Bill Text: CA AB748 | 2013-2014 | Regular Session | Chaptered
Bill Title: Judgments against a public entity: interest.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-09-30 - Chaptered by Secretary of State - Chapter 424, Statutes of 2013. [AB748 Detail]
Download: California-2013-AB748-Chaptered.html
BILL NUMBER: AB 748 CHAPTERED
BILL TEXT
CHAPTER 424
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2013
APPROVED BY GOVERNOR SEPTEMBER 30, 2013
PASSED THE SENATE SEPTEMBER 9, 2013
PASSED THE ASSEMBLY SEPTEMBER 10, 2013
AMENDED IN SENATE AUGUST 30, 2013
AMENDED IN SENATE AUGUST 20, 2013
AMENDED IN SENATE JULY 8, 2013
AMENDED IN SENATE JUNE 18, 2013
AMENDED IN ASSEMBLY MAY 6, 2013
INTRODUCED BY Assembly Member Eggman
FEBRUARY 21, 2013
An act to amend Section 3287 of the Civil Code, and to amend
Sections 965.5 and 970.1 of the Government Code, relating to
judgments.
LEGISLATIVE COUNSEL'S DIGEST
AB 748, Eggman. Judgments against a public entity: interest.
Existing law provides that a person who is entitled to collect
certain damages is also entitled to collect interest on the damages
from that day, except as specified. Existing law provides that this
requirement applies to the collection of interest from a public
entity. Existing law prohibits, in an action to recover damages for a
personal injury resulting from or occasioned by the tort of another,
a public entity and a public employee whose action or condition was
within the scope of employment from being liable for interest.
The California Constitution requires the Legislature to set the
rate of interest upon a judgment rendered in any court of this state
at not more than 10% per annum. In the absence of the setting of such
a rate by the Legislature, the California Constitution provides that
the rate of interest on any judgment rendered in a court is 7% per
annum.
This bill would require, unless another provision of law provides
a different interest rate, interest to accrue in a tax or fee claim
against a public entity that results in a judgment against the public
entity at a rate equal to the weekly average one year constant
maturity United States Treasury yield, not to exceed 7% per annum.
The bill would also provide that, when a tax or fee judgment against
a local public entity or against the state or a state agency, except
for a claim approved by the California Victim Compensation Government
Claims Board, becomes enforceable pursuant to specified statutes
also proposed to be amended in this bill, interest accrues at an
annual rate equal to the weekly average one year constant maturity
United States Treasury yield at the time of the judgment plus 2%, but
not to exceed 7% per annum.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3287 of the Civil Code is amended to read:
3287. (a) A person who is entitled to recover damages certain, or
capable of being made certain by calculation, and the right to
recover which is vested in the person upon a particular day, is
entitled also to recover interest thereon from that day, except when
the debtor is prevented by law, or by the act of the creditor from
paying the debt. This section is applicable to recovery of damages
and interest from any debtor, including the state or any county,
city, city and county, municipal corporation, public district, public
agency, or any political subdivision of the state.
(b) Every person who is entitled under any judgment to receive
damages based upon a cause of action in contract where the claim was
unliquidated, may also recover interest thereon from a date prior to
the entry of judgment as the court may, in its discretion, fix, but
in no event earlier than the date the action was filed.
(c) Unless another statute provides a different interest rate, in
a tax or fee claim against a public entity that results in a judgment
against the public entity, interest shall accrue at a rate equal to
the weekly average one year constant maturity United States Treasury
yield, but shall not exceed 7 percent per annum. That rate shall
control until the judgment becomes enforceable under Section 965.5 or
970.1 of the Government Code, at which time interest shall accrue at
an annual rate equal to the weekly average one year constant
maturity United States Treasury yield at the time of the judgment
plus 2 percent, but shall not exceed 7 percent per annum.
SEC. 2. Section 965.5 of the Government Code is amended to read:
965.5. (a) A judgment for the payment of money against the state
or a state agency is enforceable until 10 years after the time the
judgment becomes final or, if the judgment is payable in
installments, until 10 years after the final installment becomes due.
(b) A judgment for the payment of money against the state or a
state agency is not enforceable under Title 9 (commencing with
Section 680.010) of Part 2 of the Code of Civil Procedure, but is
enforceable under this chapter.
(c) Interest on the amount of a judgment or settlement for the
payment of moneys against the state shall commence to accrue 180 days
from the date of the final judgment or settlement.
(d) Unless another statute provides a different interest rate,
interest on a tax or fee judgment for the payment of moneys against
the state shall accrue at a rate equal to the weekly average one year
constant maturity United States Treasury yield at the time of the
judgment plus 2 percent, but shall not exceed 7 percent per annum.
(e) Subdivisions (c) and (d) shall not apply to any claim approved
by the California Victim Compensation and Government Claims Board.
SEC. 3. Section 970.1 of the Government Code is amended to read:
970.1. (a) A judgment is enforceable until 10 years after the
time the judgment becomes final or, if the judgment is payable in
installments, until 10 years after the final installment becomes due.
(b) A judgment, whether or not final, is not enforceable under
Title 9 (commencing with Section 680.010) of Part 2 of the Code of
Civil Procedure but is enforceable under this article after it
becomes final.
(c) Unless another statute provides a different interest rate,
interest on a tax or fee judgment against a local public entity shall
accrue at a rate equal to the weekly average one year constant
maturity United States Treasury yield at the time of the judgment
plus 2 percent, but shall not exceed 7 percent per annum.
