HB 226: "An Act relating to interest rates and calculation of interest under certain judgments and decrees and on refunds of certain taxes, royalties, or net profit shares; and providing for an effective date."
00HOUSE BILL NO. 226 01 "An Act relating to interest rates and calculation of interest under certain 02 judgments and decrees and on refunds of certain taxes, royalties, or net profit 03 shares; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 09.30.070 is repealed and reenacted to read: 06 Sec. 09.30.070. INTEREST. (a) Interest shall accrue on a money judgment 07 in a civil case. Interest shall be calculated from the date of entry of the judgment, at 08 a rate equal to the coupon issue yield equivalent (as determined by the secretary of the 09 United States Treasury) of the average accepted auction price for the last auction of 10 fifty-two week United States Treasury bills settled immediately before the date of the 11 judgment, except that a judgment or decree founded on a contract in writing, providing 12 for an interest rate not exceeding the legal rate of interest for that type of contract, 13 bears interest at the rate specified in the contract if the interest rate is set out in the 14 judgment or decree.
01 (b) Except when the court finds that the parties have agreed otherwise, 02 prejudgment interest shall be awarded on a money judgment in a civil case. 03 Prejudgment interest accrues from the date process is served on the defendant or a 04 counterclaim or crossclaim is served on the opposing party if no summons is issued 05 until the entry of judgment. Prejudgment interest shall be calculated at a rate equal 06 to the coupon issue yield equivalent (as determined by the secretary of the United 07 States Treasury) of the average accepted auction price for the last auction of fifty-two 08 week United States Treasury bills settled immediately before the issuance of the 09 summons or filing of the counterclaim or crossclaim. 10 (c) Interest shall be computed daily to the date of payment and may not be 11 compounded. 12 (d) The Alaska Court System shall periodically distribute notice of the interest 13 rate under this section and any changes in it. 14 * Sec. 2. AS 38.05.135(e) is repealed and reenacted to read: 15 (e) If a royalty or net profit share payment to which the state is entitled under 16 AS 38.05.135 - 38.05.181 is overpaid, the amount overpaid bears interest in a calendar 17 quarter at the rate of two percentage points above the annual rate charged member 18 banks for advances by the 12th Federal Reserve District as of the first day of that 19 calendar quarter, compounded quarterly as of the last day of that quarter. However, 20 if the overpayment is the result of a correction made by the department, the amount 21 overpaid bears interest at the rate and in the manner provided in (d) of this section. 22 * Sec. 3. AS 43.05.280(a) is repealed and reenacted to read: 23 (a) If a tax levied under this title is overpaid, the amount overpaid bears 24 interest in a calendar quarter at the rate of two percentage points above the annual rate 25 charged member banks for advances by the 12th Federal Reserve District as of the first 26 day of that calendar quarter, compounded quarterly as of the last day of that quarter. 27 However, if the overpayment is the result of the correction of an assessment or return 28 made by the department, the amount overpaid bears interest at the rate and in the 29 manner provided in AS 43.05.225(1). 30 * Sec. 4. Beginning on the effective date of this Act, postjudgment interest accrues under 31 judgments or decrees in civil cases entered on or after the effective date of this Act, at the rate
01 and in the manner specified in AS 09.30.070 as repealed and reenacted by sec. 1 of this Act. 02 Postjudgment interest accrues under judgments or decrees in civil cases entered before the 03 effective date of this Act at the rate and in the manner specified under law in effect at the 04 time that judgment or decree was entered. 05 * Sec. 5. For claims or causes of action in civil cases for which judgment has not been 06 entered before the effective date of this Act, prejudgment interest accrues before the effective 07 date of this Act at the rate and in the manner specified under law in effect at the time that 08 claim or cause of action occurred. After the effective date of this Act, prejudgment interest 09 accrues on that claim or cause of action at the rate and in the manner specified in 10 AS 09.30.070 as repealed and reenacted by sec. 1 of this Act. 11 * Sec. 6. Beginning on the effective date of this Act, interest accrues on overpayments of 12 royalties, net profit share payments, taxes, and on any interest accrued on them before the 13 effective date of this Act, at the rates and in the manner specified in AS 38.05.135(e) as 14 repealed and reenacted by sec. 2 of this Act and in AS 43.05.280(a) as repealed and reenacted 15 by sec. 3 of this Act. 16 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).