Maine Legislature, Session 121, LD 1132
Committee Amendment CA_A_H393 (House)
Amends: 10 MRSA §1114, 14 MRSA §1502-D, 14 MRSA §1602, 14 MRSA §1602-A, 14 MRSA §7487, 14 MRSA §8115, 22 MRSA §2172, 22 MRSA §2498, 22 MRSA §7946

COMMITTEE AMENDMENT "A" 
Act To Simplify Calculation of 
to H.P. 835, L.D. 1132, Bill, "An 
Legal Interest" 
Amend the bill by inserting after the title and before the 
enacting clause the following: 
'Emergency pre~ .. ~.jie. Whereas, Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies: and 
Whereas, the unification of 
the District Court 
and 
the 
Superior Court became effective on January 1, 2001; and 
Whereas, since that date, 
there 
has 
been 
ambiguity 
and 
confusion 
regarding 
the 
proper 
methodology 
for 
calculating 
prejudgment and post-judgment interest; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore,' 
Further amend the bill by striking out everything after the 
enacting clause and before the summary and inserting in its place 
the following: 
'Sec. 1. 10 MRS A §1113, sub-§4, as enacted by PL 1993, c. 46l, 
§1, is amended to read: 
4. 
Delayed payments. 
Except as otherwise agreed, if any 
progress or final payment to a contractor is delayed beyond the 
Page l-LR0834(2) 
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COMMITTEE AMENDMENT "~,, to H.P. 835, L.D. 1132 
due date established in subsection 3, the owner shall pay the 
contractor interest on any unpaid balance due beginning on the 
21st day, at an interest rate equal to that specified in Title 
14, section 1a96-AT-6Qb6ee~i9B-6 1602-C. 
Sec. 2. 10 MRSA §1114, sub-§4, as enacted by PL 1993, c. 461, 
§l, is amended to read: 
4. 
Delayed 
payments. 
Notwithstanding 
any 
contrary 
agreement, if any progress or final payment to a subcontractor or 
material supplier is delayed beyond the due date established in 
subsection 2 or 3, the contractor or subcontractor shall pay its 
subcontractor or material supplier interest on any unpaid balance 
due beginning on the next day, at an interest rate equal to that 
specified in Title 14, section 1a96-AT-6Qb6ee~i9B-6 l602-C. 
Sec. 3. 14 MRSA §1502-D, as amended by PL 1989, c. 360, is 
further amended to read: 
SIS02-D. 
Taxing of costs; hearing 
The clerk shall set costs under section l502-B and interest 
under section 1a96 l602-B to the extent they appear from the 
record. 
The prevailing party or the prevailing party's attorney 
may submit a bill of costs for all other costs or interest to the 
court not later than 10 days after entry of judgment and serve 
copies on all parties who have appeared and may be required to 
pay these costs. 
Any party required to pay all or any part of 
these 
costs, 
except 
a 
party 
who 
is defaulted 
and 
has 
not 
appeared, 
may, 
within 
days 
after 
the 
date 
of 
service, 
challenge any items of cost or interest and request review by the 
court. 
The prevailing party shall, 
within 10 
days after 
a 
challenge, 
submit to the court any vouchers or other records 
verifying any challenged items of cost or interest. 
Either side 
may request oral argument and submit affidavits and briefs. 
An 
evidentiary hearing on the reasonableness of costs or interest 
will be held only when the judge determines that there exists a 
substantial need for the hearing and the amount of challenged 
costs 
or 
interest are 
substantial. 
If the presiding 
judge 
determines that the imposition of costs will cause a significant 
financial hardship to any party, the judge may waive all or part 
of the costs with respect to that party. 
Sec. 4. 14 MRSA §1602, as amended by PL 2001, c. 471, Pt. D, 
§13, is repealed. 
Sec. 5. 14 MRSA §1602-A, as amended by PL 2001, c. 471, Pt. 
D, §14, is repealed. 
Sec. 6. 14 MRSA §§1602-B and 1602-C are enacted to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "R" to It.P. 835, L.D. 1132 
§1602-B. 
Interest before judgment 
L 
Rate. 
In 
all 
civil 
and 
small 
claims 
actions, 
prejudgment interest is allowed at a rate egual to: 
A. 
In actions involving a contract or note that contains a 
provision relating to interest. the rate set forth in the 
contract or note; and 
B. 
In all other actions, the bank prime loan interest rate, 
as 
published by the Board of Governors 
of the Federal 
Reserve System, on the first business day in January of the 
year in which prejudgment interest begins to accrue pursuant 
to subsection 2, plus 3%. 
The applicable prejudgment interest rate must be stated in the 
judgment. 
2. 
Accrual; 
suspension; 
waiver. 
Prejudgment 
interest 
accrues from the time of notice of claim setting forth under oath 
the 
cause of action, 
served personally or 
by registered or 
certified mail upon the defendant until the date on which an 
order of judgment is entered. 
If a notice of claim has not been 
given to the defendant. prejudgment interest accrues from the 
date on which the complaint is filed. 
In actions involving a 
contract or note that contains a provision relating to interest, 
the rate of interest is fixed as of the time the notice of claim 
is given or, if a notice of claim has not been given, as of the 
date on which the complaint is filed. 
If the prevailing party at 
any time reguests and obtains a 
continuance for a period in 
excess of 30 days, interest is suspended for the duration of the 
continuance. 
On petition of the nonprevailing party and on a 
showing of good cause, the trial court may order that interest 
awarded by this section be fully or partially waived. 
3. 
Effect on post-judgment interest. 
This section does not 
affect 
post-jUdgment 
interest 
imposed 
by 
section 
l602-C. 
Prejudgment interest may not be added to the judgment amount in 
determining the Sum upon which post-judgment interest accrues. 
§1602-C. 
Interest after judgment 
L 
Rate. 
In 
all 
civil 
and 
small 
claims 
actions, 
post-judgment interest is allowed at a rate egual to: 
A. 
In actions involving a contract or note that contains a 
provision relating to interest. the rate set forth in the 
contract or note or the rate in paragraph B, whichever is 
greater: and 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. /}.. to H.P. 835, L.D. 1132 
B. 
In all other actions, the bank prime loan interest rate, 
as 
published by the 
Board of Governors 
of 
the Federal 
Reserve System, on the first business day in January of the 
year 
in 
which 
post-jUdgment 
interest 
begins 
to 
accrue 
pursuant to subsection 2, plus 6%. 
The applicable post-judgment interest rate must be stated in the 
judgment. 
2. 
Accrual: 
suspension: 
waiver. 
Post-judgment interest 
accrues from and after the date of entry of judgment, including 
during 
the 
pendency 
of 
an 
appeal. 
In actions 
inVOlving 
a 
contract or note that contains a provision relating to interest, 
the rate of interest is fixed as of the date of judgment. 
If the 
prevailing party at any time requests and obtains a continuance 
for a period in excess of 30 days, interest is suspended for the 
duration of the continuance. 
On petition of the nonprevailing 
party and on a showing of good cause, the trial court may order 
that interest awarded by this section be fully or partially 
waived. 
Sec. 7. 14 MRSA §7487, as enacted by PL 1999, c. 109, §l, is 
amended to read: 
§7487. 
Interest 
A person who is awarded a money judgment in a small claims 
action is entitled to post-judgment interest in accordance with 
section 1996-A 1602-C. 
Sec. 8. 14 MRSA §8115, sub-§2, as enacted by PL 1977, c. 2, 
§2, is amended to read: 
2. 
Subdivision· s 
plan for payment. In the event that a 
political subdivision has not procured insurance, the trial judge 
may accept a reasonable plan for the payment of the amount of the 
judgment. A payment plan slla;!,;!, may not exceed 5 yearsT and may 
include interest at the rate provided in section 1996 l602-C. 
Sec. 9. IS-A MRSA §3-S06, sub-§(d), as amended by PL 1997, c. 
202, §1, is further amended to read: 
(d) 
Unless otherwise provided in any judgment in another 
court entered against the personal representative, allowed claims 
bear prejudgment interest at the rate specified in Title 14, 
section 1996T--s-ubse-<l-t-i-{)n--h--p<H'"-aEF-aph--A 1602-B for the period 
commencing 60 days after the time for original presentation of 
the 
claim has expired unless based on 
a 
contract making 
a 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. If· to H.P. 835. L.D. 1132 
provision for interest, 
in which case they bear interest in 
accordance with that provision. 
(1) 
Interest may not accrue on any allowed claims, however 
allowed, against an insolvent estate, except to the extent 
that insurance 
coverage 
or 
other 
nonprobate 
assets 
are 
available to pay the claim in full. 
This paragraph is 
effective for estates of decedents who 
die on or after 
October 1, 1997. 
(2) 
To 
the 
extent that 
an 
allowed 
claim 
against 
an 
insolvent estate is secured by property, the value of which, 
as 
determined under section 3-809, 
is greater than the 
amount of the claim, the holder of the claim may receive 
interest on the principal amount 
of the 
claim and 
any 
reasonable fees, 
costs or charges provided for under an 
agreement under which the claim arose. 
This paragraph is 
effective for estates of decedents 
who 
die on or after 
October 1, 1997. 
Sec. 10. 22 MRSA §2172, sub-§3, ,B, as enacted by PL 1991, c. 
837, Pt. A, §49, is amended to read: 
B. 
Licensees that are fined pursuant to this chapter are 
required to pay the department the amount of the penalties. 
If a licensee has not paid any collectible fine by the time 
of license renewal, the department may collect the fine by 
requiring payment prior to the processing of any license 
renewal application. 
An appeal of the department's decision 
to 
fine 
a 
licensee stays 
the 
collection of 
the 
fine. 
Interest accrues on a fine at the rate specified in Title 
14, section leQa 1602-B prior to the completion of any 
appeal. 
After the completion of any appeal process or after 
any appeal period has passed, interest accrues pursuant to 
Title 14, section leQ6-A 1602-C. 
Sec. 11. 22 MRSA §2498, sub-§3, ,B, as enacted by PL 1991, c. 
591, Pt. J, §5, is amended to read: 
B. 
Licensees that are fined pursuant to this chapter are 
requi red to pay the department the amount of the penal ties. 
If a licensee has not paid any collectible fines by the time 
of its license renewal, 
the department may collect such 
fines by requiring their payment prior to the processing of 
any 
license 
renewal 
application. 
An 
appeal 
of 
the 
department's 
decision 
to 
fine 
a 
licensee 
stays 
the 
collection of any fine. 
Interest must accrue on fines at a 
rate described in Title 14, section leQ6 1602-B prior to the 
completion of 
any appeal. 
After 
the 
completion of 
any 
appeal 
process 
or after 
any 
appeal 
period 
has 
passed, 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A 
.. to H.P. 835, L.D. 1132 
interest must accrue pursuant to Title 14, section leQ6-A 
l602-C. 
Sec. 12. 22 MRSA §7946, sub-§2, as amended by PL 1989, c. 747, 
§2, is further amended to read: 
2. 
Collection of 
penalties; 
interest. 
Long-term 
care 
facilities that are fined pursuant to this chapter are required 
to pay the department the amount of the penalties. 
Penalties may 
be collected by the department by the offset of any reimbursement 
due the facility, or by any other method authorized by law. 
An 
appeal of the department's decision to penalize a long-term care 
facility stays the collection of any penalties. 
All penalties 
are to be assessed for each day that the facility is or was out 
of compliance and are to be collected with interest accruing at 
the rate set by Ti tIe 14, section leQ6-A 1602 -C. 
An appeal of 
the department's decision to penalize a long-term care facility 
does not stay the assessment of any penalties or interest as long 
as the long-term care facility continues to be in violation of 
any requirement of section 7943. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved.' 
SUMMARY 
This 
amendment 
replaces the bill and makes 
the bill an 
emergency to take effect immediately. 
This bill amends the judicial rates of interest to equal the 
bank prime loan interest rate plus 3% for prejudgment interest 
and the bank prime loan interest rate plus 6% for post-judgment 
interest, 
thus 
resolving the current uncertainties 
about 
the 
proper methodology for calculating prejudgment and post-judgment 
interest. 
In actions involving a contract or note that contains 
a 
provision relating to interest, the rate set forth in the 
contract or note is the interest rate for prejudgment interest. 
For post-judgment interest, the rate of interest is the rate set 
forth in the note or the bank prime loan interest rate plus 6'l-o, 
whichever is greater. 
Although the bank prime loan interest rate is not set by the 
Federal Reserve, the Board of Governors of the Federal Reserve 
System does publish the bank prime loan interest rate in weekly 
releases. 
The rate as of the first business day of the year is 
available on-line throughout the year. 
COMMITTEE AMENDMENT