This bill eliminates the separate interest rate for a judgment or award over $50,000. Under current law, the state court administrator is responsible for setting the judgment interest rate based on the secondary market yield of one year United States Treasury bills. This applies to a judgment of $50,000 or less, a judgment in an action involving the state or a political subdivision, or a family court action, regardless of the amount. For a judgment or award over $50,000, the interest rate is ten percent per year.
This bill eliminates the higher interest rate for a judgment or award over $50,000. In addition, language is included specifying that this section does not apply to a judgment or award under section 60A.0811, which governs recovery of interest for breach of an insurance policy. The interest rate under that statute is ten percent.