Bill Text: CA AB748 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Amended.html

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BILL NUMBER: AB 748	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 6, 2013

INTRODUCED BY   Assembly Member Eggman

                        FEBRUARY 21, 2013

   An act to amend Section  3291   3287  of
the Civil Code, and to amend Sections  906, 965.5, 
 965.5  and 970.1 of the Government Code, relating to
judgments.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 748, as amended, Eggman. Judgments against the state: interest.

   Existing law  bars a suit for money or damages against a
public entity on a cause of action for which a claim is required to
be presented, until a written claim has been presented to the public
entity and acted upon by the California Victim Compensation and
Government Claims Board, the governing body of a local public entity,
the Judicial Council, or the Trustees of the California State
University, as applicable, or has been deemed to have been rejected,
except as specified.   authorizes a person to collect
interest on damages prior to entry of judgment in the action,
including an action against a public entity, as specified. 
   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 provide that, unless another provision of law or a
collective bargaining contract provides a different interest rate,
interest accrues in a tax or inverse condemnation 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 the judgment becomes enforceable pursuant to
existing law 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%. 
   Existing law provides that no interest is payable on the amount
allowed by the California Victim Compensation and Government Claims
Board on a claim if payment of the claim is subject to approval of an
appropriation by the Legislature. However, if the appropriation is
made, interest on the amount appropriated for the payment of the
claim commences to accrue 180 days after the effective date of the
law by which the appropriation is enacted.
   Existing law requires the Treasurer to invest or make deposits in
banks and savings and loan associations of revenues in the Pooled
Money Investment Account in accordance with designations specified by
the Pooled Money Investment Board. 
   This bill would provide that interest on the amount of a judgment
or settlement for the payment of money against the state shall accrue
on the amount allowed on the claim at no more than the average
Pooled Money Investment Account rate for the previous fiscal year,
but not to exceed 7% per annum. The bill would provide that this
accrual rate also applies to interest on the amount of a judgment for
the payment of money against local public entities, except as
otherwise provided by contract.  
   Existing law provides for a legal rate of interest of 10% per
annum on civil judgments arising out of tort claims, as specified.
Existing law does not permit interest to accrue on a judgment against
a public entity or employee for an act or omission within the scope
of employment.  
   This bill would provide that in any judgment against a public
entity or employee not arising out of an act or omission within the
scope of employment, interest may accrue at a rate not more than the
average Pooled Money Investment Account rate for the previous fiscal
year, but not to exceed 7% per annum.  
   This bill would provide that, unless another provision of law or a
collective bargaining contract provides a different interest rate,
interest on a tax or inverse condemnation judgment or settlement for
the payment of moneys against the state commences to accrue 180 days
from the date of the final judgment or settlement and accrues at a
rate equal to the weekly average one year constant maturity United
States Treasury yield at the time of the judgment or settlement plus
2%, but not to exceed 7% per annum. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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)  Every   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 
him   the person  upon a particular day, is
entitled also to recover interest thereon from that day, except
 during such time as   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  such  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 or a collective bargaining contract
provides a different interest rate, in a tax or inverse condemnation
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, 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.  
  SECTION 1.    Section 3291 of the Civil Code is
amended to read:
   3291.  (a) In any action brought to recover damages for personal
injury sustained by any person resulting from or occasioned by the
tort of any other person, corporation, association, or partnership,
whether by negligence or by willful intent of the other person,
corporation, association, or partnership, and whether the injury was
fatal or otherwise, it is lawful for the plaintiff in the complaint
to claim interest on the damages alleged as provided in this section.

   (b) If the plaintiff makes an offer pursuant to Section 998 of the
Code of Civil Procedure which the defendant does not accept prior to
trial or within 30 days, whichever occurs first, and the plaintiff
obtains a more favorable judgment, the judgment shall bear interest
at the legal rate of 10 percent per annum calculated from the date of
the plaintiff's first offer pursuant to Section 998 of the Code of
Civil Procedure which is exceeded by the judgment, and interest shall
accrue until the satisfaction of judgment.
   (c) This section shall not apply to a public entity, or to a
public employee for an act or omission within the scope of
employment, and neither the public entity nor the public employee
shall be liable, directly or indirectly, to any person for any
interest imposed by this section.
   (d) Notwithstanding subdivision (c), in any action against a
public entity or public employee not excluded by this section that
results in a judgment against the public entity or public employee,
interest shall accrue on the amount allowed on the claim at no more
than the average Pooled Money Investment Account rate for the
previous fiscal year, but shall not exceed 7 percent per annum.
 
  SEC. 2.    Section 906 of the Government Code is
amended to read:
   906.  (a) As used in this section, "amount allowed on the claim"
means the amount allowed by the California Victim Compensation and
Government Claims Board on a claim allowed, in whole or in part, or
the amount offered by the board to settle or compromise a claim.
   (b) Except as otherwise provided in this subdivision, no interest
is payable on the amount allowed on the claim if payment of the claim
is subject to approval of an appropriation by the Legislature. If an
appropriation is made for the payment of a claim described in this
subdivision, interest on the amount appropriated for the payment of
the claim commences to accrue 180 days after the effective date of
the act by which the appropriation is enacted.
   (c) Interest shall accrue on the amount allowed on the claim at no
more than the average Pooled Money Investment Account rate for the
previous fiscal year, but shall not exceed 7 percent per annum.

   SEC. 3.   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 money against the state shall commence to accrue 180 days
from the date of the final judgment or settlement and shall accrue on
the amount allowed on the claim at no more than the average Pooled
Money Investment Account rate for the previous fiscal year, but shall
not exceed 7 percent per annum. 
    (c)     Unless another statute or a
collective bargaining contract provides a different interest rate,
interest on a tax or inverse condemnation 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 and shall
accrue at a rate equal to the weekly average one year constant
maturity United States Treasury yield at the time of the judgment or
settlement plus 2 percent, but shall not exceed 7 percent per annum.
 This subdivision does not apply to any claim approved by the
California Victim Compensation and Government Claims Board.
   SEC. 4.   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) Except as otherwise provided by the contract, the interest
shall accrue on the amount allowed on the claim at no more than the
average Pooled Money Investment Account rate for the previous fiscal
year, but shall not exceed 7 percent per annum. 
    (c)     Unless another statute or a
collective bargaining contract provides a different interest rate,
interest on a tax or inverse condemnation judgment or settlement
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 or settlement plus 2 percent, 
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CORRECTIONS  Text--Page 6.
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