SB231: Bill Text

LRB-3110/1

MJL:kmg:pg

2003 - 2004 LEGISLATURE

2003 Senate BILL 231

August 20, 2003 - Introduced by Senator Schultz, cosponsored by Representative Grothman. Referred to Committee on Judiciary, Corrections and Privacy.

SB231,1,3 An Act to renumber and amend 807.01 (4), 814.04 (4) and 815.05 (8); and to create 807.01 (4) (b), 814.04 (4) (b) and 815.05 (8) (b) of the statutes; relating to: changing the interest rate applicable in court actions.

Analysis by the Legislative Reference Bureau

Under current law, a party in a lawsuit is entitled to interest on the amount of money recovered in a judgment. The interest rate on the amount of money recovered is 12% per year. This bill changes the interest rate to 2% plus the average interest rate for six-month U.S. treasury bills but to never less than 4%. The state treasurer is required to determine the average interest rate for six-month U.S. treasury bills annually and certify that rate to the director of state courts on the first business day in January.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB231, s. 1 Section 1. 807.01 (4) of the statutes is renumbered 807.01 (4) (a) and amended to read:

SB231,2,4 807.01 (4) (a) If there is an offer of settlement by a party under this section which is not accepted and the party recovers a judgment which is greater than or equal to the amount specified in the offer of settlement, the party is entitled to interest at the annual rate of 12% under par. (b) on the amount recovered from the date of the offer of settlement until the amount is paid. Interest under this section is in lieu of interest computed under ss. 814.04 (4) and 815.05 (8).

SB231, s. 2 Section 2. 807.01 (4) (b) of the statutes is created to read:

SB231,2,11 807.01 (4) (b) The interest rate on the amount recovered under par. (a) shall be equal to 2% plus the average interest rate for 6-month U.S. treasury bills during the calendar year preceding the year in which the offer is made, as certified to the director of state courts by the state treasurer on the first business day in January of each year, except that, if that interest rate plus 2% is less than 4%, then 4% shall be the interest rate under this paragraph.

SB231, s. 3 Section 3. 814.04 (4) of the statutes is renumbered 814.04 (4) (a) and amended to read:

SB231,2,17 814.04 (4) (a) Except as provided in s. 807.01 (4), if the judgment is for the recovery of money, interest at the rate of 12% under par. (b) per year from the time of verdict, decision or report until judgment is entered shall be computed by the clerk and added to the costs.

SB231, s. 4 Section 4. 814.04 (4) (b) of the statutes is created to read:

SB231,2,24 814.04 (4) (b) The interest rate on the amount recovered under par. (a) shall be equal to 2% plus the average interest rate for 6-month U.S. treasury bills during the calendar year preceding the year in which the judgment is entered, as certified to the director of state courts by the state treasurer on the first business day in January of each year, except that, if that interest rate plus 2% is less than 4%, then 4% shall be the interest rate under this paragraph.

SB231, s. 5 Section 5. 815.05 (8) of the statutes is renumbered 815.05 (8) (a) and amended to read:

SB231,3,6 815.05 (8) (a) Except as provided in s. 807.01 (4), every execution upon a judgment for the recovery of money shall direct the collection of interest at the rate of 12% under par. (b) per year on the amount recovered from the date of the entry of the judgment until it is paid.

SB231, s. 6 Section 6. 815.05 (8) (b) of the statutes is created to read:

SB231,3,13 815.05 (8) (b) The interest rate on the amount recovered under par. (a) shall be equal to 2% plus the average interest rate for 6-month U.S. treasury bills during the calendar year preceding the year in which the judgment is entered, as certified to the director of state courts by the state treasurer on the first business day of January of each year, except that, if that interest rate plus 2% is less than 4%, then 4% shall be the interest rate under this paragraph.

SB231, s. 7 Section 7 . Nonstatutory provisions.

SB231,3,24 (1) Notwithstanding sections 807.01 (4) (b), 814.04 (4) (b), and 815.05 (8) (b) of the statutes, as created by this act, on the first business day of the 2nd month beginning after the effective date of this subsection, the state treasurer shall certify to the director of state courts the average interest rate for 6-month U.S. treasury bills during the preceding calendar year and that interest rate plus 2% shall be used in sections 807.01 (4) (b), 814.04 (4) (b), and 815.05 (8) (b) of the statutes, as created by this act, until the first business day of the January following the effective date of this subsection, except that, if that interest rate plus 2% is less than 4%, then 4% shall be used in sections 807.01 (4) (b), 814.04 (4) (b), and 815.05 (8) (b) of the statutes, as created by this act.

SB231, s. 8 Section 8. Initial applicability.

SB231,4,2 (1) This act first applies to judgments granted on the effective date of this subsection.

SB231, s. 9 Section 9. Effective dates. This act takes effect on the first day of the 3rd month beginning after publication, except as follows:

SB231,4,5 (1) Section 7 (1) of this act takes effect on the day after publication.

SB231,4,6 (End)