Bill Text: NY S01240 | 2019-2020 | General Assembly | Introduced
Bill Title: Restricts use of pension assignments and which persons can engage in the business of offering consideration for pensions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CIVIL SERVICE AND PENSIONS [S01240 Detail]
Download: New_York-2019-S01240-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1240 2019-2020 Regular Sessions IN SENATE January 11, 2019 ___________ Introduced by Sen. SERINO -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the retirement and social security law and the banking law, in relation to pension assignments The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 110 of the retirement and social security law, as 2 amended by chapter 291 of the laws of 1999, is amended to read as 3 follows: 4 § 110. Exemption from taxes and legal process. a. The right of a 5 person to a pension, a pension-providing-for-increased-take-home-pay, an 6 annuity or a retirement allowance, to the return of contributions, the 7 pension, the pension-providing-for-increased-take-home-pay, annuity, or 8 retirement allowance itself, any optional benefit, including any benefit 9 or monies accruing under an optional retirement program pursuant to 10 article eight-B or one hundred twenty-five-A of the education law, any 11 other right accrued or accruing to any person under the provisions of 12 this chapter and the monies in the various funds continued under this 13 chapter: 14 1. Are hereby exempt from any state or municipal tax, except the 15 estate tax, and 16 2. Shall not be subject to execution, garnishment, attachment, or any 17 other process whatsoever, and 18 3. Shall be unassignable, except as in this chapter specifically 19 provided. 20 b. Except as specifically provided in this chapter, a person or entity 21 shall not use any device, scheme, transfer or other artifice to evade 22 the applicability and prohibition or paragraphs two and three of subdi- 23 vision a of this section, including the deposit of such benefits or 24 funds into a joint account with the person or entity or the authori- 25 zation to a person or entity under a power of attorney or other instru- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06803-01-9S. 1240 2 1 ment or document to access an account or otherwise obtain funds from an 2 account to which benefits or funds have been deposited. 3 c. Any contract or agreement made in violation of this section shall 4 be void. All sums paid to or collected by a person or entity in 5 violation of this section shall be returned by the person or entity to 6 the benefit recipient or his or her heirs or beneficiaries as restitu- 7 tion. 8 d. Any benefit recipient, his or her guardian or conservator, or heir 9 or beneficiary may bring an action to enforce the restitution author- 10 ized. 11 § 2. Section 410 of the retirement and social security law, as amended 12 by chapter 549 of the laws of 1983, is amended to read as follows: 13 § 410. Exemption from taxes and legal process. a. The right of a 14 person to a pension, a pension-providing-for-increased-take-home-pay, an 15 annuity or a retirement allowance, to the return of contributions, the 16 pensions, the pension-providing-for-increased-take-home-pay, annuity, or 17 retirement allowance itself, any optional benefit, any other right 18 accrued or accruing to any person under the provisions of this chapter 19 and the monies in the various funds continued under this chapter: 20 1. Are hereby exempt from any state or municipal tax, except the 21 estate tax, and 22 2. Shall not be subject to execution, garnishment, attachment, or any 23 other process whatsoever, and 24 3. Shall be unassignable, except as in this chapter specifically 25 provided. 26 b. Except as specifically provided in this chapter, a person or entity 27 shall not use any device, scheme, transfer or other artifice to evade 28 the applicability and prohibition or paragraphs two and three of subdi- 29 vision a of this section, including the deposit of such benefits or 30 funds into a joint account with the person or entity or the authori- 31 zation to a person or entity under a power of attorney or other instru- 32 ment or document to access an account or otherwise obtain funds from an 33 account to which benefits or funds have been deposited. 34 c. Any contract or agreement made in violation of this section shall 35 be void. All sums paid to or collected by a person or entity in 36 violation of this section shall be returned by the person or entity to 37 the benefit recipient or his or her heirs or beneficiaries as restitu- 38 tion. 39 d. Any benefit recipient, his or her guardian or conservator, or heir 40 or beneficiary may bring an action to enforce the restitution author- 41 ized. 42 § 3. Section 340 of the banking law, as amended by chapter 22 of the 43 laws of 1990, is amended to read as follows: 44 § 340. Doing business without license prohibited. (a) No person or 45 other entity shall engage in the business of making loans in the princi- 46 pal amount of twenty-five thousand dollars or less for any loan to an 47 individual for personal, family, household, or investment purposes and 48 in a principal amount of fifty thousand dollars or less for business and 49 commercial loans, and charge, contract for, or receive a greater rate of 50 interest than the lender would be permitted by law to charge if he were 51 not a licensee hereunder except as authorized by this article and with- 52 out first obtaining a license from the superintendent. 53 (b) For the purposes of this section, a person or entity shall be 54 considered as engaging in the business of making loans in New York, and 55 subject to the licensing and other requirements of this article, if it 56 solicits loans in the amounts prescribed by this section within thisS. 1240 3 1 state and, in connection with such solicitation, makes loans to individ- 2 uals then resident in this state, except that no person or entity shall 3 be considered as engaging in the business of making loans in this state 4 on the basis of isolated, incidental or occasional transactions which 5 otherwise meet the requirements of this section. 6 (c) Nothing in this article shall apply to licensed collateral loan 7 brokers. 8 (d) Any person who engages in the business of offering consideration 9 in exchange for a secured interest in all or part of pension proceeds in 10 the possession of a participant, beneficiary, or member of a pension 11 plan, program, or system shall be deemed to be engaged in the business 12 of making loans and shall be subject to the licensing and other require- 13 ments of this article. 14 § 4. This act shall take effect immediately.