Bill Text: NY S04721 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to noncompliance of an employer or income payor with income execution orders; allows child support unit to count each failure to remit payment as an instance of noncompliance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-04 - REFERRED TO JUDICIARY [S04721 Detail]
Download: New_York-2011-S04721-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 4721 2011-2012 Regular Sessions I N S E N A T E April 15, 2011 ___________ Introduced by Sen. ZELDIN -- 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, in relation to noncom- pliance with an income execution order THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Paragraph 1 of subdivision (g) of section 5241 of the civil 2 practice law and rules, as amended by chapter 398 of the laws of 1997, 3 is amended to read as follows: 4 (1)(A) An employer or income payor served with an income execution 5 shall commence deductions from income due or thereafter due to the 6 debtor no later than the first pay period that occurs fourteen days 7 after service of the execution, and shall remit payments to the creditor 8 within seven business days of the date that the debtor is paid. Each 9 payment remitted by an employer or income payor shall include, in addi- 10 tion to the identity and social security number of the debtor, the date 11 and amount of each withholding of the debtor's income included in the 12 payment. If the money due to the debtor consists of salary or wages and 13 his or her employment is terminated by resignation or dismissal at any 14 time after service of the execution, the levy shall thereafter be inef- 15 fective, and the execution shall be returned, unless the debtor is rein- 16 stated or re-employed within ninety days after such termination. An 17 employer must notify the issuer promptly when the debtor terminates 18 employment and provide the debtor's last address and name and address of 19 the new employer, if known. Where the income is compensation paid or 20 payable to the debtor for personal services, the amount of the 21 deductions to be withheld shall not exceed the following: 22 (i) Where a debtor is currently supporting a spouse or dependent child 23 other than the creditor, the amount of the deductions to be withheld 24 shall not exceed fifty percent of the earnings of the debtor remaining 25 after the deduction therefrom of any amounts required by law to be with- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10430-02-1 S. 4721 2 1 held ("disposable earnings"), except that if any part of such deduction 2 is to be applied to the reduction of arrears which shall have accrued 3 more than twelve weeks prior to the beginning of the week for which such 4 earnings are payable, the amount of such deduction shall not exceed 5 fifty-five percent of disposable earnings. 6 (ii) Where a debtor is not currently supporting a spouse or dependent 7 child other than the creditor, the amount of the deductions to be with- 8 held shall not exceed sixty percent of the earnings of the debtor 9 remaining after the deduction therefrom of any amounts required by law 10 to be withheld ("disposable earnings"), except that if any part of such 11 deduction is to be applied to the reduction of arrears which shall have 12 accrued more than twelve weeks prior to the beginning of the week for 13 which such earnings are payable, the amount of such deduction shall not 14 exceed sixty-five percent of disposable earnings. 15 (B) AN EMPLOYER OR INCOME PAYOR SERVED WITH AN INCOME EXECUTION SHALL 16 BE SERVED A NOTICE BY THE CREDITOR FOR EACH FAILURE TO WITHHOLD 17 DEDUCTIONS FROM INCOME DUE OR THEREAFTER DUE TO THE DEBTOR. SUCH NOTICE 18 SHALL STATE THE DATE PAYMENT WAS DUE UNDER SUBPARAGRAPH (A) OF THIS 19 PARAGRAPH, THE DATE ON WHICH SUCH NOTICE WAS SERVED, WHETHER SUCH NOTICE 20 CONCERNS A FIRST, OR SUBSEQUENT OFFENSE AND THE MONIES OWED IN PENALTY. 21 IN CALCULATING THE PENALTY UNDER THIS SUBPARAGRAPH THE SUPPORT 22 COLLECTION UNIT SHALL USE THE PENALTIES DESCRIBED IN SUBPARAGRAPH (D) OF 23 PARAGRAPH TWO OF THIS SUBDIVISION AND SHALL AGGREGATE THE PENALTIES FOR 24 EACH INSTANCE OF FAILURE TO WITHHOLD DEDUCTIONS OR TO REMIT PAYMENT TO 25 THE UNIT. 26 S 2. Subparagraph (D) of paragraph 2 of subdivision (g) of section 27 5241 of the civil practice and rules, as amended by chapter 335 of the 28 laws of 2006, is amended to read as follows: 29 (D) In addition to the remedies herein provided and as may be other- 30 wise authorized by law, upon a finding by the family court that the 31 employer or income payor failed to deduct or remit deductions as 32 directed in the income execution, the court shall issue to the employer 33 or income payor an order directing compliance and may direct the payment 34 of a civil penalty not to exceed five hundred dollars for the first 35 instance and one thousand dollars per instance for the second and subse- 36 quent instances of employer or income payor noncompliance. UPON A FIND- 37 ING THAT THE CREDITOR HAS COMPLIED WITH THE NOTICE PROVISIONS OF SUBPAR- 38 AGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION, THE COURT SHALL IMPOSE 39 A PENALTY AS DESCRIBED FOR EACH FAILURE TO WITHHOLD DEDUCTIONS OR REMIT 40 PAYMENT TO THE UNIT; PROVIDED THAT SUCH PENALTIES SHALL NOT ACCRUE TO 41 THE GOVERNMENT OF THE UNITED STATES OR THE GOVERNMENT OF THE STATE OF 42 NEW YORK OR ITS POLITICAL SUBDIVISIONS. The penalty shall be paid to the 43 creditor and may be enforced in the same manner as a civil judgment or 44 in any other manner permitted by law. 45 S 3. This act shall take effect immediately.