S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7951

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 11, 2013
                               ___________

Introduced  by  M. of A. TITUS -- (at request of the Office of Temporary
  and Disability Assistance) -- read once and referred to the  Committee
  on Codes

AN ACT to amend the civil practice law and rules and the social services
  law, in relation to income withholding for child support

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision (a) of section 5241 of the civil  practice  law
and rules is amended by adding a new paragraph 13 to read as follows:
  13.  "ISSUER"  MEANS  A SUPPORT COLLECTION UNIT, SHERIFF, THE CLERK OF
COURT, OR THE ATTORNEY FOR THE CREDITOR.
  S 2. Paragraph 1 of subdivision (b) of section 5241 of the civil prac-
tice law and rules, as amended by chapter 59 of the  laws  of  1993,  is
amended to read as follows:
  (1)  When a debtor is in default, an execution for support enforcement
may be issued by the support collection unit, or  by  the  sheriff,  the
clerk  of  court  or  the attorney for the creditor as an officer of the
court. Where a debtor is receiving or will receive income, an  execution
for  deductions  therefrom in amounts not to exceed the limits set forth
in subdivision (g) of this section may be served  upon  an  employer  or
income payor after notice to the debtor. The amount of the deductions to
be  withheld shall be sufficient to ensure compliance with the direction
in the order of support, and shall include an additional  amount  to  be
applied to the reduction of arrears. The [creditor] ISSUER may amend the
execution  before  or after service upon the employer or income payor to
reflect additional arrears or payments made by the debtor  after  notice
pursuant to subdivision (d) of this section, or to conform the execution
to the facts found upon a determination made pursuant to subdivision (e)
of this section.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09390-07-3

A. 7951                             2
              

  S 3. Paragraph 1 of subdivision (c) of section 5241 of the civil prac-
tice  law  and  rules, as amended by chapter 214 of the laws of 1998, is
amended to read as follows:
  (1)  The  income  execution shall [contain the caption of the order of
support, and] BE ON THE FORM FOR INCOME WITHHOLDING PROMULGATED  BY  THE
OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE FOR THIS PURPOSE AND SHALL
INCLUDE  THE  NECESSARY INFORMATION AND DIRECTIONS TO ENSURE ITS CHARAC-
TERIZATION AS AN INCOME WITHHOLDING NOTICE AS DESCRIBED AND REQUIRED  BY
SUBSECTION  (B)  OF  SECTION SIX HUNDRED SIXTY-SIX OF TITLE FORTY-TWO OF
THE UNITED STATES CODE; PROVIDED, HOWEVER, THAT WHERE THE  COURT  ENTERS
AN  ORDER  FOR SPOUSAL SUPPORT ONLY FOR WHICH INCOME WITHHOLDING WILL BE
ORDERED BY THE SHERIFF, THE CLERK OF COURT OR THE ATTORNEY FOR THE CRED-
ITOR, AN ALTERNATE SPOUSAL SUPPORT FORM FOR INCOME  WITHHOLDING  PROMUL-
GATED  BY  THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE MAY BE USED
BUT IS NOT REQUIRED. IN ADDITION, THE  INCOME  EXECUTION  SHALL  specify
[the  date that the order of support was entered,] the court in which it
was entered, the amount of the periodic payments directed,  [the  amount
of  arrears,  the nature of the default] and the names of the debtor and
creditor. In addition, TO THE EXTENT NOT ALREADY PROVIDED  ON  THE  FORM
FOR  INCOME  WITHHOLDING,  A  SEPARATE DOCUMENT SHALL BE SERVED WITH the
income execution WHICH shall include:
  (i) the name and address of the employer or income payor from whom the
debtor is receiving or will receive income;
  (ii) the amount of the deductions to be made therefrom on  account  of
current  support,  and  the  amount  to  be  applied to the reduction of
arrears;
  (iii) a notice that deductions will apply to  current  and  subsequent
income;
  (iv)  a  notice  that  the  income  execution  will be served upon any
current or subsequent employer or income payor unless a mistake of  fact
is  shown within fifteen days, a notice of the manner in which a mistake
of fact may be asserted, and a notice  that,  if  the  debtor  claims  a
mistake  of  fact,  a  determination will be made within forty-five days
after notice to the debtor  as  provided  in  subdivision  (d)  of  this
section,  and  that  the  debtor will receive written notice whether the
income execution will be served and of the  time  that  deductions  will
begin;
  (v)  a  notice  that  the  employer  or  income  payor  must  commence
deductions no later than the first pay period that occurs after fourteen
days following the service of the income execution and that payment must
be remitted within seven business days of the date that the debtor paid;
  (vi) a notice that the  income  execution  is  binding  until  further
notice;
  (vii) a notice of the substance of the provisions of section fifty-two
hundred fifty-two of this [chapter] ARTICLE and that a violation thereof
is punishable as a contempt of court by fine or imprisonment or both;
  (viii)  a  notice  of  the  limitations upon deductions from wages set
forth in subdivision (g) of this section;
  (ix) a notice that an employer must notify the  issuer  promptly  when
the  debtor  terminates employment and provide the debtor's last address
and the name and address of the new employer, if known;
  (x) a notice that when an  employer  receives  an  income  withholding
instrument  issued by another state, the employer shall apply the income
withholding law of the state of the debtor's principal place of  employ-
ment in determining:
  (A) the employer's fee for processing income withholding;

A. 7951                             3

  (B)  the  maximum  amount  permitted  to be withheld from the debtor's
income;
  (C)  the  time  periods  within  which the employer must implement the
income withholding and forward the child support payment;
  (D) the priorities for withholding and allocating income withheld  for
multiple child support creditors; and
  (E) any withholding terms or conditions not specified in the withhold-
ing instrument; [and]
  (xi)  a notice that an employer who complies with an income [withhold-
ing notice] EXECUTION that is regular on its face shall not  be  subject
to civil liability to any individual or agency for conduct in compliance
with the notice; AND
  (XII) THE AMOUNT OF ARREARS.
  S  4.  Subdivision  (d)  of section 5241 of the civil practice law and
rules, as added by chapter 809 of the laws of 1985, is amended  to  read
as follows:
  (d)  Notice to debtor. The [creditor] ISSUER shall serve a copy of the
execution upon the debtor by regular mail to  the  debtor  at  his  last
known  residence  or  such  other  place  where  he is likely to receive
notice, or in the same manner as a summons may be served.
  S 5. Subdivision (f) of section 5241 of the  civil  practice  law  and
rules,  as  added by chapter 809 of the laws of 1985, is amended to read
as follows:
  (f) Levy. If a debtor fails to show mistake  of  fact  within  fifteen
days,  or  after  a  determination  pursuant  to subdivision (e) of this
section has been made, or if the [creditor] ISSUER is  unable  to  serve
the  execution  upon  the  debtor, the creditor may levy upon the income
that the debtor is receiving or will receive by  serving  the  execution
upon  the  employer  or  income payor personally in the same manner as a
summons or by regular mail, except that such service shall not  be  made
by  delivery to a person authorized to receive service of summons solely
by a designation filed pursuant to a provision of law  other  than  rule
318.
  S 6. Paragraph 1 of subdivision (g) of section 5241 of the civil prac-
tice  law  and  rules, as amended by chapter 398 of the laws of 1997, is
amended to read as follows:
  (1) An employer or income payor served with an income execution  shall
commence  deductions  from income due or thereafter due to the debtor no
later than the first pay period that occurs fourteen days after  service
of  the  execution,  and  shall  remit payments [to the creditor] within
seven business days of the date that the debtor is  paid.  Each  payment
remitted  by  an employer or income payor shall include[, in addition to
the identity and social security number of  the  debtor,  the  date  and
amount  of  each  withholding  of  the  debtor's  income included in the
payment] THE INFORMATION AS INSTRUCTED ON THE INCOME EXECUTION AND SHALL
BE PAYABLE TO AND REMITTED TO THE STATE DISBURSEMENT UNIT ESTABLISHED IN
THIS STATE IN ACCORDANCE WITH SECTION SIX HUNDRED FIFTY-FOUR-B OF  TITLE
FORTY-TWO  OF  THE UNITED STATES CODE UNLESS THE INCOME EXECUTION IS FOR
SPOUSAL SUPPORT ONLY, IN WHICH CASE THE PAYMENTS SHALL BE PAYABLE TO AND
REMITTED TO THE CREDITOR.  If the money due to the  debtor  consists  of
salary  or  wages and his or her employment is terminated by resignation
or dismissal at any time after service of the execution, the levy  shall
thereafter  be  ineffective, and the execution shall be returned, unless
the debtor is reinstated or re-employed within ninety  days  after  such
termination. An employer must notify the issuer promptly when the debtor
terminates employment and provide the debtor's last address and name and

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address  of the new employer, if known.  AN INCOME PAYOR MUST NOTIFY THE
ISSUER PROMPTLY WHEN THE DEBTOR  NO  LONGER  RECEIVES  INCOME  AND  MUST
PROVIDE  THE  DEBTOR'S  LAST  ADDRESS  AND  THE  NAME AND ADDRESS OF THE
DEBTOR'S  NEW  EMPLOYER, IF KNOWN. Where the income is compensation paid
or payable to the debtor  for  personal  services,  the  amount  of  the
deductions to be withheld shall not exceed the following:
  (i) Where a debtor is currently supporting a spouse or dependent child
other  than  the  creditor,  the amount of the deductions to be withheld
shall not exceed fifty percent of the earnings of the  debtor  remaining
after the deduction therefrom of any amounts required by law to be with-
held  ("disposable earnings"), except that if any part of such deduction
is to be applied to the reduction of arrears which  shall  have  accrued
more than twelve weeks prior to the beginning of the week for which such
earnings  are  payable,  the  amount  of such deduction shall not exceed
fifty-five percent of disposable earnings.
  (ii) Where a debtor is not currently supporting a spouse or  dependent
child  other than the creditor, the amount of the deductions to be with-
held shall not exceed sixty  percent  of  the  earnings  of  the  debtor
remaining  after  the deduction therefrom of any amounts required by law
to be withheld ("disposable earnings"), except that if any part of  such
deduction  is to be applied to the reduction of arrears which shall have
accrued more than twelve weeks prior to the beginning of  the  week  for
which  such earnings are payable, the amount of such deduction shall not
exceed sixty-five percent of disposable earnings.
  S 7. Subdivisions (c), (d), (e), (f) and (g) of section  5242  of  the
civil  practice  law and rules, as amended by chapter 170 of the laws of
1994, and paragraph 1 and the opening paragraph of paragraph 2 of subdi-
vision (c) as amended by chapter 601 of the laws of 2007, are amended to
read as follows:
  (c) [(1)] When the court enters an  order  of  support  on  behalf  of
persons  other  than those in receipt of public assistance or in receipt
of services pursuant to section  one  hundred  eleven-g  of  the  social
services  law,  or  registers  pursuant  to article five-B of the family
court act an order of support which has been issued by a foreign  juris-
diction and which is not to be enforced pursuant to title six-A of arti-
cle  three  of  the social services law, where the court determines that
the [respondent earns wages] DEBTOR HAS INCOME that could be subject  to
an  income  deduction  order,  the court shall issue an income deduction
order to obtain payment of the order at  the  same  time  it  issues  or
registers  the  order.  The court shall enter the income deduction order
unless the court finds and sets forth in writing (i)  the  reasons  that
there is good cause not to require immediate income withholding; or (ii)
that  an  agreement  providing  for  an alternative arrangement has been
reached between the parties. Such agreement may include a written agree-
ment or an oral stipulation, made on the record, that results in a writ-
ten order. For purposes of  this  subdivision,  good  cause  shall  mean
substantial  harm to the debtor. The absence of an arrearage or the mere
issuance of an income deduction order shall not constitute  good  cause.
When  the  court  determines  that  there  is good cause not to issue an
income deduction order immediately or  when  the  parties  agree  to  an
alternative arrangement as provided in this [paragraph] SUBDIVISION, the
court  shall  state  expressly in the order of support the basis for its
decision.
  (D) In entering the income deduction order, the court  shall  [specify
an amount to be withheld by the debtor's employer, which shall be suffi-
cient  to  ensure  compliance  with  the order of support and also shall

A. 7951                             5

include an additional amount to be applied to the reduction of  arrears,
if  any,  and  shall  specify  the names, addresses, and social security
numbers of the parties to the support proceeding and the mailing address
of  the unit within the state office of temporary and disability assist-
ance designated to receive such deductions]  USE  THE  FORM  FOR  INCOME
WITHHOLDING  PROMULGATED  BY  THE  OFFICE  OF  TEMPORARY  AND DISABILITY
ASSISTANCE FOR THIS PURPOSE, WHICH  FORM  SHALL  INCLUDE  THE  NECESSARY
INFORMATION  AND DIRECTIONS TO ENSURE THE CHARACTERIZATION OF THE INCOME
DEDUCTION ORDER  AS  AN  INCOME  WITHHOLDING  NOTICE  AS  DESCRIBED  AND
REQUIRED  BY  SUBSECTION  (B)  OF SECTION SIX HUNDRED SIXTY-SIX OF TITLE
FORTY-TWO OF THE UNITED STATES CODE; PROVIDED, HOWEVER, THAT  WHERE  THE
COURT  ENTERS  AN  ORDER  FOR SPOUSAL SUPPORT ONLY, AN ALTERNATE SPOUSAL
SUPPORT FORM FOR INCOME WITHHOLDING PROMULGATED BY THE OFFICE OF  TEMPO-
RARY  AND  DISABILITY  ASSISTANCE  MAY  BE USED BUT IS NOT REQUIRED. The
court shall SERVE OR CAUSE TO BE SERVED A COPY OF THE  INCOME  DEDUCTION
ORDER  ON THE EMPLOYER OR INCOME PAYOR AND transmit copies of such order
to the parties; and, IN ADDITION, WHERE THE INCOME  DEDUCTION  ORDER  IS
FOR  CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL SUPPORT, to [such unit]
THE STATE DISBURSEMENT UNIT ESTABLISHED IN THIS STATE IN ACCORDANCE WITH
SECTION SIX HUNDRED FIFTY-FOUR-B OF TITLE FORTY-TWO OF THE UNITED STATES
CODE.
  [(2)] (E) An employer OR INCOME PAYOR served with an income  deduction
order  entered  pursuant  to  this  [subdivision] SECTION shall commence
deductions from the income due or thereafter due to the debtor no  later
than the first pay period that occurs fourteen days after service of the
income  deduction  order,  and  shall MAKE PAYMENTS PAYABLE TO AND remit
SUCH payments to the state [office of temporary and  disability  assist-
ance pursuant to subdivision fourteen of section one hundred eleven-b of
the  social  services  law]  DISBURSEMENT UNIT IF THE DEDUCTIONS ARE FOR
CHILD OR COMBINED CHILD AND SPOUSAL SUPPORT, OR TO THE CREDITOR  IF  THE
DEDUCTIONS  ARE  FOR  SPOUSAL  SUPPORT ONLY, within [ten] SEVEN BUSINESS
days of the date that the debtor is paid. Each payment remitted  by  the
employer OR INCOME PAYOR shall [be made payable to the creditor named in
the  order,  and shall include the names, addresses, and social security
numbers of the debtor and the creditor, and the date and the  amount  of
each  withholding  of  the  debtor's  income  included  in the payment.]
INCLUDE THE INFORMATION AS INSTRUCTED ON THE INCOME DEDUCTION ORDER. THE
AMOUNT REMITTED BY THE EMPLOYER OR INCOME PAYOR SHALL BE AS SET FORTH IN
THE INCOME DEDUCTION ORDER INCLUDING THE ADDITIONAL AMOUNT THAT SHALL BE
ORDERED BY THE COURT AND APPLIED TO THE REDUCTION OF  ARREARS,  IF  ANY,
UNLESS  SUCH  DEDUCTION  IS OTHERWISE LIMITED BY SUBDIVISION (F) OF THIS
SECTION.
  (F) An employer OR INCOME PAYOR shall be liable to  the  creditor  for
failure  to  deduct the amounts specified in the income deduction order,
provided however that deduction by the employer OR INCOME PAYOR  of  the
amounts  specified  shall not relieve the debtor of the underlying obli-
gation of support. If an employer OR INCOME PAYOR shall fail to  so  pay
THE  STATE  DISBURSEMENT  UNIT OR, IF A SPOUSAL SUPPORT ONLY PAYMENT the
creditor, the creditor may commence a proceeding against the employer OR
INCOME PAYOR for accrued deductions, together with interest and  reason-
able  attorney's  fees.    If  the  debtor's employment is terminated by
resignation or dismissal  at  any  time  after  service  of  the  income
deduction  order,  the order shall cease to have force and effect unless
the debtor is reinstated or re-employed WITHIN NINETY  DAYS  AFTER  SUCH
TERMINATION. An employer must notify the [creditor] ISSUER promptly when
the  debtor  terminates  employment  and  must provide the debtor's last

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address and the name and address of the debtor's new employer, if known.
AN INCOME PAYOR MUST  NOTIFY  THE  ISSUER  WHEN  THE  DEBTOR  NO  LONGER
RECEIVES  INCOME AND MUST PROVIDE THE DEBTOR'S LAST ADDRESS AND THE NAME
AND  ADDRESS OF THE DEBTOR'S NEW EMPLOYER, IF KNOWN. Where the income is
compensation paid or payable to the debtor for  personal  services,  the
amount withheld by the employer shall not exceed the following:
  (i)  Where  the  debtor  currently is supporting a spouse or dependent
child other than the creditor's dependent  child,  the  amount  withheld
shall  not  exceed fifty percent of the earnings of the debtor remaining
after the deduction therefrom of any amounts required by law to be with-
held ("disposable earnings"), except that if any part of  the  deduction
is  to  be  applied to the reduction of arrears which shall have accrued
more than twelve weeks prior to the beginning of the week for which such
earnings are payable, the amount withheld shall  not  exceed  fifty-five
percent of disposable earnings.
  (ii)  Where the debtor currently is not supporting a spouse or depend-
ent child other than the creditor's dependent child, the amount withheld
shall not exceed sixty percent of the earnings of the  debtor  remaining
after the deduction therefrom of any amounts required by law to be with-
held  ("disposable  earnings"), except that if any part of the deduction
is to be applied to the reduction of arrears which  shall  have  accrued
more than twelve weeks prior to the beginning of the week for which such
earnings  are  payable,  the amount withheld shall not exceed sixty-five
percent of disposable earnings.
  [(d)] (G) An order pursuant to this section shall take  priority  over
any other assignment, levy or process. If an employer or income payor is
served  with more than one income deduction order pertaining to a single
employee pursuant to this section, or with an order issued  pursuant  to
this  section  and  also  an  execution pursuant to section 5241 of this
[chapter] ARTICLE, and if the combined total amount of the income to  be
withheld  exceeds  the limits set forth in subdivision [(c)] (F) of this
section, the employer or income payor shall withhold the maximum  amount
permitted thereby and pay to each creditor that proportion thereof which
such creditor's claim bears to the combined total.
  [(e)]  (H) An employer or income payor shall be liable to the creditor
for failure to deduct  the  amounts  specified,  provided  however  that
deduction of the amounts specified by the employer or income payor shall
not relieve the debtor of the underlying obligation of support.
  [(f)]  (I)  A  creditor  shall  not be required to issue process under
section 5241 of this article prior to obtaining relief pursuant to  this
section.
  [(g)  Where  the  court  issues  an income deduction order for support
enforcement payable to the support collection unit, as defined in  para-
graph  nine  of  subdivision  (a)  of section 5241 of this article, each
payment remitted by an employer or income payor shall include, in  addi-
tion  to the identity and social security number of the debtor, the date
and amount of each withholding of the debtor's income  included  in  the
payment.]
  S  8.  Subdivision  14 of section 111-b of the social services law, as
amended by chapter 398 of the laws  of  1997,  is  amended  to  read  as
follows:
  14.  [The] FOR PURPOSES OF THIS SUBDIVISION, THE department OR, PURSU-
ANT TO CONTRACT, A FISCAL AGENT is authorized to [receive]  COLLECT  and
[transmit  funds]  DISBURSE  ANY  SUPPORT  paid pursuant to any order of
child support or COMBINED child and spousal support issued on  or  after
the  first  day  of  January,  nineteen  hundred  ninety-four  under the

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provisions of section two hundred thirty-six or two hundred forty of the
domestic relations law, or article four, five, five-A or five-B  of  the
family court act, and which the court has ordered to be paid pursuant to
AN  INCOME  EXECUTION  ISSUED BY THE SHERIFF, THE CLERK OF THE COURT, OR
THE ATTORNEY FOR THE CREDITOR PURSUANT TO  SUBDIVISION  (C)  OF  SECTION
FIVE  THOUSAND TWO HUNDRED FORTY-ONE OF THE CIVIL PRACTICE LAW AND RULES
OR an income deduction order issued by the court pursuant to subdivision
(c) of section five thousand two hundred forty-two of the civil practice
law and rules. Such [funds]  SUPPORT  received  shall  be  [transmitted]
DISBURSED  within  [five]  TWO  business  days  of  [their] receipt. The
department shall maintain records of its [receipt] COLLECTION and [tran-
smission] DISBURSEMENT of [funds] SUCH SUPPORT and furnish such  records
to the parties to the order upon request.  The department shall be enti-
tled  to  collect  an  annual  service fee not to exceed the maximum fee
permitted pursuant to federal law for its provision  of  such  services.
Funds  received  in  satisfaction  of  such fee shall be deposited in an
account and shall be made available to the department for costs incurred
in the implementation of this section. The department shall not  furnish
any  additional  services  to  the parties [to enforce the support obli-
gation]; however, a party seeking [enforcement of a support  obligation]
CHILD  SUPPORT SERVICES may apply for [enforcement] SUCH services pursu-
ant to section one hundred eleven-g of this title. The department  shall
not  be  responsible  for  the  [receipt]  COLLECTION and [transmission]
DISBURSEMENT of any [funds] SUPPORT until after it HAS received  a  copy
of the INCOME EXECUTION FROM THE SHERIFF, THE CLERK OF THE COURT, OR THE
ATTORNEY FOR THE CREDITOR OR A COPY OF THE income deduction order ISSUED
BY  THE COURT and the person entitled to the payment of support pursuant
to the order of support has submitted payment of the annual service  fee
IF  ANY,  and  unless its records show that it has received such [funds]
SUPPORT on behalf of the parties to the order, and  that  the  party  to
whom  the  funds  are  to  be  [transmitted]  DISBURSED has provided the
department with [his or her correct] ANY address CHANGES.
  S 9. Within the thirty-day period prior to the effective date of  this
act,  the  state  disbursement  unit shall provide written notice to the
employer or income payor and to the creditor that any  income  execution
or  income deduction order issued prior to such effective date requiring
payments to be remitted through the state  disbursement  unit  shall  be
made  payable to the state disbursement unit on and after such effective
date.
  S 10. This act shall take effect on the  two  hundred  seventieth  day
after  it  shall  have  become  law,  except that any rule or regulation
necessary for the timely implementation of this  act  on  its  effective
date may be promulgated on or before such date.