S T A T E O F N E W Y O R K
________________________________________________________________________
4737
2021-2022 Regular Sessions
I N A S S E M B L Y
February 8, 2021
___________
Introduced by M. of A. MANKTELOW -- read once and referred to the
Committee on Judiciary
AN ACT to amend the New York city civil court act, the uniform city
court act, the uniform district court act, the uniform justice court
act and the tax law, in relation to notice of small claims judgments
and indexing of unpaid claims
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions (a) and (b) of section 1811 of the New York
city civil court act, as amended by chapter 122 of the laws of 1987,
paragraph 2 of subdivision (b) as amended, paragraph 6 of subdivision
(b) as added, paragraph 7 of subdivision (b) as renumbered by chapter
650 of the laws of 1991, are amended to read as follows:
(a) Notice of judgment sent to judgment debtor shall specify that a
failure to satisfy a judgment may subject the debtor to any one or
combination of the following actions:
1. garnishment of wage;
2. garnishment of bank account;
3. a lien on personal property;
4. seizure and sale of real property;
5. seizure and sale of personal property, including automobiles;
6. suspension of motor vehicle license and registration, if claim is
based on defendant's ownership or operation of a motor vehicle;
7. revocation, suspension, or denial of renewal of any applicable
business license or permit;
8. investigation and prosecution by the attorney general for fraudu-
lent or illegal business practices; [and]
9. a penalty equal to three times the amount of the unsatisfied judg-
ment plus attorney's fees, if there are other unpaid claims[.]; AND
10. INTERCEPT OF ANY INCOME TAX REFUND OWED PURSUANT TO THE TAX LAW.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08479-01-1
A. 4737 2
(b) Notice of judgment sent to judgment creditor shall contain but not
be limited to the following information:
1. the claimant's right to payment within thirty days following the
debtor's receipt of the judgment notice;
2. the procedures for use of section eighteen hundred twelve of this
article concerning the identification of assets of the judgment debtor,
including the use of information subpoenas, access to consumer credit
reports and the role of sheriffs and marshals, and actions to collect
three times the judgment award and attorney's fees if there are two
other unsatisfied claims against the debtor;
3. the claimant's right to initiate actions to recover the unpaid
judgment through the sale of the debtor's real property, or personal
property;
4. the claimant's right to initiate actions to recover the unpaid
judgment through suspension of debtor's motor vehicle license and regis-
tration, if claim is based on defendant's ownership or operation of a
motor vehicle;
5. the claimant's right to notify the appropriate state or local
licensing or certifying authority of an unsatisfied judgment as a basis
for possible revocation, suspension, or denial of renewal of business
license; [and]
6. a statement that upon satisfying the judgment, the judgment debtor
shall present appropriate proof thereof to the court; [and]
7. the claimant's right to notify the attorney general if the debtor
is a business and appears to be engaged in fraudulent or illegal busi-
ness practices[.]; AND
8. THE CLAIMANT'S RIGHT TO INITIATE ACTIONS TO RECOVER THE UNPAID
JUDGMENT THROUGH THE INTERCEPTION OF ANY INCOME TAX REFUND OWED PURSUANT
TO THE TAX LAW.
§ 2. Subdivisions (a) and (b) of section 1811 of the uniform city
court act, as amended by chapter 122 of the laws of 1987, paragraph 2 of
subdivision (b) as amended, paragraph 6 of subdivision (b) as added,
paragraph 7 of subdivision (b) as renumbered by chapter 650 of the laws
of 1991, are amended to read as follows:
(a) Notice of judgment sent to judgment debtor shall specify that a
failure to satisfy a judgment may subject the debtor to any one or
combination of the following actions:
1. garnishment of wage;
2. garnishment of bank account;
3. a lien on personal property;
4. seizure and sale of real property;
5. seizure and sale of personal property, including automobiles;
6. suspension of motor vehicle license and registration, if claim is
based on defendant's ownership or operation of a motor vehicle;
7. revocation, suspension, or denial of renewal of any applicable
business license or permit;
8. investigation and prosecution by the attorney general for fraudu-
lent or illegal business practices; [and]
9. a penalty equal to three times the amount of the unsatisfied judg-
ment plus attorney's fees, if there are other unpaid claims[.]; AND
10. INTERCEPT OF ANY INCOME TAX REFUND OWED PURSUANT TO THE TAX LAW.
(b) Notice of judgment sent to judgment creditor shall contain but not
be limited to the following information:
1. the claimant's right to payment within thirty days following the
debtor's receipt of the judgment notice;
A. 4737 3
2. the procedures for use of section eighteen hundred twelve of this
article concerning the identification of assets of the judgment debtor
including the use of information subpoenas, access to consumer credit
reports and the role of sheriffs and marshals, and actions to collect
three times the judgment award and attorney's fees if there are two
other unsatisfied claims against the debtor;
3. the claimant's right to initiate actions to recover the unpaid
judgment through the sale of the debtor's real property, or personal
property;
4. the claimant's right to initiate actions to recover the unpaid
judgment through suspension of debtor's motor vehicle license and regis-
tration, if claim is based on defendant's ownership or operation of a
motor vehicle;
5. the claimant's right to notify the appropriate state or local
licensing or certifying authority of an unsatisfied judgment as a basis
for possible revocation, suspension, or denial of renewal of business
license; [and]
6. a statement that upon satisfying the judgment, the judgment debtor
shall present appropriate proof thereof to the court; [and]
7. the claimant's right to notify the attorney general if the debtor
is a business and appears to be engaged in fraudulent or illegal busi-
ness practices[.]; AND
8. THE CLAIMANT'S RIGHT TO INITIATE ACTIONS TO RECOVER THE UNPAID
JUDGMENT THROUGH THE INTERCEPTION OF ANY INCOME TAX REFUND OWED PURSUANT
TO THE TAX LAW.
§ 3. Subdivisions (a) and (b) of section 1811 of the uniform district
court act, as amended by chapter 122 of the laws of 1987, paragraph 2 of
subdivision (b) as amended, paragraph 6 of subdivision (b) as added,
paragraph 7 of subdivision (b) as renumbered by chapter 650 of the laws
of 1991, are amended to read as follows:
(a) Notice of judgment sent to judgment debtor shall specify that a
failure to satisfy a judgment may subject the debtor to any one or
combination of the following actions:
1. garnishment of wage;
2. garnishment of bank account;
3. a lien on personal property;
4. seizure and sale of real property;
5. seizure and sale of personal property, including automobiles;
6. suspension of motor vehicle license and registration, if claim is
based on defendant's ownership or operation of a motor vehicle;
7. revocation, suspension, or denial of renewal of any applicable
business license or permit;
8. investigation and prosecution by the attorney general for fraudu-
lent or illegal business practices; [and]
9. a penalty equal to three times the amount of the unsatisfied judg-
ment plus attorney's fees, if there are other unpaid claims[.]; AND
10. INTERCEPT OF ANY INCOME TAX REFUND OWED PURSUANT TO THE TAX LAW.
(b) Notice of judgment sent to judgment creditor shall contain but not
be limited to the following information:
1. the claimant's right to payment within thirty days following the
debtor's receipt of the judgment notice;
2. the procedures for use of section eighteen hundred twelve of this
article concerning the identification of assets of the judgment debtor
including the use of information subpoenas, access to consumer credit
reports and the role of sheriffs and marshals, and actions to collect
A. 4737 4
three times the judgment award and attorney's fees if there are two
other unsatisfied claims against the debtor;
3. the claimant's right to initiate actions to recover the unpaid
judgment through the sale of the debtor's real property, or personal
property;
4. the claimant's right to initiate actions to recover the unpaid
judgment through suspension of debtor's motor vehicle license and regis-
tration, if claim is based on defendant's ownership or operation of a
motor vehicle;
5. the claimant's right to notify the appropriate state or local
licensing or certifying authority of an unsatisfied judgment as a basis
for possible revocation, suspension, or denial of renewal of business
license; [and]
6. a statement that upon satisfying the judgment, the judgment debtor
shall present appropriate proof thereof to the court; [and]
7. the claimant's right to notify the attorney general if the debtor
is a business and appears to be engaged in fraudulent or illegal busi-
ness practices[.]; AND
8. THE CLAIMANT'S RIGHT TO INITIATE ACTIONS TO RECOVER THE UNPAID
JUDGMENT THROUGH THE INTERCEPTION OF ANY INCOME TAX REFUND OWED PURSUANT
TO THE TAX LAW.
§ 4. Subdivisions (a) and (b) of section 1811 of the uniform justice
court act, as amended by chapter 122 of the laws of 1987, paragraph 2 of
subdivision (b) as amended, paragraph 6 of subdivision (b) as added,
paragraph 7 of subdivision (b) as renumbered by chapter 650 of the laws
of 1991, are amended to read as follows:
(a) Notice of judgment sent to judgment debtor shall specify that a
failure to satisfy a judgment may subject the debtor to any one or
combination of the following actions:
1. garnishment of wage;
2. garnishment of bank account;
3. a lien on personal property;
4. seizure and sale of real property;
5. seizure and sale of personal property, including automobiles;
6. suspension of motor vehicle license and registration, if claim is
based on defendant's ownership or operation of a motor vehicle;
7. revocation, suspension, or denial of renewal of any applicable
business license or permit;
8. investigation and prosecution by the attorney general for fraudu-
lent or illegal business practices; [and]
9. a penalty equal to three times the amount of the unsatisfied judg-
ment plus attorney's fees, if there are other unpaid claims[.]; AND
10. INTERCEPT OF ANY INCOME TAX REFUND OWED PURSUANT TO THE TAX LAW.
(b) Notice of judgment sent to judgment creditor shall contain but not
be limited to the following information:
1. the claimant's right to payment within thirty days following the
debtor's receipt of the judgment notice;
2. the procedures for use of section eighteen hundred twelve of this
article concerning the identification of assets of the judgment debtor
including the use of information subpoenas, access to consumer credit
reports and the role of sheriffs and marshals, and actions to collect
three times the judgment award and attorney's fees if there are two
other unsatisfied claims against the debtor;
3. the claimant's right to initiate actions to recover the unpaid
judgment through the sale of the debtor's real property, or personal
property;
A. 4737 5
4. the claimant's right to initiate actions to recover the unpaid
judgment through suspension of debtor's motor vehicle license and regis-
tration, if claim is based on defendant's ownership or operation of a
motor vehicle;
5. the claimant's right to notify the appropriate state or local
licensing or certifying authority of an unsatisfied judgment as a basis
for possible revocation, suspension, or denial of renewal of business
license; [and]
6. a statement that upon satisfying the judgment, the judgment debtor
shall present appropriate proof thereof to the court; [and]
7. the claimant's right to notify the attorney general if the debtor
is a business and appears to be engaged in fraudulent or illegal busi-
ness practices[.]; AND
8. THE CLAIMANT'S RIGHT TO INITIATE ACTIONS TO RECOVER THE UNPAID
JUDGMENT THROUGH THE INTERCEPTION OF ANY INCOME TAX REFUND OWED PURSUANT
TO THE TAX LAW.
§ 5. The tax law is amended by adding a new section 171-x to read as
follows:
§ 171-X. INTERCEPTION OF INCOME TAX REFUND IN SATISFACTION OF SMALL
CLAIMS JUDGMENT. THE COMMISSIONER, ON BEHALF OF THE DEPARTMENT, SHALL
ENTER INTO A WRITTEN AGREEMENT WITH THE CHIEF ADMINISTRATOR OF THE
COURTS, WHICH SHALL SET FORTH THE PROCEDURES FOR THE INTERCEPTION OF ANY
INCOME TAX REFUND OWED TO ANY SMALL CLAIMS JUDGMENT DEBTOR, INCLUDING
PENALTIES AND ATTORNEY'S FEES THAT ARE PROVIDED FOR PURSUANT TO PARA-
GRAPHS NINE OF SUBDIVISIONS (A) OF SECTIONS EIGHTEEN HUNDRED ELEVEN OF
THE NEW YORK CITY CIVIL COURT ACT, THE UNIFORM CIVIL COURT ACT, THE
UNIFORM DISTRICT COURT ACT AND THE UNIFORM JUSTICE COURT ACT, AND
PAYMENT OF SUCH REFUND TO THE SMALL CLAIMS JUDGMENT CREDITOR WHO FILES
AN APPROPRIATE NOTICE WITH THE COMMISSIONER AS AN ACTION TO RECOVER SUCH
JUDGMENT PURSUANT TO SUBDIVISION (B) OF SECTION EIGHTEEN HUNDRED ELEVEN
OF THE NEW YORK CITY CIVIL COURT ACT, SUBDIVISION (B) OF SECTION EIGH-
TEEN HUNDRED ELEVEN OF THE UNIFORM CITY COURT ACT, SUBDIVISION (B) OF
SECTION EIGHTEEN HUNDRED ELEVEN OF THE UNIFORM DISTRICT COURT ACT OR
SUBDIVISION (B) OF SECTION EIGHTEEN HUNDRED ELEVEN OF THE UNIFORM
JUSTICE COURT ACT.
§ 6. This act shall take effect immediately.