H.B. 2415 78(R)    BILL ANALYSIS


H.B. 2415
By: Hopson
Financial Institutions
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

In granting judgments a court may award postjudgment interest as
protection to the prevailing party. This compensation also serves as an
incentive for the judgment debtor to satisfy the judgment award in a
timely manner.  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.  The U.S. Department of
the Treasury no longer issues 52-week Treasury bills.   

H.B. 2415 replaces this obsolete rate with the weekly average 1-year
constant maturity treasury yield. The weekly average one-year constant
maturity yield is the closest approximation to the discontinued 52-week
Treasury bills.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

H.B. 2415 amends Section 304.003(c), Finance Code to base 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. 

EFFECTIVE DATE

On passage or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.