Bill Text: NY A05592 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to notice of small claims judgments and indexing of unpaid claims.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced) 2019-02-13 - referred to judiciary [A05592 Detail]

Download: New_York-2019-A05592-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5592
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 13, 2019
                                       ___________
        Introduced  by M. of A. MANKTELOW, DeSTEFANO, McDONOUGH -- read once and
          referred to the Committee on Judiciary
        AN ACT to amend the New York city civil  court  act,  the  uniform  city
          court  act,  the uniform district court act, the uniform justice court
          act and the tax law, in relation to notice of small  claims  judgments
          and indexing of unpaid claims
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivisions (a) and (b) of section 1811 of  the  New  York
     2  city  civil  court  act,  as amended by chapter 122 of the laws of 1987,
     3  paragraph 2 of subdivision (b) as amended, paragraph  6  of  subdivision
     4  (b)  as  added,  paragraph 7 of subdivision (b) as renumbered by chapter
     5  650 of the laws of 1991, are amended to read as follows:
     6    (a) Notice of judgment sent to judgment debtor shall  specify  that  a
     7  failure  to  satisfy  a  judgment  may  subject the debtor to any one or
     8  combination of the following actions:
     9    1. garnishment of wage;
    10    2. garnishment of bank account;
    11    3. a lien on personal property;
    12    4. seizure and sale of real property;
    13    5. seizure and sale of personal property, including automobiles;
    14    6. suspension of motor vehicle license and registration, if  claim  is
    15  based on defendant's ownership or operation of a motor vehicle;
    16    7.  revocation,  suspension,  or  denial  of renewal of any applicable
    17  business license or permit;
    18    8. investigation and prosecution by the attorney general  for  fraudu-
    19  lent or illegal business practices; [and]
    20    9.  a penalty equal to three times the amount of the unsatisfied judg-
    21  ment plus attorney's fees, if there are other unpaid claims[.]; and
    22    10. intercept of any income tax refund owed pursuant to the tax law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04993-01-9

        A. 5592                             2
     1    (b) Notice of judgment sent to judgment creditor shall contain but not
     2  be limited to the following information:
     3    1.  the  claimant's  right to payment within thirty days following the
     4  debtor's receipt of the judgment notice;
     5    2. the procedures for use of section eighteen hundred twelve  of  this
     6  article  concerning the identification of assets of the judgment debtor,
     7  including the use of information subpoenas, access  to  consumer  credit
     8  reports  and  the  role of sheriffs and marshals, and actions to collect
     9  three times the judgment award and attorney's  fees  if  there  are  two
    10  other unsatisfied claims against the debtor;
    11    3.  the  claimant's  right  to  initiate actions to recover the unpaid
    12  judgment through the sale of the debtor's  real  property,  or  personal
    13  property;
    14    4.  the  claimant's  right  to  initiate actions to recover the unpaid
    15  judgment through suspension of debtor's motor vehicle license and regis-
    16  tration, if claim is based on defendant's ownership or  operation  of  a
    17  motor vehicle;
    18    5.  the  claimant's  right  to  notify  the appropriate state or local
    19  licensing or certifying authority of an unsatisfied judgment as a  basis
    20  for  possible  revocation,  suspension, or denial of renewal of business
    21  license; [and]
    22    6. a statement that upon satisfying the judgment, the judgment  debtor
    23  shall present appropriate proof thereof to the court; [and]
    24    7.  the  claimant's right to notify the attorney general if the debtor
    25  is a business and appears to be engaged in fraudulent or  illegal  busi-
    26  ness practices[.]; and
    27    8.  the  claimant's  right  to  initiate actions to recover the unpaid
    28  judgment through the interception of any income tax refund owed pursuant
    29  to the tax law.
    30    § 2. Subdivisions (a) and (b) of section  1811  of  the  uniform  city
    31  court act, as amended by chapter 122 of the laws of 1987, paragraph 2 of
    32  subdivision  (b)  as  amended,  paragraph 6 of subdivision (b) as added,
    33  paragraph 7 of subdivision (b) as renumbered by chapter 650 of the  laws
    34  of 1991, are amended to read as follows:
    35    (a)  Notice  of  judgment sent to judgment debtor shall specify that a
    36  failure to satisfy a judgment may subject  the  debtor  to  any  one  or
    37  combination of the following actions:
    38    1. garnishment of wage;
    39    2. garnishment of bank account;
    40    3. a lien on personal property;
    41    4. seizure and sale of real property;
    42    5. seizure and sale of personal property, including automobiles;
    43    6.  suspension  of motor vehicle license and registration, if claim is
    44  based on defendant's ownership or operation of a motor vehicle;
    45    7. revocation, suspension, or denial  of  renewal  of  any  applicable
    46  business license or permit;
    47    8.  investigation  and prosecution by the attorney general for fraudu-
    48  lent or illegal business practices; [and]
    49    9. a penalty equal to three times the amount of the unsatisfied  judg-
    50  ment plus attorney's fees, if there are other unpaid claims[.]; and
    51    10. intercept of any income tax refund owed pursuant to the tax law.
    52    (b) Notice of judgment sent to judgment creditor shall contain but not
    53  be limited to the following information:
    54    1.  the  claimant's  right to payment within thirty days following the
    55  debtor's receipt of the judgment notice;

        A. 5592                             3
     1    2. the procedures for use of section eighteen hundred twelve  of  this
     2  article  concerning  the identification of assets of the judgment debtor
     3  including the use of information subpoenas, access  to  consumer  credit
     4  reports  and  the  role of sheriffs and marshals, and actions to collect
     5  three  times  the  judgment  award  and attorney's fees if there are two
     6  other unsatisfied claims against the debtor;
     7    3. the claimant's right to initiate  actions  to  recover  the  unpaid
     8  judgment  through  the  sale  of the debtor's real property, or personal
     9  property;
    10    4. the claimant's right to initiate  actions  to  recover  the  unpaid
    11  judgment through suspension of debtor's motor vehicle license and regis-
    12  tration,  if  claim  is based on defendant's ownership or operation of a
    13  motor vehicle;
    14    5. the claimant's right to  notify  the  appropriate  state  or  local
    15  licensing  or certifying authority of an unsatisfied judgment as a basis
    16  for possible revocation, suspension, or denial of  renewal  of  business
    17  license; [and]
    18    6.  a statement that upon satisfying the judgment, the judgment debtor
    19  shall present appropriate proof thereof to the court; [and]
    20    7. the claimant's right to notify the attorney general if  the  debtor
    21  is  a  business and appears to be engaged in fraudulent or illegal busi-
    22  ness practices[.]; and
    23    8. the claimant's right to initiate  actions  to  recover  the  unpaid
    24  judgment through the interception of any income tax refund owed pursuant
    25  to the tax law.
    26    §  3. Subdivisions (a) and (b) of section 1811 of the uniform district
    27  court act, as amended by chapter 122 of the laws of 1987, paragraph 2 of
    28  subdivision (b) as amended, paragraph 6 of  subdivision  (b)  as  added,
    29  paragraph  7 of subdivision (b) as renumbered by chapter 650 of the laws
    30  of 1991, are amended to read as follows:
    31    (a) Notice of judgment sent to judgment debtor shall  specify  that  a
    32  failure  to  satisfy  a  judgment  may  subject the debtor to any one or
    33  combination of the following actions:
    34    1. garnishment of wage;
    35    2. garnishment of bank account;
    36    3. a lien on personal property;
    37    4. seizure and sale of real property;
    38    5. seizure and sale of personal property, including automobiles;
    39    6. suspension of motor vehicle license and registration, if  claim  is
    40  based on defendant's ownership or operation of a motor vehicle;
    41    7.  revocation,  suspension,  or  denial  of renewal of any applicable
    42  business license or permit;
    43    8. investigation and prosecution by the attorney general  for  fraudu-
    44  lent or illegal business practices; [and]
    45    9.  a penalty equal to three times the amount of the unsatisfied judg-
    46  ment plus attorney's fees, if there are other unpaid claims[.]; and
    47    10. intercept of any income tax refund owed pursuant to the tax law.
    48    (b) Notice of judgment sent to judgment creditor shall contain but not
    49  be limited to the following information:
    50    1. the claimant's right to payment within thirty  days  following  the
    51  debtor's receipt of the judgment notice;
    52    2.  the  procedures for use of section eighteen hundred twelve of this
    53  article concerning the identification of assets of the  judgment  debtor
    54  including  the  use  of information subpoenas, access to consumer credit
    55  reports and the role of sheriffs and marshals, and  actions  to  collect

        A. 5592                             4
     1  three  times  the  judgment  award  and attorney's fees if there are two
     2  other unsatisfied claims against the debtor;
     3    3.  the  claimant's  right  to  initiate actions to recover the unpaid
     4  judgment through the sale of the debtor's  real  property,  or  personal
     5  property;
     6    4.  the  claimant's  right  to  initiate actions to recover the unpaid
     7  judgment through suspension of debtor's motor vehicle license and regis-
     8  tration, if claim is based on defendant's ownership or  operation  of  a
     9  motor vehicle;
    10    5.  the  claimant's  right  to  notify  the appropriate state or local
    11  licensing or certifying authority of an unsatisfied judgment as a  basis
    12  for  possible  revocation,  suspension, or denial of renewal of business
    13  license; [and]
    14    6. a statement that upon satisfying the judgment, the judgment  debtor
    15  shall present appropriate proof thereof to the court; [and]
    16    7.  the  claimant's right to notify the attorney general if the debtor
    17  is a business and appears to be engaged in fraudulent or  illegal  busi-
    18  ness practices[.]; and
    19    8.  the  claimant's  right  to  initiate actions to recover the unpaid
    20  judgment through the interception of any income tax refund owed pursuant
    21  to the tax law.
    22    § 4. Subdivisions (a) and (b) of section 1811 of the  uniform  justice
    23  court act, as amended by chapter 122 of the laws of 1987, paragraph 2 of
    24  subdivision  (b)  as  amended,  paragraph 6 of subdivision (b) as added,
    25  paragraph 7 of subdivision (b) as renumbered by chapter 650 of the  laws
    26  of 1991, are amended to read as follows:
    27    (a)  Notice  of  judgment sent to judgment debtor shall specify that a
    28  failure to satisfy a judgment may subject  the  debtor  to  any  one  or
    29  combination of the following actions:
    30    1. garnishment of wage;
    31    2. garnishment of bank account;
    32    3. a lien on personal property;
    33    4. seizure and sale of real property;
    34    5. seizure and sale of personal property, including automobiles;
    35    6.  suspension  of motor vehicle license and registration, if claim is
    36  based on defendant's ownership or operation of a motor vehicle;
    37    7. revocation, suspension, or denial  of  renewal  of  any  applicable
    38  business license or permit;
    39    8.  investigation  and prosecution by the attorney general for fraudu-
    40  lent or illegal business practices; [and]
    41    9. a penalty equal to three times the amount of the unsatisfied  judg-
    42  ment plus attorney's fees, if there are other unpaid claims[.]; and
    43    10. intercept of any income tax refund owed pursuant to the tax law.
    44    (b) Notice of judgment sent to judgment creditor shall contain but not
    45  be limited to the following information:
    46    1.  the  claimant's  right to payment within thirty days following the
    47  debtor's receipt of the judgment notice;
    48    2. the procedures for use of section eighteen hundred twelve  of  this
    49  article  concerning  the identification of assets of the judgment debtor
    50  including the use of information subpoenas, access  to  consumer  credit
    51  reports  and  the  role of sheriffs and marshals, and actions to collect
    52  three times the judgment award and attorney's  fees  if  there  are  two
    53  other unsatisfied claims against the debtor;
    54    3.  the  claimant's  right  to  initiate actions to recover the unpaid
    55  judgment through the sale of the debtor's  real  property,  or  personal
    56  property;

        A. 5592                             5
     1    4.  the  claimant's  right  to  initiate actions to recover the unpaid
     2  judgment through suspension of debtor's motor vehicle license and regis-
     3  tration, if claim is based on defendant's ownership or  operation  of  a
     4  motor vehicle;
     5    5.  the  claimant's  right  to  notify  the appropriate state or local
     6  licensing or certifying authority of an unsatisfied judgment as a  basis
     7  for  possible  revocation,  suspension, or denial of renewal of business
     8  license; [and]
     9    6. a statement that upon satisfying the judgment, the judgment  debtor
    10  shall present appropriate proof thereof to the court; [and]
    11    7.  the  claimant's right to notify the attorney general if the debtor
    12  is a business and appears to be engaged in fraudulent or  illegal  busi-
    13  ness practices[.]; and
    14    8.  the  claimant's  right  to  initiate actions to recover the unpaid
    15  judgment through the interception of any income tax refund owed pursuant
    16  to the tax law.
    17    § 5. The tax law is amended by adding a new section 171-w to  read  as
    18  follows:
    19    §  171-w.  Interception  of income tax refund in satisfaction of small
    20  claims judgment. The commissioner, on behalf of  the  department,  shall
    21  enter  into  a  written  agreement  with  the chief administrator of the
    22  courts, which shall set forth the procedures for the interception of any
    23  income tax refund owed to any small claims  judgment  debtor,  including
    24  penalties  and  attorney's  fees that are provided for pursuant to para-
    25  graphs nine of subdivisions (a) of sections eighteen hundred  eleven  of
    26  the  New  York  city  civil  court act, the uniform civil court act, the
    27  uniform district court act  and  the  uniform  justice  court  act,  and
    28  payment  of  such refund to the small claims judgment creditor who files
    29  an appropriate notice with the commissioner as an action to recover such
    30  judgment pursuant to subdivision (b) of section eighteen hundred  eleven
    31  of  the  New York city civil court act, subdivision (b) of section eigh-
    32  teen hundred eleven of the uniform city court act,  subdivision  (b)  of
    33  section  eighteen  hundred  eleven  of the uniform district court act or
    34  subdivision (b) of  section  eighteen  hundred  eleven  of  the  uniform
    35  justice court act.
    36    § 6. This act shall take effect immediately.
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