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

   Existing law 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 
 tax, fee,  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%   2%, but not
to exceed 7% per annum  .
   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, unless another provision of law
 or a collective bargaining contract  provides a
different interest rate, interest on a  tax  
tax, fee,  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) 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  or a collective bargaining
contract  provides a different interest rate, in a 
tax   tax, fee,  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,
  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   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) Unless another statute  or a collective bargaining
contract provides a different interest rate, interest on a
 tax   tax, fee,  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. 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  or a collective bargaining
contract  provides a different interest rate, interest on a
 tax   tax, fee,  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,  but shall not   exceed 7 percent per annum.