California Legislature—2013–14 Regular Session

Assembly BillNo. 748


Introduced by Assembly Member Eggman

February 21, 2013


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

LEGISLATIVE COUNSEL’S DIGEST

AB 748, as introduced, 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.

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.

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.

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

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

P2    1

SECTION 1.  

Section 3291 of the Civil Code is amended to
2read:

3

3291.  

begin insert(a)end insertbegin insertend insert In any action brought to recover damages for
4personal injury sustained by any person resulting from or
5occasioned by the tort of any other person, corporation, association,
6or partnership, whether by negligence or by willful intent of the
7other person, corporation, association, or partnership, and whether
8the injury was fatal or otherwise, it is lawful for the plaintiff in the
9complaint to claim interest on the damages alleged as provided in
10this section.

begin delete

11If

end delete

12begin insert(b)end insertbegin insertend insertbegin insertIf end insertthe plaintiff makes an offer pursuant to Section 998 of the
13Code of Civil Procedure which the defendant does not accept prior
14to trial or within 30 days, whichever occurs first, and the plaintiff
P3    1obtains a more favorable judgment, the judgment shall bear interest
2at the legal rate of 10 percent per annum calculated from the date
3of the plaintiff’s first offer pursuant to Section 998 of the Code of
4Civil Procedure which is exceeded by the judgment, and interest
5shall accrue until the satisfaction of judgment.

begin delete

6This

end delete

7begin insert(c)end insertbegin insertend insertbegin insertThis end insertsection shall not apply to a public entity, or to a public
8employee for an act or omission within the scope of employment,
9and neither the public entity nor the public employee shall be liable,
10directly or indirectly, to any person for any interest imposed by
11this section.

begin insert

12(d) Notwithstanding subdivision (c), in any action against a
13public entity or public employee not excluded by this section that
14results in a judgment against the public entity or public employee,
15interest shall accrue on the amount allowed on the claim at no
16more than the average Pooled Money Investment Account rate for
17the previous fiscal year, but shall not exceed 7 percent per annum.

end insert
18

SEC. 2.  

Section 906 of the Government Code is amended to
19read:

20

906.  

(a) As used in this section, “amount allowed on the claim”
21means the amount allowed by the California Victim Compensation
22and Government Claims Board on a claim allowed, in whole or in
23part, or the amount offered by the board to settle or compromise
24a claim.

25(b) Except as otherwise provided in this subdivision, no interest
26is payable on the amount allowed on the claim if payment of the
27claim is subject to approval of an appropriation by the Legislature.
28If an appropriation is made for the payment of a claim described
29in this subdivision, interest on the amount appropriated for the
30payment of the claim commences to accrue 180 days after the
31effective date of the act by which the appropriation is enacted.

begin insert

32(c) Interest shall accrue on the amount allowed on the claim at
33no more than the average Pooled Money Investment Account rate
34for the previous fiscal year, but shall not exceed 7 percent per
35annum.

end insert
36

SEC. 3.  

Section 965.5 of the Government Code is amended to
37read:

38

965.5.  

(a) A judgment for the payment of money against the
39state or a state agency is enforceable until 10 years after the time
P4    1the judgment becomes final or, if the judgment is payable in
2installments, until 10 years after the final installment becomes due.

3(b) A judgment for the payment of money against the state or
4a state agency is not enforceable under Title 9 (commencing with
5Section 680.010) of Part 2 of the Code of Civil Procedure, but is
6enforceable under this chapter.

7(c) Interest on the amount of a judgment or settlement for the
8payment of money against the state shall commence to accrue 180
9days from the date of the final judgment or settlementbegin insert and shall
10accrue on the amount allowed on the claim at no more than the
11average Pooled Money Investment Account rate for the previous
12fiscal year, but shall not exceed 7 percent per annumend insert
. This
13subdivision does not apply to any claim approved by the California
14Victim Compensation and Government Claims Board.

15

SEC. 4.  

Section 970.1 of the Government Code is amended to
16read:

17

970.1.  

(a) A judgment is enforceable until 10 years after the
18time the judgment becomes final or, if the judgment is payable in
19installments, until 10 years after the final installment becomes due.

20(b) A judgment, whether or not final, is not enforceable under
21Title 9 (commencing with Section 680.010) of Part 2 of the Code
22of Civil Procedure but is enforceable under this article after it
23becomes final.

begin insert

24(c) Except as otherwise provided by the contract, the interest
25shall accrue on the amount allowed on the claim at no more than
26the average Pooled Money Investment Account rate for the
27 previous fiscal year, but shall not exceed 7 percent per annum.

end insert


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