S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8385
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 12, 2017
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT  to amend the retirement and social security law and the banking
   law, in relation to pension assignments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section 110 of the retirement and social security law, as
 amended by chapter 291 of the laws  of  1999,  is  amended  to  read  as
 follows:
   §  110.  Exemption  from  taxes  and  legal process. A. The right of a
 person to a pension, a pension-providing-for-increased-take-home-pay, an
 annuity or a retirement allowance, to the return of  contributions,  the
 pension,  the pension-providing-for-increased-take-home-pay, annuity, or
 retirement allowance itself, any optional benefit, including any benefit
 or monies accruing under an  optional  retirement  program  pursuant  to
 article  eight-B  or one hundred twenty-five-A of the education law, any
 other right accrued or accruing to any person under  the  provisions  of
 this  chapter  and  the monies in the various funds continued under this
 chapter:
   1. Are hereby exempt from any  state  or  municipal  tax,  except  the
 estate tax, and
   2.  Shall not be subject to execution, garnishment, attachment, or any
 other process whatsoever, and
   3. Shall be unassignable,  except  as  in  this  chapter  specifically
 provided.
   B. EXCEPT AS SPECIFICALLY PROVIDED IN THIS CHAPTER, A PERSON OR ENTITY
 SHALL  NOT  USE  ANY DEVICE, SCHEME, TRANSFER OR OTHER ARTIFICE TO EVADE
 THE APPLICABILITY AND PROHIBITION OR PARAGRAPHS TWO AND THREE OF  SUBDI-
 VISION  A  OF  THIS  SECTION,  INCLUDING THE DEPOSIT OF SUCH BENEFITS OR
 FUNDS INTO A JOINT ACCOUNT WITH THE PERSON OR  ENTITY  OR  THE  AUTHORI-
 ZATION  TO A PERSON OR ENTITY UNDER A POWER OF ATTORNEY OR OTHER INSTRU-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11808-04-7

 A. 8385                             2
 
 MENT OR DOCUMENT TO ACCESS AN ACCOUNT OR OTHERWISE OBTAIN FUNDS FROM  AN
 ACCOUNT TO WHICH BENEFITS OR FUNDS HAVE BEEN DEPOSITED.
   C.  ANY  CONTRACT OR AGREEMENT MADE IN VIOLATION OF THIS SECTION SHALL
 BE VOID. ALL SUMS PAID  TO  OR  COLLECTED  BY  A  PERSON  OR  ENTITY  IN
 VIOLATION  OF  THIS SECTION SHALL BE RETURNED BY THE PERSON OR ENTITY TO
 THE BENEFIT RECIPIENT OR HIS OR HER HEIRS OR BENEFICIARIES  AS  RESTITU-
 TION.
   D.  ANY BENEFIT RECIPIENT, HIS OR HER GUARDIAN OR CONSERVATOR, OR HEIR
 OR BENEFICIARY MAY BRING AN ACTION TO ENFORCE  THE  RESTITUTION  AUTHOR-
 IZED.
   § 2. Section 410 of the retirement and social security law, as amended
 by chapter 549 of the laws of 1983, is amended to read as follows:
   §  410.  Exemption  from  taxes  and  legal process. A. The right of a
 person to a pension, a pension-providing-for-increased-take-home-pay, an
 annuity or a retirement allowance, to the return of  contributions,  the
 pensions, the pension-providing-for-increased-take-home-pay, annuity, or
 retirement  allowance  itself,  any  optional  benefit,  any other right
 accrued or accruing to any person under the provisions of  this  chapter
 and the monies in the various funds continued under this chapter:
   1.  Are  hereby  exempt  from  any  state or municipal tax, except the
 estate tax, and
   2. Shall not be subject to execution, garnishment, attachment, or  any
 other process whatsoever, and
   3.  Shall  be  unassignable,  except  as  in this chapter specifically
 provided.
   B. EXCEPT AS SPECIFICALLY PROVIDED IN THIS CHAPTER, A PERSON OR ENTITY
 SHALL NOT USE ANY DEVICE, SCHEME, TRANSFER OR OTHER  ARTIFICE  TO  EVADE
 THE  APPLICABILITY AND PROHIBITION OR PARAGRAPHS TWO AND THREE OF SUBDI-
 VISION A OF THIS SECTION, INCLUDING THE  DEPOSIT  OF  SUCH  BENEFITS  OR
 FUNDS  INTO  A  JOINT  ACCOUNT WITH THE PERSON OR ENTITY OR THE AUTHORI-
 ZATION TO A PERSON OR ENTITY UNDER A POWER OF ATTORNEY OR OTHER  INSTRU-
 MENT  OR DOCUMENT TO ACCESS AN ACCOUNT OR OTHERWISE OBTAIN FUNDS FROM AN
 ACCOUNT TO WHICH BENEFITS OR FUNDS HAVE BEEN DEPOSITED.
   C. ANY CONTRACT OR AGREEMENT MADE IN VIOLATION OF THIS  SECTION  SHALL
 BE  VOID.  ALL  SUMS  PAID  TO  OR  COLLECTED  BY  A PERSON OR ENTITY IN
 VIOLATION OF THIS SECTION SHALL BE RETURNED BY THE PERSON OR  ENTITY  TO
 THE  BENEFIT  RECIPIENT OR HIS OR HER HEIRS OR BENEFICIARIES AS RESTITU-
 TION.
   D. ANY BENEFIT RECIPIENT, HIS OR HER GUARDIAN OR CONSERVATOR, OR  HEIR
 OR  BENEFICIARY  MAY  BRING AN ACTION TO ENFORCE THE RESTITUTION AUTHOR-
 IZED.
   § 3. Section 340 of the banking law, as amended by chapter 22  of  the
 laws of 1990, is amended to read as follows:
   § 340.  Doing  business  without  license prohibited. (A) No person or
 other entity shall engage in the business of making loans in the princi-
 pal amount of twenty-five thousand dollars or less for any  loan  to  an
 individual  for  personal, family, household, or investment purposes and
 in a principal amount of fifty thousand dollars or less for business and
 commercial loans, and charge, contract for, or receive a greater rate of
 interest than the lender would be permitted by law to charge if he  were
 not  a licensee hereunder except as authorized by this article and with-
 out first obtaining a license from the superintendent.
   (B) For the purposes of this section, a  person  or  entity  shall  be
 considered  as engaging in the business of making loans in New York, and
 subject to the licensing and other requirements of this article,  if  it
 solicits  loans  in  the  amounts prescribed by this section within this

 A. 8385                             3

 state and, in connection with such solicitation, makes loans to individ-
 uals then resident in this state, except that no person or entity  shall
 be  considered as engaging in the business of making loans in this state
 on  the  basis  of isolated, incidental or occasional transactions which
 otherwise meet the requirements of this section.
   (C) Nothing in this article shall apply to  licensed  collateral  loan
 brokers.
   (D)  ANY  PERSON WHO ENGAGES IN THE BUSINESS OF OFFERING CONSIDERATION
 IN EXCHANGE FOR A SECURED INTEREST IN ALL OR PART OF PENSION PROCEEDS IN
 THE POSSESSION OF A PARTICIPANT, BENEFICIARY, OR  MEMBER  OF  A  PENSION
 PLAN,  PROGRAM,  OR SYSTEM SHALL BE DEEMED TO BE ENGAGED IN THE BUSINESS
 OF MAKING LOANS AND SHALL BE SUBJECT TO THE LICENSING AND OTHER REQUIRE-
 MENTS OF THIS ARTICLE.
   § 4. This act shall take effect immediately.