A07363 Summary:

BILL NOA07363A
 
SAME ASSAME AS S06522-A
 
SPONSORGottfried
 
COSPNSRDinowitz, Steck, Fahy, McDonald, Reyes, Hevesi, Braunstein, Rosenthal L, Mamdani, Seawright, Simon, Woerner, Cruz, Burgos, Galef, Gonzalez-Rojas, Epstein, Solages, Bichotte Hermelyn, O'Donnell, Mitaynes, Burdick, Forrest, Otis, Colton, McDonough, Benedetto, Rivera J, Kelles, Gibbs, Kim, Fernandez, Ramos, Anderson, Thiele, Davila, Zinerman, Peoples-Stokes, De Los Santos, Jackson, Jean-Pierre
 
MLTSPNSR
 
Amd §§5201 & 5231, CPLR
 
Protects patients from liens against their primary residence and wage garnishment due to money judgments arising from actions brought by hospitals or health care professionals.
Go to top    

A07363 Actions:

BILL NOA07363A
 
05/06/2021referred to codes
01/05/2022referred to codes
01/19/2022reported
01/20/2022advanced to third reading cal.295
03/14/2022amended on third reading 7363a
03/23/2022passed assembly
03/23/2022delivered to senate
03/23/2022REFERRED TO JUDICIARY
05/10/2022SUBSTITUTED FOR S6522A
05/10/20223RD READING CAL.449
05/10/2022PASSED SENATE
05/10/2022RETURNED TO ASSEMBLY
Go to top

A07363 Committee Votes:

CODES Chair:Dinowitz DATE:01/19/2022AYE/NAY:16/6 Action: Favorable
DinowitzAyeMorinelloNay
PretlowAyeGiglioNay
CookAyeMontesanoNay
CymbrowitzAyeReillyNay
O'DonnellAyeMikulinNay
LavineAyeTannousisNay
PerryAye
AbinantiAye
WeprinAye
HevesiAye
SeawrightAye
RosenthalAye
WalkerAye
VanelAye
CruzAye
CarrollAye

Go to top

A07363 Floor Votes:

DATE:03/23/2022Assembly Vote  YEA/NAY: 106/41
AbbateYColtonYGalefYLalorNOPaulinYSmithNO
AbinantiYConradYGallagherYLavineYPeoples-StokesYSmullenNO
AndersonYCookYGallahanNOLawlerNOPerryYSolagesY
AngelinoNOCruzYGandolfoNOLemondesNOPheffer AmatoYSteckY
AshbyNOCusickYGibbsYLucasYPretlowYSternY
AubryYCymbrowitzYGiglio JANOLunsfordYQuartYStirpeY
BarclayNODarlingYGiglio JMNOLupardoYRaNOTagueNO
BarnwellYDavilaYGlickYMagnarelliYRajkumarYTannousisNO
BarrettYDe Los SantosYGonzalez-RojasYMamdaniYRamosYTapiaY
BenedettoYDeStefanoNOGoodellNOManktelowNOReillyNOTaylorY
BichotteYDickensYGottfriedYMcDonaldYReyesYThieleY
BlankenbushNODilanYGriffinYMcDonoughNORivera J YVanelY
BrabenecNODinowitzYGuntherYMcMahonYRivera JDYWalczykNO
BraunsteinYDiPietroNOHawleyNOMeeksYRosenthal D YWalkerY
BronsonYDursoNOHevesiYMikulinNORosenthal L YWallaceY
BrownNOEichensteinYHunterYMillerNORozicYWalshNO
BurdickYEnglebrightYHyndmanYMitaynesYSalkaNOWeinsteinY
BurgosYEpsteinYJacksonYMontesanoNOSantabarbaraYWeprinY
BurkeYFahyYJacobsonYMorinelloNOSayeghYWilliamsY
ButtenschonYFallYJean-PierreYNiouYSchmittYWoernerY
ByrneNOFernandezYJensenNONolanYSeawrightYZebrowskiY
ByrnesNOFitzpatrickNOJonesYNorrisNOSeptimoERZinermanY
CahillYForrestYJoynerYO'DonnellYSillittiYMr. SpeakerY
CarrollYFriendNOKellesYOtisYSimonY
ClarkYFrontusYKimYPalmesanoNOSimpsonNO

Go to top

A07363 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7363A
 
SPONSOR: Gottfried
  TITLE OF BILL: An act to amend the civil practice law and rules, in relation to protecting patients from certain penalties due to money judgments aris- ing from actions brought by hospitals or health care professionals   PURPOSE OR GENERAL IDEA OF BILL: To protect patients from certain penalties due to money judgments brought by hospitals or health care providers.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill amends paragraph (b) of Section 5201 of the Civil Practice Law and Rules to prohibit a lien being placed on a person's primary residence for medical debt judgments. Section 2 of the bill amends paragraph (b) of Section 5231 of the Civil Practice Law and Rules to prohibit wage garnishment for medical debt judgments.   JUSTIFICATION: New Yorkers struggle with health care costs, even when they have insur- ance. i Over 50,000 New York patients have been sued for medical debt by non-profit hospitals in the past five years-4,000 during the COVID-19 pandemic (March December 2020). Eight percent of New Yorkers have delin- quent medical debt that appears on their credit reports. The problem is most pervasive upstate: in Oswego County, this increases to 23% of resi- dents and there are 16 other upstate counties where between 16 and 23% of residents have an adverse credit entry for delinquent medical debt. ii Medical debt is strongly associated with housing instability, and even homelessness. iii Communities of color in New York are almost twice as likely to have medical debt than their white counterparts. New York State provides its non-profit hospitals with $1.1 billion in Indigent Care Pool funds to support the provision of uncompensated care. While most hospitals do not sue their patients, a significant minority do sue their patients for relatively small amounts: the median court case is for $1,900 dollars. These cases do little to stabilize a hospital's finances but can have devastating financial consequences for the patient. Once a hospital or health care provider secures a judgment in a medical debt court case, they have the ability under New York State law to place liens on a patient's home or garnish a patient's wages to satisfy the medical debt judgment. This bill would promote housing stability for patients by prohibiting nonprofit hospitals and health care providers from imposing liens on a patient's primary residence to satisfy a judgment in a medical debt lawsuit. New York's hospitals have taken over 2,000 liens against their patient's homes. One hospital in Albany County took over 250 liens in 2018 alone. Ten states and juris- dictions already have placed protections on the family home, including: Arkansas, Washington DC, Florida, Iowa, Kansas, Maryland, Oklahoma, Puerto Rico, South Dakota, and Texas. This bill would also promote income stability by prohibiting non-profit hospitals from securing wage garnishments after prevailing in a medical debt lawsuit. A review of wage garnishment data in medical debt cases in Albany, Fulton and Onon- daga counties indicated that most of the patients worked in low-wage service occupations such as retail, fast food and health care entities. V Four states ban wage garnishments (North Carolina, Pennsylvania, South Carolina, and Texas). Maryland recently banned hospitals from placing wage garnishments on patients who are eligible for financial assistance.   PRIOR LEGISLATIVE HISTORY: New bill   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: Immediately. 1 Altarum Healthcare Value Hub and Community Service Society of New York, "New Yorkers Struggle to Afford High Healthcare Costs; Support a Range of Government Solutions Across Party Lines," March 2019,   HTTPS : / /WWW CSSNY.ORQ/NEWS/ENTRY/NEW- STATEWIDE-HEALTHCARE-AFFORDABILITY SURVEY.CT ii Urban Institute, "Debt in America: An Interactive Map," December 2019,   HTTPS //APPS.URBAN.ORG/ FEATURES/DEBT- INTERACTIVEMAP/?TYPE-OVERALI &VAL- IABLE=PCTW MEDICAL DEBT IN COLLECTIONS&STATE=36&COUNTY= 36075.ct. The counties are Cattaraugus, Cayuga, Chautauqua, Columbia, Cortland, Greene, Jefferson, Madison, Onondaga, Rensselaer, Schenectady, Schuyler, Seneca, Steuben, Sullivan, and Washington. iii Seifert, R . "Home Sick: How Medical Debt Undermines Housing Securi- ty," St Louis Univ Law J, 51:325; Bienlenberg, J. "Presence of Any Medical debt Associated with Two Additional Years of Homelessness in a Seattle Sample," The J of Health Care Organizations, 57:1-10, Jan. 2020. iv Urban Institute, "Debt in America: An Interactive Map," December 2019,   HTTPS://APPS.URBAN.ORGIFEATURES/DEBT=/ INTERACTIVEMAP/?TYPE=OVERALL&VARIAE=PCT W MEDICAL DEBT IN COLLECTIONS&STATE=36&COUNTY=36075 Amanda Dunker and Elisabeth Benjamin, "Discharged Into Debt: Medical Debt and Racial Disparities in Albany County," January 2021,   HTTPS://WWW.CSSNY.ORG/PUBLICATIONS/ENTRY/ DISCHARGED-INTO-DEBT-MEDI- CAL-DEBTAND-RACIAL- DISPARITIES-IN-ALBANY-COUNTY
Go to top

A07363 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7363--A
                                                                Cal. No. 295
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                       May 6, 2021
                                       ___________
 
        Introduced  by  M.  of  A.  GOTTFRIED,  DINOWITZ, STECK, FAHY, McDONALD,
          REYES, HEVESI, BRAUNSTEIN, L. ROSENTHAL,  MAMDANI,  SEAWRIGHT,  SIMON,
          WOERNER,   CRUZ,  BURGOS,  GALEF,  GONZALEZ-ROJAS,  EPSTEIN,  SOLAGES,
          BICHOTTE HERMELYN,  O'DONNELL,  MITAYNES,  BURDICK,   FORREST,   OTIS,
          COLTON,  McDONOUGH,  BENEDETTO, J. RIVERA, KELLES, GIBBS, KIM, FERNAN-
          DEZ, RAMOS, ANDERSON, THIELE -- read once and referred to the  Commit-
          tee  on  Codes  -- recommitted to the Committee on Codes in accordance
          with Assembly Rule 3, sec. 2 -- reported from committee, advanced to a
          third reading, amended and ordered reprinted, retaining its  place  on
          the order of third reading
 
        AN  ACT  to  amend  the  civil  practice  law  and rules, in relation to
          protecting patients from certain  penalties  due  to  money  judgments
          arising from actions brought by hospitals or health care professionals
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision (b) of section 5201 of the civil  practice  law
     2  and rules is amended to read as follows:
     3    (b)  Property  against which a money judgment may be enforced. A money
     4  judgment may be enforced against any property which could be assigned or
     5  transferred, whether it consists of a present or future right or  inter-
     6  est  and  whether or not it is vested, unless it is exempt from applica-
     7  tion to the satisfaction of the judgment. A money judgment entered  upon
     8  a  joint  liability of two or more persons may be enforced against indi-
     9  vidual property of those persons summoned and  joint  property  of  such
    10  persons  with any other persons against whom the judgment is entered. No
    11  property lien shall be entered or enforced against  a  debtor's  primary
    12  residence  in  an  action  arising  from a medical debt and brought by a
    13  hospital licensed under article twenty-eight of the public health law or
    14  a health care professional authorized under title eight of the education
    15  law.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11180-03-2

        A. 7363--A                          2
 
     1    § 2. Subdivision (b) of section 5231 of the  civil  practice  law  and
     2  rules, as amended by chapter 575 of the laws of 2008, is amended to read
     3  as follows:
     4    (b)  Issuance.  Where  a  judgment debtor is receiving or will receive
     5  money from any source, an income execution for installments therefrom of
     6  not more than ten percent thereof may be issued  and  delivered  to  the
     7  sheriff of the county in which the judgment debtor resides or, where the
     8  judgment  debtor  is a non-resident, the county in which he is employed;
     9  provided, however, that (i) no amount shall be withheld from  the  judg-
    10  ment  debtor's  earnings  pursuant  to  an income execution for any week
    11  unless the disposable earnings of the  judgment  debtor  for  that  week
    12  exceed  the  greater  of  thirty  times  the federal minimum hourly wage
    13  prescribed in the Fair Labor Standards Act of 1938 or thirty  times  the
    14  state minimum hourly wage prescribed in section six hundred fifty-two of
    15  the  labor  law  as in effect at the time the earnings are payable; (ii)
    16  the amount withheld from the judgment debtor's earnings pursuant  to  an
    17  income  execution  for  any week shall not exceed twenty-five percent of
    18  the disposable earnings of the judgment debtor for that  week,  or,  the
    19  amount  by which the disposable earnings of the judgment debtor for that
    20  week exceed the greater of thirty times the federal minimum hourly  wage
    21  prescribed  by  the Fair Labor Standards Act of 1938 or thirty times the
    22  state minimum hourly wage prescribed in section six hundred fifty-two of
    23  the labor law as in effect at the time the earnings are payable,  which-
    24  ever  is  less;  (iii)  if  the earnings of the judgment debtor are also
    25  subject to deductions for alimony, support  or  maintenance  for  family
    26  members  or former spouses pursuant to section five thousand two hundred
    27  forty-one or section five thousand two hundred forty-two of  this  arti-
    28  cle, the amount withheld from the judgment debtor's earnings pursuant to
    29  this section shall not exceed the amount by which twenty-five percent of
    30  the disposable earnings of the judgment debtor for that week exceeds the
    31  amount  deducted  from the judgment debtor's earnings in accordance with
    32  section five thousand two hundred forty-one or section five thousand two
    33  hundred forty-two of this article; and (iv) no amount shall  be  imposed
    34  in  judgments  arising  from a medical debt action brought by a hospital
    35  licensed under article twenty-eight of the public health law or a health
    36  care professional authorized under title eight  of  the  education  law.
    37  Nothing  in this section shall be construed to modify, abrogate, impair,
    38  or affect any exemption from the satisfaction of a money judgment other-
    39  wise granted by law.
    40    § 3. This act shall take effect immediately.
Go to top