Summary of the Committee Version of the Bill

HCS HB 1935 -- INTEREST RATES

SPONSOR: Franz

COMMITTEE ACTION: Voted "do pass" by the Committee on General

Laws by a vote of 10 to 4.

This substitute changes the laws regarding the application of a

specific interest rate. The interest rate will be the adjusted

prime rate charged by banks as determined by the Department of

Revenue or the adjusted prime rate plus 1% for certain interest

rates used by the Director of the Department of Revenue, late

payments by the state for supplies and services, late payments by

public entities to contractors, repayment of teaching degree

scholarships, workers’ compensation benefit payments, delinquent

workers’ compensation taxes, nursing student loans, creditor

claims on written contracts that did not specify the rate of

interest, judgments in tort cases, securities litigation, loans

to political subdivisions for alternative fuel vehicles, failure

to pay the odorized propane assessment, certain payments by and

to the Land Reclamation Commission within the Department of

Natural Resources, unclaimed property that the holder fails to

pay the State Treasurer, overpayments by the Department of Mental

Health to vendors, and judgments against air contaminant sources

that have not paid fees.

FISCAL NOTE: Estimated Net Cost on General Revenue Fund of

Unknown in FY 2013, FY 2014, and FY 2015. Estimated Net Cost on

Other State Funds of $11,375 in FY 2013, FY 2014, and FY 2015.

PROPONENTS: Supporters say that the bill makes the rate uniform

across all areas.

Testifying for the bill were Representative Franz; and Missouri

Chamber of Commerce and Industry.

OPPONENTS: There was no opposition voiced to the committee.

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