A01538 Summary:

BILL NOA01538A
 
SAME ASSAME AS S03057-A
 
SPONSORGottfried
 
COSPNSRMcDonald
 
MLTSPNSR
 
Amd §5004, CPLR
 
Ties the rate of interest on a judgment for medical debt to the one-year United States treasury bill rate.
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A01538 Actions:

BILL NOA01538A
 
01/11/2021referred to codes
05/07/2021amend and recommit to codes
05/07/2021print number 1538a
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A01538 Committee Votes:

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A01538 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1538A
 
SPONSOR: Gottfried
  TITLE OF BILL: An act to amend the civil practice law and rules, in relation to the rate of interest on a judgment for medical debt   PURPOSE: To require the interest rate on medical debt to be the lesser of the one-year United States treasury bill rate or three per centum per annum.   SUMMARY OF PROVISIONS: Section one of the bill amends Section 5004 of the civil practice law and rules to require the interest rate on medical debt to be the lesser of the one-year United States treasury bill rate or three per centum per annum, defines "medical debt" and "one-year United State treasury bill interest rate" and requires the Office of Court Administration to calcu- late and publicize the rate on its website. Section two of the bill is the effective date.   JUSTIFICATION: Medical debt is a massive problem for many New Yorkers, especially for those who are facing extreme financial hardship. Changing the rate of interest on medical debt to a fairer rate will provide some measure of relief to those struggling to pay for the health care they need and deserve for themselves and their families.   LEGISLATIVE HISTORY: 2020: A10814 - referred to Codes Committee   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: Immediately.
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A01538 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1538--A
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 11, 2021
                                       ___________
 
        Introduced  by M. of A. GOTTFRIED, McDONALD -- read once and referred to
          the Committee on Codes -- 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.
                                                                   LBD00594-03-1

        A. 1538--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.
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