Amended in Senate August 20, 2013

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 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 thatbegin insert,end insert when the judgment becomes enforceable pursuant tobegin delete existing lawend deletebegin insert specified statutes also proposed to be amended in this bill,end insert 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.

begin delete

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.

end delete

This bill wouldbegin insert, 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 boardend insert 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 statebegin delete commences to accrue 180 days from the date of the final judgment or settlement andend deletebegin insert or a local entityend insert 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
P3    1paying the debt. This section is applicable to recovery of damages
2and interest from any debtor, including the state or any county,
3city, city and county, municipal corporation, public district, public
4agency, or any political subdivision of the state.

5(b) Every person who is entitled under any judgment to receive
6damages based upon a cause of action in contract where the claim
7was unliquidated, may also recover interest thereon from a date
8prior to the entry of judgment as the court may, in its discretion,
9fix, but in no event earlier than the date the action was filed.

10(c) Unless another statute provides a different interest rate, in
11a tax or fee claim against a public entity that results in a judgment
12against the public entity, interest shall accrue at a rate equal to the
13weekly average one year constant maturity United States Treasury
14yield, but shall not exceed 7 percent per annum. That rate shall
15control until the judgment becomes enforceable under Section
16965.5 or 970.1 of the Government Code, at which time interest
17shall accrue at an annual rate equal to the weekly average one year
18constant maturity United States Treasury yield at the time of the
19judgment plus 2 percent, but shall not exceed 7 percent per annum.

20

SEC. 2.  

Section 965.5 of the Government Code is amended to
21read:

22

965.5.  

(a) A judgment for the payment of money against the
23state or a state agency is enforceable until 10 years after the time
24the judgment becomes final or, if the judgment is payable in
25installments, until 10 years after the final installment becomes due.

26(b) A judgment for the payment of money against the state or
27a state agency is not enforceable under Title 9 (commencing with
28Section 680.010) of Part 2 of the Code of Civil Procedure, but is
29enforceable under this chapter.

30(c)  begin deleteUnless another statute provides a different interest rate,
31interest on a tax or fee end delete
begin insertInterest on the amount of a end insertjudgment or
32settlement for the payment of moneys against the state shall
33commence to accrue 180 days from the date of the final judgment
34orbegin delete settlement andend deletebegin insert settlement.end insert

35begin insert(d)end insertbegin insertend insertbegin insertUnless another statute provides a different interest rate,
36interest on a tax or fee judgment or settlement for the payment of
37moneys against the stateend insert
shall accrue at a rate equal to the weekly
38average one year constant maturity United States Treasury yield
39at the time of the judgment or settlement plus 2 percent, but shall
40not exceed 7 percent per annum.begin delete This subdivision doesend delete

P4    1begin insert(e)end insertbegin insertend insertbegin insertSubdivisions (c) and (d) shallend insert not apply to any claim
2approved by the California Victim Compensation and Government
3Claims Board.

4

SEC. 3.  

Section 970.1 of the Government Code is amended to
5read:

6

970.1.  

(a) A judgment is enforceable until 10 years after the
7time the judgment becomes final or, if the judgment is payable in
8installments, until 10 years after the final installment becomes due.

9(b) A judgment, whether or not final, is not enforceable under
10Title 9 (commencing with Section 680.010) of Part 2 of the Code
11of Civil Procedure but is enforceable under this article after it
12becomes final.

13(c) Unless another statute provides a different interest rate,
14interest on a tax or fee judgment or settlement against a local public
15entity shall accrue at a rate equal to the weekly average one year
16constant maturity United States Treasury yield at the time of the
17judgment or settlement plus 2 percent, but shall not exceed 7
18percent per annum.



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