(a) Notwithstanding any other provision of law to the contrary, the liability of the state government, insofar as incurring an obligation to make an interest payment to a contractor under the terms of this chapter is concerned, shall not extend beyond the date of a notice of intention to file a claim, the date of a notice of a claim, or the date commencing a legal action for the payment of such interest, whichever occurs first. Any interest payment owed by the state government in accordance with the provisions of this chapter as of that date shall be paid as directed by the court and, to the extent that the interest payment is attributable to processing delays caused by the state agency that received the proper invoice or by processing delays caused by the controller’s department, the interest payment shall be made from funds available to the state agency or to the controller’s department at the time of final judgment. (b) With respect to the court actions or other legal processes referred to in this section, any interest obligation incurred by the state government after the date specified in this section in accord with any provision of law other than this chapter shall be determined as prescribed by that separate provision of law, shall be paid as directed by the court, and shall be paid from any appropriation available for that purpose.
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