§ 906 Claim Payment Interest Rules

(a) As used in this section, “amount allowed on the claim” means the amount allowed by the Department of General Services on a claim allowed, in whole or in part, or the amount offered by the department to settle or compromise a claim. (b) Except as otherwise provided in this subdivision, no interest is payable on the amount allowed on the claim if payment of the claim is subject to approval of an appropriation by the Legislature. If an appropriation is made for the payment of a claim described in this subdivision, interest on the amount appropriated for the payment of the claim commences to accrue 180 days after the effective date of the act by which the appropriation is enacted. (Amended by Stats. 2016, Ch. 31, Sec. 37. (SB 836) Effective June 27, 2016.)