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S05923 Summary:

BILL NOS05923A
 
SAME ASSAME AS A06617-A
 
SPONSORTHOMAS
 
COSPNSRBIAGGI, BRISPORT, BROOKS, COMRIE, COONEY, GOUNARDES, HOYLMAN, JACKSON, KRUEGER, MAY, REICHLIN-MELNICK, SANDERS, SEPULVEDA, SKOUFIS
 
MLTSPNSR
 
Amd §§5205, 5222 & 5222-a, CPLR; amd §9-g, Bank L; amd §3, D & C L
 
Exempts COVID-19 stimulus relief for individuals and families with children from money judgments; provides that in services of notices, forms, and procedures for claims of exemptions that a restraining notice or notice of levy by execution issued against a bank account shall have language to inform the holder of such account that funds for COVID-19 stimulus relief for individuals and families with children are exempt and cannot be taken.
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S05923 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5923--A
 
                               2021-2022 Regular Sessions
 
                    IN SENATE
 
                                     March 23, 2021
                                       ___________
 
        Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
          printed to be committed to the Committee  on  Judiciary  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
 
        AN  ACT  to  amend the civil practice law and rules, the banking law and
          the debtor and creditor law, in relation to exempting COVID-19  stimu-
          lus relief for individuals and families with children from money judg-
          ments
 
          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 (l) of section 5205 of the civil
     2  practice law and rules, as amended by chapter 24 of the laws of 2009, is
     3  amended and a new subdivision (p) is added to read as follows:
     4    2. For purposes of this article, "statutorily exempt  payments"  means
     5  any  personal  property exempt from application to the satisfaction of a
     6  money judgment under any provision of state or federal  law.  Such  term
     7  shall include, but not be limited to, payments from any of the following
     8  sources: social security, including retirement, survivors' and disabili-
     9  ty  benefits,  supplemental  security  income or child support payments;
    10  veterans administration benefits; public  assistance;  workers'  compen-
    11  sation;  unemployment  insurance;  public  or private pensions; railroad
    12  retirement; [and] black lung benefits; and emergency relief funds.
    13    (p) Exemption for emergency relief funds. Any payments to individuals,
    14  including tax refunds, recovery rebates, refundable tax credits, and any
    15  advances of any tax credits, under the federal Families First  Coronavi-
    16  rus Response Act (FFCRA), Coronavirus Aid, Relief, and Economic Security
    17  Act  of  2020  (CARES Act), Consolidated Appropriations Act of 2021, and
    18  American Rescue Plan Act of 2021 (ARPA) are exempt from  application  to
    19  the  satisfaction  of  a money judgment.  This exemption shall not apply
    20  (i) if the debt enforced is for child support, spousal support,  mainte-
    21  nance,  alimony, a distributive award in a matrimonial action, or resti-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10569-04-1

        S. 5923--A                          2
 
     1  tution in a family offense proceeding, or (ii) to that  portion  of  any
     2  money judgment awarded on a claim that the emergency relief funds refer-
     3  enced herein are the rightful property of the judgment creditor.
     4    §  2.  Subdivision  (e)  of section 5222 of the civil practice law and
     5  rules, as amended by chapter 575 of the laws of 2008, is amended to read
     6  as follows:
     7    (e) Content of notice. The notice required by subdivision (d) of  this
     8  section shall be in substantially the following form and may be included
     9  in the restraining notice:
    10                    NOTICE TO JUDGMENT DEBTOR OR OBLIGOR
    11    Money  or  property  belonging  to  you may have been taken or held in
    12  order to satisfy a judgment or order which has been entered against you.
    13  Read this carefully.
    14                   YOU MAY BE ABLE TO GET YOUR MONEY BACK
    15    State and federal laws prevent certain money or  property  from  being
    16  taken  to satisfy judgments or orders. Such money or property is said to
    17  be "exempt". The following is a partial  list  of  money  which  may  be
    18  exempt:
    19    1. Supplemental security income, (SSI);
    20    2. Social security;
    21    3. Public assistance (welfare);
    22    4. Spousal support, maintenance (alimony) or child support;
    23    5. Unemployment benefits;
    24    6. Disability benefits;
    25    7. Workers' compensation benefits;
    26    8. Public or private pensions;
    27    9. Veterans benefits;
    28    10.  Ninety  percent  of your wages or salary earned in the last sixty
    29  days;
    30    11. Twenty-five hundred dollars of any bank account containing  statu-
    31  torily  exempt  payments that were deposited electronically or by direct
    32  deposit within the last forty-five days, including, but not limited  to,
    33  your  social  security, supplemental security income, veterans benefits,
    34  public assistance, workers' compensation, unemployment insurance, public
    35  or private pensions, railroad retirement benefits, black lung  benefits,
    36  or child support payments;
    37    12. Railroad retirement; [and]
    38    13. Black lung benefits; and
    39    14.  COVID-19  stimulus relief for individuals and families with chil-
    40  dren.
    41    If you think that any of your money that has been  taken  or  held  is
    42  exempt,  you  must  act promptly because the money may be applied to the
    43  judgment or order. If you claim that any of your  money  that  has  been
    44  taken or held is exempt, you may contact the person sending this notice.
    45    Also,  YOU  MAY CONSULT AN ATTORNEY, INCLUDING ANY FREE LEGAL SERVICES
    46  ORGANIZATION IF YOU QUALIFY. You can also go to court without an  attor-
    47  ney to get your money back. Bring this notice with you when you go.  You
    48  are  allowed  to  try to prove to a judge that your money is exempt from
    49  collection under New York civil practice law and rules, sections  fifty-
    50  two  hundred  twenty-two-a,  fifty-two hundred thirty-nine and fifty-two
    51  hundred forty. If you do not have a lawyer, the clerk of the  court  may
    52  give you forms to help you prove your account contains exempt money that
    53  the  creditor  cannot  collect. The law (New York civil practice law and
    54  rules, article four  and  sections  fifty-two  hundred  thirty-nine  and
    55  fifty-two  hundred  forty)  provides  a procedure for determination of a
    56  claim to an exemption.

        S. 5923--A                          3
 
     1    § 3. Paragraph 4 of subdivision (b) of section  5222-a  of  the  civil
     2  practice  law and rules, as added by chapter 575 of the laws of 2008, is
     3  amended to read as follows:
     4    4.  Content  of  exemption  notice  and  exemption  claim form. a. The
     5  exemption notice shall be in the following form:
 
     6                              "EXEMPTION NOTICE
     7                         as required by New York Law

     8                 YOUR BANK ACCOUNT IS RESTRAINED OR "FROZEN"
     9    The attached Restraining Notice or notice of  Levy  by  Execution  has
    10  been  issued  against  your  bank account. You are receiving this notice
    11  because a creditor has obtained a money judgment against you, and one or
    12  more of your bank accounts has been restrained to pay  the  judgment.  A
    13  money  judgment  is a court's decision that you owe money to a creditor.
    14  You should be aware that FUTURE DEPOSITS into your account(s) might also
    15  be restrained if you do not respond to this notice.
    16    You may be able to "vacate" (remove) the judgment. If the judgment  is
    17  vacated,  your  bank  account  will  be  released.  Consult  an attorney
    18  (including free legal services) or visit the court clerk for more infor-
    19  mation about how to do this.
    20    Under state and federal law, certain types of funds  cannot  be  taken
    21  from  your  bank  account  to  pay  a judgment. Such money is said to be
    22  "exempt."
    23    DOES YOUR BANK ACCOUNT CONTAIN ANY OF THE FOLLOWING TYPES OF FUNDS?
    24    1. Social security;
    25    2. Social security disability (SSD);
    26    3. Supplemental security income (SSI);
    27    4. Public assistance (welfare);
    28    5. Income earned while receiving SSI or public assistance;
    29    6. Veterans benefits;
    30    7. Unemployment insurance;
    31    8. Payments from pensions and retirement accounts;
    32    9. Disability benefits;
    33    10. Income earned in the last 60 days (90% of which is exempt);
    34    11. Workers' compensation benefits;
    35    12. Child support;
    36    13. Spousal support or maintenance (alimony);
    37    14. Railroad retirement; [and/or]
    38    15. Black lung benefits; and/or
    39    16. COVID-19 stimulus relief for individuals and families with
    40         children.
    41    If YES, you can claim that your money is exempt and cannot  be  taken.
    42  To make the claim, you must
    43    (a) complete the EXEMPTION CLAIM FORM attached;
    44    (b)  deliver  or  mail  the  form  to  the bank with the restrained or
    45  "frozen" account; and
    46    (c) deliver or mail the form to the creditor or its  attorney  at  the
    47  address listed on the form.
    48    You  must  send the forms within 20 DAYS of the postmarked date on the
    49  envelope holding this notice. You  may  be  able  to  get  your  account
    50  released  faster  if  you  send  to the creditor or its attorney written
    51  proof that your money is exempt. Proof can include an award letter  from
    52  the government, an annual statement from your pension, pay stubs, copies
    53  of checks, bank records showing the last two months of account activity,
    54  or  other  papers showing that the money in your bank account is exempt.

        S. 5923--A                          4
 
     1  If you send the creditor's attorney proof that the money in your account
     2  is exempt, the attorney must release that money within seven  days.  You
     3  do not need an attorney to make an exemption claim using the form."
     4    b. The exemption claim form shall be in the following form:
 
     5  NAME OF COURT, NAME OF COUNTY
 
     6  -------------------------------------x
 
     7  PLAINTIFF/PETITIONER/CLAIMANT               INDEX NO.
     8  V.
     9  DEFENDANT/RESPONDENT                        EXEMPTION CLAIM FORM
 
    10  -------------------------------------x
 
    11  NAME AND ADDRESS OF JUDGMENT                NAME AND ADDRESS OF FINANCIAL
    12  CREDITOR OR ATTORNEY                        INSTITUTION
    13  (To be completed by judgment                (To be completed by judgment
    14  creditor or attorney)                       creditor or attorney)
    15  ADDRESS                                     ADDRESS
    16  A_____________________                      B______________________
    17    ____________________                        _____________________
    18  Directions:  To  claim that some or all of the funds in your account are
    19  exempt, complete both copies of this form, and make one copy  for  your-
    20  self.  Mail  or  deliver one form to ADDRESS A and one form to ADDRESS B
    21  within twenty days of the date on  the  envelope  holding  this  notice.
    22  **If  you  have any documents, such as an award letter, an annual state-
    23  ment from your pension, paystubs, copies of checks or bank records show-
    24  ing the last two months of account activity, include copies of the docu-
    25  ments with this form. Your account may be released more quickly.

    26  _________________________________________________________________________
 
    27  I state that my account contains the following type(s) of  funds  (check
    28  all that apply):
 
    29  ____Social security
    30  ____Social security disability (SSD)
    31  ____Supplemental security income (SSI)
    32  ____Public assistance
    33  ____Wages while receiving SSI or public assistance
    34  ____Veterans benefits
    35  ____Unemployment insurance
    36  ____Payments from pensions and retirement accounts
    37  ____Income earned in the last 60 days (90% of which is exempt)
    38  ____Child support
    39  ____Spousal support or maintenance (alimony)
    40  ____Workers' compensation
    41  ____Railroad retirement or black lung benefits
    42  _____COVID-19 stimulus relief for individuals and families with children
    43  ____Other (describe exemption):_________________________________

    44  I  request  that  any correspondence to me regarding my claim be sent to
    45  the following address:
 
    46  _____________________________________________________________________

        S. 5923--A                          5
 
     1                       (FILL IN YOUR COMPLETE ADDRESS)
 
     2  I  certify  under penalty of perjury that the statement above is true to
     3  the best of my knowledge and belief.
 
     4  _________________________________________________________________________
     5  DATE                                  SIGNATURE OF JUDGMENT DEBTOR
 
     6    § 4.  Subdivision 1 of section 9-g of the banking  law,  as  added  by
     7  chapter 10 of the laws of 1980, is amended to read as follows:
     8    1.  (a)  No  banking  institution  shall assert, claim or exercise any
     9  right of set off against any deposit account into which social  security
    10  or  supplemental  security  income payments are deposited pursuant to an
    11  agreement  with  such  banking  institution  which  provides  that  such
    12  payments be deposited directly into such deposit account without presen-
    13  tation to the depositor at the time of deposit.
    14    (b)  No  banking institution shall assert, claim or exercise any right
    15  of set off against any  payments  referred  to  in  subdivision  (p)  of
    16  section fifty-two hundred five of the civil practice law and rules.
    17    §  5.  Section 3 of the debtor and creditor law is amended by adding a
    18  new fifth undesignated paragraph to read as follows:
    19    The right of any person to payments, including tax  refunds,  recovery
    20  rebates,  refundable  tax  credits, and any advances of any tax credits,
    21  under the federal Families First Coronavirus Response Act (FFCRA), Coro-
    22  navirus Aid, Relief, and Economic Security  Act  of  2020  (CARES  Act),
    23  Consolidated Appropriations Act of 2021, and American Rescue Plan Act of
    24  2021  (ARPA) shall not be transferable or assignable, at law or in equi-
    25  ty.
    26    § 6. This act shall take effect immediately.
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