senate Bill S4530B

Signed By Governor
2011-2012 Legislative Session

Establishes guidelines for information subpoenas

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Sponsored By

Archive: Last Bill Status - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

view actions (21)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 03, 2011 signed chap.342
Jul 22, 2011 delivered to governor
Jun 22, 2011 returned to senate
passed assembly
ordered to third reading rules cal.573
substituted for a6875b
referred to codes
Jun 20, 2011 returned to assembly
repassed senate
Jun 17, 2011 amended on third reading 4530b
vote reconsidered - restored to third reading
returned to senate
recalled from assembly
Jun 17, 2011 referred to codes
delivered to assembly
passed senate
Jun 14, 2011 amended on third reading (t) 4530a
Jun 06, 2011 advanced to third reading
Jun 02, 2011 2nd report cal.
Jun 01, 2011 1st report cal.915
Apr 11, 2011 referred to judiciary

Votes

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Jun 1, 2011 - Judiciary committee Vote

S4530
22
0
committee
22
Aye
0
Nay
0
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show committee vote details

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

S4530 - Bill Details

See Assembly Version of this Bill:
A6875B
Law Section:
Civil Practice Law and Rules
Laws Affected:
Amd R5224, CPLR; amd §§601 & 602, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
A6875A

S4530 - Bill Texts

view summary

Establishes guidelines for information subpoenas.

view sponsor memo
BILL NUMBER:S4530

TITLE OF BILL:
An act
to amend the civil practice law and rules, in relation to establishing
guidelines for information subpoenas

PURPOSE:
To require that judgment creditors meet the reasonable belief standard
required before serving information subpoenas by requiring that the
judgment creditor state the grounds by which the he/she has
determined that the person being served has information about the
debtor which will assist in collecting the judgment. This bill also
requires that information subpoenas be served individually.

SUMMARY OF PROVISIONS:
Section one amends section 5224 of the CPLR by amending paragraph 3
(i) and (ii). The amendment to the first paragraph provides that each
information subpoena shall be individually mailed. The amendment to
subparagraph (i) provides that a judgment creditor can only serve an
information subpoena if he or she has stated the grounds on which they
have formed a reasonable belief that the person being served has
information about the debtor. Sub-paragraph (ii) provides that an
information subpoena that does not contain the required verification
or does not meet the mailing requirements shall be deemed null and
void.

Section two sets forth an immediate effective date.

JUSTIFICATION:
In New York State, there has been a vast increase in the number and
frequency of information subpoenas served. These subpoenas have
become overly burdensome and voluminous in nature and labor intensive
to comply with. In the vast majority of cases, the individual for
whom information is sought has no relationship to the persons served.

This bill establishes a mechanism that will ensure the reasonable
belief standard is met when information subpoenas are served. A
judgment creditor, or the judgment creditor's attorney, must verify
which grounds he or she has relied on to form a reasonable belief
that person served has information about the judgment debtor. This
bill also requires each information subpoena to be mailed separately.

This legislation is designed to reduce the number of unfounded
information subpoenas. An information subpoena may be a valuable tool
for a judgment creditor. If used properly, an information subpoena
can provide important information that enables a judgment creditor to
collect his or her debt. However, information subpoenas can be abused
and can create a burden on third parties without providing the
necessary information to creditors. This bill establishes a
procedural framework to ensure that information subpoenas remain a
productive device for judgment creditors. If further provides relief
to third parties who are inundated with subpoenas requesting
information about debtors with whom, there is no reason to believe
the judgment creditor has any ties.


LEGISLATIVE HISTORY:
This is a new bill.

EFFECTIVE DATE:
This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4530

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 11, 2011
                               ___________

Introduced  by  Sens.  SALAND, FARLEY -- read twice and ordered printed,
  and when printed to be committed to the Committee on Judiciary

AN ACT to amend the civil practice law and rules, in relation to  estab-
  lishing guidelines for information subpoenas

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

  Section 1. Paragraph 3 of subdivision (a) of rule 5224  of  the  civil
practice  law  and  rules, as amended by chapter 452 of the laws of 2006
and the opening paragraph as amended by chapter 552 of the laws of 2006,
is amended to read as follows:
  3. an information subpoena, accompanied by  a  copy  and  original  of
written  questions  and a prepaid, addressed return envelope. Service of
an information subpoena may be made by  registered  or  certified  mail,
return  receipt requested. EACH INFORMATION SUBPOENA SHALL BE SEPARATELY
MAILED. Answers shall be made in writing under oath by the  person  upon
whom  served,  if  an  individual,  or by an officer, director, agent or
employee having the information, if a corporation, partnership  or  sole
proprietorship. Each question shall be answered separately and fully and
each  answer  shall  refer to the question to which it responds. Answers
shall be returned together with the original  of  the  questions  within
seven  days  after  receipt.  Where the person serving the subpoena is a
judgment creditor, other than where the  state,  a  municipality  or  an
agency  or officer of the state or a municipality is the judgment credi-
tor, the following additional rules shall apply:
  (i) information subpoenas, served on an  individual  or  entity  other
than  the  judgment debtor, may be served on an individual, corporation,
partnership or sole proprietorship only if the judgment creditor or  the
judgment  creditor's  attorney  has  a  reasonable belief that the party
receiving the subpoena has in their  possession  information  about  the
debtor  that will assist the creditor in collecting his or her judgment.
Any information subpoena served  pursuant  to  this  subparagraph  shall

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10417-01-1

S. 4530                             2

contain  a  certification  signed by the judgment creditor or his or her
attorney stating the following: I HEREBY CERTIFY THAT  THIS  INFORMATION
SUBPOENA COMPLIES WITH RULE 5224 OF THE CIVIL PRACTICE LAW AND RULES AND
THAT  I  HAVE A REASONABLE BELIEF THAT THE PARTY RECEIVING THIS SUBPOENA
HAS IN THEIR POSSESSION INFORMATION ABOUT THE DEBTOR  THAT  WILL  ASSIST
THE  CREDITOR  IN COLLECTING THE JUDGMENT. By signing the certification,
the judgment creditor or attorney certifies that, to the  best  of  that
person's  knowledge,  information  and  belief,  formed after an inquiry
reasonable under  the  circumstances,  that  the  individual  or  entity
receiving  the  subpoena has relevant information about the debtor.  ANY
INFORMATION SUBPOENA SERVED  PURSUANT  TO  THIS  SUBPARAGRAPH  SHALL  BE
ACCOMPANIED  BY A VERIFICATION STATING THE GROUNDS BY WHICH THE JUDGMENT
CREDITOR HAS FORMED THE REASONABLE BELIEF REQUIRED BY THIS SUBPARAGRAPH.
FOR PURPOSES OF AN INFORMATION SUBPOENA SERVED ON  A  FEDERAL  OR  STATE
CHARTERED  CREDIT UNION, VERIFICATION SHALL INCLUDE A STATEMENT THAT THE
JUDGMENT DEBTOR IS ELIGIBLE TO BECOME A MEMBER OF THE CREDIT UNION.
  (ii) if an information subpoena, served on  an  individual  or  entity
other  than  the  judgment debtor, does not contain the certification OR
VERIFICATION provided for in subparagraph (i) [of] OR IS NOT  MAILED  IN
ACCORDANCE  WITH  this paragraph, such subpoena shall be deemed null and
void.
  (iii) if an information subpoena, served on an  individual  or  entity
other  than the judgment debtor, does contain the certification provided
for in subparagraph (i) of this paragraph, the individual,  corporation,
partnership  or  sole proprietorship receiving the subpoena, may move to
quash the subpoena pursuant to section twenty-three hundred four of this
chapter, except that such motion shall be made in the court that  issued
the underlying judgment.
  (iv)  failure to comply with an information subpoena shall be governed
by subdivision (b) of section twenty-three hundred eight of  this  chap-
ter,  except that such motion shall be made in the court that issued the
underlying judgment.
  S 2. This act shall take effect immediately.

Co-Sponsors

S4530A - Bill Details

See Assembly Version of this Bill:
A6875B
Law Section:
Civil Practice Law and Rules
Laws Affected:
Amd R5224, CPLR; amd §§601 & 602, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
A6875A

S4530A - Bill Texts

view summary

Establishes guidelines for information subpoenas.

view sponsor memo
BILL NUMBER:S4530A

TITLE OF BILL:
An act
to amend the
civil practice law and rules and the
general business law, in relation to prohibited debt collection practices

PURPOSE:
To require that judgment creditors meet the reasonable belief standard
required before serving information subpoenas by requiring that the
judgment creditor or their agent who serves fifty or more subpoenas
per month maintain records specifying the grounds by which he/she has
determined that the person being served has information about the
debtor which will assist in collecting the judgment. This bill also
establishes a cause of action against those judgment creditors or
agents that fail to maintain such records.

SUMMARY OF PROVISIONS:
Section one amends section 5224 of the CPLR by amending paragraph 3
(i). The amendment to subparagraph (i) provides that a judgment
creditor certify that it is serving information subpoenas in
compliance with both the CPLR and general business law.

Section two amends section 601 of the general business law by adding a
new subparagraph 10.
This subparagraph requires a judgment creditor or their agent that
sends more than fifty subpoenas per month to maintain records for
five years on information subpoenas sent. The records shall set forth
the grounds for the reasonable belief required under CPLR 5224. The
amendment also sets forth a civil penalty in an action brought by the
attorney general for failing to maintain records.

Section three amends section 602 of the general business law to create
a cause of action for an aggrieved party served with 50 or more
subpoenas per month by a creditor who fails to maintain the required
records or whose grounds are not reasonable.

Section four sets forth an immediate effective date.

JUSTIFICATION:
In New York State, there has been a vast increase in the number and
frequency of information subpoenas served. These subpoenas have
become overly burdensome and voluminous in nature and labor intensive
to comply with. In the vast majority of cases, the individual for
whom information is sought has no relationship to the persons served.

This bill establishes a mechanism that will ensure the reasonable
belief standard is met when information subpoenas are served. A
judgment creditor, or their agent, must maintain records which state
the grounds he or she has relied on to form a reasonable belief that
person served has information about the judgment debtor.

This legislation is designed to reduce the number of unfounded
information subpoenas. An information subpoena may be a valuable tool
for a judgment creditor. If used properly, an information subpoena


can provide important information that enables a judgment creditor to
collect his or her debt. However, information subpoenas can be abused
and can create a burden on third parties without providing the
necessary information to creditors. This bill establishes a
procedural framework to ensure that information subpoenas remain a
productive device for judgment creditors. If further provides relief
to third parties who are inundated with subpoenas requesting
information about debtors with whom, there is no reason to believe
the judgment creditor has any ties.

LEGISLATIVE HISTORY:
This is a new bill.

EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall
become law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4530--A
    Cal. No. 915

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 11, 2011
                               ___________

Introduced  by  Sens.  SALAND,  FARLEY, AVELLA -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Judici-
  ary  --  reported  favorably from said committee, ordered to first and
  second report,  ordered  to  a  third  reading,  amended  and  ordered
  reprinted, retaining its place in the order of third reading

AN  ACT  to amend the civil practice law and rules and the general busi-
  ness law, in relation to prohibited debt collection practices

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

  Section 1.  Subparagraph (i) of paragraph 3 of subdivision (a) of rule
5224  of  the civil practice law and rules, as amended by chapter 452 of
the laws of 2006, the opening paragraph as amended by chapter 552 of the
laws of 2006, is amended to read as follows:
  (i) information subpoenas, served on an  individual  or  entity  other
than  the  judgment debtor, may be served on an individual, corporation,
partnership or sole proprietorship only if the judgment creditor or  the
judgment  creditor's  attorney  has  a  reasonable belief that the party
receiving the subpoena has in their  possession  information  about  the
debtor  that will assist the creditor in collecting his or her judgment.
Any information subpoena served  pursuant  to  this  subparagraph  shall
contain  a  certification  signed by the judgment creditor or his or her
attorney stating the following: I HEREBY CERTIFY THAT  THIS  INFORMATION
SUBPOENA COMPLIES WITH RULE 5224 OF THE CIVIL PRACTICE LAW AND RULES AND
SECTION  601 OF THE GENERAL BUSINESS LAW THAT I HAVE A REASONABLE BELIEF
THAT THE PARTY RECEIVING THIS SUBPOENA HAS IN THEIR POSSESSION  INFORMA-
TION  ABOUT  THE  DEBTOR THAT WILL ASSIST THE CREDITOR IN COLLECTING THE
JUDGMENT. By signing the certification, the judgment creditor or  attor-
ney  certifies that, to the best of that person's knowledge, information
and belief, formed after an inquiry reasonable under the  circumstances,
that the individual or entity receiving the subpoena has relevant infor-
mation about the debtor.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10417-05-1

S. 4530--A                          2

  S  2.    Subdivision  9 of section 601 of the general business law, as
added by chapter 753 of the laws of 1973, is amended and a new  subdivi-
sion 10 is added to read as follows:
  9. Use a communication which simulates in any manner legal or judicial
process  or  which  gives  the appearance of being authorized, issued or
approved by a government, governmental agency, or attorney at  law  when
it is not[.]; OR
  10.  IF  SUCH  PRINCIPAL  CREDITOR  SENDS  MORE THAN FIFTY INFORMATION
SUBPOENAS PER MONTH, FAIL TO KEEP COMPLETE RECORDS CONCERNING ALL INFOR-
MATION SUBPOENAS SENT. SUCH RECORDS SHALL BE MAINTAINED FOR FIVE  YEARS.
CONTEMPORANEOUS  RECORDS  SHALL BE  KEPT THAT SET FORTH WITH SPECIFICITY
THE GROUNDS FOR THE PRINCIPAL CREDITOR'S REASONABLE BELIEF,  WHICH  MUST
BE  CERTIFIED  AND  ACCOMPANY EACH INFORMATION SUBPOENA PURSUANT TO RULE
FIFTY-TWO HUNDRED TWENTY-FOUR OF THE CIVIL PRACTICE LAW AND RULES,  THAT
THE PARTY RECEIVING THE SUBPOENA HAS IN ITS POSSESSION INFORMATION ABOUT
THE DEBTOR THAT WILL ASSIST THE CREDITOR IN COLLECTING HIS OR HER JUDGE-
MENT.  IN  ADDITION  TO ANY OTHER PENALTY THAT MY BE IMPOSED, FAILURE TO
MAINTAIN RECORDS IN ACCORDANCE WITH THIS SUBDIVISION SHALL SUBJECT  SUCH
A  PRINCIPAL  CREDITOR TO A CIVIL PENALTY OF NOT MORE THAN FIFTY DOLLARS
PER SUBPOENA, UP TO A MAXIMUM OF FIVE THOUSAND DOLLARS PER VIOLATION, IN
AN ACTION BROUGHT BY THE ATTORNEY GENERAL.
  S 3. Section 602 of the general business law is amended  by  adding  a
new subdivision 3 to read as follows:
  3. ANY AGGRIEVED PERSON OR ENTITY SERVED WITH MORE THAN FIFTY INFORMA-
TION  SUBPOENAS  PER  MONTH  BY A PRINCIPAL CREDITOR OR HIS OR HER AGENT
SHALL ALSO HAVE A CAUSE OF ACTION TO CHALLENGE COMPLIANCE WITH  SUBDIVI-
SION  TEN  OF SECTION SIX HUNDRED ONE OF THIS ARTICLE AND/OR THE CERTIF-
ICATION REQUIREMENTS OF RULE FIFTY-TWO HUNDRED TWENTY-FOUR OF THE  CIVIL
PRACTICE  LAW AND RULES. IN SUCH ACTION, A SUCCESSFUL PLAINTIFF SHALL BE
AWARDED TEN DOLLARS FOR  EACH  INFORMATION  SUBPOENA  SERVED  UPON  SUCH
PLAINTIFF  WHERE  IT  IS  SHOWN THAT THE REQUIRED CERTIFICATION FOR SUCH
INFORMATION SUBPOENA WAS NOT MADE PURSUANT  TO  RULE  FIFTY-TWO  HUNDRED
TWENTY-FOUR  OF  THE  CIVIL  PRACTICE  LAW  AND RULES, THAT THE REQUIRED
RECORD FOR SUCH INFORMATION SUBPOENA  WAS  NOT  MAINTAINED  PURSUANT  TO
SUBDIVISION  TEN OF SECTION SIX HUNDRED ONE OF THIS ARTICLE, OR THAT THE
SPECIFIC GROUNDS FOR THE CERTIFICATION REQUIRED TO ACCOMPANY SUCH INFOR-
MATION SUBPOENA PURSUANT TO RULE FIFTY-TWO HUNDRED  TWENTY-FOUR  OF  THE
CIVIL PRACTICE LAW AND RULES WERE NOT REASONABLE. A SUCCESSFUL PLAINTIFF
MAY ALSO BE AWARDED COURT COSTS AND ATTORNEY FEES.
  S  4.  This  act shall take effect on the thirtieth day after it shall
have become a law and shall apply to information subpoenas served on  or
after such date.

Co-Sponsors

S4530B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A6875B
Law Section:
Civil Practice Law and Rules
Laws Affected:
Amd R5224, CPLR; amd §§601 & 602, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
A6875A

S4530B (ACTIVE) - Bill Texts

view summary

Establishes guidelines for information subpoenas.

view sponsor memo
BILL NUMBER:S4530B

TITLE OF BILL:
An act
to amend the
civil practice law and rules and the
general business law, in relation to prohibited debt collection practices

PURPOSE:
To require that judgment creditors meet the reasonable belief standard
required before serving information subpoenas by requiring that the
judgment creditor or their agent who serves fifty or more subpoenas
per month maintain records specifying the grounds by which he/she has
determined that the person being served has information about the
debtor which will assist in collecting the judgment. This bill also
establishes a cause of action against those judgment creditors or
agents that fail to maintain such records.

SUMMARY OF PROVISIONS:
Section one amends section 5224 of the CPLR by amending paragraph 3
(i). The amendment to subparagraph (i) provides that a judgment
creditor certify that it is serving information subpoenas in
compliance with both the CPLR and general business law.

Section two amends section 601 of the general business law by adding a
new subparagraph 10.
This subparagraph requires a judgment creditor or their agent that
sends more than fifty subpoenas per month to maintain records for
five years on information subpoenas sent. The records shall set forth
the grounds for the reasonable belief required under CPLR 5224. The
amendment also sets forth a civil penalty in an action brought by the
attorney general for failing to maintain records.

Section three amends section 602 of the general business law to create
a cause of action for an aggrieved party served with 50 or more
subpoenas per month by a creditor who fails to maintain the required
records or whose grounds are not reasonable.

Section four sets forth an immediate effective date.

JUSTIFICATION:
In New York State, there has been a vast increase in the number and
frequency of information subpoenas served. These subpoenas have
become overly burdensome and voluminous in nature and labor intensive
to comply with. In the vast majority of cases, the individual for
whom information is sought has no relationship to the persons served.

This bill establishes a mechanism that will ensure the reasonable
belief standard is met when information subpoenas are served. A
judgment creditor, or their agent, must maintain records which state
the grounds he or she has relied on to form a reasonable belief that
person served has information about the judgment debtor.

This legislation is designed to reduce the number of unfounded
information subpoenas. An information subpoena may be a valuable tool
for a judgment creditor. If used properly, an information subpoena


can provide important information that enables a judgment creditor to
collect his or her debt. However, information subpoenas can be abused
and can create a burden on third parties without providing the
necessary information to creditors. This bill establishes a
procedural framework to ensure that information subpoenas remain a
productive device for judgment creditors. It further provides relief
to third parties who are inundated with subpoenas requesting
information about debtors with whom, there is no reason to believe
the judgment creditor has any ties.

LEGISLATIVE HISTORY:
This is a new bill.

EFFECTIVE DATE:
This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4530--B
    Cal. No. 915

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 11, 2011
                               ___________

Introduced  by  Sens.  SALAND,  FARLEY, AVELLA -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Judici-
  ary  --  reported  favorably from said committee, ordered to first and
  second report,  ordered  to  a  third  reading,  amended  and  ordered
  reprinted, retaining its place in the order of third reading -- passed
  by  Senate and delivered to the Assembly, recalled, vote reconsidered,
  restored to third reading, amended and  ordered  reprinted,  retaining
  its place in the order of third reading

AN  ACT  to amend the civil practice law and rules and the general busi-
  ness law, in relation to prohibited debt collection practices

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

  Section 1.  Subparagraph (i) of paragraph 3 of subdivision (a) of rule
5224  of  the civil practice law and rules, as amended by chapter 452 of
the laws of 2006, the opening paragraph as amended by chapter 552 of the
laws of 2006, is amended to read as follows:
  (i) information subpoenas, served on an  individual  or  entity  other
than  the  judgment debtor, may be served on an individual, corporation,
partnership or sole proprietorship only if the judgment creditor or  the
judgment  creditor's  attorney  has  a  reasonable belief that the party
receiving the subpoena has in their  possession  information  about  the
debtor  that will assist the creditor in collecting his or her judgment.
Any information subpoena served  pursuant  to  this  subparagraph  shall
contain  a  certification  signed by the judgment creditor or his or her
attorney stating the following: I HEREBY CERTIFY THAT  THIS  INFORMATION
SUBPOENA COMPLIES WITH RULE 5224 OF THE CIVIL PRACTICE LAW AND RULES AND
SECTION  601 OF THE GENERAL BUSINESS LAW THAT I HAVE A REASONABLE BELIEF
THAT THE PARTY RECEIVING THIS SUBPOENA HAS IN THEIR POSSESSION  INFORMA-
TION  ABOUT  THE  DEBTOR THAT WILL ASSIST THE CREDITOR IN COLLECTING THE
JUDGMENT. By signing the certification, the judgment creditor or  attor-
ney  certifies that, to the best of that person's knowledge, information

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10417-07-1

S. 4530--B                          2

and belief, formed after an inquiry reasonable under the  circumstances,
that the individual or entity receiving the subpoena has relevant infor-
mation about the debtor.
  S  2.    Subdivision  9 of section 601 of the general business law, as
added by chapter 753 of the laws of 1973, is amended and a new  subdivi-
sion 10 is added to read as follows:
  9. Use a communication which simulates in any manner legal or judicial
process  or  which  gives  the appearance of being authorized, issued or
approved by a government, governmental agency, or attorney at  law  when
it is not[.]; OR
  10. IF SUCH PRINCIPAL CREDITOR OR AGENT SENDS MORE THAN FIFTY INFORMA-
TION  SUBPOENAS  PER MONTH, FAIL TO KEEP COMPLETE RECORDS CONCERNING ALL
INFORMATION SUBPOENAS SENT BY SUCH PRINCIPAL CREDITOR OR  AGENT.    SUCH
RECORDS  SHALL  BE  MAINTAINED  FOR  FIVE YEARS. CONTEMPORANEOUS RECORDS
SHALL BE  KEPT THAT SET FORTH WITH  SPECIFICITY  THE  GROUNDS  FOR  SUCH
PRINCIPAL CREDITOR OR AGENT'S REASONABLE BELIEF, WHICH MUST BE CERTIFIED
AND  ACCOMPANY  EACH  INFORMATION  SUBPOENA  PURSUANT  TO RULE FIFTY-TWO
HUNDRED TWENTY-FOUR OF THE CIVIL PRACTICE LAW AND RULES, THAT THE  PARTY
RECEIVING  THE  SUBPOENA  HAS  IN  ITS  POSSESSION INFORMATION ABOUT THE
DEBTOR THAT WILL ASSIST THE CREDITOR IN COLLECTING HIS OR HER JUDGEMENT.
IN ADDITION TO ANY OTHER PENALTY THAT MY BE IMPOSED, FAILURE TO MAINTAIN
RECORDS IN ACCORDANCE WITH THIS SUBDIVISION SHALL SUBJECT SUCH PRINCIPAL
CREDITOR OR AGENT TO A CIVIL PENALTY OF NOT MORE THAN FIFTY DOLLARS  PER
SUBPOENA,  UP TO A MAXIMUM OF FIVE THOUSAND DOLLARS PER VIOLATION, IN AN
ACTION BROUGHT BY THE ATTORNEY GENERAL.
  S 3. Section 602 of the general business law is amended  by  adding  a
new subdivision 3 to read as follows:
  3. ANY AGGRIEVED PERSON OR ENTITY SERVED WITH MORE THAN FIFTY INFORMA-
TION  SUBPOENAS  PER  MONTH  BY A PRINCIPAL CREDITOR OR HIS OR HER AGENT
SHALL ALSO HAVE A CAUSE OF ACTION TO CHALLENGE COMPLIANCE WITH  SUBDIVI-
SION  TEN  OF SECTION SIX HUNDRED ONE OF THIS ARTICLE AND/OR THE CERTIF-
ICATION REQUIREMENTS OF RULE FIFTY-TWO HUNDRED TWENTY-FOUR OF THE  CIVIL
PRACTICE  LAW AND RULES. IN SUCH ACTION, A SUCCESSFUL PLAINTIFF SHALL BE
AWARDED TEN DOLLARS FOR  EACH  INFORMATION  SUBPOENA  SERVED  UPON  SUCH
PLAINTIFF  WHERE  IT  IS  SHOWN THAT THE REQUIRED CERTIFICATION FOR SUCH
INFORMATION SUBPOENA WAS NOT MADE PURSUANT  TO  RULE  FIFTY-TWO  HUNDRED
TWENTY-FOUR  OF  THE  CIVIL  PRACTICE  LAW  AND RULES, THAT THE REQUIRED
RECORD FOR SUCH INFORMATION SUBPOENA  WAS  NOT  MAINTAINED  PURSUANT  TO
SUBDIVISION  TEN OF SECTION SIX HUNDRED ONE OF THIS ARTICLE, OR THAT THE
SPECIFIC GROUNDS FOR THE CERTIFICATION REQUIRED TO ACCOMPANY SUCH INFOR-
MATION SUBPOENA PURSUANT TO RULE FIFTY-TWO HUNDRED  TWENTY-FOUR  OF  THE
CIVIL PRACTICE LAW AND RULES WERE NOT REASONABLE. A SUCCESSFUL PLAINTIFF
MAY ALSO BE AWARDED COURT COSTS AND ATTORNEY FEES.
  S  4.  This  act shall take effect on the thirtieth day after it shall
have become a law and shall apply to information subpoenas served on  or
after such date.

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