Bill Text: CA AB1007 | 2013-2014 | Regular Session | Introduced

---

Bill Title: State government: payment of claims against the state.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-05-30 - From committee without further action pursuant to Joint Rule 62(a). [AB1007 Detail]

Download: California-2013-AB1007-Introduced.html

---

BILL NUMBER: AB 1007	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wagner

                        FEBRUARY 22, 2013

   An act to amend Section 685.010 of the Code of Civil Procedure,
and to amend Section 965.5 of the Government Code, relating to claims
against the state, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 685.010 of the Code of Civil Procedure is
amended to read:
   685.010.  (a) Interest accrues at the rate of 10 percent per annum
on the principal amount of a money judgment remaining unsatisfied
 , except as provided in Section 965.5 of the Government Code
 .
   (b) The Legislature reserves the right to change the rate of
interest provided in subdivision (a) at any time to a rate of less
than 10 percent per annum, regardless of the date of entry of the
judgment or the date any obligation upon which the judgment is based
was incurred. A change in the rate of interest may be made applicable
only to the interest that accrues after the operative date of the
statute that changes the rate.
  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 money against the state shall commence to accrue 180 days
from the date of the final judgment or settlement. This subdivision
does not apply to any claim approved by the California Victim
Compensation and Government Claims Board. 
   (d) Interest on the amount of a judgment or settlement, including
any claim approved by the California Victim Compensation and
Government Claims Board, shall be calculated based on the same rate
set forth in paragraph (2) of subdivision (a) of Section 6591.5 of
the Revenue and Taxation Code that applies to the overpayment of a
tax, surcharge, or fee to the state. This subdivision applies only to
judgments and settlements entered into on or after the effective
date of the act adding this subdivision. 
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to pay judgment and settlement claims against the state
and end hardship to claimants as quickly as possible, and make
interest rates more equitable at the earliest possible time, it is
necessary for this act to take effect immediately.