LRB-5488/1
RPN:skg&kaf:kat
1995 - 1996 LEGISLATURE
March 14, 1996 - Introduced by Representatives Green, Lehman, Schneiders,
Goetsch, Nass, Albers, Musser, Freese, Jensen, Ladwig, Hahn, Duff,
Skindrud, Lazich, Vrakas, Owens and Grothman, cosponsored by Senators
Huelsman, Rude, Darling and Rosenzweig. Referred to Committee on
Judiciary.
AB1027,1,3
1An Act to renumber and amend 807.01 (4) and 814.04 (4);
to amend 815.05
2(8); and
to create 807.01 (4) (b) and 814.04 (4) (b) of the statutes;
relating to:
3changing the interest rate applicable to court judgments.
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 the average interest rate for
6-month U.S. treasury bills in all cases, except that the interest rate remains at 12%
per year from the date of entry of judgement unless an appeal is taken. If an appeal
is taken, the 12% per year rate applies from the date of final disposition of the case.
The state treasurer is required to determine that rate annually and certify that rate
to the director of state courts on the first business day in January.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1027, s. 1
4Section
1. 807.01 (4) of the statutes is renumbered 807.01 (4) (a) and amended
5to read:
AB1027,2,36
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
8equal to the amount specified in the offer of settlement, the party is entitled to
1interest at the annual rate
of 12% certified under par. (b) on the amount recovered
2from the date of the offer of settlement until the amount is paid. Interest under this
3section is in lieu of interest computed under ss. 814.04 (4) and 815.05 (8).
AB1027, s. 2
4Section
2. 807.01 (4) (b) of the statutes is created to read:
AB1027,2,95
807.01
(4) (b) The interest rate on the amount recovered under par. (a) shall
6be equal to the average interest rate for 6-month U.S. treasury bills during the
7calendar year preceding the year in which the offer is made, as certified to the
8director of state courts by the state treasurer on the first business day in January of
9each year.
AB1027, s. 3
10Section
3. 814.04 (4) of the statutes is renumbered 814.04 (4) (a) and amended
11to read:
AB1027,2,1512
814.04
(4) (a) Except as provided in s. 807.01 (4), if the judgment is for the
13recovery of money, interest at the rate
of 12% per year certified under par. (b) from
14the time of verdict, decision or report until judgment is entered shall be computed
15by the clerk and added to the costs.
AB1027, s. 4
16Section
4. 814.04 (4) (b) of the statutes is created to read:
AB1027,2,2117
814.04
(4) (b) The interest rate on the amount recovered under par. (a) shall
18be equal to the average interest rate for 6-month U.S. treasury bills during the
19calendar year preceding the year in which the decision, report or verdict is rendered,
20as certified to the director of state courts by the state treasurer on the first business
21day in January of each year.
AB1027, s. 5
22Section
5. 815.05 (8) of the statutes is amended to read:
AB1027,3,423
815.05
(8) Except as provided in
this subsection and s. 807.01 (4), every
24execution upon a judgment for the recovery of money shall direct the collection of
25interest at the rate of 12% per year on the amount recovered from the date of the
1entry
thereof of judgment or, if an appeal is taken, from the date of the final
2disposition, as defined in s. 893.13 (1), until paid.
If appeal is taken, interest from
3the date of entry of judgment until the date of the final disposition, as defined in s.
4893.13 (1), shall be at the rate established under s. 814.04 (4) (b).
AB1027,3,12
6(1) Notwithstanding sections 807.01 (4) (b) and 814.04 (4) (b) of the statutes,
7as created by this act, on the first business day of the 2nd month beginning after the
8effective date of this subsection, the state treasurer shall certify to the director of
9state courts the average interest rate for 6-month U.S. treasury bills during the
10preceding calendar year and that interest rate shall be used in sections 807.01 (4) (b)
11and 814.04 (4) (b) of the statutes, as created by this act, until the first business day
12of the January following the effective date of this subsection.
AB1027,3,15
14(1) This act first applies to judgments granted on the effective date of this
15subsection.
AB1027, s. 8
16Section
8.
Effective dates.This act takes effect on the first day of the 3rd
17month beginning after publication, except as follows:
AB1027,3,18
18(1)
Section 6 of this act takes effect on the day after publication.
