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.