Bill Text: NY S03057 | 2021-2022 | General Assembly | Amended

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Bill Title: Ties the rate of interest on a judgment for medical debt to the one-year United States treasury bill rate.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO JUDICIARY [S03057 Detail]

Download: New_York-2021-S03057-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         3057--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 27, 2021
                                       ___________

        Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
          printed to be committed to the Committee  on  Judiciary  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        AN  ACT  to  amend  the civil practice law and rules, in relation to the
          rate of interest on a judgment for medical debt

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section  5004  of  the  civil  practice law and rules, as
     2  amended by chapter 258 of the laws  of  1981,  is  amended  to  read  as
     3  follows:
     4    §  5004.  Rate  of interest. (a) Interest shall be at the rate of nine
     5  per centum per  annum,  except  where  otherwise  provided  by  statute,
     6  provided  that  the  annual rate of interest to be paid on a judgment or
     7  accrued claim in an action arising out of a medical debt  shall  be  the
     8  lesser  of  the  one-year  United States treasury bill rate or three per
     9  centum per annum.
    10    (b) For the purposes of this section the following  terms  shall  have
    11  the following meanings:
    12    1.  "Medical  debt"  means any obligation or alleged obligation of any
    13  natural person to pay money arising out of medical care provided to that
    14  person by a hospital licensed under article twenty-eight of  the  public
    15  health law or a health care professional authorized under title eight of
    16  the education law.
    17    2.  "One-year United States treasury bill rate" means the weekly aver-
    18  age one-year constant maturity treasury yield, as published by the board
    19  of governors of the federal reserve system, for the first full  calendar
    20  week  of  the  calendar  month  preceding the date in which the judgment
    21  awarding damages is entered.
    22    (c) The one-year United States treasury bill rate shall be  calculated
    23  by  the  office  of  court  administration. The office of court adminis-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00594-02-1
        S. 3057--A                          2

     1  tration shall publish the rate  for  permanent  public  access  on  such
     2  office's website on or before the first business day of each month.
     3    §  2. This act shall take effect on the forty-fifth day after it shall
     4  have become a law and shall apply to all judgments entered on  or  after
     5  such date.