SRC-VRA H.B. 2415 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2415
By: Hopson (Averitt)
Jurisprudence
5/8/2003
Engrossed


DIGEST AND PURPOSE 

In granting judgments, a court may award postjudgment interest as
protection to the prevailing party.  Current law requires the consumer
credit commissioner to calculate the postjudgment interest rate based on
the auction rate quoted on a discount basis for 52-week treasury bills.
H.B. 2415 replaces this rate with the weekly average one-year constant
maturity treasury yield.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 304.003(c), Finance Code, to base the
calculation of the postjudgment interest rate upon the weekly average
one-year constant maturity treasury yield in lieu of using the auction
rate quoted on a discount basis for 52-week treasury bills, as most
recently published by the Board of Governors of the Federal Reserve
System, rather than by the Federal Reserve Board.  Makes conforming
changes to Subdivisions (2) and (3).   

SECTION 2.  Effective date:  upon passage or September 1, 2003.