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
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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.