NY State Senate Bill S5923A

Archive: Last Bill Status Via A6617 - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

Your Voice

Please enter your contact information

First Name *

Last Name *

Email Address *

A valid email address is required.

Home address search or enter your address manually *

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Leave this field blank

Actions

view actions (13)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 13, 2021	signed chap.107
May 11, 2021	delivered to governor
Apr 28, 2021	returned to assembly passed senate 3rd reading cal.695 substituted for s5923a
Apr 28, 2021	substituted by a6617a
Apr 26, 2021	advanced to third reading
Apr 21, 2021	2nd report cal.
Apr 20, 2021	1st report cal.695
Mar 29, 2021	print number 5923a
Mar 29, 2021	amend and recommit to judiciary
Mar 23, 2021	referred to judiciary

Votes

Bill Amendments

Original

A (Active)

Original

A (Active)

S5923 - Details

See Assembly Version of this Bill:: A6617
Law Section:: Civil Practice Law and Rules
Laws Affected:: Amd §§5205, 5222 & 5222-a, CPLR; amd §9-g, Bank L; amd §3, D & C L

S5923 - Summary

Exempts COVID-19 stimulus relief for individuals and families with children from money judgments; provides that in services of notices, forms, and procedures for claims of exemptions that a restraining notice or notice of levy by execution issued against a bank account shall have language to inform the holder of such account that funds for COVID-19 stimulus relief for individuals and families with children are exempt and cannot be taken.

S5923 - Sponsor Memo

 
BILL NUMBER: S5923           Revised 3/23/2021

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the civil practice law and rules, the banking law and
the debtor and creditor law, in relation to exempting COVID-19 stimulus
relief for individuals and families with children from money judgments

 
PURPOSE OR GENERAL IDEA OF BILL:

To protect payments made to individuals under prescribed emergency
relief statutes, which are intended to help New Yorkers during
unprecedented loss of employment and other detrimental economic impacts,
from collection to satisfy money judgments, from set off, and from
transfer or assignment.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends section 5205 of the civil practice law and
rules to make all payments made to individuals under prescribed federal

emergency relief statutes exempt from application to the satisfaction of
a money judgment.

Section 2 amends section 5222 of the civil practice law and rules to
list COVID-19 stimulus relief on a restraining notice as money or prop-
erty that is exempt from judgment creditors.

Section 3 amends section 5222-a of the civil practice law and rules to
list COVID-19 stimulus relief as a claimed exemption on the exemption
claim form that a debtor must complete to release restrained funds.

Section 4 amends section 9-g of the banking law to prohibit set off
against emergency relief and stimulus payments as defined in Section 1
of the bill.

Section 5 amends section 3 of the debtor and creditor law to prohibit
transfer or assignment of all payments under prescribed federal emergen-
cy relief statutes.

Section 6 is the effective date.

 
JUSTIFICATION:

The federal Families First Coronavirus Response Act (FFCRA), Coronavirus
Aid, Relief, and Economic Security Act of 2020 (CARES Act), Consolidated
Appropriations Act 2021, and American Rescue Plan Act of 2021 (ARPA)
provided relief payments to individuals and families with children to
ameliorate the unprecedented economic and health consequences of the
COVID-19 pandemic, which has disproportionately harmed communities of
color. These relief payments include payments in the form of tax
refunds, recovery rebates, tax credits, and advanced payment of tax
credits.

The legislature finds that New Yorkers should have the opportunity to
use the full benefit of the financial assistance provided by these
federal acts. The funds are intended to help people meet their financial
needs, including to pay for food, rent, utilities, medicine, and other
basic necessities. Any execution, levy, attachment, garnishment, or
other legal process to seize these funds deprives recipients of the
ability to support themselves and their families--including the ability
to provide for children who have suffered significant food insecurity as
a result of the pandemic--and increases racial inequity.

The federal laws that authorized these payments did not consistently
include explicit language designating the relief payments as protected
from seizure to satisfy judgments, from set off, or from transfer or
assignment. It would be folly and against public policy for these relief
payments to be subject to seizure, set off, transfer or assignment as
described above, and the legislature intends to rectify the situation
through this legislation, including by codifying the protections for
stimulus payments set forth in guidance issued by the office of the
attorney general.

This legislation puts to bed any potential arguments that relief
payments originating from these federal laws are subject to garnishment
and to clarify that all relief payments to New Yorkers under these
federal acts, including all funds related to children, all funds New
Yorkers qualified for or received prior to the effective date, and all
funds that are restrained but that have not been levied as of the effec-
tive date, are protected.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S5923 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5923
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 23, 2021
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the civil practice law and rules, the  banking  law  and
   the  debtor and creditor law, in relation to exempting COVID-19 stimu-
   lus relief for individuals and families with children from money judg-
   ments

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 2 of subdivision (l) of section 5205 of the civil
 practice law and rules, as amended by chapter 24 of the laws of 2009, is
 amended and a new subdivision (p) is added to read as follows:
   2.  For  purposes of this article, "statutorily exempt payments" means
 any personal property exempt from application to the satisfaction  of  a
 money  judgment  under  any provision of state or federal law. Such term
 shall include, but not be limited to, payments from any of the following
 sources: social security, including retirement, survivors' and disabili-
 ty benefits, supplemental security income  or  child  support  payments;
 veterans  administration  benefits;  public assistance; workers' compen-
 sation; unemployment insurance; public  or  private  pensions;  railroad
 retirement; [and] black lung benefits; AND EMERGENCY RELIEF FUNDS.
   (P) EXEMPTION FOR EMERGENCY RELIEF FUNDS. ANY PAYMENTS TO INDIVIDUALS,
 INCLUDING TAX REFUNDS, RECOVERY REBATES, REFUNDABLE TAX CREDITS, AND ANY
 ADVANCES  OF ANY TAX CREDITS, UNDER THE FEDERAL FAMILIES FIRST CORONAVI-
 RUS RESPONSE ACT (FFCRA), CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY
 ACT OF 2020 (CARES ACT), CONSOLIDATED APPROPRIATIONS ACT  OF  2021,  AND
 AMERICAN  RESCUE  PLAN  ACT OF 2021 (ARPA), EXCEPT PAYMENTS LEVIED AS OF
 THE EFFECTIVE DATE, ARE EXEMPT FROM APPLICATION TO THE SATISFACTION OF A
 MONEY JUDGMENT.
   § 2. Subdivision (e) of section 5222 of the  civil  practice  law  and
 rules, as amended by chapter 575 of the laws of 2008, is amended to read
 as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10569-02-1

 S. 5923                             2
 
   (e)  Content of notice. The notice required by subdivision (d) of this
 section shall be in substantially the following form and may be included
 in the restraining notice:
                   NOTICE TO JUDGMENT DEBTOR OR OBLIGOR
   Money  or  property  belonging  to  you may have been taken or held in
 order to satisfy a judgment or order which has been entered against you.
 Read this carefully.
                  YOU MAY BE ABLE TO GET YOUR MONEY BACK
   State and federal laws prevent certain money or  property  from  being
 taken  to satisfy judgments or orders. Such money or property is said to
 be "exempt". The following is a partial  list  of  money  which  may  be
 exempt:
   1. Supplemental security income, (SSI);
   2. Social security;
   3. Public assistance (welfare);
   4. Spousal support, maintenance (alimony) or child support;
   5. Unemployment benefits;
   6. Disability benefits;
   7. Workers' compensation benefits;
   8. Public or private pensions;
   9. Veterans benefits;
   10.  Ninety  percent  of your wages or salary earned in the last sixty
 days;
   11. Twenty-five hundred dollars of any bank account containing  statu-
 torily  exempt  payments that were deposited electronically or by direct
 deposit within the last forty-five days, including, but not limited  to,
 your  social  security, supplemental security income, veterans benefits,
 public assistance, workers' compensation, unemployment insurance, public
 or private pensions, railroad retirement benefits, black lung  benefits,
 or child support payments;
   12. Railroad retirement; [and]
   13. Black lung benefits; AND
   14.  COVID-19  STIMULUS RELIEF FOR INDIVIDUALS AND FAMILIES WITH CHIL-
 DREN.
   If you think that any of your money that has been  taken  or  held  is
 exempt,  you  must  act promptly because the money may be applied to the
 judgment or order. If you claim that any of your  money  that  has  been
 taken or held is exempt, you may contact the person sending this notice.
   Also,  YOU  MAY CONSULT AN ATTORNEY, INCLUDING ANY FREE LEGAL SERVICES
 ORGANIZATION IF YOU QUALIFY. You can also go to court without an  attor-
 ney to get your money back. Bring this notice with you when you go.  You
 are  allowed  to  try to prove to a judge that your money is exempt from
 collection under New York civil practice law and rules, sections  fifty-
 two  hundred  twenty-two-a,  fifty-two hundred thirty-nine and fifty-two
 hundred forty. If you do not have a lawyer, the clerk of the  court  may
 give you forms to help you prove your account contains exempt money that
 the  creditor  cannot  collect. The law (New York civil practice law and
 rules, article four  and  sections  fifty-two  hundred  thirty-nine  and
 fifty-two  hundred  forty)  provides  a procedure for determination of a
 claim to an exemption.
   § 3. Paragraph 4 of subdivision (b) of section  5222-a  of  the  civil
 practice  law and rules, as added by chapter 575 of the laws of 2008, is
 amended to read as follows:
   4. Content of exemption  notice  and  exemption  claim  form.  a.  The
 exemption notice shall be in the following form:

 S. 5923                             3
 
                             "EXEMPTION NOTICE
                        as required by New York Law
 
                YOUR BANK ACCOUNT IS RESTRAINED OR "FROZEN"
   The  attached  Restraining  Notice  or notice of Levy by Execution has
 been issued against your bank account. You  are  receiving  this  notice
 because a creditor has obtained a money judgment against you, and one or
 more  of  your  bank accounts has been restrained to pay the judgment. A
 money judgment is a court's decision that you owe money to  a  creditor.
 You should be aware that FUTURE DEPOSITS into your account(s) might also
 be restrained if you do not respond to this notice.
   You  may be able to "vacate" (remove) the judgment. If the judgment is
 vacated, your  bank  account  will  be  released.  Consult  an  attorney
 (including free legal services) or visit the court clerk for more infor-
 mation about how to do this.
   Under  state  and  federal law, certain types of funds cannot be taken
 from your bank account to pay a judgment.  Such  money  is  said  to  be
 "exempt."
   DOES YOUR BANK ACCOUNT CONTAIN ANY OF THE FOLLOWING TYPES OF FUNDS?
   1. Social security;
   2. Social security disability (SSD);
   3. Supplemental security income (SSI);
   4. Public assistance (welfare);
   5. Income earned while receiving SSI or public assistance;
   6. Veterans benefits;
   7. Unemployment insurance;
   8. Payments from pensions and retirement accounts;
   9. Disability benefits;
   10. Income earned in the last 60 days (90% of which is exempt);
   11. Workers' compensation benefits;
   12. Child support;
   13. Spousal support or maintenance (alimony);
   14. Railroad retirement; [and/or]
   15. Black lung benefits; AND/OR
   16. COVID-19 STIMULUS RELIEF FOR INDIVIDUALS AND FAMILIES WITH
        CHILDREN.
   If  YES,  you can claim that your money is exempt and cannot be taken.
 To make the claim, you must
   (a) complete the EXEMPTION CLAIM FORM attached;
   (b) deliver or mail the form  to  the  bank  with  the  restrained  or
 "frozen" account; and
   (c)  deliver  or  mail the form to the creditor or its attorney at the
 address listed on the form.
   You must send the forms within 20 DAYS of the postmarked date  on  the
 envelope  holding  this  notice.  You  may  be  able to get your account
 released faster if you send to the  creditor  or  its  attorney  written
 proof  that your money is exempt. Proof can include an award letter from
 the government, an annual statement from your pension, pay stubs, copies
 of checks, bank records showing the last two months of account activity,
 or other papers showing that the money in your bank account  is  exempt.
 If you send the creditor's attorney proof that the money in your account
 is  exempt,  the attorney must release that money within seven days. You
 do not need an attorney to make an exemption claim using the form."
   b. The exemption claim form shall be in the following form:
 
 NAME OF COURT, NAME OF COUNTY

 S. 5923                             4
 
 -------------------------------------x

 PLAINTIFF/PETITIONER/CLAIMANT               INDEX NO.
 V.
 DEFENDANT/RESPONDENT                        EXEMPTION CLAIM FORM
 
 -------------------------------------x
 
 NAME AND ADDRESS OF JUDGMENT                NAME AND ADDRESS OF FINANCIAL
 CREDITOR OR ATTORNEY                        INSTITUTION
 (To be completed by judgment                (To be completed by judgment
 creditor or attorney)                       creditor or attorney)
 ADDRESS                                     ADDRESS
 A_____________________                      B______________________
   ____________________                        _____________________
 Directions:  To  claim that some or all of the funds in your account are
 exempt, complete both copies of this form, and make one copy  for  your-
 self.  Mail  or  deliver one form to ADDRESS A and one form to ADDRESS B
 within twenty days of the date on  the  envelope  holding  this  notice.
 **If  you  have any documents, such as an award letter, an annual state-
 ment from your pension, paystubs, copies of checks or bank records show-
 ing the last two months of account activity, include copies of the docu-
 ments with this form. Your account may be released more quickly.
 
 _________________________________________________________________________
 
 I state that my account contains the following type(s) of  funds  (check
 all that apply):
 
 ____Social security
 ____Social security disability (SSD)
 ____Supplemental security income (SSI)
 ____Public assistance
 ____Wages while receiving SSI or public assistance
 ____Veterans benefits
 ____Unemployment insurance
 ____Payments from pensions and retirement accounts
 ____Income earned in the last 60 days (90% of which is exempt)
 ____Child support
 ____Spousal support or maintenance (alimony)
 ____Workers' compensation
 ____Railroad retirement or black lung benefits
 _____COVID-19 STIMULUS RELIEF FOR INDIVIDUALS AND FAMILIES WITH CHILDREN
 ____Other (describe exemption):_________________________________
 
 I  request  that  any correspondence to me regarding my claim be sent to
 the following address:
 
 _____________________________________________________________________
                      (FILL IN YOUR COMPLETE ADDRESS)
 
 I certify under penalty of perjury that the statement above is  true  to
 the best of my knowledge and belief.
 
 _________________________________________________________________________
 DATE                                  SIGNATURE OF JUDGMENT DEBTOR

 S. 5923                             5

   §  4.    Subdivision  1 of section 9-g of the banking law, as added by
 chapter 10 of the laws of 1980, is amended to read as follows:
   1.  (A)  No  banking  institution  shall assert, claim or exercise any
 right of set off against any deposit account into which social  security
 or  supplemental  security  income payments are deposited pursuant to an
 agreement  with  such  banking  institution  which  provides  that  such
 payments be deposited directly into such deposit account without presen-
 tation to the depositor at the time of deposit.
   (B)  NO  BANKING INSTITUTION SHALL ASSERT, CLAIM OR EXERCISE ANY RIGHT
 OF SET OFF AGAINST ANY  PAYMENTS  REFERRED  TO  IN  SUBDIVISION  (P)  OF
 SECTION FIFTY-TWO HUNDRED FIVE OF THE CIVIL PRACTICE LAW AND RULES.
   §  5.  Section 3 of the debtor and creditor law is amended by adding a
 new fifth undesignated paragraph to read as follows:
   THE RIGHT OF ANY PERSON TO PAYMENTS, INCLUDING TAX  REFUNDS,  RECOVERY
 REBATES,  REFUNDABLE  TAX  CREDITS, AND ANY ADVANCES OF ANY TAX CREDITS,
 UNDER THE FEDERAL FAMILIES FIRST CORONAVIRUS RESPONSE ACT (FFCRA), CORO-
 NAVIRUS AID, RELIEF, AND ECONOMIC SECURITY  ACT  OF  2020  (CARES  ACT),
 CONSOLIDATED APPROPRIATIONS ACT OF 2021, AND AMERICAN RESCUE PLAN ACT OF
 2021  (ARPA) SHALL NOT BE TRANSFERABLE OR ASSIGNABLE, AT LAW OR IN EQUI-
 TY.
   § 6. This act shall take effect immediately.

Co-Sponsors

view additional co-sponsors

S5923A (ACTIVE) - Details

See Assembly Version of this Bill:: A6617
Law Section:: Civil Practice Law and Rules
Laws Affected:: Amd §§5205, 5222 & 5222-a, CPLR; amd §9-g, Bank L; amd §3, D & C L

S5923A (ACTIVE) - Summary

S5923A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S5923A                  Revised 3/26/21

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the civil practice law and rules, the banking law and
the debtor and creditor law, in relation to exempting COVID-19 stimulus
relief for individuals and families with children from money judgments

 
PURPOSE OF BILL:

To protect payments made to individuals under prescribed emergency
relief statutes, which are intended to help New Yorkers during
unprecedented loss of employment and other detrimental economic impacts,
from collection to satisfy money judgments, from set off, and from
transfer or assignment.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 5205 of the civil practice law and
rules to make all payments made to individuals under prescribed federal

emergency relief statutes exempt from application to the satisfaction of
a money judgment.

Section 2 amends section 5222 of the civil practice law and rules to
list COVID-19 stimulus relief on a restraining notice as money or prop-
erty that is exempt from judgment creditors.

Section 3 amends section 5222-a of the civil practice law and rules to
list COVID-19 stimulus relief as a claimed exemption on the exemption
claim form that a debtor must complete to release restrained funds.

Section 4 amends section 9-g of the banking law to prohibit set off
against emergency relief and stimulus payments as defined in Section 1
of the bill.

Section 5 amends section 3 of the debtor and creditor law to prohibit
transfer or assignment of the right to payments under prescribed federal
emergency relief statutes.

Section 6 is the effective date.

 
JUSTIFICATION:

The federal Families First Coronavirus Response Act (FFCRA), Coronavirus
Aid, Relief, and Economic Security Act of 2020 (CARES Act), Consolidated
Appropriations Act 2021, and American Rescue Plan Act of 2021 (ARPA)
provided relief payments to individuals and families with children to
ameliorate the unprecedented economic and health consequences of the
COVID-19 pandemic, which has disproportionately harmed communities of
color. These relief payments include payments in the form of tax
refunds, recovery rebates, tax credits, and advanced payment of tax
credits. The legislature finds that New Yorkers should have the opportu-
nity to use the full benefit of the financial assistance provided by
these federal acts. The funds are intended to help people meet their
financial needs, including to pay for food, rent, utilities, medicine,
and other basic necessities. Any execution, levy, attachment, garnish-
ment, or other legal process to seize these funds deprives recipients of
the ability to support themselves and their families--including the
ability to provide for children who have suffered significant food inse-
curity as a result of the pandemic--and increases racial inequity.

The federal laws that authorized these payments did not consistently
include explicit language designating the relief payments as protected
from seizure to satisfy judgments, from set off, or from transfer or
assignment. It would be folly and against public policy for these relief
payments to be subject to seizure, set off, transfer or assignment as
described above, and the legislature intends to rectify the situation
through this legislation, including by codifying the protections for
stimulus payments set forth in guidance issued by the office of the
attorney general. This legislation puts to bed any potential arguments
that relief payments originating from these federal laws (except those
improperly claimed as property) are subject to garnishment and clarifies
that all relief payments to New Yorkers under these federal acts,
including all funds related to children, all funds New Yorkers qualified
for or received prior to the effective date, are protected. This legis-
lation creates a carve out for claims brought by individuals who have an
interest in the relief payments based on their status as spouses or
dependents, or in situations involving fraud. Such claims include but
are not limited to, actions brought in Family Court for child support,
spousal support, or orders of protection, matrimonial actions, and civil
claims. Legal and domestic violence advocates have raised the pervasive
issue that relief payments intended to benefit families are often
directly deposited in the accounts of abusers who deny their partners
and children any access or benefits stemming from the payments.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately.

S5923A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5923--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 23, 2021
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Judiciary  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend the civil practice law and rules, the banking law and
   the debtor and creditor law, in relation to exempting COVID-19  stimu-
   lus relief for individuals and families with children from money judg-
   ments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 2 of subdivision (l) of section 5205 of the civil
 practice law and rules, as amended by chapter 24 of the laws of 2009, is
 amended and a new subdivision (p) is added to read as follows:
   2. For purposes of this article, "statutorily exempt  payments"  means
 any  personal  property exempt from application to the satisfaction of a
 money judgment under any provision of state or federal  law.  Such  term
 shall include, but not be limited to, payments from any of the following
 sources: social security, including retirement, survivors' and disabili-
 ty  benefits,  supplemental  security  income or child support payments;
 veterans administration benefits; public  assistance;  workers'  compen-
 sation;  unemployment  insurance;  public  or private pensions; railroad
 retirement; [and] black lung benefits; AND EMERGENCY RELIEF FUNDS.
   (P) EXEMPTION FOR EMERGENCY RELIEF FUNDS. ANY PAYMENTS TO INDIVIDUALS,
 INCLUDING TAX REFUNDS, RECOVERY REBATES, REFUNDABLE TAX CREDITS, AND ANY
 ADVANCES OF ANY TAX CREDITS, UNDER THE FEDERAL FAMILIES FIRST  CORONAVI-
 RUS RESPONSE ACT (FFCRA), CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY
 ACT  OF  2020  (CARES ACT), CONSOLIDATED APPROPRIATIONS ACT OF 2021, AND
 AMERICAN RESCUE PLAN ACT OF 2021 (ARPA) ARE EXEMPT FROM  APPLICATION  TO
 THE  SATISFACTION  OF  A MONEY JUDGMENT.  THIS EXEMPTION SHALL NOT APPLY
 (I) IF THE DEBT ENFORCED IS FOR CHILD SUPPORT, SPOUSAL SUPPORT,  MAINTE-
 NANCE,  ALIMONY, A DISTRIBUTIVE AWARD IN A MATRIMONIAL ACTION, OR RESTI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10569-04-1

 S. 5923--A                          2
 
 TUTION IN A FAMILY OFFENSE PROCEEDING, OR (II) TO THAT  PORTION  OF  ANY
 MONEY JUDGMENT AWARDED ON A CLAIM THAT THE EMERGENCY RELIEF FUNDS REFER-
 ENCED HEREIN ARE THE RIGHTFUL PROPERTY OF THE JUDGMENT CREDITOR.
   §  2.  Subdivision  (e)  of section 5222 of the civil practice law and
 rules, as amended by chapter 575 of the laws of 2008, is amended to read
 as follows:
   (e) Content of notice. The notice required by subdivision (d) of  this
 section shall be in substantially the following form and may be included
 in the restraining notice:
                   NOTICE TO JUDGMENT DEBTOR OR OBLIGOR
   Money  or  property  belonging  to  you may have been taken or held in
 order to satisfy a judgment or order which has been entered against you.
 Read this carefully.
                  YOU MAY BE ABLE TO GET YOUR MONEY BACK
   State and federal laws prevent certain money or  property  from  being
 taken  to satisfy judgments or orders. Such money or property is said to
 be "exempt". The following is a partial  list  of  money  which  may  be
 exempt:
   1. Supplemental security income, (SSI);
   2. Social security;
   3. Public assistance (welfare);
   4. Spousal support, maintenance (alimony) or child support;
   5. Unemployment benefits;
   6. Disability benefits;
   7. Workers' compensation benefits;
   8. Public or private pensions;
   9. Veterans benefits;
   10.  Ninety  percent  of your wages or salary earned in the last sixty
 days;
   11. Twenty-five hundred dollars of any bank account containing  statu-
 torily  exempt  payments that were deposited electronically or by direct
 deposit within the last forty-five days, including, but not limited  to,
 your  social  security, supplemental security income, veterans benefits,
 public assistance, workers' compensation, unemployment insurance, public
 or private pensions, railroad retirement benefits, black lung  benefits,
 or child support payments;
   12. Railroad retirement; [and]
   13. Black lung benefits; AND
   14.  COVID-19  STIMULUS RELIEF FOR INDIVIDUALS AND FAMILIES WITH CHIL-
 DREN.
   If you think that any of your money that has been  taken  or  held  is
 exempt,  you  must  act promptly because the money may be applied to the
 judgment or order. If you claim that any of your  money  that  has  been
 taken or held is exempt, you may contact the person sending this notice.
   Also,  YOU  MAY CONSULT AN ATTORNEY, INCLUDING ANY FREE LEGAL SERVICES
 ORGANIZATION IF YOU QUALIFY. You can also go to court without an  attor-
 ney to get your money back. Bring this notice with you when you go.  You
 are  allowed  to  try to prove to a judge that your money is exempt from
 collection under New York civil practice law and rules, sections  fifty-
 two  hundred  twenty-two-a,  fifty-two hundred thirty-nine and fifty-two
 hundred forty. If you do not have a lawyer, the clerk of the  court  may
 give you forms to help you prove your account contains exempt money that
 the  creditor  cannot  collect. The law (New York civil practice law and
 rules, article four  and  sections  fifty-two  hundred  thirty-nine  and
 fifty-two  hundred  forty)  provides  a procedure for determination of a
 claim to an exemption.

 S. 5923--A                          3
 
   § 3. Paragraph 4 of subdivision (b) of section  5222-a  of  the  civil
 practice  law and rules, as added by chapter 575 of the laws of 2008, is
 amended to read as follows:
   4.  Content  of  exemption  notice  and  exemption  claim form. a. The
 exemption notice shall be in the following form:
 
                             "EXEMPTION NOTICE
                        as required by New York Law

                YOUR BANK ACCOUNT IS RESTRAINED OR "FROZEN"
   The attached Restraining Notice or notice of  Levy  by  Execution  has
 been  issued  against  your  bank account. You are receiving this notice
 because a creditor has obtained a money judgment against you, and one or
 more of your bank accounts has been restrained to pay  the  judgment.  A
 money  judgment  is a court's decision that you owe money to a creditor.
 You should be aware that FUTURE DEPOSITS into your account(s) might also
 be restrained if you do not respond to this notice.
   You may be able to "vacate" (remove) the judgment. If the judgment  is
 vacated,  your  bank  account  will  be  released.  Consult  an attorney
 (including free legal services) or visit the court clerk for more infor-
 mation about how to do this.
   Under state and federal law, certain types of funds  cannot  be  taken
 from  your  bank  account  to  pay  a judgment. Such money is said to be
 "exempt."
   DOES YOUR BANK ACCOUNT CONTAIN ANY OF THE FOLLOWING TYPES OF FUNDS?
   1. Social security;
   2. Social security disability (SSD);
   3. Supplemental security income (SSI);
   4. Public assistance (welfare);
   5. Income earned while receiving SSI or public assistance;
   6. Veterans benefits;
   7. Unemployment insurance;
   8. Payments from pensions and retirement accounts;
   9. Disability benefits;
   10. Income earned in the last 60 days (90% of which is exempt);
   11. Workers' compensation benefits;
   12. Child support;
   13. Spousal support or maintenance (alimony);
   14. Railroad retirement; [and/or]
   15. Black lung benefits; AND/OR
   16. COVID-19 STIMULUS RELIEF FOR INDIVIDUALS AND FAMILIES WITH
        CHILDREN.
   If YES, you can claim that your money is exempt and cannot  be  taken.
 To make the claim, you must
   (a) complete the EXEMPTION CLAIM FORM attached;
   (b)  deliver  or  mail  the  form  to  the bank with the restrained or
 "frozen" account; and
   (c) deliver or mail the form to the creditor or its  attorney  at  the
 address listed on the form.
   You  must  send the forms within 20 DAYS of the postmarked date on the
 envelope holding this notice. You  may  be  able  to  get  your  account
 released  faster  if  you  send  to the creditor or its attorney written
 proof that your money is exempt. Proof can include an award letter  from
 the government, an annual statement from your pension, pay stubs, copies
 of checks, bank records showing the last two months of account activity,
 or  other  papers showing that the money in your bank account is exempt.

 S. 5923--A                          4
 
 If you send the creditor's attorney proof that the money in your account
 is exempt, the attorney must release that money within seven  days.  You
 do not need an attorney to make an exemption claim using the form."
   b. The exemption claim form shall be in the following form:
 
 NAME OF COURT, NAME OF COUNTY
 
 -------------------------------------x
 
 PLAINTIFF/PETITIONER/CLAIMANT               INDEX NO.
 V.
 DEFENDANT/RESPONDENT                        EXEMPTION CLAIM FORM
 
 -------------------------------------x
 
 NAME AND ADDRESS OF JUDGMENT                NAME AND ADDRESS OF FINANCIAL
 CREDITOR OR ATTORNEY                        INSTITUTION
 (To be completed by judgment                (To be completed by judgment
 creditor or attorney)                       creditor or attorney)
 ADDRESS                                     ADDRESS
 A_____________________                      B______________________
   ____________________                        _____________________
 Directions:  To  claim that some or all of the funds in your account are
 exempt, complete both copies of this form, and make one copy  for  your-
 self.  Mail  or  deliver one form to ADDRESS A and one form to ADDRESS B
 within twenty days of the date on  the  envelope  holding  this  notice.
 **If  you  have any documents, such as an award letter, an annual state-
 ment from your pension, paystubs, copies of checks or bank records show-
 ing the last two months of account activity, include copies of the docu-
 ments with this form. Your account may be released more quickly.

 _________________________________________________________________________
 
 I state that my account contains the following type(s) of  funds  (check
 all that apply):
 
 ____Social security
 ____Social security disability (SSD)
 ____Supplemental security income (SSI)
 ____Public assistance
 ____Wages while receiving SSI or public assistance
 ____Veterans benefits
 ____Unemployment insurance
 ____Payments from pensions and retirement accounts
 ____Income earned in the last 60 days (90% of which is exempt)
 ____Child support
 ____Spousal support or maintenance (alimony)
 ____Workers' compensation
 ____Railroad retirement or black lung benefits
 _____COVID-19 STIMULUS RELIEF FOR INDIVIDUALS AND FAMILIES WITH CHILDREN
 ____Other (describe exemption):_________________________________

 I  request  that  any correspondence to me regarding my claim be sent to
 the following address:
 
 _____________________________________________________________________

 S. 5923--A                          5
 
                      (FILL IN YOUR COMPLETE ADDRESS)
 
 I  certify  under penalty of perjury that the statement above is true to
 the best of my knowledge and belief.
 
 _________________________________________________________________________
 DATE                                  SIGNATURE OF JUDGMENT DEBTOR
 
   § 4.  Subdivision 1 of section 9-g of the banking  law,  as  added  by
 chapter 10 of the laws of 1980, is amended to read as follows:
   1.  (A)  No  banking  institution  shall assert, claim or exercise any
 right of set off against any deposit account into which social  security
 or  supplemental  security  income payments are deposited pursuant to an
 agreement  with  such  banking  institution  which  provides  that  such
 payments be deposited directly into such deposit account without presen-
 tation to the depositor at the time of deposit.
   (B)  NO  BANKING INSTITUTION SHALL ASSERT, CLAIM OR EXERCISE ANY RIGHT
 OF SET OFF AGAINST ANY  PAYMENTS  REFERRED  TO  IN  SUBDIVISION  (P)  OF
 SECTION FIFTY-TWO HUNDRED FIVE OF THE CIVIL PRACTICE LAW AND RULES.
   §  5.  Section 3 of the debtor and creditor law is amended by adding a
 new fifth undesignated paragraph to read as follows:
   THE RIGHT OF ANY PERSON TO PAYMENTS, INCLUDING TAX  REFUNDS,  RECOVERY
 REBATES,  REFUNDABLE  TAX  CREDITS, AND ANY ADVANCES OF ANY TAX CREDITS,
 UNDER THE FEDERAL FAMILIES FIRST CORONAVIRUS RESPONSE ACT (FFCRA), CORO-
 NAVIRUS AID, RELIEF, AND ECONOMIC SECURITY  ACT  OF  2020  (CARES  ACT),
 CONSOLIDATED APPROPRIATIONS ACT OF 2021, AND AMERICAN RESCUE PLAN ACT OF
 2021  (ARPA) SHALL NOT BE TRANSFERABLE OR ASSIGNABLE, AT LAW OR IN EQUI-
 TY.
   § 6. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

The New York State Senate

senate Bill S5923A

Sponsored By

Archive: Last Bill Status Via A6617 - Signed by Governor

Your Voice

Actions

Votes

Apr 28, 2021 - floor Vote

Floor Vote: Apr 28, 2021

Apr 20, 2021 - Judiciary committee Vote

Judiciary Committee Vote: Apr 20, 2021

Bill Amendments

S5923 - Details

S5923 - Summary

S5923 - Sponsor Memo

S5923 - Bill Text download pdf

Co-Sponsors

S5923A (ACTIVE) - Details

S5923A (ACTIVE) - Summary

S5923A (ACTIVE) - Sponsor Memo

S5923A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5923A

Share this bill

Sponsored By

Archive: Last Bill Status Via A6617 - Signed by Governor

Your Voice

Actions

Votes

Apr 28, 2021 - floor Vote

Floor Vote: Apr 28, 2021

Apr 20, 2021 - Judiciary committee Vote

Judiciary Committee Vote: Apr 20, 2021

Bill Amendments

S5923 - Details

S5923 - Summary

S5923 - Sponsor Memo

S5923 - Bill Text download pdf

Co-Sponsors

S5923A (ACTIVE) - Details

S5923A (ACTIVE) - Summary

S5923A (ACTIVE) - Sponsor Memo

S5923A (ACTIVE) - Bill Text download pdf

Comments