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) 2019-01-11 - 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.
                                                                   LBD06803-01-9

        S. 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 this

        S. 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.
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