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  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, 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
provides a different interest rate, interest accrues 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 the judgment
becomes enforceable pursuant to  existing law  
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.
   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  , except for claims approved by the
California Victim Compensation and Government Claims Board, require
interest on the amount of a judgment or settlement for the payment of
moneys against the state to accrue 180 days from the date of the
final judgment or settlement. It would also, subject to the exception
for claims approved by the board  provide that, unless another
provision of law provides a different interest rate, interest on a
tax or fee 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   or a   local
entity  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 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)  Unless another statute provides a different interest
rate, interest on a tax or fee  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 and   settlement.

    (d)     Unless another statute provides a
different interest rate, interest on a tax or fee judgment or
settlement 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 or
settlement plus 2 percent, but shall not exceed 7 percent per annum.
 This subdivision does 
    (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 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.