S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6527
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                May 4, 2021
                                ___________
 
 Introduced  by Sen. GAUGHRAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01863-01-1
              

 S. 6527                             2
 
   § 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:
   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 on the first of April next  succeeding
 the date upon which it shall have become a law.