S T A T E   O F   N E W   Y O R K
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                                  6998

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              April 7, 2011
                               ___________

Introduced  by  M.  of A. RAIA, MONTESANO, FINCH, McLAUGHLIN, ROBERTS --
  Multi-Sponsored by -- M. of A. CROUCH,  GOODELL,  KATZ,  M. MILLER  --
  read once and referred to the Committee on Judiciary

AN  ACT  to  amend  the civil practice law and rules, in relation to the
  effect of restraint on judgment debtor's banking institution account

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision (i) of section 5222 of the civil practice law
and rules, as added by chapter 575 of the laws of 2008,  is  amended  to
read as follows:
  (i)  Effect  of  restraint  on  judgment  debtor's banking institution
account. A restraining notice issued pursuant to this section shall  not
apply  to  an  amount  equal  to or less than the greater of two hundred
forty times the federal minimum hourly wage prescribed in the Fair Labor
Standards Act of 1938 or two hundred forty times the state minimum hour-
ly wage prescribed in section six hundred fifty-two of the labor law  as
in  effect  at  the  time  the earnings are payable (as published on the
websites of the United States department of labor and the state  depart-
ment  of  labor)  except  such  part thereof as a court determines to be
unnecessary for the reasonable requirements of the judgment  debtor  and
his  or  her dependents.  ALL OR ANY PORTION OF THIS AMOUNT DERIVED FROM
THE PAYMENT BY AN INSURER  OR  HEALTH  MAINTENANCE  ORGANIZATION  TO  AN
INSURED  THAT  IS  LEGITIMATELY OWED BY SUCH INDIVIDUAL TO A HEALTH CARE
PROVIDER FOR SERVICES RENDERED SHALL BE EXCLUDED FROM SUCH  CALCULATION.
This  amount shall be equal to seventeen hundred sixteen dollars on [the
effective date of this subdivision] JANUARY FIRST,  TWO  THOUSAND  NINE,
and shall rise to seventeen hundred forty dollars on July twenty-fourth,
two  thousand nine, and shall rise thereafter in tandem with the minimum
wage. Nothing in this subdivision shall be construed to limit a  banking
institution's  right or obligation to restrain or remove such funds from
the judgment debtor's account if required by  42  U.S.C.  S  659  or  38

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06748-01-1
              

A. 6998                             2

U.S.C.  S  5301  or  by a court order. Where a judgment debtor's account
contains an amount equal to or less than ninety percent of  the  greater
of two hundred forty times the federal minimum hourly wage prescribed in
the  Fair  Labor  Standards  Act  of 1938 or two hundred forty times the
state minimum hourly wage prescribed in section six hundred fifty-two of
the labor law as in effect at the time  the  earnings  are  payable  (as
published  on  the websites of the United States department of labor and
the state department of labor), the account shall not be restrained  and
the  restraining  notice  shall be deemed void, except as to those funds
that a court determines to be unnecessary for  the  reasonable  require-
ments  of the judgment debtor and his or her dependents. Nothing in this
subdivision shall alter the exempt status of funds which are exempt from
execution, levy, attachment  or  garnishment,  under  section  fifty-two
hundred  five  of  this article or under any other provision of state or
federal law, or the right of a judgment debtor to claim such exemption.
  S 2. This act shall take effect immediately.