S T A T E O F N E W Y O R K
________________________________________________________________________
5107
2019-2020 Regular Sessions
I N A S S E M B L Y
February 7, 2019
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Introduced by M. of A. RAIA, MONTESANO, FINCH, McDONOUGH -- Multi-Spon-
sored by -- M. of A. BLANKENBUSH, CROUCH, GOODELL, M. G. MILLER,
MORINELLO -- read once and referred to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to the
effect of restraint on judgment debtor's banking institution account
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision (i) of section 5222 of the civil practice law
and rules, as added by chapter 575 of the laws of 2008, is amended to
read as follows:
(i) Effect of restraint on judgment debtor's banking institution
account. A restraining notice issued pursuant to this section shall not
apply to an amount equal to or less than the greater of two hundred
forty times the federal minimum hourly wage prescribed in the Fair Labor
Standards Act of 1938 or two hundred forty times the state minimum hour-
ly wage prescribed in section six hundred fifty-two of the labor law as
in effect at the time the earnings are payable (as published on the
websites of the United States department of labor and the state depart-
ment of labor) except such part thereof as a court determines to be
unnecessary for the reasonable requirements of the judgment debtor and
his or her dependents. ALL OR ANY PORTION OF THIS AMOUNT DERIVED FROM
THE PAYMENT BY AN INSURER OR HEALTH MAINTENANCE ORGANIZATION TO AN
INSURED THAT IS LEGITIMATELY OWED BY SUCH INDIVIDUAL TO A HEALTH CARE
PROVIDER FOR SERVICES RENDERED SHALL BE EXCLUDED FROM SUCH CALCULATION.
This amount shall be equal to seventeen hundred sixteen dollars on [the
effective date of this subdivision] JANUARY FIRST, TWO THOUSAND NINE,
and shall rise to seventeen hundred forty dollars on July twenty-fourth,
two thousand nine, and shall rise thereafter in tandem with the minimum
wage. Nothing in this subdivision shall be construed to limit a banking
institution's right or obligation to restrain or remove such funds from
the judgment debtor's account if required by 42 U.S.C. § 659 or 38
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07862-01-9
A. 5107 2
U.S.C. § 5301 or by a court order. Where a judgment debtor's account
contains an amount equal to or less than ninety percent of the greater
of two hundred forty times the federal minimum hourly wage prescribed in
the Fair Labor Standards Act of 1938 or two hundred forty times the
state minimum hourly wage prescribed in section six hundred fifty-two of
the labor law as in effect at the time the earnings are payable (as
published on the websites of the United States department of labor and
the state department of labor), the account shall not be restrained and
the restraining notice shall be deemed void, except as to those funds
that a court determines to be unnecessary for the reasonable require-
ments of the judgment debtor and his or her dependents. Nothing in this
subdivision shall alter the exempt status of funds which are exempt from
execution, levy, attachment or garnishment, under section fifty-two
hundred five of this article or under any other provision of state or
federal law, or the right of a judgment debtor to claim such exemption.
§ 2. This act shall take effect immediately.