Honorable Burt R. Solomons, Chair, House Committee on Financial Institutions
FROM:
John Keel, Director, Legislative Budget Board
IN RE:
HB2415 by Hopson (Relating to the postjudgment interest rate.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill amends Section 304.003(c) of the Finance Code to set postjudgement interest rates at the "weekly average 1-year constant maturity treasury yield as most recently published by the Board of Governors of the Federal Reserve System before the date of computation". The current postjudgement interest rate is based on "the auction rate quoted on a discount basis for 52-week treasury bills issued by the United States government as most recently published by the Federal Reserve Board before the date of computation". The computation of postjudgement interest potentially affects the imposition of judgments against the state and other parties to lawsuits and will be set at the annual percentages specified in the bill.The Act takes effect immediately if it receives a vote of two-thirds of all members; otherwise it takes effect on September 1, 2003.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.