HOUSE FILE 311

BY  HORBACH

(COMPANION TO LSB 1780SS BY WARD)

A BILL FOR

An Act relating to the interest rate on weekly workers’ compensation payments that are not paid when due and including applicability date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 535.3, subsection 1, Code 2011, is amended to read as follows:
   1.  Interest shall be allowed on all money due on judgments and decrees of courts at a rate calculated according to section 668.13, except. However, for interest due pursuant to section 85.30 for which the rate shall be ten percent per year interest shall accrue from the date each weekly compensation payment is due at an annual rate equal to the one-year treasury constant maturity published by the federal reserve in the H15 report settled immediately prior to or on July 1 each year plus two percent, applicable to all weekly compensation payments due during the fiscal year beginning on July 1 and ending the following June 30.
   Sec. 2.  APPLICABILITY.  This Act applies to interest due pursuant to section 85.30 on weekly compensation payments payable for personal injuries arising out of and in the course of employment under chapters 85, 85A, and 85B, that occur on or after July 1, 2011.
EXPLANATION
   This bill provides that the interest rate on weekly workers’ compensation payments that are not paid when due is equal to the one-year treasury constant maturity published by the federal reserve in the H15 report settled immediately prior to July 1 plus 2 percent for all weekly compensation payments due during the fiscal year beginning on July 1 and ending the following June 30. The bill is applicable to injuries compensable under the state’s workers’ compensation laws that occur on or after July 1, 2011. Currently, the interest rate on such weekly workers’ compensation payments not paid when due, is 10 percent per year.