The New York State Senate

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

                                  2549

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2015
                               ___________

Introduced  by M. of A. GRAF, McDONOUGH, MONTESANO, TENNEY, BLANKENBUSH,
  McKEVITT, RAIA -- Multi-Sponsored by -- M. of A.  McLAUGHLIN  --  read
  once and referred to the Committee on Judiciary

AN ACT to amend the civil practice law and rules, in relation to noncom-
  pliance with an income execution order

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

  Section 1. Paragraph 1 of subdivision (g) of section 5241 of the civil
practice law and rules, as amended by chapter 270 of the laws  of  2013,
is amended to read as follows:
  (1)  (A)  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  within  seven
business days of the date that the debtor is paid. Each payment remitted
by  an  employer  or  income  payor  shall  include  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  credi-
tor.  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 ineffec-
tive, and the execution shall be returned, unless the  debtor  is  rein-
stated  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  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05552-01-5

A. 2549                             2

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.
  (B) AN EMPLOYER OR INCOME PAYOR SERVED WITH AN INCOME EXECUTION  SHALL
BE  SERVED  A  NOTICE  BY  THE  CREDITOR  FOR  EACH  FAILURE TO WITHHOLD
DEDUCTIONS FROM INCOME DUE OR THEREAFTER DUE TO THE DEBTOR. SUCH  NOTICE
SHALL  STATE  THE  DATE  PAYMENT  WAS DUE UNDER SUBPARAGRAPH (A) OF THIS
PARAGRAPH, THE DATE ON WHICH SUCH NOTICE WAS SERVED, WHETHER SUCH NOTICE
CONCERNS A FIRST, OR SUBSEQUENT OFFENSE AND THE MONIES OWED IN  PENALTY.
IN   CALCULATING   THE  PENALTY  UNDER  THIS  SUBPARAGRAPH  THE  SUPPORT
COLLECTION UNIT SHALL USE THE PENALTIES DESCRIBED IN SUBPARAGRAPH (D) OF
PARAGRAPH TWO OF THIS SUBDIVISION AND SHALL AGGREGATE THE PENALTIES  FOR
EACH  INSTANCE  OF FAILURE TO WITHHOLD DEDUCTIONS OR TO REMIT PAYMENT TO
THE UNIT.
  S 2. Subparagraph (D) of paragraph 2 of  subdivision  (g)  of  section
5241  of  the civil practice and rules, as amended by chapter 335 of the
laws of 2006, is amended to read as follows:
  (D) In addition to the remedies herein provided and as may  be  other-
wise  authorized  by  law,  upon  a finding by the family court that the
employer or income  payor  failed  to  deduct  or  remit  deductions  as
directed  in the income execution, the court shall issue to the employer
or income payor an order directing compliance and may direct the payment
of a civil penalty not to exceed five  hundred  dollars  for  the  first
instance and one thousand dollars per instance for the second and subse-
quent  instances of employer or income payor noncompliance. UPON A FIND-
ING THAT THE CREDITOR HAS COMPLIED WITH THE NOTICE PROVISIONS OF SUBPAR-
AGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION, THE COURT SHALL  IMPOSE
A  PENALTY AS DESCRIBED FOR EACH FAILURE TO WITHHOLD DEDUCTIONS OR REMIT
PAYMENT TO THE UNIT; PROVIDED THAT SUCH PENALTIES SHALL  NOT  ACCRUE  TO
THE  GOVERNMENT  OF  THE UNITED STATES OR THE GOVERNMENT OF THE STATE OF
NEW YORK OR ITS POLITICAL SUBDIVISIONS. The penalty shall be paid to the
creditor and may be enforced in the same manner as a civil  judgment  or
in any other manner permitted by law.
  S 3. This act shall take effect immediately.