LRB-1766/1
TKK:jld:jm
2015 - 2016 LEGISLATURE
March 23, 2015 - Introduced by Senators Nass, Wanggaard and LeMahieu,
cosponsored by Representatives Thiesfeldt, Murtha, Edming, Murphy, T.
Larson
, Born, R. Brooks, E. Brooks, Kulp, Loudenbeck, Kahl, Czaja,
Kooyenga, Ripp, Ballweg, Craig and Tittl. Referred to Committee on
Judiciary and Public Safety.
SB76,1,3 1An Act to renumber and amend 807.01 (4) and 815.05 (8); to amend 814.04
2(4); and to create 807.01 (4) (b) and 815.05 (8) (b) of the statutes; relating to:
3interest rates on judgments in small claims actions.
Analysis by the Legislative Reference Bureau
Under current law, interest accrues on a judgment involving the recovery of
money at an annual rate of 1 percent plus the prime rate in effect on January 1 of
the year in which the judgment is entered if the judgment is entered on or before June
30 of that year or in effect on July 1 of the year the judgment is entered if entered after
June 30 of that year, as reported by the Federal Reserve Board, until the amount is
paid. Current law also provides that, if an offer of settlement is made and rejected,
the party making the offer of settlement prevails, and the judgment is greater than
or equal to the offer of settlement, interest accrues on the amount recovered at the
rate of 1 percent plus the prime rate in effect on January 1 of the year in which the
judgment is entered if the judgment is entered on or before June 30 of that year or
in effect on July 1 of the year the judgment is entered if entered after June 30 of that
year from the date on which the offer of settlement is made until the amount is paid.
Current law establishes certain procedures to be followed in small claims
actions brought in circuit court. Small claims actions include eviction actions,
actions to recover earnest money given towards the purchase of real property, and
certain other civil actions on which the amount claimed is $10,000 or less.
This bill changes the interest rate on judgments for the recovery of money in
small claims actions to 12 percent per year. This bill also changes the interest rate

on amounts recovered by a party who prevails in a small claims action after that
party made an offer of settlement that was rejected to 12 percent per year from the
day on which the offer of settlement is made until the amount is paid.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB76,1 1Section 1. 807.01 (4) of the statutes is renumbered 807.01 (4) (a) and amended
2to read:
SB76,2,133 807.01 (4) (a) If Except as provided in par. (b), if there is an offer of settlement
4by a party under this section which is not accepted and the party recovers a judgment
5which is greater than or equal to the amount specified in the offer of settlement, the
6party is entitled to interest at an annual rate equal to 1 percent plus the prime rate
7in effect on January 1 of the year in which the judgment is entered if the judgment
8is entered on or before June 30 of that year or in effect on July 1 of the year in which
9the judgment is entered if the judgment is entered after June 30 of that year, as
10reported by the federal reserve board in federal reserve statistical release H. 15, on
11the amount recovered from the date of the offer of settlement until the amount is
12paid. Interest under this section paragraph is in lieu of interest computed under ss.
13814.04 (4) and 815.05 (8).
SB76,2 14Section 2. 807.01 (4) (b) of the statutes is created to read:
SB76,2,2015 807.01 (4) (b) If, in an action under ch. 799, there is an offer of settlement by
16a party under this section which is not accepted and the party recovers a judgment
17which is greater than or equal to the amount specified in the offer of settlement, the
18party is entitled to interest at an annual rate of 12 percent on the amount recovered
19from the date of the offer of settlement until the amount is paid. Interest under this
20paragraph is in lieu of interest computed under ss. 814.04 (4) and 815.05 (8).
SB76,3
1Section 3. 814.04 (4) of the statutes is amended to read:
SB76,3,102 814.04 (4) Interest on verdict. Except as provided in s. ss. 807.01 (4) and
3815.05 (8)
, if the judgment is for the recovery of money, interest at an annual rate
4equal to 1 percent plus the prime rate in effect on January 1 of the year in which the
5judgment is entered if the judgment is entered on or before June 30 of that year or
6in effect on July 1 of the year in which the judgment is entered if the judgment is
7entered after June 30 of that year, as reported by the federal reserve board in federal
8reserve statistical release H. 15, on the amount of the money judgment from the time
9of verdict, decision, or report until judgment is entered shall be computed by the clerk
10and added to the costs.
SB76,4 11Section 4. 815.05 (8) of the statutes is renumbered 815.05 (8) (a) and amended
12to read:
SB76,3,2013 815.05 (8) (a) Except as provided in par. (b) and s. 807.01 (4), every execution
14upon a judgment for the recovery of money shall direct the collection of interest at
15an annual rate equal to 1 percent plus the prime rate in effect on January 1 of the
16year in which the judgment is entered if the judgment is entered on or before June
1730 of that year or in effect on July 1 of the year in which the judgment is entered if
18the judgment is entered after June 30 of that year, as reported by the federal reserve
19board in federal reserve statistical release H. 15, on the amount recovered from the
20date of the entry of the judgment until it is paid.
SB76,5 21Section 5. 815.05 (8) (b) of the statutes is created to read:
SB76,3,2522 815.05 (8) (b) An execution upon a judgment for the recovery of money in an
23action under ch. 799 shall direct the collection of interest at an annual rate of 12
24percent on the amount recovered from the date of the entry of judgment until it is
25paid.
SB76,6
1Section 6. Initial applicability.
SB76,4,32 (1) This act first applies to a judgment entered on the effective date of this
3subsection.
SB76,4,44 (End)
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