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