A01817 Summary:

BILL NOA01817
 
SAME ASNo Same As
 
SPONSORRosenthal L
 
COSPNSR
 
MLTSPNSR
 
Amd §5205, CPLR
 
Exempts retirement accounts established by not-for-profit corporations from application to the satisfaction of money judgments for bankruptcy purposes.
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A01817 Actions:

BILL NOA01817
 
01/11/2021referred to judiciary
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A01817 Committee Votes:

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A01817 Floor Votes:

There are no votes for this bill in this legislative session.
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A01817 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1817
 
SPONSOR: Rosenthal L
  TITLE OF BILL: An act to amend the civil practice law and rules, in relation to exempt- ing certain accounts established by not-for-profit corporations from application to the satisfaction of money judgments for bankruptcy purposes   PURPOSE: This bill protects from bankruptcy judgments, retirement accounts and savings established by not-for-profit corporations.   SUMMARY OF SPECIFIC PROVISIONS: Section one amends paragraph 2 of subdivision (c) of section 5205 of the civil practice law and rules. Section two sets forth the effective date.   JUSTIFICATION: New York State law currently exempts, from bankruptcy judgments, retire- ment accounts that are established by corporations. However, there is currently no law that protects retirement savings which have been estab- lished by not-for-profit corporations and this bill seeks to redress exactly this omission. Considering that those who work for not-for-pro- fits usually begin with smaller salaries, they require as much if not more, protection than anyone else. Discriminating, even if inadvertent- ly, against those who work for a not-for-profit, establishes a priority that is inconsistent with the culture of New York.   LEGISLATIVE HISTORY: 2019-20: A.996 - Referred to Judiciary 2017-18: A.4378 - Referred to Judiciary 2015-16: A.850 -Referred to Judiciary 2013-14: A.847-A - Referred to Judiciary 2011-12: A.10770 - Referred to Judiciary   FISCAL IMPLICATIONS: None to the State.   EFFECTIVE DATE: This bill shall take effect immediately.
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A01817 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1817
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 11, 2021
                                       ___________
 
        Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
          Committee on Judiciary
 
        AN ACT to amend the civil practice law and rules, in relation to exempt-
          ing certain accounts established by not-for-profit  corporations  from
          application  to  the  satisfaction  of  money judgments for bankruptcy
          purposes

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 2 of subdivision (c) of section 5205 of the civil
     2  practice  law  and rules, as amended by chapter 141 of the laws of 2001,
     3  is amended to read as follows:
     4    2. For purposes of this subdivision, all trusts,  custodial  accounts,
     5  annuities,  insurance contracts, monies, assets or interests established
     6  as part of, and all payments from, either any trust or  plan,  which  is
     7  qualified as an individual retirement account under section four hundred
     8  eight  or  section  four  hundred  eight A of the United States Internal
     9  Revenue Code of 1986, as amended, a Keogh (HR-10), retirement  or  other
    10  plan established by a corporation or other organization, which is quali-
    11  fied under section 401 or 403 of the United States Internal Revenue Code
    12  of 1986, as amended, or created as a result of rollovers from such plans
    13  pursuant  to  sections  402 (a) (5), 403 (a) (4), 408 (d) (3) or 408A of
    14  the Internal Revenue Code of 1986, as amended, or a plan that  satisfies
    15  the requirements of section 457 of the Internal Revenue Code of 1986, as
    16  amended,  shall be considered a trust which has been created by or which
    17  has proceeded from a person other than the judgment debtor, even  though
    18  such  judgment  debtor  is  (i)  in the case of an individual retirement
    19  account plan, an individual who is the settlor of and depositor to  such
    20  account  plan, or (ii) a self-employed individual, or (iii) a partner of
    21  the entity sponsoring the Keogh (HR-10) plan, or (iv) a  shareholder  of
    22  the corporation sponsoring the retirement or other plan or (v) a partic-
    23  ipant in a section 457 plan.
    24    §  2.  This  act  shall take effect immediately and shall apply to the
    25  satisfaction of judgments on or after such date.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01003-01-1
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A01817 LFIN:

 NO LFIN
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A01817 Chamber Video/Transcript:

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