senate Bill S6530

2013-2014 Legislative Session

Relates to notice of small claims judgments and indexing of unpaid claims

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Archive: Last Bill Status - In Committee


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

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Feb 03, 2014 referred to judiciary

S6530 - Bill Details

See Assembly Version of this Bill:
A8441
Current Committee:
Law Section:
New York City Civil Court Act
Laws Affected:
Amd §1811, NYC Civ Ct Act; amd §1811, UCCA; amd §1811, UDCA; amd §1811, UJCA; add §171-w, Tax L

S6530 - Bill Texts

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Relates to notice of small claims judgments and indexing of unpaid claims.

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BILL NUMBER:S6530

TITLE OF BILL: An act to amend the New York city civil court act, the
uniform city court act, the uniform district court act, the uniform
justice court act and the tax law, in relation to notice of small
claims judgments and indexing of unpaid claims

PURPOSE OR GENERAL IDEA OF BILL: This bill provides for the
interception of income tax refunds to satisfy an outstanding small
claims judgment.

SUMMARY OF SPECIFIC PROVISIONS: Sections 1-4 amend subdivision(a)of
Section 1811 of the New York City Civil Court Act, the Uniform City
Court Act, the Uniform District Court Act, and the Uniform Justice
Court Act by adding a new paragraph 10 that adds the interception of
any income tax refund owed pursuant to the Tax Law to the list of
actions that a judgment debtor may be subject to for failure to
satisfy a small claims judgment. In addition, these same sections of
the bill also amend subdivision (b) of Section 1811 of the same court
acts by adding a new paragraph 8 that includes in the notice of
judgment sent to small claims judgment creditors the right of a
claimant to initiate actions to recover the unpaid judgment through
the interception of any income tax refund owed pursuant to the Tax
Law.

Section 5 amends the Tax Law by adding a new Section 171-w that
directs the Commissioner of Taxation and Finance to enter into an
agreement with the Chief Administrator of the Courts to establish
procedures for the interception of any income tax refund owed to a
small claims judgment debtor, including penalties and attorney's fees,
and payment of such refund to the judgment creditor.

Section 6 contains the effective date.

JUSTIFICATION: Winning a judgment in Small Claims Court is perhaps the
easiest aspect of that judicial proceeding. Collecting on the
judgment, however, often entails frustration and sometimes even
futility. A number of actions to assist a judgment creditor in
collecting are permitted in the various court acts named above. These
include garnishment of wages and bank accounts, a lien on or seizure
of personal property, and a seizure of real property, among others.
This legislation now adds the interception of income tax refunds as an
action that can be taken to try and make a judgment creditor whole.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: Immediately.

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

                                  6530

                            I N  S E N A T E

                            February 3, 2014
                               ___________

Introduced  by Sen. NOZZOLIO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the New York city civil  court  act,  the  uniform  city
  court  act,  the uniform district court act, the uniform justice court
  act and the tax law, in relation to notice of small  claims  judgments
  and indexing of unpaid claims

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

  Section 1. Subdivisions (a) and (b) of section 1811 of  the  New  York
city  civil  court  act,  as amended by chapter 122 of the laws of 1987,
paragraph 2 of subdivision (b) as amended, paragraph  6  of  subdivision
(b)  as  added,  paragraph 7 of subdivision (b) as renumbered by chapter
650 of the laws of 1991, are amended to read as follows:
  (a) Notice of judgment sent to judgment debtor shall  specify  that  a
failure  to  satisfy  a  judgment  may  subject the debtor to any one or
combination of the following actions:
  1. garnishment of wage;
  2. garnishment of bank account;
  3. a lien on personal property;
  4. seizure and sale of real property;
  5. seizure and sale of personal property, including automobiles;
  6. suspension of motor vehicle license and registration, if  claim  is
based on defendant's ownership or operation of a motor vehicle;
  7.  revocation,  suspension,  or  denial  of renewal of any applicable
business license or permit;
  8. investigation and prosecution by the attorney general  for  fraudu-
lent or illegal business practices; [and]
  9.  a penalty equal to three times the amount of the unsatisfied judg-
ment plus attorney's fees, if there are other unpaid claims[.]; AND
  10. INTERCEPT OF ANY INCOME TAX REFUND OWED PURSUANT TO THE TAX LAW.
  (b) Notice of judgment sent to judgment creditor shall contain but not
be limited to the following information:
  1. the claimant's right to payment within thirty  days  following  the
debtor's receipt of the judgment notice;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11727-02-3

S. 6530                             2

  2.  the  procedures for use of section eighteen hundred twelve of this
article concerning the identification of assets of the judgment  debtor,
including  the  use  of information subpoenas, access to consumer credit
reports and the role of sheriffs and marshals, and  actions  to  collect
three  times  the  judgment  award  and attorney's fees if there are two
other unsatisfied claims against the debtor;
  3. the claimant's right to initiate  actions  to  recover  the  unpaid
judgment  through  the  sale  of the debtor's real property, or personal
property;
  4. the claimant's right to initiate  actions  to  recover  the  unpaid
judgment through suspension of debtor's motor vehicle license and regis-
tration,  if  claim  is based on defendant's ownership or operation of a
motor vehicle;
  5. the claimant's right to  notify  the  appropriate  state  or  local
licensing  or certifying authority of an unsatisfied judgment as a basis
for possible revocation, suspension, or denial of  renewal  of  business
license; [and]
  6.  a statement that upon satisfying the judgment, the judgment debtor
shall present appropriate proof thereof to the court; [and]
  7. the claimant's right to notify the attorney general if  the  debtor
is  a  business and appears to be engaged in fraudulent or illegal busi-
ness practices[.]; AND
  8. THE CLAIMANT'S RIGHT TO INITIATE  ACTIONS  TO  RECOVER  THE  UNPAID
JUDGMENT THROUGH THE INTERCEPTION OF ANY INCOME TAX REFUND OWED PURSUANT
TO THE TAX LAW.
  S  2.  Subdivisions  (a)  and  (b) of section 1811 of the uniform city
court act, as amended by chapter 122 of the laws of 1987, paragraph 2 of
subdivision (b) as amended, paragraph 6 of  subdivision  (b)  as  added,
paragraph  7 of subdivision (b) as renumbered by chapter 650 of the laws
of 1991, are amended to read as follows:
  (a) Notice of judgment sent to judgment debtor shall  specify  that  a
failure  to  satisfy  a  judgment  may  subject the debtor to any one or
combination of the following actions:
  1. garnishment of wage;
  2. garnishment of bank account;
  3. a lien on personal property;
  4. seizure and sale of real property;
  5. seizure and sale of personal property, including automobiles;
  6. suspension of motor vehicle license and registration, if  claim  is
based on defendant's ownership or operation of a motor vehicle;
  7.  revocation,  suspension,  or  denial  of renewal of any applicable
business license or permit;
  8. investigation and prosecution by the attorney general  for  fraudu-
lent or illegal business practices; [and]
  9.  a penalty equal to three times the amount of the unsatisfied judg-
ment plus attorney's fees, if there are other unpaid claims[.]; AND
  10. INTERCEPT OF ANY INCOME TAX REFUND OWED PURSUANT TO THE TAX LAW.
  (b) Notice of judgment sent to judgment creditor shall contain but not
be limited to the following information:
  1. the claimant's right to payment within thirty  days  following  the
debtor's receipt of the judgment notice;
  2.  the  procedures for use of section eighteen hundred twelve of this
article concerning the identification of assets of the  judgment  debtor
including  the  use  of information subpoenas, access to consumer credit
reports and the role of sheriffs and marshals, and  actions  to  collect

S. 6530                             3

three  times  the  judgment  award  and attorney's fees if there are two
other unsatisfied claims against the debtor;
  3.  the  claimant's  right  to  initiate actions to recover the unpaid
judgment through the sale of the debtor's  real  property,  or  personal
property;
  4.  the  claimant's  right  to  initiate actions to recover the unpaid
judgment through suspension of debtor's motor vehicle license and regis-
tration, if claim is based on defendant's ownership or  operation  of  a
motor vehicle;
  5.  the  claimant's  right  to  notify  the appropriate state or local
licensing or certifying authority of an unsatisfied judgment as a  basis
for  possible  revocation,  suspension, or denial of renewal of business
license; [and]
  6. a statement that upon satisfying the judgment, the judgment  debtor
shall present appropriate proof thereof to the court; [and]
  7.  the  claimant's right to notify the attorney general if the debtor
is a business and appears to be engaged in fraudulent or  illegal  busi-
ness practices[.]; AND
  8.  THE  CLAIMANT'S  RIGHT  TO  INITIATE ACTIONS TO RECOVER THE UNPAID
JUDGMENT THROUGH THE INTERCEPTION OF ANY INCOME TAX REFUND OWED PURSUANT
TO THE TAX LAW.
  S 3. Subdivisions (a) and (b) of section 1811 of the uniform  district
court act, as amended by chapter 122 of the laws of 1987, paragraph 2 of
subdivision  (b)  as  amended,  paragraph 6 of subdivision (b) as added,
paragraph 7 of subdivision (b) as renumbered by chapter 650 of the  laws
of 1991, are amended to read as follows:
  (a)  Notice  of  judgment sent to judgment debtor shall specify that a
failure to satisfy a judgment may subject  the  debtor  to  any  one  or
combination of the following actions:
  1. garnishment of wage;
  2. garnishment of bank account;
  3. a lien on personal property;
  4. seizure and sale of real property;
  5. seizure and sale of personal property, including automobiles;
  6.  suspension  of motor vehicle license and registration, if claim is
based on defendant's ownership or operation of a motor vehicle;
  7. revocation, suspension, or denial  of  renewal  of  any  applicable
business license or permit;
  8.  investigation  and prosecution by the attorney general for fraudu-
lent or illegal business practices; [and]
  9. a penalty equal to three times the amount of the unsatisfied  judg-
ment plus attorney's fees, if there are other unpaid claims[.]; AND
  10. INTERCEPT OF ANY INCOME TAX REFUND OWED PURSUANT TO THE TAX LAW.
  (b) Notice of judgment sent to judgment creditor shall contain but not
be limited to the following information:
  1.  the  claimant's  right to payment within thirty days following the
debtor's receipt of the judgment notice;
  2. the procedures for use of section eighteen hundred twelve  of  this
article  concerning  the identification of assets of the judgment debtor
including the use of information subpoenas, access  to  consumer  credit
reports  and  the  role of sheriffs and marshals, and actions to collect
three times the judgment award and attorney's  fees  if  there  are  two
other unsatisfied claims against the debtor;
  3.  the  claimant's  right  to  initiate actions to recover the unpaid
judgment through the sale of the debtor's  real  property,  or  personal
property;

S. 6530                             4

  4.  the  claimant's  right  to  initiate actions to recover the unpaid
judgment through suspension of debtor's motor vehicle license and regis-
tration, if claim is based on defendant's ownership or  operation  of  a
motor vehicle;
  5.  the  claimant's  right  to  notify  the appropriate state or local
licensing or certifying authority of an unsatisfied judgment as a  basis
for  possible  revocation,  suspension, or denial of renewal of business
license; [and]
  6. a statement that upon satisfying the judgment, the judgment  debtor
shall present appropriate proof thereof to the court; [and]
  7.  the  claimant's right to notify the attorney general if the debtor
is a business and appears to be engaged in fraudulent or  illegal  busi-
ness practices[.]; AND
  8.  THE  CLAIMANT'S  RIGHT  TO  INITIATE ACTIONS TO RECOVER THE UNPAID
JUDGMENT THROUGH THE INTERCEPTION OF ANY INCOME TAX REFUND OWED PURSUANT
TO THE TAX LAW.
  S 4. Subdivisions (a) and (b) of section 1811 of the  uniform  justice
court act, as amended by chapter 122 of the laws of 1987, paragraph 2 of
subdivision  (b)  as  amended,  paragraph 6 of subdivision (b) as added,
paragraph 7 of subdivision (b) as renumbered by chapter 650 of the  laws
of 1991, are amended to read as follows:
  (a)  Notice  of  judgment sent to judgment debtor shall specify that a
failure to satisfy a judgment may subject  the  debtor  to  any  one  or
combination of the following actions:
  1. garnishment of wage;
  2. garnishment of bank account;
  3. a lien on personal property;
  4. seizure and sale of real property;
  5. seizure and sale of personal property, including automobiles;
  6.  suspension  of motor vehicle license and registration, if claim is
based on defendant's ownership or operation of a motor vehicle;
  7. revocation, suspension, or denial  of  renewal  of  any  applicable
business license or permit;
  8.  investigation  and prosecution by the attorney general for fraudu-
lent or illegal business practices; [and]
  9. a penalty equal to three times the amount of the unsatisfied  judg-
ment plus attorney's fees, if there are other unpaid claims[.]; AND
  10. INTERCEPT OF ANY INCOME TAX REFUND OWED PURSUANT TO THE TAX LAW.
  (b) Notice of judgment sent to judgment creditor shall contain but not
be limited to the following information:
  1.  the  claimant's  right to payment within thirty days following the
debtor's receipt of the judgment notice;
  2. the procedures for use of section eighteen hundred twelve  of  this
article  concerning  the identification of assets of the judgment debtor
including the use of information subpoenas, access  to  consumer  credit
reports  and  the  role of sheriffs and marshals, and actions to collect
three times the judgment award and attorney's  fees  if  there  are  two
other unsatisfied claims against the debtor;
  3.  the  claimant's  right  to  initiate actions to recover the unpaid
judgment through the sale of the debtor's  real  property,  or  personal
property;
  4.  the  claimant's  right  to  initiate actions to recover the unpaid
judgment through suspension of debtor's motor vehicle license and regis-
tration, if claim is based on defendant's ownership or  operation  of  a
motor vehicle;

S. 6530                             5

  5.  the  claimant's  right  to  notify  the appropriate state or local
licensing or certifying authority of an unsatisfied judgment as a  basis
for  possible  revocation,  suspension, or denial of renewal of business
license; [and]
  6.  a statement that upon satisfying the judgment, the judgment debtor
shall present appropriate proof thereof to the court; [and]
  7. the claimant's right to notify the attorney general if  the  debtor
is  a  business and appears to be engaged in fraudulent or illegal busi-
ness practices[.]; AND
  8. THE CLAIMANT'S RIGHT TO INITIATE  ACTIONS  TO  RECOVER  THE  UNPAID
JUDGMENT THROUGH THE INTERCEPTION OF ANY INCOME TAX REFUND OWED PURSUANT
TO THE TAX LAW.
  S  5.  The tax law is amended by adding a new section 171-w to read as
follows:
  S 171-W. INTERCEPTION OF INCOME TAX REFUND IN  SATISFACTION  OF  SMALL
CLAIMS  JUDGMENT.  THE  COMMISSIONER, ON BEHALF OF THE DEPARTMENT, SHALL
ENTER INTO A WRITTEN AGREEMENT  WITH  THE  CHIEF  ADMINISTRATOR  OF  THE
COURTS, WHICH SHALL SET FORTH THE PROCEDURES FOR THE INTERCEPTION OF ANY
INCOME  TAX  REFUND  OWED TO ANY SMALL CLAIMS JUDGMENT DEBTOR, INCLUDING
PENALTIES AND ATTORNEY'S FEES THAT ARE PROVIDED FOR  PURSUANT  TO  PARA-
GRAPH  9  OF  SUBDIVISION (A) OF SECTION 1811 OF THE NEW YORK CITY CIVIL
COURT ACT, THE UNIFORM CIVIL COURT ACT, THE UNIFORM DISTRICT  COURT  ACT
AND  THE  UNIFORM  JUSTICE  COURT ACT, AND PAYMENT OF SUCH REFUND TO THE
SMALL CLAIMS JUDGMENT CREDITOR WHO FILES AN APPROPRIATE NOTICE WITH  THE
COMMISSIONER  AS AN ACTION TO RECOVER SUCH JUDGMENT PURSUANT TO SUBDIVI-
SION (B) OF SECTION EIGHTEEN HUNDRED ELEVEN OF THE NEW YORK  CITY  CIVIL
COURT  ACT,  SUBDIVISION  (B)  OF SECTION EIGHTEEN HUNDRED ELEVEN OF THE
UNIFORM CITY COURT ACT, SUBDIVISION  (B)  OF  SECTION  EIGHTEEN  HUNDRED
ELEVEN  OF  THE UNIFORM DISTRICT COURT ACT OR SUBDIVISION (B) OF SECTION
EIGHTEEN HUNDRED ELEVEN OF THE UNIFORM JUSTICE COURT ACT.
  S 6. This act shall take effect immediately.

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