California Legislature—2013–14 Regular Session

Assembly Bill No. 619

Introduced by Assembly Member Garcia

February 20, 2013

An act to amend Section 70377 of the Government Code, relating to court facilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 619, as introduced, Garcia. Court facilities.

Existing law establishes the State Court Facilities Construction Fund for the planning, design, construction, rehabilitation, renovation, replacement, leasing, or acquisition of state court facilities. Existing law levies a state court construction penalty, as specified, upon every fine, penalty, and forfeiture imposed and collected for all criminal offenses and all parking offenses for which a parking penalty, fine, or forfeiture is imposed. Moneys deposited in the county treasury under those provisions must be transmitted to the Controller for deposit in the State Court Facilities Construction Fund. Existing law further requires that any amounts required to be transmitted by a county to the Controller under these provisions be remitted no later than 45 days after the end of the month in which the penalties were collected. Any remittance made later than this time is considered delinquent and is subject to specified penalties. Upon receipt of a delinquent payment, the Controller is required to calculate a penalty on the delinquent payment by multiplying the amount of the delinquent payment at a daily rate equivalent to 11⁄2% per month for the number of days the payment is delinquent. Existing law requires the county to pay the penalty amount calculated pursuant to these provisions to the Controller, as specified, and requires the Controller to deposit these moneys in the State Court Facilities Construction Fund.

This bill would require the Controller to calculate the interest on the delinquent payment, as specified, and would revise the formula for calculating the penalty. The bill would also require a county, city and county, or court to pay the interest or penalty amounts calculated under these provisions, as specified, to the State Court Facilities Construction Fund. The bill would authorize the Controller to permit a county, city and county, or court to pay the interest or penalty amounts under a payment schedule if the interest or penalty amount causes a hardship to that entity. Further, the bill would require that payment be made by the entity responsible for the error or other action that caused the failure to pay, as determined by the Controller in a notice given to that party by the Controller, and would define that entity as including a party that collects the funds but is not responsible for remitting them to the state if that party failed to provide or delayed providing the remitting party with information necessary for remitting the funds. The bill also provides that these changes apply to all delinquent payments for which the Controller has not issued a final audit before January 1, 2014.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 70377 of the Government Code is
amended to read:

70377.  

(a) Any amounts required to be transmitted by a county
begin insert or city and county, or court end insert to the begin delete Controller end delete begin insert state end insert pursuant to this
begin delete article end delete begin insert section end insert shall be remitted begin insert to the State Treasurer end insert no later than
45 days after the end of the month in which the begin insert fees, assessments,
or end insert penalties were collected. begin insert This remittance shall be accompanied
by a remittance advice identifying the collection month and the
appropriate account in the State Court Facilities Construction
Fund or the Immediate and Critical Needs Account of the State
Court Facilities Construction Fund to which it is to be deposited. end insert
Any remittance made later than this time shall be considered
delinquent and subject to the begin insert interest and end insert penalties specified in
this section.

(b) Upon receipt of any delinquent payment required pursuant
to this section, the Controller shall begin delete calculate a penalty on any
delinquent payment by multiplying the amount of the delinquent
payment at a daily rate equivalent to 1 end delete begin delete 1⁄2 end delete begin delete percent per month for
the number of days the payment is delinquent. end delete begin insert do the following: end insert

begin insert

(1) Calculate the interest on the delinquent payment by
multiplying the amount of the delinquent payment at a daily rate
equivalent to the rate of return on money deposited in the Local
Agency Investment Fund pursuant to Section 16429.1 from the
date the payment was originally due to either 30 days after the
date of the issuance by the Controller of the final audit report
concerning the failure to pay or the date of payment by the entity
responsible for the delinquent payment, whichever comes first. In
calculating the interest under this paragraph, the Controller shall
apply the average monthly Local Agency Investment Fund rate
over the period of delinquency.

end insert begin insert

(2) Calculate a penalty at a daily rate equivalent to 11⁄2 percent
per month from the date 30 days after the date of the issuance by
the Controller of the final audit report concerning the failure to
pay.

end insert

(c)  begin delete Penalty end delete begin insert Interest or penalty end insert amounts calculated pursuant to
subdivision (b) shall be paid by the county begin insert , city and county, or
court end insert to the begin delete Controller end delete begin insert State Court Facilities Construction Fund
or the Immediate and Critical Needs Account of the State Court
Facilities Construction Fund, whichever is appropriate, end insert no later
than 45 days after the end of the month in which the begin insert interest or end insert
penalty was calculated. begin delete All money received by the Controller under
this section shall be deposited in the State Court Facilities
Construction Fund. end delete begin insert Payment shall be made by the entity responsible
for the error or other action that caused the failure to pay, as
determined by the Controller in a notice given to that party by the
Controller. end insert

(d)  begin delete If the penalty imposed by this section results from a court’s
failure to comply with the requirements for timely deposit of money
with the county treasury, the court shall reimburse the county
general fund in an amount equal to the actual penalty. end delete
Notwithstanding Section 77009, the court may pay begin delete this end delete begin insert any end insert penalty
begin insert or interest imposed pursuant to this section due to an error or
other action by the court end insert from money received from the Trial Court
Trust Fund. This section does not require an increase in a court’s
allocation from the Trial Court Trust Fund.

begin insert

(e) The Controller may permit a county, city and county, or
court to pay the interest or penalty amounts according to a payment
schedule in the event of a large interest or penalty amount that
causes a hardship to the paying entity.

end insert begin insert

(f) The party responsible for the error or other action that
caused the failure to pay may include, but is not limited to, the
party that collected the funds who is not the party responsible for
remitting the funds to the State Court Facilities Construction Fund
or the Immediate and Critical Needs Account of the State Court
Facilities Construction Fund, if the collecting party failed to
provide or delayed providing the remitting party with sufficient
information needed by the remitting party to distribute the funds.

end insert begin insert

(g) The changes made to this section by the act adding this
subdivision shall apply to all delinquent payments for which the
Controller has not issued a final audit before January 1, 2014.

end insert