August 4, 2003 - Introduced by Representatives Grothman, Kestell, Ainsworth,
Albers, Friske, Gunderson, Gundrum, Hahn, Hines, Hundertmark,
Krawczyk, Kreibich, Ladwig, F. Lasee, M. Lehman, LeMahieu, McCormick,
Musser, Olsen, Ott, Owens, Petrowski, Seratti, Van Roy
and Bies,
cosponsored by Senators Schultz, Lazich, Reynolds and Risser. Referred to
Committee on Judiciary.
AB456,1,3 1An Act to renumber and amend 807.01 (4), 814.04 (4) and 815.05 (8); and to
2create
807.01 (4) (b), 814.04 (4) (b) and 815.05 (8) (b) of the statutes; relating
3to:
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:
AB456, s. 1 4Section 1. 807.01 (4) of the statutes is renumbered 807.01 (4) (a) and amended
5to read:
AB456,2,46 807.01 (4) (a) If there is an offer of settlement by a party under this section
7which is not accepted and the party recovers a judgment which is greater than or

1equal to the amount specified in the offer of settlement, the party is entitled to
2interest at the annual rate of 12% under par. (b) on the amount recovered from the
3date of the offer of settlement until the amount is paid. Interest under this section
4is in lieu of interest computed under ss. 814.04 (4) and 815.05 (8).
AB456, s. 2 5Section 2. 807.01 (4) (b) of the statutes is created to read:
AB456,2,116 807.01 (4) (b) The interest rate on the amount recovered under par. (a) shall
7be equal to 2% plus the average interest rate for 6-month U.S. treasury bills during
8the calendar year preceding the year in which the offer is made, as certified to the
9director of state courts by the state treasurer on the first business day in January of
10each year, except that, if that interest rate plus 2% is less than 4%, then 4% shall be
11the interest rate under this paragraph.
AB456, s. 3 12Section 3. 814.04 (4) of the statutes is renumbered 814.04 (4) (a) and amended
13to read:
AB456,2,1714 814.04 (4) (a) Except as provided in s. 807.01 (4), if the judgment is for the
15recovery of money, interest at the rate of 12% under par. (b) per year from the time
16of verdict, decision or report until judgment is entered shall be computed by the clerk
17and added to the costs.
AB456, s. 4 18Section 4. 814.04 (4) (b) of the statutes is created to read:
AB456,2,2419 814.04 (4) (b) The interest rate on the amount recovered under par. (a) shall
20be equal to 2% plus the average interest rate for 6-month U.S. treasury bills during
21the calendar year preceding the year in which the judgment is entered, as certified
22to the director of state courts by the state treasurer on the first business day in
23January of each year, except that, if that interest rate plus 2% is less than 4%, then
244% shall be the interest rate under this paragraph.
AB456, s. 5
1Section 5. 815.05 (8) of the statutes is renumbered 815.05 (8) (a) and amended
2to read:
AB456,3,63 815.05 (8) (a) Except as provided in s. 807.01 (4), every execution upon a
4judgment for the recovery of money shall direct the collection of interest at the rate
5of 12% under par. (b) per year on the amount recovered from the date of the entry of
6the judgment until it is paid.
AB456, s. 6 7Section 6. 815.05 (8) (b) of the statutes is created to read:
AB456,3,138 815.05 (8) (b) The interest rate on the amount recovered under par. (a) shall
9be equal to 2% plus the average interest rate for 6-month U.S. treasury bills during
10the calendar year preceding the year in which the judgment is entered, as certified
11to the director of state courts by the state treasurer on the first business day of
12January of each year, except that, if that interest rate plus 2% is less than 4%, then
134% shall be the interest rate under this paragraph.
AB456, s. 7 14Section 7 . Nonstatutory provisions.
AB456,3,2415 (1) Notwithstanding sections 807.01 (4) (b), 814.04 (4) (b), and 815.05 (8) (b) of
16the statutes, as created by this act, on the first business day of the 2nd month
17beginning after the effective date of this subsection, the state treasurer shall certify
18to the director of state courts the average interest rate for 6-month U.S. treasury
19bills during the preceding calendar year and that interest rate plus 2% shall be used
20in sections 807.01 (4) (b), 814.04 (4) (b), and 815.05 (8) (b) of the statutes, as created
21by this act, until the first business day of the January following the effective date of
22this subsection except that, if that interest rate plus 2% is less than 4%, then 4% shall
23be used in sections 807.01 (4) (b), 814.04 (4) (b), and 815.05 (8) (b) of the statutes, as
24created by this act.
AB456, s. 8 25Section 8. Initial applicability.
AB456,4,2
1(1) This act first applies to judgments granted on the effective date of this
2subsection.
AB456, s. 9 3Section 9. Effective dates. This act takes effect on the first day of the 3rd
4month beginning after publication, except as follows:
AB456,4,55 (1) Section 7 of this act takes effect on the day after publication.
AB456,4,66 (End)
Loading...
Loading...