Assembly Bill A10565

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10565

                          I N  A S S E M B L Y

                              June 3, 2016
                               ___________

Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Weinstein)
  -- read once and referred to the Committee on Judiciary

AN ACT to amend the general municipal law, the public housing  law,  the
  state  finance  law,  and chapter 585 of the laws of 1939, relating to
  the rate of interest to be paid by certain  public  corporations  upon
  judgments and accrued claims, in relation to rates of interest paid by
  certain governmental entities

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 3-a of the general municipal  law,
as  amended  by  chapter  4  of  the laws of 1991, is amended to read as
follows:
  1. Except as provided in subdivisions  two,  four  and  five  of  this
section, the rate of interest to be paid by a municipal corporation upon
any  judgment  or  accrued claim against the municipal corporation shall
not exceed THE LOWER OF nine per centum per annum OR A RATE EQUAL TO THE
WEEKLY AVERAGE ONE-YEAR CONSTANT MATURITY TREASURY YIELD,  AS  PUBLISHED
BY  THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, FOR THE CALEN-
DAR WEEK PRECEDING THE DATE OF THE ENTRY OF THE JUDGMENT.
  S 2. Subdivision 2 of section 3-a of the  general  municipal  law,  as
amended  by  chapter  777  of  the  laws  of 1978, is amended to read as
follows:
  2. The rate of interest to be paid upon any judgment or accrued  claim
against   the   municipal   corporation   arising  out  of  condemnation
proceedings or action to recover damages for wrongful  death  shall  not
exceed  THE  LOWER  OF  six  per centum per annum OR A RATE EQUAL TO THE
WEEKLY AVERAGE ONE-YEAR CONSTANT MATURITY TREASURY YIELD,  AS  PUBLISHED
BY  THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, FOR THE CALEN-
DAR WEEK PRECEDING THE DATE OF THE ENTRY OF THE JUDGMENT.
  S 3. Subdivision 5 of section  157  of  the  public  housing  law,  as
amended  by  chapter  681  of  the  laws  of 1982, is amended to read as
follows:
  5. The rate of interest to be paid by an authority upon  any  judgment
or  accrued  claim  against  the authority shall not exceed THE LOWER OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15520-01-6

A. 10565                            2

nine per centum per annum OR A RATE EQUAL TO THE WEEKLY AVERAGE ONE-YEAR
CONSTANT MATURITY TREASURY YIELD, AS PUBLISHED BY THE BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM, FOR THE CALENDAR WEEK PRECEDING THE  DATE
OF THE ENTRY OF THE JUDGMENT.
  S 4. Section 16 of the state finance law, as amended by chapter 681 of
the laws of 1982, is amended to read as follows:
  S  16.  Rate  of  interest on judgments and accrued claims against the
state.  The rate of interest to be paid by the state upon  any  judgment
or  accrued  claim  against the state shall not exceed THE LOWER OF nine
per centum per annum OR A RATE EQUAL  TO  THE  WEEKLY  AVERAGE  ONE-YEAR
CONSTANT MATURITY TREASURY YIELD, AS PUBLISHED BY THE BOARD OF GOVERNORS
OF  THE FEDERAL RESERVE SYSTEM, FOR THE CALENDAR WEEK PRECEDING THE DATE
OF THE ENTRY OF THE JUDGMENT.
  S 5. Section 1 of chapter 585 of the laws of  1939,  relating  to  the
rate  of  interest  to be paid by certain public corporations upon judg-
ments and accrued claims, as amended by chapter 681 of the laws of 1982,
is amended to read as follows:
  Section 1. The rate of interest to be paid  by  a  public  corporation
upon  any judgment or accrued claim against the public corporation shall
not exceed THE LOWER OF nine per centum per annum OR A RATE EQUAL TO THE
WEEKLY AVERAGE ONE-YEAR CONSTANT MATURITY TREASURY YIELD,  AS  PUBLISHED
BY  THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, FOR THE CALEN-
DAR WEEK PRECEDING THE DATE OF THE  ENTRY  OF  THE  JUDGMENT.  The  term
"public  corporation"  as  used in this act shall mean and include every
corporation created for the construction of public  improvements,  other
than  a county, city, town, village, school district or fire district or
an improvement district established in a town or towns,  and  possessing
both  the  power  to  contract  indebtedness  and  the  power to collect
rentals, charges, rates or fees for services or facilities furnished  or
supplied.
  S  6.  This  act  shall take effect immediately and shall apply to all
judgments entered and all accrued claims paid on or after such date.