House File 383 - Introduced
HOUSE FILE
BY ANDERSON and FORRISTALL
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the payment of interest on certain workers'
2 compensation benefit payments and providing an applicability
3 date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2348HH 82
6 av/gg/14
PAG LIN
1 1 Section 1. Section 535.3, subsection 1, Code 2007, is
1 2 amended to read as follows:
1 3 1. Interest shall be allowed on all money due on judgments
1 4 and decrees of courts at a rate calculated according to
1 5 section 668.13, except for. However, interest due pursuant to
1 6 section 85.30 for which the rate shall be ten percent per year
1 7 shall accrue from the date each compensation payment is due at
1 8 a yearly rate equal to the one=year treasury constant maturity
1 9 published by the federal reserve in the H15 report settled
1 10 immediately prior to or on July 1 plus two percent. This rate
1 11 is applicable to all such compensation payments due during
1 12 each fiscal year beginning on July 1 and ending the following
1 13 June 30.
1 14 Sec. 2. APPLICABILITY DATE. This Act is applicable to
1 15 compensation payments due for personal injuries arising out of
1 16 and in the course of employment under chapters 85, 85A, and
1 17 85B that occur on or after July 1, 2007.
1 18 EXPLANATION
1 19 This bill amends Code section 535.3 to provide that the
1 20 interest rate on overdue payments of weekly workers'
1 21 compensation benefits pursuant to Code section 85.30 shall
1 22 accrue from the date each such payment is due at a yearly rate
1 23 equal to the one=year treasury constant maturity published by
1 24 the federal reserve in the H15 report settled immediately
1 25 prior to or on July 1 plus 2 percent. This is the same rate
1 26 of interest that is allowed on judgments and decrees of
1 27 courts. Currently, the interest rate for such overdue
1 28 payments is 10 percent per year.
1 29 The bill also provides that the interest rate is applicable
1 30 to all such compensation payments due during each fiscal year
1 31 beginning on July 1 and ending the following June 30 for
1 32 personal injuries arising out of and in the course of
1 33 employment that occur on or after July 1, 2007.
1 34 LSB 2348HH 82
1 35 av:nh/gg/14