HBA-MSH H.B. 1063 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1063 By: Uher Civil Practices 4/3/2001 Introduced BACKGROUND AND PURPOSE Current law sets the postjudgment interest rate at the auction rate for a 52-week U.S. Treasury bill, with a minimum of 10 percent and a maximum of 20 percent a year. This makes the calculation of postjudgment interest rate more complex. House Bill 1063 provides that the postjudgment interest rate is equal to the auction rate and two percentage points and prohibits the assessment of prejudgment interest on an award of future damages. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1063 amends the Finance Code to provide that a postjudgment interest rate on a money judgment of a state court is a percentage rate equal to the sum of the most recent auction rate quoted on a discount basis of a 52-week U.S. Treasury bill and two percentage points. The bill prohibits the assessment or recovery of prejudgment interest on an award of future damages. EFFECTIVE DATE September 1, 2001.