SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 75
As Amended by House Committee on Judiciary
Brief*
SB 75, as amended, would amend law governing the
rate of legal interest for civil tort actions where prejudgment
interest is awarded.
In all civil tort actions filed on or after July 1, 2023, the
rate would be set at two percentage points below the rate
specified as calculated and published by the Secretary of
State each July, as provided by continuing law. [Note: KSA
16-204(e)(1) outlines the calculation and publication schedule
for such rates.]
The bill would also make a technical change.
Background
The bill was introduced by the Senate Committee on
Judiciary at the request of a representative of the Kansas
Chamber of Commerce.
Senate Committee on Judiciary
In the Senate Committee hearing on February 8, 2023,
proponent testimony was provided by representatives of the
Kansas Chamber of Commerce and the American Tort
Reform Association, who stated that the objective of the bill
was for pre-judgment interest rates to reflect real-world
market conditions.
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
A representative of the Kansas Trial Lawyers
Association (KTLA) provided opponent testimony,
expressing concerns with using a variable rate of interest
instead of a fixed rate in legal judgments. Written-only
opponent testimony was provided by a representative of the
Kansas Credit Attorney Association.
The Senate Committee amended the bill to make the
interest rate applicable to only civil tort actions.
House Committee on Judiciary
In the House Committee hearing on March 14, 2023,
proponent testimony was provided by representatives of the
American Tort Reform Association, Kansas Chamber of
Commerce, and KTLA, who stated that the objective of the
bill was for pre-judgment interest rates to reflect real-world
market conditions. An amendment was also suggested by the
representative of KTLA.
Written-only opponent testimony was provided by a
representative of the Kansas Credit Attorney Association.
The House Committee amended the bill to specify the
new interest rate would apply to civil actions filed on or after
July 1, 2023.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Office of Judicial
Administration states enactment of the bill would have a
negligible fiscal effect on the operations of the Judicial
Branch.
Civil judgments; legal interest rate; percentage rate; tort actions
2- 75
Statutes affected: As introduced: 16-201
As Amended by Senate Committee: 16-201
As Amended by House Committee: 16-201, 16-204
Enrolled: 16-201, 16-204