Bill Text: CA SB1117 | 2009-2010 | Regular Session | Introduced
Bill Title: Judgments: interest.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-04-20 - Set, first hearing. Failed passage in committee. (Ayes 1. Noes 3. Page 3305.) Reconsideration granted. [SB1117 Detail]
Download: California-2009-SB1117-Introduced.html
BILL NUMBER: SB 1117 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Walters
FEBRUARY 17, 2010
An act to amend Section 3291 of the Civil Code, to amend Section
685.010 of the Code of Civil Procedure, and to amend Section 970.1 of
the Government Code, relating to judgments.
LEGISLATIVE COUNSEL'S DIGEST
SB 1117, as introduced, Walters. Judgments: interest.
The California Constitution provides that the rate of interest on
a judgment rendered in any court of this state shall be set by the
Legislature at not more than 10% per annum. Existing law provides
that interest accrues at the rate of 10% per annum on the principal
amount of a money judgment remaining unsatisfied.
Under existing law, if the plaintiff makes an offer that the
defendant does not accept prior to trial or within 30 days, whichever
occurs first, and the plaintiff obtains a more favorable judgment,
the judgment shall bear interest at the legal rate of 10% per annum
calculated from the date of the plaintiff's first offer that is
exceeded by the judgment. Existing law also provides that a judgment
is enforceable until 10 years after the time the judgment becomes
final or until 10 years after the final installment becomes due.
This bill would instead provide that interest accrues at the
federal short-term rate plus 2%, except as otherwise provided in a
written contract, not to exceed 10% per annum on those judgments, as
specified. The bill would require the Controller to annually
establish the interest rate, as specified, and notify the auditor in
each county of that rate.
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 3291 of the Civil Code is amended to read:
3291. (a) In any action brought to recover
damages for personal injury sustained by any person resulting from or
occasioned by the tort of any other person, corporation,
association, or partnership, whether by negligence or by willful
intent of the other person, corporation, association, or partnership,
and whether the injury was fatal or otherwise, it is lawful for the
plaintiff in the complaint to claim interest on the damages alleged
as provided in this section.
If
(b) If the plaintiff makes an
offer pursuant to Section 998 of the Code of Civil Procedure
which that the defendant does not accept prior
to trial or within 30 days, whichever occurs first, and the plaintiff
obtains a more favorable judgment, the judgment shall bear interest
at the rate determined annually by the Controller pursuant to
subdivision (c), except as otherwise provided in a written contract,
not to exceed legal rate of 10 percent per
annum calculated from the date of the plaintiff's first offer
pursuant to Section 998 of the Code of Civil Procedure which
that is exceeded by the judgment, and interest
shall accrue until the satisfaction of judgment.
(c) On the 15th day of October of each year, the Controller shall
ascertain the current federal short-term rate. For purposes of any
section requiring interest to be computed at the rate per annum
required by this section, the federal short-term rate as ascertained
by the Controller, rounded to the nearest whole number percent, plus
2 percent, in a total amount not to exceed 10 percent, shall be the
interest rate per annum used in making the computation for interest
that accrues during the following year. Within 10 days after the
interest rate per annum is determined under this section, the
Controller shall notify the auditor of each county in writing of that
rate of interest.
(d) As used in this section, "federal short-term rate" means the
rate of the average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity
of three years or less, as determined under Section 1274 of the
Internal Revenue Code of 1986 (26 U.S.C. 1274), for July of the
current year.
This section shall not apply to a public entity, or to a public
employee for an act or omission within the scope of employment, and
neither the public entity nor the public employee shall be liable,
directly or indirectly, to any person for any interest imposed by
this section.
SEC. 2. Section 685.010 of the Code of Civil Procedure is amended
to read:
685.010. (a) Interest accrues at the rate of
rate determined annually by the Controller pursuant to
subdivision (b), except as otherwise provided in a written contract,
not to exceed 10 percent per annum on the principal amount of a
money judgment remaining unsatisfied.
(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.
(b) On the 15th day of October of each year, the Controller shall
ascertain the current federal short-term rate. For purposes of any
section requiring interest to be computed at the rate per annum
required by this section, the federal short-term rate as ascertained
by the Controller, rounded to the nearest whole number percent, plus
2 percent, in a total amount not to exceed 10 percent, shall be the
interest rate per annum used in making the computation for interest
that accrues during the following year. Within 10 days after the
interest rate per annum is determined under this section, the
Controller shall notify the auditor of each county in writing of that
rate of interest.
(c) As used in this section, "federal short-term rate" means the
rate of the average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity
of three years or less, as determined under Section 1274 of the
Internal Revenue Code of 1986 (26 U.S.C. 1274), for July of the
current year.
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. However, interest accrues pursuant to Section
681.010 of the Code of Civil Procedure, at the rate determined
annually by the Controller pursuant to subdivision (b) of Section
681.010, except as otherwise provided in a written contract, not to
exceed 10 percent per annum on the principal amount of a
money judgment remaining unsati sfied.
