BILL NUMBER: AB 748 AMENDED
BILL TEXT
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
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:
a public entity: interest.
Existing law authorizes provides that
a person who is entitled to collect certain damages is
also entitled to collect interest on the damages
prior to entry of judgment in the action, including an
action against from that day, except as specified.
Existing law provides that this requirement applies to the collection
of interest from a public entity, as
specified. 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.
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, require,
unless another provision of law provides a different interest
rate, interest accrues to accrue 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, when the
a tax or fee judgment 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, 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.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3287 of the Civil Code is amended to read:
3287. (a) A person who is entitled to recover damages certain, or
capable of being made certain by calculation, and the right to
recover which is vested in the person upon a particular day, is
entitled also to recover interest thereon from that day, except when
the debtor is prevented by law, or by the act of the creditor from
paying the debt. This section is applicable to recovery of damages
and interest from any debtor, including the state or any county,
city, city and county, municipal corporation, public district, public
agency, or any political subdivision of the state.
(b) Every person who is entitled under any judgment to receive
damages based upon a cause of action in contract where the claim was
unliquidated, may also recover interest thereon from a date prior to
the entry of judgment as the court may, in its discretion, fix, but
in no event earlier than the date the action was filed.
(c) Unless another statute provides a different interest rate, in
a tax or fee claim against a public entity that results in a judgment
against the public entity, interest shall accrue at a rate equal to
the weekly average one year constant maturity United States Treasury
yield, but shall not exceed 7 percent per annum. That rate shall
control until the judgment becomes enforceable under Section 965.5 or
970.1 of the Government Code, at which time interest shall accrue 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 percent, but shall not exceed 7 percent per annum.
SEC. 2. Section 965.5 of the Government Code is amended to read:
965.5. (a) A judgment for the payment of money against the state
or a state agency is enforceable until 10 years after the time the
judgment becomes final or, if the judgment is payable in
installments, until 10 years after the final installment becomes due.
(b) A judgment for the payment of money against the state or a
state agency is not enforceable under Title 9 (commencing with
Section 680.010) of Part 2 of the Code of Civil Procedure, but is
enforceable under this chapter.
(c) Interest on the amount of a judgment or settlement for the
payment of moneys against the state shall commence to accrue 180 days
from the date of the final judgment or settlement.
(d) Unless another statute provides a different interest rate,
interest on a tax or fee judgment or settlement
for the payment of moneys against the state shall accrue 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 percent, but shall not exceed 7 percent per annum.
(e) Subdivisions (c) and (d) shall not apply to any claim approved
by the California Victim Compensation and Government Claims Board.
SEC. 3. Section 970.1 of the Government Code is amended to read:
970.1. (a) A judgment is enforceable until 10 years after the
time the judgment becomes final or, if the judgment is payable in
installments, until 10 years after the final installment becomes due.
(b) A judgment, whether or not final, is not enforceable under
Title 9 (commencing with Section 680.010) of Part 2 of the Code of
Civil Procedure but is enforceable under this article after it
becomes final.
(c) Unless another statute provides a different interest rate,
interest on a tax or fee judgment or settlement
against a local public entity shall accrue 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 percent, but shall not exceed 7 percent per annum.