AB 1007, as introduced, Wagner. State government: payment of claims against the state.
Existing law authorizes a procedure for the payment of claims against the state. Existing law requires interest on the amount of a judgment or settlement for the payment of money against the state to commence to accrue 180 days from the date of the final judgment or settlement at the rate of 10% per annum.
The Sales and Use Tax Law, and other laws by reference to that law, provide that interest is paid by a taxpayer or feepayer with respect to the overpayment of various taxes, surcharges, and fees, as determined in accordance with a specified federal statute, which requires that the rate paid on overpayments be based on the rate of 13-week treasury bills, as specified.
This bill would require the interest on the amount of a claim, judgment, or settlement against the State of California to be calculated based on the same rate that applies to the overpayment of taxes, surcharges, and fees to the state, as specified. The bill would also make clarifying changes.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 685.010 of the Code of Civil Procedure
2 is amended to read:
(a) Interest accrues at the rate of 10 percent per
4annum on the principal amount of a money judgment remaining
5unsatisfiedbegin insert, except as provided in Section 965.5 of the Government
6Codeend insert.
7(b) The Legislature reserves the right to change the rate of
8interest provided in subdivision (a) at any time to a rate of less
9than 10 percent per annum, regardless of the date of entry of the
10judgment or the date any obligation upon which the judgment is
11based was incurred. A change in the rate of interest may be made
12applicable only to the interest that accrues after the operative date
13of the statute that changes the
rate.
Section 965.5 of the Government Code is amended to
15read:
(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) Interest on the amount of a judgment or settlement for the
25payment of money against the state shall commence to accrue 180
26days from the date of the final judgment or settlement. This
27subdivision does not apply to any claim
approved by the California
28Victim Compensation and Government Claims Board.
29(d) Interest on the amount of a judgment or settlement, including
30any claim approved by the California Victim Compensation and
31Government Claims Board, shall be calculated based on the same
32rate set forth in paragraph (2) of subdivision (a) of Section 6591.5
33of the Revenue and Taxation Code that applies to the overpayment
P3 1of a tax, surcharge, or fee to the state. This subdivision applies
2only to judgments and settlements entered into on or after the
3effective date of the act adding this subdivision.
This act is an urgency statute necessary for the
5immediate preservation of the public peace, health, or safety within
6the meaning of Article IV of the Constitution and shall go into
7immediate effect. The facts constituting the necessity are:
8In order to pay judgment and settlement claims against the state
9and end hardship to claimants as quickly as possible, and make
10interest rates more equitable at the earliest possible time, it is
11necessary for this act to take effect immediately.
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