Date: 03/08/2012

Final
BILL SUMMARY for HB12-1305

HOUSE COMMITTEE ON JUDICIARY

Votes: View--> Action Taken:
Adopt prepared amdendment L.001 (Attachment N). Th
Refer House Bill 12-1305, as amended, to the Commi		PASS
PASS



06:37 PM -- House Bill 12-1305

Representative Gardner, prime sponsor, presented House Bill 12-1305 concerning statutory rates of interest. Under current law, when no prior agreement exists or another provision of law specifies a different interest rate, creditors will receive interest at 8.0 percent. House Bill 12-1305 alters this statutory interest rate from a fixed rate to a floating rate; specifically, the statutory interest rate is changed from 8.0 percent to 2.0 percentage points above the discount rate a commercial bank pays to the Federal Reserve Bank of Kansas City on January 2nd of the year the moneys are due. This statute applies primarily to two private parties involved in a civil suit, although it is possible for the state to be one of the parties.

The bill also alters the day the statutory pre-judgement and post-judgement interest rate for personal injury cases is certified by the Secretary of State from January 1 to January 2 of a given year. The interest rate will remain 2 percentage points above the discount rate a commercial bank pays to the Federal Reserve Bank of Kansas City.

Representative Gardner responded to questions from the committee.

06:58 PM -- Darin Schanker, representing the Colorado Trial Lawyers' Association, testified in opposition to the bill. Mr. Schanker stated his opinion that the bill gives insurance companies an incentive to delay paying legitimate claims. He explained current law on this subject. He responded to questions from the committee.

07:12 PM -- Casey Quillen, representing the Colorado Defense Lawyers' Association, testified in support of the bill. Ms. Quillen stated her support for a simple and unified interest scheme. She discussed current law on this subject. She responded to questions from the committee.

07:24 PM -- Lee Mickus, representing the Colorado Civil Justice League, testified in support of the bill. Mr. Mickus discussed the current statutory rates of interest and responded to questions from the committee.
BILL:HB12-1305
TIME: 07:42:17 PM
MOVED:Gardner B.
MOTION:Adopt prepared amendment L.001 (Attachment N). The motion passed on a vote of 8-2, with 1 excused.

HseJud0308AttachN.pdf
SECONDED:DelGrosso
VOTE
DelGrosso
Yes
Duran
Excused
Kagan
No
Lee
Yes
Nikkel
Yes
Pabon
No
Ryden
Yes
Sonnenberg
Yes
Waller
Yes
Barker
Yes
Gardner B.
Yes
YES: 8 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:HB12-1305
TIME: 07:44:06 PM
MOVED:Gardner B.
MOTION:Refer House Bill 12-1305, as amended, to the Committee of the Whole. The motion passed on a vote of 6-4, with 1 excused.
SECONDED:Waller
VOTE
DelGrosso
Yes
Duran
Excused
Kagan
No
Lee
No
Nikkel
Yes
Pabon
No
Ryden
No
Sonnenberg
Yes
Waller
Yes
Barker
Yes
Gardner B.
Yes
Final YES: 6 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS



07:47 PM

The committee adjourned.