AB 1007

Bill Subjects

Abstract

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.