S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3642
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2017
                                ___________
 
 Introduced  by  M. of A. GRAF, McDONOUGH, MONTESANO, BLANKENBUSH, McKEV-
   ITT, RAIA -- Multi-Sponsored by -- M. of A. CROUCH, LAWRENCE, McLAUGH-
   LIN -- 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.
              

                                                            LBD05689-01-7

 A. 3642                             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.
   § 2. Subparagraph (D) of paragraph 2 of  subdivision  (g)  of  section
 5241  of  the civil practice law 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.
   § 3. This act shall take effect immediately.