AB 1289 Summary

• Requires the Controller to calculate interest on delinquent court facility fund payments using the daily rate of return on the Local Agency Investment Fund instead of a flat 1.5% monthly rate.

• Establishes a penalty calculated at 1.5% per month beginning 30 days after the Controller issues a final audit report on the delinquent payment.

• Makes the entity responsible for the error or failure to pay (including parties that collected but failed to remit funds) liable for interest and penalty payments to the State Court Facilities Construction Fund within 45 days of calculation.

• Authorizes the Controller to allow counties, city and counties, or courts to pay interest or penalty amounts under a payment schedule if the amount causes hardship to the entity.

• Applies these changes retroactively to all delinquent payments for which the Controller has not issued a final audit before January 1, 2013.