Bill Text: NY S06431 | 2017-2018 | General Assembly | Amended
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: (Engrossed - Dead) 2018-04-17 - referred to governmental employees [S06431 Detail]
Download: New_York-2017-S06431-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6431--A 2017-2018 Regular Sessions IN SENATE May 18, 2017 ___________ Introduced by Sen. SERINO -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11808-03-7S. 6431--A 2 1 funds into a joint account with the person or entity or the authori- 2 zation to a person or entity under a power of attorney or other instru- 3 ment or document to access an account or otherwise obtain funds from an 4 account to which benefits or funds have been deposited. 5 c. Any contract or agreement made in violation of this section shall 6 be void. All sums paid to or collected by a person or entity in 7 violation of this section shall be returned by the person or entity to 8 the benefit recipient or his or her heirs or beneficiaries as restitu- 9 tion. 10 d. Any benefit recipient, his or her guardian or conservator, or heir 11 or beneficiary may bring an action to enforce the restitution author- 12 ized. 13 § 2. Section 410 of the retirement and social security law, as amended 14 by chapter 549 of the laws of 1983, is amended to read as follows: 15 § 410. Exemption from taxes and legal process. a. The right of a 16 person to a pension, a pension-providing-for-increased-take-home-pay, an 17 annuity or a retirement allowance, to the return of contributions, the 18 pensions, the pension-providing-for-increased-take-home-pay, annuity, or 19 retirement allowance itself, any optional benefit, any other right 20 accrued or accruing to any person under the provisions of this chapter 21 and the monies in the various funds continued under this chapter: 22 1. Are hereby exempt from any state or municipal tax, except the 23 estate tax, and 24 2. Shall not be subject to execution, garnishment, attachment, or any 25 other process whatsoever, and 26 3. Shall be unassignable, except as in this chapter specifically 27 provided. 28 b. Except as specifically provided in this chapter, a person or entity 29 shall not use any device, scheme, transfer or other artifice to evade 30 the applicability and prohibition or paragraphs two and three of subdi- 31 vision a of this section, including the deposit of such benefits or 32 funds into a joint account with the person or entity or the authori- 33 zation to a person or entity under a power of attorney or other instru- 34 ment or document to access an account or otherwise obtain funds from an 35 account to which benefits or funds have been deposited. 36 c. Any contract or agreement made in violation of this section shall 37 be void. All sums paid to or collected by a person or entity in 38 violation of this section shall be returned by the person or entity to 39 the benefit recipient or his or her heirs or beneficiaries as restitu- 40 tion. 41 d. Any benefit recipient, his or her guardian or conservator, or heir 42 or beneficiary may bring an action to enforce the restitution author- 43 ized. 44 § 3. Section 340 of the banking law, as amended by chapter 22 of the 45 laws of 1990, is amended to read as follows: 46 § 340. Doing business without license prohibited. (a) No person or 47 other entity shall engage in the business of making loans in the princi- 48 pal amount of twenty-five thousand dollars or less for any loan to an 49 individual for personal, family, household, or investment purposes and 50 in a principal amount of fifty thousand dollars or less for business and 51 commercial loans, and charge, contract for, or receive a greater rate of 52 interest than the lender would be permitted by law to charge if he were 53 not a licensee hereunder except as authorized by this article and with- 54 out first obtaining a license from the superintendent. 55 (b) For the purposes of this section, a person or entity shall be 56 considered as engaging in the business of making loans in New York, andS. 6431--A 3 1 subject to the licensing and other requirements of this article, if it 2 solicits loans in the amounts prescribed by this section within this 3 state and, in connection with such solicitation, makes loans to individ- 4 uals then resident in this state, except that no person or entity shall 5 be considered as engaging in the business of making loans in this state 6 on the basis of isolated, incidental or occasional transactions which 7 otherwise meet the requirements of this section. 8 (c) Nothing in this article shall apply to licensed collateral loan 9 brokers. 10 (d) Any person who engages in the business of offering consideration 11 in exchange for a secured interest in all or part of pension proceeds in 12 the possession of a participant, beneficiary, or member of a pension 13 plan, program, or system shall be deemed to be engaged in the business 14 of making loans and shall be subject to the licensing and other require- 15 ments of this article. 16 § 4. This act shall take effect immediately.
