senate Bill S4728A

Signed By Governor
2013-2014 Legislative Session

Relates to income withholding for child support

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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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jul 31, 2013 signed chap.270
Jul 19, 2013 delivered to governor
Jun 20, 2013 returned to senate
passed assembly
ordered to third reading rules cal.565
substituted for a7951
Jun 18, 2013 referred to codes
delivered to assembly
passed senate
ordered to third reading cal.1441
Jun 11, 2013 print number 4728a
amend (t) and recommit to rules
Apr 19, 2013 referred to rules

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S4728 - Bill Details

See Assembly Version of this Bill:
A7951
Law Section:
Civil Practice Law and Rules
Laws Affected:
Amd §111-b, Soc Serv L; amd §§5241 & 5242, CP L

S4728 - Bill Texts

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Relates to income withholding for child support.

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BILL NUMBER:S4728

TITLE OF BILL: An act to amend the social services law, in relation
to child support collections (Part A); and to amend the civil practice
law and rules and the social services law, in relation to income
withholding for child support (Part B)

Purpose of Bill:

This bill, which is in 2 parts, promotes government efficiencies for
the child support program in New York. It centralizes certain
functions in the Office of Temporary and Disability Assistance (OTDA),
allows contracts with an agent or agents to perform those functions,
and aligns the payment processing of non-Title IV-D and Title IV-D
income withholding orders.

Summary of Provisions:

PART A:

Section 1 would amend Social Services Law § 111-h to expand the
authority of OTDA to perform child support functions currently
performed by the support collection units (SCUs) or to assign those
functions to the contractor or contractors operating the Child Support
Processing Center or to other agents under State contract. These
functions include tasks associated with the administration,
establishment, modification, and enforcement functions on behalf of
the SCUs. It would permit the use of multiple contractors if it is
determined that certain functions should be procured separately.
Consistent with the existing provisions governing collection and
disbursement functions, the contractor would be deemed to be a part of
the SCU when performing any additional functions.

Section 2 would make a conforming change to Social Services Law
111-d to allow for a local share of any such functions performed by a
contractor.

Section 3 provides that it will take effect immediately.

PART B:

Section 1 of this part would amend Civil Practice Law and Rules (CPLR)
§ 5241(c)(1) to specify that the income execution shall be on a form
promulgated by OTDA.

Section 2 of this part would amend CPLR § 5241(g)(1) to direct the
employer or income payor to follow the directions provided in the
income execution with regard to information to be included with each
payment remitted.

Section 3 of this part would amend CPLR § 5242 (c), (d), (e), (f) and
(g). Subdivision (c) is amended to change "wages" to "income" so that
the terminology aligns with that used in CPLR § 5241(a) which
subdivision is applicable to both CPLR § 5241 and CPLR § 5242. This
section directs the courts, in non-Title IV-D cases, to use the form
for income withholding promulgated by OTDA for such purpose. In tandem
with the amendments to CPLR § 5241, this section requires the form


promulgated by OTDA to comply with the requirements contained in 42
U.S.C. § 666(b) so that it can be characterized as an income
withholding order/notice under that, statute. Where the income
deduction order is for child support or combined child and spousal
support orders, the court must serve a copy of the income deduction
order on the employer/income payor, the parties, and the state
disbursement unit. This section requires employers and income payors
to follow the instructions provided on the income deduction order
which requires remittances to be paid to and through the state
disbursement unit.

Section 4 of this part would amend Social Services Law § 111-b to
authorize OTDA or its fiscal agent to act as the federally-mandated
"state disbursement unit" for the purpose of collecting and disbursing
support received from employers and income payors in non-1V-D cases.
It would further amend the law to align the disbursement timeframe
from five to two business days of receipt as required by federal law.

Section 5 of this part provides that the state disbursement unit
shall, during the 30 days prior to the effective date of the bill,
provide notice to the employer or income payor and to the creditor
that any income execution or income deduction order issued prior to
such effective date which requires payments to be remitted through the
state disbursement unit shall be made payable to the state
disbursement unit on and after such effective date.

Section 6 of this part provides that it will take effect two hundred
seventy days following enactment, except that any rule or regulation
necessary for the timely implementation of this act on its effective
date may be promulgated on or before such date.

Bill section 2 contains a severability clause.

Bill section 3 provides for an immediate effective date except as
otherwise provided for in Parts A and B.

Existing Law:

PART A:

Social Services Law § 111-h (11) authorizes OTDA to provide for the
performance of collection and disbursement functions, of the SCU by
contract with a fiscal agent. The contractor operating the Child
Support Processing Center acts as fiscal agent for the SCUs in
collection and disbursement functions. Social Services Law § 111d (2)
authorizes the local share of expenditures incurred by OTDA for the
provision of centralized collection and disbursement services to be
charged back to social services districts.

PART B:

Section 5241 of the CPLR sets forth the procedure and notice
requirements pertaining to income withholding for purposes of the
enforcement of support obligations. It authorizes the SCU, sheriff,
the clerk of court, or an attorney for the creditor to issue an
execution for support enforcement, commonly called the "income
execution."


Section 5242 of the CPLR authorizes the court to enter an income
deduction order for support enforcement.

Subdivision 14 of section 111-b of the Social Services Law provides
the authority for OTDA to "receive" and "transmit" support paid
pursuant to any order of child support or combined order for child and
spousal support which the court has ordered to be paid pursuant to an
income deduction order. The department is required to maintain a
record of its receipt and transmission of the support which record is
to be supplied to a party upon request, but shall not furnish any
additional services to enforce the support obligation unless the party
seeking enforcement applies for child support services pursuant to
Social Services Law §111-g.

Prior Legislative History:

This is a new bill.

Statement in Support:

PART A:

Child support enforcement has had dramatic success centralizing the
collection and disbursement functions of local SCUs through the
implementation of the Child Support Processing Center. In doing so,
New York has adapted to technological innovations and maximized
opportunities related to economies of scale. For example, the Child
Support Processing Center has successfully overseen the processing of
an increase in the volume of child support payments. In 1990, the year
centralized collection and disbursement services legislation was
enacted, New York's SCUs processed approximately 5 million payments.
In 2012, the Child Support Processing Center was responsible for
processing 10 million payments translating into over $1.8 billion in
child support collections for the benefit of families served by the
program.

Giving OTDA the authority to perform or further centralize service
delivery where appropriate will increase statewide performance and
relieve social services districts of ministerial tasks. Certain
functions of local SCUs, including account creation and adjustment,
petition generation, data capture, and customer service, can be served
through central processing that, like collection and disbursement
services, capitalizes on economies of scale, standards of accuracy,
and performance-based timeframes for completion. For example, it is
anticipated that certain social services district performance in
timely creating and adjusting child support cases and accounts in the
child support management system will be improved. Timely account
creation and adjustment is the predicate for all collection and
enforcement activity and enhanced customer service. Additionally,
more streamlined case processing and data capture is anticipated to
reduce the volume of customer phone calls and the issuance of
duplicate notices.

PART B:

Effective May 31, 2012, a new federally-mandated income withholding
form (known as an "IWO") must be used for income withholding in Title


IV-D cases as well as non-Title IV-D cases initially issued on or
after January I, 1994. This form requires all income withholding in
both IV-D and non-IV-D cases to be paid through the state disbursement
unit. The form provides only very limited opportunity to add
state-specific information relevant to the income withholding process.

In New York, CPLR § 5241 provides for income withholding by SCUs,
private attorneys, sheriffs and clerks of court through issuance of an
income execution. CPLR § 5242 provides authority for the court to
issue an income deduction order to withhold income for the enforcement
of support obligations. Where these mechanisms involve income
withholding for the purpose of enforcing a child or combined child and
spousal support obligation, they fall under the federal "IWO" mandates
set forth in 42 U.S.0 §§ 654b(a)(1)(B); 666(a)(1), (a)(8), and (b).

Provisions in state law for non-IV-D income withholding are different
from the IV-D provisions. CPLR § 5242(c)(2) requires employers to
remit payments to OTDA pursuant to the agency's authority to receive
and transmit such funds for non-IV-D Child support or combined child
and spousal support cases under Social Services Law § 111b(14).
However, CPLR § 5242(e)(2) also specifies that each remittance shall
be made payable to the creditor named in the order. In addition, this
section provides that such remittances are to be made within ten (10)
days of the date that the debtor is paid; however 42 U.S.C.
666(b)(6) -- which applies to non-IV-D cases because of 42 U.S.C.
666(a)(8)(B)(iii) -- sets forth a seven (7) business day requirement.

Directing employers and income payors to follow the instructions on
the form promulgated by OTDA will simplify and streamline procedures
by making the requirement for non-IV-D cases align with the IV-D case
requirements. Similarly, reducing the timeframe for remittances across
the board to seven (7) business days will assist in simplifying the
process for employers and income payors. More importantly, once
statutory authorization is provided to allow remittances to be made
payable to the state disbursement unit, employers and income payors
will be able to send non-IV-D remittances with IV-D remittances, thus
allowing for electronic transmission of funds.

Social Services Law § 111-b (14) is the authorizing statute for the
"unit" designated by OTDA referenced in CPLR § 5242 (c)(1) to receive
non-IV-D income withholding. Amendments are necessary to the section
to align with the federal mandate requiring the "state disbursement
unit" to collect and disburse the support received pursuant to federal
distribution rules, i.e., requiring a change from five to two business
days.

Budget Implications:

PART A:

There are no fiscal implications associated with this part.

PART B:

These amendments will ensure compliance with all federal requirements
related to income withholding, thereby avoiding any potential federal
fiscal penalties. The amendments address a technical yet important


issue by aligning the payment processing of non-Title IV-D income
withholding orders with Title IV-D income withholding orders.
Although it is anticipated that this will involve a very small number
of cases, there will be some costs associated with this proposal,
particularly related to systems changes needed to process the
withholding. These costs can be accommodated within existing
appropriations.

Effective Date:

The bill takes effect immediately; provided, however, that Part B
takes effect two hundred seventy days following enactment, except that
any rule or regulation necessary for the timely implementation of Part
B on its effective date may be promulgated on or before such date.

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

                                  4728

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 19, 2013
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of the Office of Tempo-
  rary and Disability Assistance) -- read twice and ordered printed, and
  when printed to be committed to the Committee on Rules

AN ACT to amend the social services law, in relation  to  child  support
  collections  (Part  A);  and to amend the civil practice law and rules
  and the social services law, in relation  to  income  withholding  for
  child support (Part B)

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

  Section 1. This act enacts into law components  of  legislation  which
are  necessary  to  provide  mandate  relief or government efficiencies.
Each component is wholly contained within a Part identified as  Parts  A
through  B.  The  effective date for each particular provision contained
within such Part is set forth in the last  section  of  such  Part.  Any
provision  in  any section contained within a Part, including the effec-
tive date of the Part, which makes reference to a section "of this act,"
when used in connection with that particular component, shall be  deemed
to  mean  and refer to the corresponding section of the Part in which it
is found. Section three of this act sets  forth  the  general  effective
date of this act.

                                 PART A

  Section 1. Subdivision 11 of section 111-h of the social services law,
as  amended  by  chapter  502 of the laws of 1990, is amended to read as
follows:
  11. The department may PERFORM OR provide for the performance of [the]
collection [and],  disbursement,  OR  OTHER  functions  of  the  support
collection  units  by  contract with [a fiscal] AN agent OR AGENTS.  For
purposes of any reference to support collection unit in this chapter  or
any  other  law,  the  [fiscal]  agent OR AGENTS under contract with the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09390-02-3

S. 4728                             2

department shall be deemed to be part of all  support  collection  units
for  which the [fiscal] agent performs [collection and disbursement] ANY
functions; PROVIDED, HOWEVER, THAT THE AGENT OR AGENTS SHALL  NOT  BE  A
PARTY  TO ANY ACTION OR PROCEEDING BROUGHT BY A PARTY TO A SUPPORT ORDER
ARISING FROM ITS PERFORMANCE AS AGENT FOR THE SUPPORT COLLECT UNIT.
  S 2. Subdivision 2 of section 111-d of the  social  services  law,  as
added by chapter 502 of the laws of 1990, is amended to read as follows:
  2.  The local share of expenditures incurred by the department for the
provision of centralized collection and  disbursement  [services]  FUNC-
TIONS  OR  OTHER  FUNCTIONS  AUTHORIZED  pursuant to section one hundred
eleven-h of  this  title  shall  be  charged  back  to  social  services
districts.  The  local  share  shall  be  fifty per centum of the amount
expended by the department after first deducting therefrom  any  federal
funds properly received or to be received on account thereof[; provided,
however, that a social services district's share of the costs related to
the  centralized  collection and disbursement functions shall not exceed
those incurred for the year immediately preceding implementation of such
functions, except  to  the  extent  to  which  those  costs  would  have
increased  had  centralization  of collection and disbursement functions
not occurred].
  S 3. This act shall take effect immediately.

                                 PART B

  Section 1. Paragraph 1 of subdivision (c) of section 5241 of the civil
practice law and rules, as amended by chapter 214 of the laws  of  1998,
is amended to read as follows:
  (1)  The  income  execution shall [contain the caption of the order of
support, and] BE ON THE FORM FOR INCOME WITHHOLDING PROMULGATED  BY  THE
OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE FOR THIS PURPOSE AND SHALL
INCLUDE  THE  NECESSARY INFORMATION AND DIRECTIONS TO ENSURE ITS CHARAC-
TERIZATION AS AN INCOME WITHHOLDING NOTICE AS DESCRIBED AND REQUIRED  BY
SUBSECTION  (B)  OF  SECTION SIX HUNDRED SIXTY-SIX OF TITLE FORTY-TWO OF
THE UNITED STATES CODE; PROVIDED, HOWEVER, THAT WHERE THE  COURT  ENTERS
AN  ORDER  FOR SPOUSAL SUPPORT ONLY FOR WHICH INCOME WITHHOLDING WILL BE
ORDERED BY THE SHERIFF, THE CLERK OF COURT OR THE ATTORNEY FOR THE CRED-
ITOR, AN ALTERNATE SPOUSAL SUPPORT FORM FOR INCOME  WITHHOLDING  PROMUL-
GATED  BY  THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE MAY BE USED
BUT IS NOT REQUIRED. IN ADDITION, THE  INCOME  EXECUTION  SHALL  specify
[the  date that the order of support was entered,] the court in which it
was entered, the amount of the periodic payments directed,  [the  amount
of  arrears,  the nature of the default] and the names of the debtor and
creditor. In addition, TO THE EXTENT NOT ALREADY PROVIDED  ON  THE  FORM
FOR  INCOME  WITHHOLDING,  A  SEPARATE DOCUMENT SHALL BE SERVED WITH the
income execution WHICH shall include:
  (i) the name and address of the employer or income payor from whom the
debtor is receiving or will receive income;
  (ii) the amount of the deductions to be made therefrom on  account  of
current  support,  and  the  amount  to  be  applied to the reduction of
arrears;
  (iii) a notice that deductions will apply to  current  and  subsequent
income;
  (iv)  a  notice  that  the  income  execution  will be served upon any
current or subsequent employer or income payor unless a mistake of  fact
is  shown within fifteen days, a notice of the manner in which a mistake
of fact may be asserted, and a notice  that,  if  the  debtor  claims  a

S. 4728                             3

mistake  of  fact,  a  determination will be made within forty-five days
after notice to the debtor  as  provided  in  subdivision  (d)  of  this
section,  and  that  the  debtor will receive written notice whether the
income  execution  will  be  served and of the time that deductions will
begin;
  (v)  a  notice  that  the  employer  or  income  payor  must  commence
deductions no later than the first pay period that occurs after fourteen
days following the service of the income execution and that payment must
be remitted within seven business days of the date that the debtor paid;
  (vi)  a  notice  that  the  income  execution is binding until further
notice;
  (vii) a notice of the substance of the provisions of section fifty-two
hundred fifty-two of this [chapter] ARTICLE and that a violation thereof
is punishable as a contempt of court by fine or imprisonment or both;
  (viii) a notice of the limitations  upon  deductions  from  wages  set
forth in subdivision (g) of this section;
  (ix)  a  notice  that an employer must notify the issuer promptly when
the debtor terminates employment and provide the debtor's  last  address
and the name and address of the new employer, if known;
  (x)  a  notice  that  when  an employer receives an income withholding
instrument issued by another state, the employer shall apply the  income
withholding  law of the state of the debtor's principal place of employ-
ment in determining:
  (A) the employer's fee for processing income withholding;
  (B) the maximum amount permitted to  be  withheld  from  the  debtor's
income;
  (C)  the  time  periods  within  which the employer must implement the
income withholding and forward the child support payment;
  (D) the priorities for withholding and allocating income withheld  for
multiple child support creditors; and
  (E) any withholding terms or conditions not specified in the withhold-
ing instrument; [and]
  (xi)  a notice that an employer who complies with an income [withhold-
ing notice] EXECUTION that is regular on its face shall not  be  subject
to civil liability to any individual or agency for conduct in compliance
with the notice; AND
  (XII) THE AMOUNT OF ARREARS.
  S 2. Paragraph 1 of subdivision (g) of section 5241 of the civil prac-
tice  law  and  rules, as amended by chapter 398 of the laws of 1997, is
amended to read as follows:
  (1) An employer or income payor served with an income execution  shall
commence  deductions  from income due or thereafter due to the debtor no
later than the first pay period that occurs fourteen days after  service
of  the execution, and shall remit payments to the creditor within seven
business days of the date that the debtor is paid. Each payment remitted
by an employer or income payor shall include[, in addition to the  iden-
tity  and  social  security number of the debtor, the date and amount of
each withholding of the debtor's income included  in  the  payment]  THE
INFORMATION  AS INSTRUCTED ON THE INCOME EXECUTION.  If the money due to
the debtor consists of salary or wages and  his  or  her  employment  is
terminated  by resignation or dismissal at any time after service of the
execution, the levy shall thereafter be ineffective, and  the  execution
shall be returned, unless the debtor is reinstated or re-employed within
ninety  days  after such termination. An employer must notify the issuer
promptly when the debtor terminates employment and provide the  debtor's
last  address  and  name  and address of the new employer, if known.  AN

S. 4728                             4

INCOME PAYOR MUST NOTIFY THE CREDITOR WHEN THE DEBTOR NO LONGER RECEIVES
INCOME AND MUST PROVIDE THE DEBTOR'S  LAST  ADDRESS  AND  THE  NAME  AND
ADDRESS  OF  THE  DEBTOR'S  NEW  EMPLOYER, IF KNOWN. Where the income is
compensation  paid  or  payable to the debtor for personal services, the
amount of the deductions to be withheld shall not exceed the following:
  (i) Where a debtor is currently supporting a spouse or dependent child
other than the creditor, the amount of the  deductions  to  be  withheld
shall  not  exceed fifty percent of the earnings of the debtor remaining
after the deduction therefrom of any amounts required by law to be with-
held ("disposable earnings"), except that if any part of such  deduction
is  to  be  applied to the reduction of arrears which shall have accrued
more than twelve weeks prior to the beginning of the week for which such
earnings are payable, the amount of  such  deduction  shall  not  exceed
fifty-five percent of disposable earnings.
  (ii)  Where a debtor is not currently supporting a spouse or dependent
child other than the creditor, the amount of the deductions to be  with-
held  shall  not  exceed  sixty  percent  of  the earnings of the debtor
remaining after the deduction therefrom of any amounts required  by  law
to  be withheld ("disposable earnings"), except that if any part of such
deduction is to be applied to the reduction of arrears which shall  have
accrued  more  than  twelve weeks prior to the beginning of the week for
which such earnings are payable, the amount of such deduction shall  not
exceed sixty-five percent of disposable earnings.
  S  3.  Subdivisions  (c), (d), (e), (f) and (g) of section 5242 of the
civil practice law and rules, as amended by chapter 170 of the  laws  of
1994,  and  paragraph  (1)  and  the opening paragraph of paragraph 2 of
subdivision (c) as amended by chapter 601  of  the  laws  of  2007,  are
amended to read as follows:
  (c)  [(1)] When the court enters an order of CHILD support OR COMBINED
CHILD AND SPOUSAL SUPPORT on behalf  of  persons  other  than  those  in
receipt  of  public  assistance  or  in  receipt of services pursuant to
section one hundred eleven-g of the social services  law,  or  registers
pursuant  to  article five-B of the family court act an order of support
which has been issued by a foreign jurisdiction and which is not  to  be
enforced pursuant to title six-A of article three of the social services
law, where the court determines that the [respondent earns wages] DEBTOR
HAS INCOME that could be subject to an income deduction order, the court
shall  issue an income deduction order to obtain payment of the order at
the same time it issues or registers the order. The  court  shall  enter
the  income  deduction  order  unless  the court finds and sets forth in
writing (i) the reasons that there is good cause not to require  immedi-
ate  income  withholding;  or  (ii)  that  an agreement providing for an
alternative arrangement has  been  reached  between  the  parties.  Such
agreement  may  include a written agreement or an oral stipulation, made
on the record, that results in a written order.  For  purposes  of  this
subdivision,  good  cause shall mean substantial harm to the debtor. The
absence of an arrearage or the mere  issuance  of  an  income  deduction
order  shall  not  constitute good cause. When the court determines that
there is good cause not to issue an income deduction  order  immediately
or  when  the parties agree to an alternative arrangement as provided in
this [paragraph] SUBDIVISION, the court shall  state  expressly  in  the
order of support the basis for its decision.
  (D)  In  entering the income deduction order, the court shall [specify
an amount to be withheld by the debtor's employer, which shall be suffi-
cient to ensure compliance with the order  of  support  and  also  shall
include  an additional amount to be applied to the reduction of arrears,

S. 4728                             5

if any, and shall specify the  names,  addresses,  and  social  security
numbers of the parties to the support proceeding and the mailing address
of  the unit within the state office of temporary and disability assist-
ance  designated  to  receive  such  deductions] USE THE FORM FOR INCOME
WITHHOLDING PROMULGATED  BY  THE  OFFICE  OF  TEMPORARY  AND  DISABILITY
ASSISTANCE  FOR  THIS  PURPOSE,  WHICH  FORM SHALL INCLUDE THE NECESSARY
INFORMATION AND DIRECTIONS TO ENSURE THE CHARACTERIZATION OF THE  INCOME
DEDUCTION  ORDER  AS  AN  INCOME  WITHHOLDING  NOTICE  AS  DESCRIBED AND
REQUIRED BY SUBSECTION (B) OF SECTION SIX  HUNDRED  SIXTY-SIX  OF  TITLE
FORTY-TWO  OF  THE UNITED STATES CODE; PROVIDED, HOWEVER, THAT WHERE THE
COURT ENTERS AN ORDER FOR SPOUSAL SUPPORT  ONLY,  AN  ALTERNATE  SPOUSAL
SUPPORT  FORM FOR INCOME WITHHOLDING PROMULGATED BY THE OFFICE OF TEMPO-
RARY AND DISABILITY ASSISTANCE MAY BE USED  BUT  IS  NOT  REQUIRED.  The
court  shall  SERVE OR CAUSE TO BE SERVED A COPY OF THE INCOME DEDUCTION
ORDER ON THE EMPLOYER OR INCOME PAYOR AND transmit copies of such  order
to  the  parties;  and, IN ADDITION, WHERE THE INCOME DEDUCTION ORDER IS
FOR CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL SUPPORT, to [such  unit]
THE  STATE  DISBURSEMENT  UNIT  PROVIDED  FOR IN SUBDIVISION FOURTEEN OF
SECTION ONE HUNDRED ELEVEN-B OF THE SOCIAL SERVICES LAW.
  [(2)] (E) An employer OR INCOME PAYOR served with an income  deduction
order  entered  pursuant  to  this [subdivision] SECTION shall [commence
deductions from the income due or thereafter due to the debtor no  later
than the first pay period that occurs fourteen days after service of the
income  deduction order, and shall remit payments to the state office of
temporary and disability assistance pursuant to subdivision fourteen  of
section  one hundred eleven-b of the social services law within ten days
of the date that the debtor  is  paid.  Each  payment  remitted  by  the
employer  shall  be made payable to the creditor named in the order, and
shall include the names, addresses, and social security numbers  of  the
debtor and the creditor, and the date and the amount of each withholding
of  the  debtor's income included in the payment.] FOLLOW THE DIRECTIONS
PROVIDED IN THE INCOME DEDUCTION ORDER, INCLUDING BUT  NOT  LIMITED  TO,
INSTRUCTIONS  AS  TO  TIMEFRAMES  FOR  REMITTANCE,  AMOUNT OF REMITTANCE
INCLUDING AN ADDITIONAL  AMOUNT  TO  BE  APPLIED  TO  THE  REDUCTION  OF
ARREARS,  IF  ANY,  WITHHOLDING LIMITS, TERMINATION AND REINSTATEMENT OF
THE EMPLOYEE, EMPLOYER LIABILITY, NOTICE OF UPCOMING LUMP SUM  PAYMENTS,
AND PRIORITY OF WITHHOLDING.
  (F)  An  employer  OR INCOME PAYOR shall be liable to the creditor for
failure to deduct the amounts specified in the income  deduction  order,
provided  however  that deduction by the employer OR INCOME PAYOR of the
amounts specified shall not relieve the debtor of the  underlying  obli-
gation  of  support. If an employer OR INCOME PAYOR shall fail to so pay
the creditor, the creditor may commence a proceeding against the employ-
er OR INCOME PAYOR for accrued deductions, together  with  interest  and
reasonable  attorney's fees. If the debtor's employment is terminated by
resignation or dismissal  at  any  time  after  service  of  the  income
deduction  order,  the order shall cease to have force and effect unless
the debtor is reinstated or re-employed by the same employer. An employ-
er must notify the creditor promptly when the debtor terminates  employ-
ment and must provide the debtor's last address and the name and address
of  the debtor's new employer, if known. AN INCOME PAYOR MUST NOTIFY THE
CREDITOR WHEN THE DEBTOR NO LONGER RECEIVES INCOME AND MUST PROVIDE  THE
DEBTOR'S  LAST  ADDRESS  AND  THE  NAME  AND ADDRESS OF THE DEBTOR'S NEW
EMPLOYER, IF KNOWN. Where the income is compensation paid or payable  to
the  debtor  for  personal services, the amount withheld by the employer
shall not exceed the following:

S. 4728                             6

  (i) Where the debtor currently is supporting  a  spouse  or  dependent
child  other  than  the  creditor's dependent child, the amount withheld
shall not exceed fifty percent of the earnings of the  debtor  remaining
after the deduction therefrom of any amounts required by law to be with-
held  ("disposable  earnings"), except that if any part of the deduction
is to be applied to the reduction of arrears which  shall  have  accrued
more than twelve weeks prior to the beginning of the week for which such
earnings  are  payable,  the amount withheld shall not exceed fifty-five
percent of disposable earnings.
  (ii) Where the debtor currently is not supporting a spouse or  depend-
ent child other than the creditor's dependent child, the amount withheld
shall  not  exceed sixty percent of the earnings of the debtor remaining
after the deduction therefrom of any amounts required by law to be with-
held ("disposable earnings"), except that if any part of  the  deduction
is  to  be  applied to the reduction of arrears which shall have accrued
more than twelve weeks prior to the beginning of the week for which such
earnings are payable, the amount withheld shall  not  exceed  sixty-five
percent of disposable earnings.
  [(d)]  (G)  An order pursuant to this section shall take priority over
any other assignment, levy or process. If an employer or income payor is
served with more than one income deduction order pertaining to a  single
employee  pursuant  to this section, or with an order issued pursuant to
this section and also an execution pursuant  to  section  5241  of  this
[chapter]  ARTICLE, and if the combined total amount of the income to be
withheld exceeds the limits set forth in subdivision [(c)] (F)  of  this
section,  the employer or income payor shall withhold the maximum amount
permitted thereby and pay to each creditor that proportion thereof which
such creditor's claim bears to the combined total.
  [(e)] (H) An employer or income payor shall be liable to the  creditor
for  failure  to  deduct  the  amounts  specified, provided however that
deduction of the amounts specified by the employer or income payor shall
not relieve the debtor of the underlying obligation of support.
  [(f)] (I) A creditor shall not be  required  to  issue  process  under
section  5241 of this article prior to obtaining relief pursuant to this
section.
  [(g) Where the court issues an  income  deduction  order  for  support
enforcement  payable to the support collection unit, as defined in para-
graph nine of subdivision (a) of section  5241  of  this  article,  each
payment  remitted by an employer or income payor shall include, in addi-
tion to the identity and social security number of the debtor, the  date
and  amount  of  each withholding of the debtor's income included in the
payment.]
  S 4. Subdivision 14 of section 111-b of the social  services  law,  as
amended  by  chapter  398  of  the  laws  of 1997, is amended to read as
follows:
  14. [The] FOR PURPOSES OF THIS  SUBDIVISION,  THE  department  OR  ITS
FISCAL  AGENT  PURSUANT  TO  SECTION ONE HUNDRED ELEVEN-H OF THIS TITLE,
SHALL ACT AS THE STATE DISBURSEMENT UNIT AND is authorized to  [receive]
COLLECT  and  [transmit funds] DISBURSE ANY SUPPORT paid pursuant to any
order of child support or child and spousal support issued on  or  after
the  first  day  of  January,  nineteen  hundred  ninety-four  under the
provisions of section two hundred thirty-six or two hundred forty of the
domestic relations law, or article four, five, five-A or five-B  of  the
family court act, and which the court has ordered to be paid pursuant to
an  income  deduction  order issued by the court pursuant to subdivision
(c) of section five thousand two hundred forty-two of the civil practice

S. 4728                             7

law and rules. Such [funds]  SUPPORT  received  shall  be  [transmitted]
DISBURSED  within  [five]  TWO  business  days  of  [their] receipt. The
department shall maintain records of its [receipt] COLLECTION and [tran-
smission]  DISBURSEMENT of [funds] SUCH SUPPORT and furnish such records
to the parties to the order upon request.  The department shall be enti-
tled to collect an annual service fee not  to  exceed  the  maximum  fee
permitted  pursuant  to  federal law for its provision of such services.
Funds received in satisfaction of such fee  shall  be  deposited  in  an
account and shall be made available to the department for costs incurred
in  the implementation of this section. The department shall not furnish
any additional services to the parties  to  enforce  the  support  obli-
gation; however, a party seeking enforcement of a support obligation may
apply  for  [enforcement] CHILD SUPPORT services pursuant to section one
hundred eleven-g of this title. The department shall not be  responsible
for  the  [receipt]  COLLECTION  and  [transmission] DISBURSEMENT of any
[funds] SUPPORT until after  it  has  received  a  copy  of  the  income
deduction order and the person entitled to the payment of support pursu-
ant  to the order of support has submitted payment of the annual service
fee IF ANY, and unless its  records  show  that  it  has  received  such
[funds]  SUPPORT  on  behalf  of  the parties to the order, and that the
party to whom the funds are to be [transmitted] DISBURSED  has  provided
the department with [his or her correct] ANY address CHANGES.
  S  5. Within the thirty-day period prior to the effective date of this
act, the state disbursement unit shall provide  written  notice  to  the
employer  or  income payor and to the creditor that any income execution
or income deduction order issued prior to such effective date  requiring
payments  to  be  remitted  through the state disbursement unit shall be
made payable to the state disbursement unit on and after such  effective
date.
  S  6.  This  act  shall  take effect on the two hundred seventieth day
after it shall have become law,  except  that  any  rule  or  regulation
necessary  for  the  timely  implementation of this act on its effective
date may be promulgated on or before such date.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through B of this act shall  be
as specifically set forth in the last section of such Parts.

S4728A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A7951
Law Section:
Civil Practice Law and Rules
Laws Affected:
Amd §111-b, Soc Serv L; amd §§5241 & 5242, CP L

S4728A (ACTIVE) - Bill Texts

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Relates to income withholding for child support.

view sponsor memo
BILL NUMBER:S4728A

TITLE OF BILL: An act to amend the civil practice law and rules and
the social services law, in relation to income withholding for child
support

Purpose of Bill:

This bill promotes government efficiencies for the child support
program in New York. It aligns the payment processing of non-Title
IV-D and Title IV-D income withholding orders.

Summary of Provisions:

Section 1 would amend Civil Practice Law and Rules (CPLR) § 5241(a) to
provide a definition for who can be an "issuer" of an income
execution.

Section 2 would amend CPLR § 5241(b)(1) to replace the term "creditor"
with issuer.

Section 3 would amend CPLR § 5241(c)(1) to specify that the income
execution shall be on a form promulgated by OTDA.

Section 4 would amend CPLR § 5241(d) to replace the term "creditor"
with "issuer".

Section 5 would amend CPLR § 5241(f) to replace the term "creditor"
with "issuer".

Section 6 would amend CPLR § 5241(g) to direct the employer or income
payor to follow the directions provided in the income execution with
regard to information to be included with each payment remitted.

Section 7 would amend CPLR § 5242 (c), (d), (e), (f) and (g).
Subdivision (c) is amended to change "wages" to "income" so that the
terminology aligns with that used in CPLR § 5241(a) which subdivision
is applicable to both CPLR § 5241 and CPLR § 5242. This section
directs the courts, in non-Title IV-D cases, to use the form for
income withholding promulgated by OTDA for such purpose. In tandem
with the amendments to CPLR § 5241, this section requires the form
promulgated by OTDA to comply with the requirements contained in 42
U.S.C. § 666(b) so that it can be characterized as an income
withholding order/notice under that statute. Where the income
deduction order is for child support or combined child and spousal
support orders, the court must serve a copy of the income deduction
order on the employer/income payor, the parties, and the state
disbursement unit. This section requires employers and income payors
to follow the instructions provided on the income deduction order
which requires remittances to be paid to and through the state
disbursement unit in a child support or combined child and spousal
support order and to the creditor in a spousal support only order.

Section 8 would amend Social Services Law § 111-b to authorize OTDA or
its fiscal agent to act as the federally-mandated "state disbursement
unit" for the purpose of collecting and disbursing support received
from employers and income payors in non-Title IV-D cases. It would


further amend the law to align the disbursement timeframe from five to
two business days of receipt as required by federal law.

Section 9 provides that the state disbursement unit shall, during the
30 days prior to the effective date of the bill, provide notice to the
employer or income payor and to the creditor that any income execution
or income deduction order issued prior to such effective date which
requires payments to be remitted through the state disbursement unit
shall be made payable to the state disbursement unit instead of the
creditor on and after such effective date.

Section 10 provides that it will take effect two hundred seventy days
following enactment, except that any rule or regulation necessary for
the timely implementation of this act on its effective date may be
promulgated on or before such date.

Existing Law:

Section 5241 of the CPLR sets forth the procedure and notice
requirements pertaining to income withholding for purposes of the
enforcement of support obligations. It authorizes the support
collection unit (SCU), sheriff, the clerk of court, or an attorney for
the creditor to issue an execution for support enforcement, commonly
called the "income execution."

Section 5242 of the CPLR authorizes the court to enter an income
deduction order for support enforcement.

Subdivision 14 of section 111-b of the Social Services Law provides
the authority for OTDA to "receive" and "transmit" support paid
pursuant to any order of child support or combined order for child and
spousal support which the court has ordered to be paid pursuant to an
income deduction order. The department is required to maintain a
record of its receipt and transmission of the support which record is
to be supplied to a party upon request, but shall not furnish any
additional services to enforce the support obligation unless the party
seeking enforcement applies for child support services pursuant to
Social Services Law § 111-g.

Prior Legislative History:

This is a new bill.

Statement in Support:

Effective May 31, 2012, a new federally-mandated income withholding
form (known as an "IWO") must be used for income withholding in Title
IV-D cases as well as non-Title IV-D cases initially issued on or
after January 1, 1994. This form requires all income withholding in
both IV-D and non-IV-D cases to be paid through the state disbursement
unit. The form provides only very limited opportunity to add
state-specific information relevant to the income withholding process.

In New York, CPLR § 5241 provides for income withholding by SCUs,
private attorneys, sheriffs and clerks of court through issuance of an
income execution. CPLR § 5242 provides authority for the court to
issue an income deduction order to withhold income for the enforcement


of support obligations. Where these mechanisms involve income
withholding for the purpose of enforcing a child or combined child and
spousal support obligation, they fall under the federal "IWO" mandates
set forth in 42 U.S.C. §§ 654b(a)(1)(B); 666(a)(1), (a)(8), and (b).

Provisions in state law for non-IV-D income withholding are different
from the IV-D provisions CPLR § 5242(c)(2) requires employers to remit
payments to OTDA pursuant to the agency's authority to receive and
transmit such funds for non-IV-D child support or combined child and
spousal support cases under Social Services Law § 111-b(14). However,
CPLR § 5242(c)(2) also specifies that each remittance shall be made
payable to the creditor named in the order. In addition, this section
provides that such remittances are to be made within ten (10) days of
the date that the debtor is paid; however 42 U.S.C. § 666(b)(6) --
which applies to non-IV-D cases because of 42 U.S.C.
666(a)(8)(B)(iii) - sets forth a seven (7) business day requirement.

Directing employers and income payors to follow the instructions on
the form promulgated by OTDA will simplify and streamline procedures
by making the requirement for non-IV-D cases align with the IV-D case
requirements. Similarly, reducing the timeframe for remittances across
the board to seven (7) business days will assist in simplifying the
process for employers and income payors. More importantly, once
statutory authorization is provided to allow remittances to be made
payable to the state disbursement unit, employers and income payers
will be able to send non-IV-D remittances with IV-D remittances, thus
allowing for electronic transmission of funds.

Social Services Law § 111-b(14) is the authorizing statute for the
"unit" designated by OTDA referenced in CPLR § 5242(c)(1) to receive
non-IV-D income withholding. Amendments are necessary to the section
to align with the federal mandate requiring the "state disbursement
unit" to collect and disburse the support received pursuant to federal
distribution rules, i.e., requiring a change from five to two business
days.

Budget Implications:

These amendments will ensure compliance with all federal requirements
related to income withholding, thereby avoiding any potential federal
fiscal penalties. The amendments address a technical yet important
issue by aligning the payment processing of non-Title IV-D income
withholding orders with Title IV-D income withholding orders.
Although it is anticipated that this will involve a very small number
of cases, there will be some costs associated with this proposal,
particularly related to systems changes needed to process the
withholding. These costs can be accommodated within existing
appropriations.

Effective Date:

The bill takes effect two hundred seventy days following enactment,
except that any rule or regulation necessary for the timely
implementation on its effective date may be promulgated on or before
such date.


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

                                 4728--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 19, 2013
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of the Office of Tempo-
  rary and Disability Assistance) -- read twice and ordered printed, and
  when printed to be committed to the Committee on  Rules  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the civil practice law and rules and the social services
  law, in relation to income withholding for child support

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

  Section 1. Subdivision (a) of section 5241 of the civil  practice  law
and rules is amended by adding a new paragraph 13 to read as follows:
  13.  "ISSUER"  MEANS  A SUPPORT COLLECTION UNIT, SHERIFF, THE CLERK OF
COURT, OR THE ATTORNEY FOR THE CREDITOR.
  S 2. Paragraph 1 of subdivision (b) of section 5241 of the civil prac-
tice law and rules, as amended by chapter 59 of the  laws  of  1993,  is
amended to read as follows:
  (1)  When a debtor is in default, an execution for support enforcement
may be issued by the support collection unit, or  by  the  sheriff,  the
clerk  of  court  or  the attorney for the creditor as an officer of the
court. Where a debtor is receiving or will receive income, an  execution
for  deductions  therefrom in amounts not to exceed the limits set forth
in subdivision (g) of this section may be served  upon  an  employer  or
income payor after notice to the debtor. The amount of the deductions to
be  withheld shall be sufficient to ensure compliance with the direction
in the order of support, and shall include an additional  amount  to  be
applied to the reduction of arrears. The [creditor] ISSUER may amend the
execution  before  or after service upon the employer or income payor to
reflect additional arrears or payments made by the debtor  after  notice
pursuant to subdivision (d) of this section, or to conform the execution
to the facts found upon a determination made pursuant to subdivision (e)
of this section.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09390-06-3

S. 4728--A                          2

  S 3. Paragraph 1 of subdivision (c) of section 5241 of the civil prac-
tice  law  and  rules, as amended by chapter 214 of the laws of 1998, is
amended to read as follows:
  (1)  The  income  execution shall [contain the caption of the order of
support, and] BE ON THE FORM FOR INCOME WITHHOLDING PROMULGATED  BY  THE
OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE FOR THIS PURPOSE AND SHALL
INCLUDE  THE  NECESSARY INFORMATION AND DIRECTIONS TO ENSURE ITS CHARAC-
TERIZATION AS AN INCOME WITHHOLDING NOTICE AS DESCRIBED AND REQUIRED  BY
SUBSECTION  (B)  OF  SECTION SIX HUNDRED SIXTY-SIX OF TITLE FORTY-TWO OF
THE UNITED STATES CODE; PROVIDED, HOWEVER, THAT WHERE THE  COURT  ENTERS
AN  ORDER  FOR SPOUSAL SUPPORT ONLY FOR WHICH INCOME WITHHOLDING WILL BE
ORDERED BY THE SHERIFF, THE CLERK OF COURT OR THE ATTORNEY FOR THE CRED-
ITOR, AN ALTERNATE SPOUSAL SUPPORT FORM FOR INCOME  WITHHOLDING  PROMUL-
GATED  BY  THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE MAY BE USED
BUT IS NOT REQUIRED. IN ADDITION, THE  INCOME  EXECUTION  SHALL  specify
[the  date that the order of support was entered,] the court in which it
was entered, the amount of the periodic payments directed,  [the  amount
of  arrears,  the nature of the default] and the names of the debtor and
creditor. In addition, TO THE EXTENT NOT ALREADY PROVIDED  ON  THE  FORM
FOR  INCOME  WITHHOLDING,  A  SEPARATE DOCUMENT SHALL BE SERVED WITH the
income execution WHICH shall include:
  (i) the name and address of the employer or income payor from whom the
debtor is receiving or will receive income;
  (ii) the amount of the deductions to be made therefrom on  account  of
current  support,  and  the  amount  to  be  applied to the reduction of
arrears;
  (iii) a notice that deductions will apply to  current  and  subsequent
income;
  (iv)  a  notice  that  the  income  execution  will be served upon any
current or subsequent employer or income payor unless a mistake of  fact
is  shown within fifteen days, a notice of the manner in which a mistake
of fact may be asserted, and a notice  that,  if  the  debtor  claims  a
mistake  of  fact,  a  determination will be made within forty-five days
after notice to the debtor  as  provided  in  subdivision  (d)  of  this
section,  and  that  the  debtor will receive written notice whether the
income execution will be served and of the  time  that  deductions  will
begin;
  (v)  a  notice  that  the  employer  or  income  payor  must  commence
deductions no later than the first pay period that occurs after fourteen
days following the service of the income execution and that payment must
be remitted within seven business days of the date that the debtor paid;
  (vi) a notice that the  income  execution  is  binding  until  further
notice;
  (vii) a notice of the substance of the provisions of section fifty-two
hundred fifty-two of this [chapter] ARTICLE and that a violation thereof
is punishable as a contempt of court by fine or imprisonment or both;
  (viii)  a  notice  of  the  limitations upon deductions from wages set
forth in subdivision (g) of this section;
  (ix) a notice that an employer must notify the  issuer  promptly  when
the  debtor  terminates employment and provide the debtor's last address
and the name and address of the new employer, if known;
  (x) a notice that when an  employer  receives  an  income  withholding
instrument  issued by another state, the employer shall apply the income
withholding law of the state of the debtor's principal place of  employ-
ment in determining:
  (A) the employer's fee for processing income withholding;

S. 4728--A                          3

  (B)  the  maximum  amount  permitted  to be withheld from the debtor's
income;
  (C)  the  time  periods  within  which the employer must implement the
income withholding and forward the child support payment;
  (D) the priorities for withholding and allocating income withheld  for
multiple child support creditors; and
  (E) any withholding terms or conditions not specified in the withhold-
ing instrument; [and]
  (xi)  a notice that an employer who complies with an income [withhold-
ing notice] EXECUTION that is regular on its face shall not  be  subject
to civil liability to any individual or agency for conduct in compliance
with the notice; AND
  (XII) THE AMOUNT OF ARREARS.
  S  4.  Subdivision  (d)  of section 5241 of the civil practice law and
rules, as added by chapter 809 of the laws of 1985, is amended  to  read
as follows:
  (d)  Notice to debtor. The [creditor] ISSUER shall serve a copy of the
execution upon the debtor by regular mail to  the  debtor  at  his  last
known  residence  or  such  other  place  where  he is likely to receive
notice, or in the same manner as a summons may be served.
  S 5. Subdivision (f) of section 5241 of the  civil  practice  law  and
rules,  as  added by chapter 809 of the laws of 1985, is amended to read
as follows:
  (f) Levy. If a debtor fails to show mistake  of  fact  within  fifteen
days,  or  after  a  determination  pursuant  to subdivision (e) of this
section has been made, or if the [creditor] ISSUER is  unable  to  serve
the  execution  upon  the  debtor, the creditor may levy upon the income
that the debtor is receiving or will receive by  serving  the  execution
upon  the  employer  or  income payor personally in the same manner as a
summons or by regular mail, except that such service shall not  be  made
by  delivery to a person authorized to receive service of summons solely
by a designation filed pursuant to a provision of law  other  than  rule
318.
  S 6. Paragraph 1 of subdivision (g) of section 5241 of the civil prac-
tice  law  and  rules, as amended by chapter 398 of the laws of 1997, is
amended to read as follows:
  (1) An employer or income payor served with an income execution  shall
commence  deductions  from income due or thereafter due to the debtor no
later than the first pay period that occurs fourteen days after  service
of  the  execution,  and  shall  remit payments [to the creditor] within
seven business days of the date that the debtor is  paid.  Each  payment
remitted  by  an employer or income payor shall include[, in addition to
the identity and social security number of  the  debtor,  the  date  and
amount  of  each  withholding  of  the  debtor's  income included in the
payment] THE INFORMATION AS INSTRUCTED ON THE INCOME EXECUTION AND SHALL
BE PAYABLE TO AND REMITTED TO THE STATE DISBURSEMENT UNIT ESTABLISHED IN
THIS STATE IN ACCORDANCE WITH SECTION SIX HUNDRED FIFTY-FOUR-B OF  TITLE
FORTY-TWO  OF  THE UNITED STATES CODE UNLESS THE INCOME EXECUTION IS FOR
SPOUSAL SUPPORT ONLY, IN WHICH CASE THE PAYMENTS SHALL BE PAYABLE TO AND
REMITTED TO THE CREDITOR.  If the money due to the  debtor  consists  of
salary  or  wages and his or her employment is terminated by resignation
or dismissal at any time after service of the execution, the levy  shall
thereafter  be  ineffective, and the execution shall be returned, unless
the debtor is reinstated or re-employed within ninety  days  after  such
termination. An employer must notify the issuer promptly when the debtor
terminates employment and provide the debtor's last address and name and

S. 4728--A                          4

address  of the new employer, if known.  AN INCOME PAYOR MUST NOTIFY THE
ISSUER PROMPTLY WHEN THE DEBTOR  NO  LONGER  RECEIVES  INCOME  AND  MUST
PROVIDE  THE  DEBTOR'S  LAST  ADDRESS  AND  THE  NAME AND ADDRESS OF THE
DEBTOR'S  NEW  EMPLOYER, IF KNOWN. Where the income is compensation paid
or payable to the debtor  for  personal  services,  the  amount  of  the
deductions to be withheld shall not exceed the following:
  (i) Where a debtor is currently supporting a spouse or dependent child
other  than  the  creditor,  the amount of the deductions to be withheld
shall not exceed fifty percent of the earnings of the  debtor  remaining
after the deduction therefrom of any amounts required by law to be with-
held  ("disposable earnings"), except that if any part of such deduction
is to be applied to the reduction of arrears which  shall  have  accrued
more than twelve weeks prior to the beginning of the week for which such
earnings  are  payable,  the  amount  of such deduction shall not exceed
fifty-five percent of disposable earnings.
  (ii) Where a debtor is not currently supporting a spouse or  dependent
child  other than the creditor, the amount of the deductions to be with-
held shall not exceed sixty  percent  of  the  earnings  of  the  debtor
remaining  after  the deduction therefrom of any amounts required by law
to be withheld ("disposable earnings"), except that if any part of  such
deduction  is to be applied to the reduction of arrears which shall have
accrued more than twelve weeks prior to the beginning of  the  week  for
which  such earnings are payable, the amount of such deduction shall not
exceed sixty-five percent of disposable earnings.
  S 7. Subdivisions (c), (d), (e), (f) and (g) of section  5242  of  the
civil  practice  law and rules, as amended by chapter 170 of the laws of
1994, and paragraph 1 and the opening paragraph of paragraph 2 of subdi-
vision (c) as amended by chapter 601 of the laws of 2007, are amended to
read as follows:
  (c) [(1)] When the court enters an  order  of  support  on  behalf  of
persons  other  than those in receipt of public assistance or in receipt
of services pursuant to section  one  hundred  eleven-g  of  the  social
services  law,  or  registers  pursuant  to article five-B of the family
court act an order of support which has been issued by a foreign  juris-
diction and which is not to be enforced pursuant to title six-A of arti-
cle  three  of  the social services law, where the court determines that
the [respondent earns wages] DEBTOR HAS INCOME that could be subject  to
an  income  deduction  order,  the court shall issue an income deduction
order to obtain payment of the order at  the  same  time  it  issues  or
registers  the  order.  The court shall enter the income deduction order
unless the court finds and sets forth in writing (i)  the  reasons  that
there is good cause not to require immediate income withholding; or (ii)
that  an  agreement  providing  for  an alternative arrangement has been
reached between the parties. Such agreement may include a written agree-
ment or an oral stipulation, made on the record, that results in a writ-
ten order. For purposes of  this  subdivision,  good  cause  shall  mean
substantial  harm to the debtor. The absence of an arrearage or the mere
issuance of an income deduction order shall not constitute  good  cause.
When  the  court  determines  that  there  is good cause not to issue an
income deduction order immediately or  when  the  parties  agree  to  an
alternative arrangement as provided in this [paragraph] SUBDIVISION, the
court  shall  state  expressly in the order of support the basis for its
decision.
  (D) In entering the income deduction order, the court  shall  [specify
an amount to be withheld by the debtor's employer, which shall be suffi-
cient  to  ensure  compliance  with  the order of support and also shall

S. 4728--A                          5

include an additional amount to be applied to the reduction of  arrears,
if  any,  and  shall  specify  the names, addresses, and social security
numbers of the parties to the support proceeding and the mailing address
of  the unit within the state office of temporary and disability assist-
ance designated to receive such deductions]  USE  THE  FORM  FOR  INCOME
WITHHOLDING  PROMULGATED  BY  THE  OFFICE  OF  TEMPORARY  AND DISABILITY
ASSISTANCE FOR THIS PURPOSE, WHICH  FORM  SHALL  INCLUDE  THE  NECESSARY
INFORMATION  AND DIRECTIONS TO ENSURE THE CHARACTERIZATION OF THE INCOME
DEDUCTION ORDER  AS  AN  INCOME  WITHHOLDING  NOTICE  AS  DESCRIBED  AND
REQUIRED  BY  SUBSECTION  (B)  OF SECTION SIX HUNDRED SIXTY-SIX OF TITLE
FORTY-TWO OF THE UNITED STATES CODE; PROVIDED, HOWEVER, THAT  WHERE  THE
COURT  ENTERS  AN  ORDER  FOR SPOUSAL SUPPORT ONLY, AN ALTERNATE SPOUSAL
SUPPORT FORM FOR INCOME WITHHOLDING PROMULGATED BY THE OFFICE OF  TEMPO-
RARY  AND  DISABILITY  ASSISTANCE  MAY  BE USED BUT IS NOT REQUIRED. The
court shall SERVE OR CAUSE TO BE SERVED A COPY OF THE  INCOME  DEDUCTION
ORDER  ON THE EMPLOYER OR INCOME PAYOR AND transmit copies of such order
to the parties; and, IN ADDITION, WHERE THE INCOME  DEDUCTION  ORDER  IS
FOR  CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL SUPPORT, to [such unit]
THE STATE DISBURSEMENT UNIT ESTABLISHED IN THIS STATE IN ACCORDANCE WITH
SECTION SIX HUNDRED FIFTY-FOUR-B OF TITLE FORTY-TWO OF THE UNITED STATES
CODE.
  [(2)] (E) An employer OR INCOME PAYOR served with an income  deduction
order  entered  pursuant  to  this  [subdivision] SECTION shall commence
deductions from the income due or thereafter due to the debtor no  later
than the first pay period that occurs fourteen days after service of the
income  deduction  order,  and  shall MAKE PAYMENTS PAYABLE TO AND remit
SUCH payments to the state [office of temporary and  disability  assist-
ance pursuant to subdivision fourteen of section one hundred eleven-b of
the  social  services  law]  DISBURSEMENT UNIT IF THE DEDUCTIONS ARE FOR
CHILD OR COMBINED CHILD AND SPOUSAL SUPPORT, OR TO THE CREDITOR  IF  THE
DEDUCTIONS  ARE  FOR  SPOUSAL  SUPPORT ONLY, within [ten] SEVEN BUSINESS
days of the date that the debtor is paid. Each payment remitted  by  the
employer OR INCOME PAYOR shall [be made payable to the creditor named in
the  order,  and shall include the names, addresses, and social security
numbers of the debtor and the creditor, and the date and the  amount  of
each  withholding  of  the  debtor's  income  included  in the payment.]
INCLUDE THE INFORMATION AS INSTRUCTED ON THE INCOME DEDUCTION ORDER. THE
AMOUNT REMITTED BY THE EMPLOYER OR INCOME PAYOR SHALL BE AS SET FORTH IN
THE INCOME DEDUCTION ORDER INCLUDING THE ADDITIONAL AMOUNT THAT SHALL BE
ORDERED BY THE COURT AND APPLIED TO THE REDUCTION OF  ARREARS,  IF  ANY,
UNLESS  SUCH  DEDUCTION  IS OTHERWISE LIMITED BY SUBDIVISION (F) OF THIS
SECTION.
  (F) An employer OR INCOME PAYOR shall be liable to  the  creditor  for
failure  to  deduct the amounts specified in the income deduction order,
provided however that deduction by the employer OR INCOME PAYOR  of  the
amounts  specified  shall not relieve the debtor of the underlying obli-
gation of support. If an employer OR INCOME PAYOR shall fail to  so  pay
THE  STATE  DISBURSEMENT  UNIT OR, IF A SPOUSAL SUPPORT ONLY PAYMENT the
creditor, the creditor may commence a proceeding against the employer OR
INCOME PAYOR for accrued deductions, together with interest and  reason-
able  attorney's  fees.    If  the  debtor's employment is terminated by
resignation or dismissal  at  any  time  after  service  of  the  income
deduction  order,  the order shall cease to have force and effect unless
the debtor is reinstated or re-employed WITHIN NINETY  DAYS  AFTER  SUCH
TERMINATION. An employer must notify the [creditor] ISSUER promptly when
the  debtor  terminates  employment  and  must provide the debtor's last

S. 4728--A                          6

address and the name and address of the debtor's new employer, if known.
AN INCOME PAYOR MUST  NOTIFY  THE  ISSUER  WHEN  THE  DEBTOR  NO  LONGER
RECEIVES  INCOME AND MUST PROVIDE THE DEBTOR'S LAST ADDRESS AND THE NAME
AND  ADDRESS OF THE DEBTOR'S NEW EMPLOYER, IF KNOWN. Where the income is
compensation paid or payable to the debtor for  personal  services,  the
amount withheld by the employer shall not exceed the following:
  (i)  Where  the  debtor  currently is supporting a spouse or dependent
child other than the creditor's dependent  child,  the  amount  withheld
shall  not  exceed fifty percent of the earnings of the debtor remaining
after the deduction therefrom of any amounts required by law to be with-
held ("disposable earnings"), except that if any part of  the  deduction
is  to  be  applied to the reduction of arrears which shall have accrued
more than twelve weeks prior to the beginning of the week for which such
earnings are payable, the amount withheld shall  not  exceed  fifty-five
percent of disposable earnings.
  (ii)  Where the debtor currently is not supporting a spouse or depend-
ent child other than the creditor's dependent child, the amount withheld
shall not exceed sixty percent of the earnings of the  debtor  remaining
after the deduction therefrom of any amounts required by law to be with-
held  ("disposable  earnings"), except that if any part of the deduction
is to be applied to the reduction of arrears which  shall  have  accrued
more than twelve weeks prior to the beginning of the week for which such
earnings  are  payable,  the amount withheld shall not exceed sixty-five
percent of disposable earnings.
  [(d)] (G) An order pursuant to this section shall take  priority  over
any other assignment, levy or process. If an employer or income payor is
served  with more than one income deduction order pertaining to a single
employee pursuant to this section, or with an order issued  pursuant  to
this  section  and  also  an  execution pursuant to section 5241 of this
[chapter] ARTICLE, and if the combined total amount of the income to  be
withheld  exceeds  the limits set forth in subdivision [(c)] (F) of this
section, the employer or income payor shall withhold the maximum  amount
permitted thereby and pay to each creditor that proportion thereof which
such creditor's claim bears to the combined total.
  [(e)]  (H) An employer or income payor shall be liable to the creditor
for failure to deduct  the  amounts  specified,  provided  however  that
deduction of the amounts specified by the employer or income payor shall
not relieve the debtor of the underlying obligation of support.
  [(f)]  (I)  A  creditor  shall  not be required to issue process under
section 5241 of this article prior to obtaining relief pursuant to  this
section.
  [(g)  Where  the  court  issues  an income deduction order for support
enforcement payable to the support collection unit, as defined in  para-
graph  nine  of  subdivision  (a)  of section 5241 of this article, each
payment remitted by an employer or income payor shall include, in  addi-
tion  to the identity and social security number of the debtor, the date
and amount of each withholding of the debtor's income  included  in  the
payment.]
  S  8.  Subdivision  14 of section 111-b of the social services law, as
amended by chapter 398 of the laws  of  1997,  is  amended  to  read  as
follows:
  14.  [The] FOR PURPOSES OF THIS SUBDIVISION, THE department OR, PURSU-
ANT TO CONTRACT, A FISCAL AGENT is authorized to [receive]  COLLECT  and
[transmit  funds]  DISBURSE  ANY  SUPPORT  paid pursuant to any order of
child support or COMBINED child and spousal support issued on  or  after
the  first  day  of  January,  nineteen  hundred  ninety-four  under the

S. 4728--A                          7

provisions of section two hundred thirty-six or two hundred forty of the
domestic relations law, or article four, five, five-A or five-B  of  the
family court act, and which the court has ordered to be paid pursuant to
AN  INCOME  EXECUTION  ISSUED BY THE SHERIFF, THE CLERK OF THE COURT, OR
THE ATTORNEY FOR THE CREDITOR PURSUANT TO  SUBDIVISION  (C)  OF  SECTION
FIVE  THOUSAND TWO HUNDRED FORTY-ONE OF THE CIVIL PRACTICE LAW AND RULES
OR an income deduction order issued by the court pursuant to subdivision
(c) of section five thousand two hundred forty-two of the civil practice
law and rules. Such [funds]  SUPPORT  received  shall  be  [transmitted]
DISBURSED  within  [five]  TWO  business  days  of  [their] receipt. The
department shall maintain records of its [receipt] COLLECTION and [tran-
smission] DISBURSEMENT of [funds] SUCH SUPPORT and furnish such  records
to the parties to the order upon request.  The department shall be enti-
tled  to  collect  an  annual  service fee not to exceed the maximum fee
permitted pursuant to federal law for its provision  of  such  services.
Funds  received  in  satisfaction  of  such fee shall be deposited in an
account and shall be made available to the department for costs incurred
in the implementation of this section. The department shall not  furnish
any  additional  services  to  the parties [to enforce the support obli-
gation]; however, a party seeking [enforcement of a support  obligation]
CHILD  SUPPORT SERVICES may apply for [enforcement] SUCH services pursu-
ant to section one hundred eleven-g of this title. The department  shall
not  be  responsible  for  the  [receipt]  COLLECTION and [transmission]
DISBURSEMENT of any [funds] SUPPORT until after it HAS received  a  copy
of the INCOME EXECUTION FROM THE SHERIFF, THE CLERK OF THE COURT, OR THE
ATTORNEY FOR THE CREDITOR OR A COPY OF THE income deduction order ISSUED
BY  THE COURT and the person entitled to the payment of support pursuant
to the order of support has submitted payment of the annual service  fee
IF  ANY,  and  unless its records show that it has received such [funds]
SUPPORT on behalf of the parties to the order, and  that  the  party  to
whom  the  funds  are  to  be  [transmitted]  DISBURSED has provided the
department with [his or her correct] ANY address CHANGES.
  S 9. Within the thirty-day period prior to the effective date of  this
act,  the  state  disbursement  unit shall provide written notice to the
employer or income payor and to the creditor that any  income  execution
or  income deduction order issued prior to such effective date requiring
payments to be remitted through the state  disbursement  unit  shall  be
made  payable to the state disbursement unit on and after such effective
date.
  S 10. This act shall take effect on the  two  hundred  seventieth  day
after  it  shall  have  become  law,  except that any rule or regulation
necessary for the timely implementation of this  act  on  its  effective
date may be promulgated on or before such date.

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