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AB-1007 State government: payment of claims against the state.(2013-2014)

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CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 1007


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   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.