Amended in Senate July 8, 2013

Amended in Senate June 18, 2013

Amended in Assembly May 6, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 748


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 abegin delete tax, fee, or inverse condemnationend deletebegin insert tax or feeend insert 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%, 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 provides a different interest rate, interest on abegin delete tax, fee, or inverse condemnationend deletebegin insert tax or feeend insert 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:

P2    1

SECTION 1.  

Section 3287 of the Civil Code is amended to
2read:

3

3287.  

(a) A person who is entitled to recover damages certain,
4or capable of being made certain by calculation, and the right to
5recover which is vested in the person upon a particular day, is
6entitled also to recover interest thereon from that day, except when
7the debtor is prevented by law, or by the act of the creditor from
8paying the debt. This section is applicable to recovery of damages
9and interest from any debtor, including the state or any county,
10city, city and county, municipal corporation, public district, public
11agency, or any political subdivision of the state.

12(b) Every person who is entitled under any judgment to receive
13damages based upon a cause of action in contract where the claim
14was unliquidated, may also recover interest thereon from a date
P3    1prior to the entry of judgment as the court may, in its discretion,
2fix, but in no event earlier than the date the action was filed.

3(c) Unless another statute provides a different interest rate, in
4abegin delete tax, fee, or inverse condemnationend deletebegin insert tax or feeend insert claim against a public
5entity that results in a judgment against the public entity, interest
6shall accrue at a rate equal to the weekly average one year constant
7maturity United States Treasury yield, but shall not exceed 7
8percent per annum. That rate shall control until the judgment
9becomes enforceable under Section 965.5 or 970.1 of the
10Government Code, at which time interest shall accrue at an annual
11rate equal to the weekly average one year constant maturity United
12States Treasury yield at the time of the judgment plus 2 percent,
13but shall not exceed 7 percent per annum.

14

SEC. 2.  

Section 965.5 of the Government Code is amended to
15read:

16

965.5.  

(a) A judgment for the payment of money against the
17state or a state agency is enforceable until 10 years after the time
18the judgment becomes final or, if the judgment is payable in
19installments, until 10 years after the final installment becomes due.

20(b) A judgment for the payment of money against the state or
21a state agency is not enforceable under Title 9 (commencing with
22Section 680.010) of Part 2 of the Code of Civil Procedure, but is
23enforceable under this chapter.

24(c) Unless another statute provides a different interest rate,
25interest on abegin delete tax, fee, or inverse condemnationend deletebegin insert tax or feeend insert judgment
26or settlement for the payment of moneys against the state shall
27commence to accrue 180 days from the date of the final judgment
28or settlement and shall accrue at a rate equal to the weekly average
29one year constant maturity United States Treasury yield at the time
30of the judgment or settlement plus 2 percent, but shall not exceed
317 percent per annum. This subdivision does not apply to any claim
32approved by the California Victim Compensation and Government
33Claims Board.

34

SEC. 3.  

Section 970.1 of the Government Code is amended to
35read:

36

970.1.  

(a) A judgment is enforceable until 10 years after the
37time the judgment becomes final or, if the judgment is payable in
38installments, until 10 years after the final installment becomes due.

39(b) A judgment, whether or not final, is not enforceable under
40Title 9 (commencing with Section 680.010) of Part 2 of the Code
P4    1of Civil Procedure but is enforceable under this article after it
2becomes final.

3(c) Unless another statute provides a different interest rate,
4interest on abegin delete tax, fee, or inverse condemnationend deletebegin insert tax or feeend insert judgment
5or settlement against a local public entity shall accrue at a rate
6equal to the weekly average one year constant maturity United
7States Treasury yield at the time of the judgment or settlement
8plus 2 percent, but shall not exceed 7 percent per annum.



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