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
                                ___________
 
 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.