By Uher                                               H.B. No. 1063
         77R1881 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 postjudgment interest rate is a percentage equal to
 1-7     the sum of:
 1-8                 (1)  the auction rate quoted on a discount basis for
 1-9     52-week treasury bills issued by the United States government as
1-10     most recently published by the Federal Reserve Board before the
1-11     date of computation; and
1-12                 (2)  two percentage points [10 percent a year if the
1-13     auction rate described by Subdivision (1) is less than 10 percent;
1-14     or]
1-15                 [(3)  20 percent a year if the auction rate described
1-16     by Subdivision (1) is more than 20 percent].
1-17           SECTION 2.  Subchapter B, Chapter 304, Finance Code, is
1-18     amended by adding Section 304.1045 to read as follows:
1-19           Sec. 304.1045.  FUTURE DAMAGES. Prejudgment interest may not
1-20     be assessed or recovered on an award of future damages.
1-21           SECTION 3.  This Act takes effect September 1, 2001.
1-22           SECTION 4.  This Act applies only to a suit that is commenced
1-23     on or after the effective date of this Act.  A suit that is
1-24     commenced before the effective date of this Act is governed by the
 2-1     law applicable to the suit immediately before the effective date of
 2-2     this Act, and that law is continued in effect for that purpose.