Kim Stone testified in support of Senate Bill 1117 (Walters) in front of the Senate Judiciary Committee on April 20, 2010. The CJAC-sponsored bill would change California's law regarding pre- and post-judgment interest rates. Currently the law is a statutory 10% a year for business defendants who suffer a judgment and then appeal. Since interest rates are so low, 10% a year provides a windfall to plaintiffs and an unfair burden for defendants. Our bill would change the rate of interest to the prime rate plus 2%, so that plaintiffs would get a fair rate of interest but defendants would not have such an unjust burden. This year's bill would also change the rate of interest for public entities from the statutory 7% to the prime rate plus 2%, so that taxpayer money can be used for public services rather than to pay interest on judgments.