Practices
4/3/2001
Introduced



BACKGROUND AND PURPOSE 

Current law sets the postjudgment interest rate at the auction rate for a
52-week U.S. Treasury bill, with a minimum of 10 percent and a maximum of
20 percent a year.  This makes the calculation of postjudgment interest
rate more complex.  House Bill 1063 provides that the postjudgment interest
rate is equal to the auction rate and two percentage points and prohibits
the assessment of prejudgment interest on an award of future damages. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1063 amends the Finance Code to provide that a postjudgment
interest rate on a money judgment of a state court is a percentage rate
equal to the sum of the most recent auction rate quoted on a discount basis
of a 52-week U.S. Treasury bill and two percentage points.  The bill
prohibits the assessment or recovery of prejudgment interest on an award of
future damages. 

EFFECTIVE DATE

September 1, 2001.