Washington State House of Representatives Office of Program Research | BILL ANALYSIS |
Judiciary Committee |
ESB 6764
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
Title: An act relating to accrual of interest on judgments founded on tortious conduct.
Brief Description: Regarding accrual of interest on judgments founded on tortious conduct.
Sponsors: Senators Gordon, Pflug, Oemig, McCaslin, Kline and Hargrove.
Brief Summary of Engrossed Bill |
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Hearing Date: 2/18/10
Staff: Rebecca Jones (786-5793) and Trudes Tango (786-7384).
Background:
Tort judgments accrue interest from the date of entry of the judgment at a rate prescribed by law. The maximum permissible interest rate under the general usury law is the higher of 12 percent or 4 percentage points above the equivalent coupon issue yield of the average bill rate for 26-week treasury bills (T-bills). In 2004, the Legislature changed the interest rate on a tort judgment from the maximum permissible interest rate to a rate of 2 percentage points above the 26-week T-bill rate.
A public agency is defined as: (a) any state board, commission, committee, department, educational institution, or other state agency which is created by statute, other than courts and the legislature; (b) any county, city, school district, special purpose district, or other municipal corporation or political subdivision of the state of Washington; (c) any sub-agency of a public agency which is created by statute, ordinance, or other legislative act, including but not limited to planning commissions, library or park boards, commissions, and agencies; or (d) any policy group whose membership includes representatives of publicly owned utilities.
Summary of Bill:
The interest rate on judgments arising from the tortious conduct of a public agency, nonprofit or charitable organization employing fewer than 50 people, or a business employing fewer than 50 people remains at 2 percentage points above the 26-week T-bill rate.
The interest rate on judgments arising from the tortious conduct of any other person or entity is the higher of 12 percent or 4 percentage points above the 26-week T-bill rate.
The act is to be known and cited as the Appellate Congestion Reduction Act.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.