Amended in Senate August 30, 2013

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 againstbegin delete the state:end deletebegin insert a public entity:end insert interest.

Existing lawbegin delete authorizesend deletebegin insert provides thatend insert a personbegin insert who is entitled to collect certain damages is also entitledend insert to collect interest onbegin insert theend insert damagesbegin delete prior to entry of judgment in the action, including an action againstend deletebegin insert from that day, except as specified. Existing law provides that this requirement applies to the collection of interest fromend insert a publicbegin delete entity, as specified.end deletebegin insert entity. Existing law prohibits, in an action to recover damages for a personal injury resulting from or occasioned by the tort of another, a public entity and a public employee whose action or condition was within the scope of employment from being liable for interest.end insert

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 wouldbegin delete provide that,end deletebegin insert require,end insert unless another provision of law provides a different interest rate, interestbegin delete accruesend deletebegin insert to accrueend insert 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, whenbegin delete theend deletebegin insert a tax or feeend insert judgmentbegin insert against a local public entity or against the state or a state agency, except for a claim approved by the California Victim Compensation Government Claims Board,end insert becomes enforceable pursuant to 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.

begin delete

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.

end delete
begin delete

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 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.

end delete

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

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

P3    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
15prior to the entry of judgment as the court may, in its discretion,
16fix, but in no event earlier than the date the action was filed.

17(c) Unless another statute provides a different interest rate, in
18a tax or fee claim against a public entity that results in a judgment
19against the public entity, interest shall accrue at a rate equal to the
20weekly average one year constant maturity United States Treasury
21yield, but shall not exceed 7 percent per annum. That rate shall
22control until the judgment becomes enforceable under Section
23965.5 or 970.1 of the Government Code, at which time interest
24shall accrue at an annual rate equal to the weekly average one year
25constant maturity United States Treasury yield at the time of the
26judgment plus 2 percent, but shall not exceed 7 percent per annum.

27

SEC. 2.  

Section 965.5 of the Government Code is amended to
28read:

29

965.5.  

(a) A judgment for the payment of money against the
30state or a state agency is enforceable until 10 years after the time
31the judgment becomes final or, if the judgment is payable in
32installments, until 10 years after the final installment becomes due.

33(b) A judgment for the payment of money against the state or
34a state agency is not enforceable under Title 9 (commencing with
35Section 680.010) of Part 2 of the Code of Civil Procedure, but is
36enforceable under this chapter.

P4    1(c) Interest on the amount of a judgment or settlement for the
2payment of moneys against the state shall commence to accrue
3180 days from the date of the final judgment or settlement.

4(d) Unless another statute provides a different interest rate,
5interest on a tax or fee judgmentbegin delete or settlementend delete for the payment of
6moneys against the state shall accrue at a rate equal to the weekly
7average one year constant maturity United States Treasury yield
8at the time of the judgmentbegin delete or settlementend delete plus 2 percent, but shall
9not exceed 7 percent per annum.

10(e) Subdivisions (c) and (d) shall not apply to any claim
11approved by the California Victim Compensation and Government
12Claims Board.

13

SEC. 3.  

Section 970.1 of the Government Code is amended to
14read:

15

970.1.  

(a) A judgment is enforceable until 10 years after the
16time the judgment becomes final or, if the judgment is payable in
17installments, until 10 years after the final installment becomes due.

18(b) A judgment, whether or not final, is not enforceable under
19Title 9 (commencing with Section 680.010) of Part 2 of the Code
20of Civil Procedure but is enforceable under this article after it
21becomes final.

22(c) Unless another statute provides a different interest rate,
23interest on a tax or fee judgmentbegin delete or settlementend delete against a local public
24entity shall accrue at a rate equal to the weekly average one year
25constant maturity United States Treasury yield at the time of the
26judgmentbegin delete or settlementend delete plus 2 percent, but shall not exceed 7
27percent per annum.



O

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