Chapter 275

2003 -- S 1078 SUBSTITUTE A AS AMENDED

Enacted 07/17/03

AN ACT

RELATING TO PUBLIC PROPERTY AND WORKS

Introduced By: Senator Daniel DaPonte

Date Introduced: May 13, 2003

It is enacted by the General Assembly as follows:

     SECTION 1. Section 37-6-23 of the General Laws in Chapter 37-6 entitled "Acquisition

of Land" is hereby amended to read as follows:

37-6-23. Payment of judgment Calculation of interest and payment of judgment. --

If a petition for assessment of damages is filed, then the property owner shall be entitled to

interest on the fair market value of the property taken by the acquiring authority from the date it is

condemned to the day that judgment enters. Interest thereon shall be calculated on the fair market

value of the property which exceeds the amount offered by the acquiring authority pending final

disposition of the court proceedings. Upon a recovery of final judgment, an execution shall be

issued therefor and shall be forthwith paid by the general treasurer out of any funds appropriated

and available therefor. Interest on any judgment shall be computed at the rate as set out herein.

Interest shall be calculated to the date of the entry of the judgment, at a rate equal to the average

of the coupon issued yield equivalent as determined by the secretary of the treasury of the average

accepted auction price for the auctions of fifty-two (52) week United States treasury bills from

the date interest began to accrue to the date of the judgment. Interest shall be computed daily to

the date of payment and shall be compounded annually. Interest shall be calculated as follows:

(1) Where the period for which interest is owed does not exceed one (1) year, interest

shall be calculated for such period form the date of taking at an annual rate equal to the weekly

average one (1) 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 taking.

(2) Where the period for which interest is owed is more than one (1) year, interest for the

first year shall be calculated in accordance with paragraph (1) and interest for each additional

year shall be calculated on the combined amount of the principal and accrued interest at an annual

rate equal to the weekly average one (1) year constant maturity Treasury yield, as published by

the Board of Governors of the Federal Reserve System, for the calendar week preceding the

beginning of each additional year.

In the event the one (1) year constant maturity Treasury yield is converted to a different

standard reference base or otherwise revised, the determination of interest shall be made with the

use of such converted or revised standard reference base. In the event the Board of Governors of

the Federal Reserve System ceases to publish a converted or revised rate, interest shall be

calculated at a rate published by the United States Treasury Department, or other comparable

entity, that establishes a rate reflecting or best approximating the market conditions for one (1)

year investments at the time of the taking and each additional year that interest is owed pursuant

to paragraph (2) above.

     SECTION 2. Section 37-6-29 of the General Laws in Chapter 37-6 entitled "Acquisition

of Land" is hereby repealed.

37-6-29. Calculation of interest. -- If a petition for assessment of damages is filed, then

the property owner shall be entitled to interest on the fair market value of the property taken by

the acquiring authority from the date it is condemned to the day that judgment enters. Interest

shall be calculated on the fair market value of the property which exceeds the amount offered by

the acquiring authority pending final disposition of the court proceeding. For purposes of this

section, interest shall be calculated from the date of condemnation at a rate equal to the average of

the coupon issued yield equivalent as determined by the secretary of the treasury of the average

accepted auction price for the auctions of fifty-two (52) week United States Treasury bills from

the date interest began to accrue to the date of the judgment.

     SECTION 3. This act shall take effect upon passage. The amendment to section 37-6-23

of this act shall apply retroactively to the calculation of interest on condemnation awards and

shall be used for calculating interest on condemnation awards for any period from and after

February 28, 2001, and the rate of interest for periods prior to February 28, 2001, shall continue

to be calculated in the same manner as before this amendment.      

=======

LC03064/SUB A/2

=======