S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9879
 
                           I N  A S S E M B L Y
 
                             February 15, 2018
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee 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  judg-
   ments and accrued claims, in relation to interest rates on judgments

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1 and 2 of section 3-a of the general  munici-
 pal  law, subdivision 1 as amended by chapter 4 of the laws of 1991, and
 subdivision 2 as amended by chapter 777 of the laws of 1978, are 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] BE CALCULATED AT 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 AWARDING  DAMAGES.  IN  NO  EVENT,
 HOWEVER,  SHALL  AN  AUTHORITY PAY A RATE OF INTEREST ON ANY JUDGMENT OR
 ACCRUED CLAIM EXCEEDING nine per centum per annum.
   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]  BE  CALCULATED  AT  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 AWARDING DAMAGES. IN NO EVENT, HOWEVER,
 SHALL AN AUTHORITY PAY A RATE OF INTEREST ON  ANY  JUDGMENT  OR  ACCRUED
 CLAIM EXCEEDING six per centum per annum.
   §  2.  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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14487-01-8

 A. 9879                             2
 
   5.  The  rate of interest to be paid by an authority upon any judgment
 or accrued claim against the authority shall [not exceed] BE  CALCULATED
 AT  A RATE EQUAL TO THE WEEKLY AVERAGE ONE YEAR CONSTANT MATURITY TREAS-
 URY 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 AWARDING DAMAGES. IN NO EVENT, HOWEVER, SHALL AN AUTHORITY  PAY
 A  RATE  OF INTEREST ON ANY JUDGMENT OR ACCRUED CLAIM EXCEEDING nine per
 centum per annum.
   § 3. Section 16 of the state finance law, as amended by chapter 681 of
 the laws of 1982, is amended to read as follows:
   § 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] BE CALCULATED AT 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  AWARDING DAMAGES. IN NO EVENT, HOWEVER, SHALL AN AUTHORITY PAY
 A RATE OF INTEREST ON ANY JUDGMENT OR ACCRUED CLAIM EXCEEDING  nine  per
 centum per annum.
   §  4.  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]  BE  CALCULATED  AT 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 AWARDING DAMAGES. IN NO EVENT,
 HOWEVER, SHALL AN AUTHORITY PAY A RATE OF INTEREST ON  ANY  JUDGMENT  OR
 ACCRUED  CLAIM  EXCEEDING  nine  per  centum per annum. The term "public
 corporation" as used in this act shall mean  and  include  every  corpo-
 ration 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.
   § 5. This act shall take effect April 1, 2019.