Bill Text: AZ SB1059 | 2024 | Fifty-sixth Legislature 2nd Regular | Chaptered
Bill Title: Judgments; interest rates
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2024-03-18 - Chapter 3 [SB1059 Detail]
Download: Arizona-2024-SB1059-Chaptered.html
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Senate Engrossed
judgments; interest rates |
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State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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CHAPTER 3
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SENATE BILL 1059 |
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An Act
amending section 44-1201, Arizona Revised Statutes; relating to interest rates.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 44-1201, Arizona Revised Statutes, is amended to read:
44-1201. Rate of interest for loan or indebtedness; interest on judgments; definitions
A. Interest on any loan, indebtedness or other obligation shall be as follows:
1. The maximum interest rate on medical debt shall be the lesser of the following:
(a) The annual rate equal to the weekly average one-year constant maturity treasury yield, as published by the board of governors of the federal reserve system, for the calendar week preceding the date when the consumer was first provided with a bill, or
(b) Three percent a year.
The maximum interest rate provided pursuant to this paragraph also applies to any judgments on medical debt.
2. For any loan, indebtedness or obligation other than medical debt, interest shall be at the rate of ten per cent per annum percent a year, unless a different rate is contracted for in writing, in which event any rate of interest may be agreed to. Interest on any judgment, other than a judgment on medical debt, that is based on a written agreement evidencing a loan, indebtedness or obligation that bears a rate of interest not in excess of the maximum permitted by law shall be at the rate of interest provided in the agreement and shall be specified in the judgment.
B. Unless specifically provided for in statute or a different rate is contracted for in writing, interest on any judgment other than a judgment on medical debt shall be at the lesser of ten per cent per annum percent a year or at a rate per annum year that is equal to one per cent percent plus the prime rate as published by the board of governors of the federal reserve system in statistical release H.15 or any publication that may supersede it on the date that the judgment is entered. A change in the rate that is PRescribed in this subsection takeS effect on the first business day following publication by the federal reserve. The judgment shall state the applicable interest rate and it shall not change after it is entered.
C. Interest on a judgment on a condemnation proceeding, including interest that is payable pursuant to section 12-1123, subsection B, shall be payable as follows:
1. If instituted by a city or town, at the rate prescribed by section 9-409.
2. If instituted by a county, at the rate prescribed by section 11-269.04.
3. If instituted by the department of transportation, at the rate prescribed by section 28-7101.
4. If instituted by a county flood control district, a power district or an agricultural improvement district, at the rate prescribed by section 48-3628.
D. A court shall not award either of the following:
1. Prejudgment interest for any unliquidated damages, future damages, punitive damages or exemplary damages that are found by the trier of fact.
2. Interest for any future DAMAGES, punitive DAMAGES or exemplary damages that are found by the trier of fact.
E. For the purposes of subsection D of this section, "future damages" means damages that will be incurred after the date of the judgment and includes the costs of any injunctive or equitable relief that will be provided after the date of the judgment.
F. If awarded, prejudgment interest shall be at the rate described in subsection A or B of this section.
G. For the purposes of this section:
1. "Health care services" means services provided at or by any of the following:
(a) Health care institutions as defined in section 36-401.
(b) Private offices or clinics of health care providers licensed under title 32, chapters 7, 11, 13, 15, 15.1, 16, 17, 18, 19, 19.1, 25, 28, 33, 34, or 35.
(c) Ambulances or ambulance services as defined in section 36-2201.
2. "Medical debt" means a loan, indebtedness or other obligation arising directly from the receipt of health care services or of medical products or devices.
APPROVED BY THE GOVERNOR MARCH 18, 2024.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MARCH 18, 2024.
