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.