H-2215.1          _______________________________________________

                            SUBSTITUTE HOUSE BILL 1175

                  _______________________________________________

State of Washington              54th Legislature             1995 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives L. Thomas, Beeksma and Huff; by request of Department of General Administration)

Read first time 02/28/95.

Revising the rate of interest on tort judgments against the state and political subdivisions.

     AN ACT Relating to interest on tort judgments; and amending RCW 4.56.115 and 4.56.110.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     Sec. 1.  RCW 4.56.115 and 1983 c 147 s 2 are each amended to read as follows:

     Judgments founded on the tortious conduct of the state of Washington or of the political subdivisions, municipal corporations, and quasi municipal corporations of the state, whether acting in their governmental or proprietary capacities, shall bear interest from the date of entry at four percentage points above the ((maximum rate permitted under RCW 19.52.020 on)) equivalent coupon issue yield (as published by the board of governors of the federal reserve system) of the average bill rate for twenty-six week treasury bills as determined at the first bill market auction conducted during the calendar month immediately preceding the date of entry thereof((:  PROVIDED, That)).  In any case where a court is directed on review to enter judgment on a verdict or in any case where a judgment entered on a verdict is wholly or partly affirmed on review, interest on the judgment or on that portion of the judgment affirmed shall date back to and shall accrue from the date the verdict was rendered.

     Sec. 2.  RCW 4.56.110 and 1989 c 360 s 19 are each amended to read as follows:

     Interest on judgments shall accrue as follows:

     (1) Judgments founded on written contracts, providing for the payment of interest until paid at a specified rate, shall bear interest at the rate specified in the contracts:  PROVIDED, That said interest rate is set forth in the judgment.

     (2) All judgments for unpaid child support that have accrued under a superior court order or an order entered under the administrative procedure act shall bear interest at the rate of twelve percent.

     (3) Except as provided under subsections (1) and (2) of this section, judgments shall bear interest from the date of entry at four percentage points above the ((maximum rate permitted under RCW 19.52.020 on)) equivalent coupon issue yield (as published by the board of governors of the federal reserve system) of the average bill rate for twenty-six week treasury bills as determined at the first bill market auction conducted during the calendar month immediately preceding the date of entry thereof((:  PROVIDED, That)).  In any case where a court is directed on review to enter judgment on a verdict or in any case where a judgment entered on a verdict is wholly or partly affirmed on review, interest on the judgment or on that portion of the judgment affirmed shall date back to and shall accrue from the date the verdict was rendered.

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