NY State Senate Bill 2017-S3318

Senate Bill S3318

2017-2018 Legislative Session

Relates to increasing penalties for failure to execute and file satisfied judgments of $5,000 or more with proper clerk

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to judiciary
Jan 20, 2017	referred to judiciary

2017-S3318 (ACTIVE) - Details

See Assembly Version of this Bill:: A3510
Current Committee:: Senate Judiciary
Law Section:: Civil Practice Law and Rules
Laws Affected:: Amd §5020, CPLR
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5219, A7922
2011-2012: S438, A1889
2013-2014: S3133, A3416
2015-2016: S2827, A646
2019-2020: S2719, A1026

2017-S3318 (ACTIVE) - Summary

Increases penalties for failure to execute and file satisfied judgments of $5,000 or more with court clerk from $100 to $500.

2017-S3318 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3318

 TITLE OF BILL :  An act to amend the civil practice law and rules, in
relation to increasing penalties for failure to execute and file
satisfied judgments of $5,000 or more with the court clerk

 PURPOSE OR GENERAL IDEA OF BILL :

This bill would increase the statutory damages (from $100 to $500) on
creditors who do not execute and file satisfied judgments with the
court clerk for judgments in excess of $5,000. The goal is to
encourage individuals to file so that it will be less likely that
someone will have false strikes on their credit report.

 SUMMARY OF SPECIFIC PROVISIONS :

Section one amends subdivision (e) of section 5020 of the civil
practice law and rules to raise the fine for failing to execute and
file a satisfied judgment with the proper clerk from one hundred to
one thousand dollars.

Section two sets out the effective date.

 JUSTIFICATION :

This bill amends Civil Practice Law and Rules and affects every civil

judgment. Under current law, an individual who receives a satisfied
judgment from the court must file a satisfaction of judgment. Most
entities such as credit card companies do this as a matter of standard
business practice because such satisfactions (or lack thereof) are
picked up by credit bureaus. If the entity does not file a
satisfaction (even if they got one) and the credit bureau picks it up,
then the credit rating of the individual involved in the dispute is
affected.

At issue now is the fact that judgments in housing court and elsewhere
are starting to be picked up by credit rating agencies, However, many
landlords often fail to file a satisfaction of judgment and so
judgments can end up on a tenant's credit report as unpaid, even if
that is not true. This bad credit rating disproportionately affects
low-income citizens because it means that they must pay more for
things such as credit cards, car loans and mortgages.

This legislation will most likely affect housing disputes since most
other businesses automatically file a satisfaction of judgment. The
goal is to increase fines and therefore give landlords and other
entities a greater incentive to remember to file satisfactions of
judgment. This will result in a decrease in the number of individuals
whose credit ratings are affected by a claimant's failure to file a
satisfaction of judgment.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

2017-S3318 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3318
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the  civil  practice  law  and  rules,  in  relation  to
   increasing  penalties  for failure to execute and file satisfied judg-
   ments of $5,000 or more with the court clerk

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision (c) of section 5020 of the civil practice law
 and rules, as amended by chapter 575 of the laws of 1975, is amended  to
 read as follows:
   (c) When [the] A judgment FOR LESS THAN FIVE THOUSAND DOLLARS is fully
 satisfied,  if  the  person required to execute and file with the proper
 clerk pursuant to subdivisions (a) and  (d)  [hereof]  OF  THIS  SECTION
 fails or refuses to do so within twenty days after receiving full satis-
 faction, then the judgment creditor shall be subject to a penalty of one
 hundred  dollars recoverable by the judgment debtor pursuant to [Section
 7202 of the civil practice law and rules]  SECTION  SEVENTY-TWO  HUNDRED
 TWO  OF  THIS  CHAPTER  or  article eighteen of either the New York City
 civil court act, uniform district court act or uniform city  court  act.
 WHEN A JUDGMENT FOR FIVE THOUSAND DOLLARS OR MORE IS FULLY SATISFIED, IF
 THE  PERSON  REQUIRED TO EXECUTE AND FILE WITH THE PROPER CLERK PURSUANT
 TO SUBDIVISIONS (A) AND (D) OF THIS SECTION FAILS OR REFUSES  TO  DO  SO
 WITHIN  TWENTY DAYS AFTER RECEIVING FULL SATISFACTION, THEN THE JUDGMENT
 CREDITOR SHALL BE SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS RECOVERA-
 BLE BY THE JUDGMENT DEBTOR PURSUANT TO SECTION SEVENTY-TWO  HUNDRED  TWO
 OF  THIS  CHAPTER  OR ARTICLE EIGHTEEN OF EITHER THE NEW YORK CITY CIVIL
 COURT ACT, UNIFORM  DISTRICT  COURT  ACT  OR  UNIFORM  CITY  COURT  ACT;
 provided,  however, that such [penalty] PENALTIES shall not be recovera-
 ble when a city with a population greater than one  million  persons  is
 the  judgment  creditor,  unless  such  judgment  creditor shall fail to
 execute and file a satisfaction-piece with the proper clerk pursuant  to
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05347-01-7

 S. 3318                             2
 
 subdivisions  (a)  and  (d)  [hereof] OF THIS SECTION within twenty days
 after having been served by the judgment debtor with  a  written  demand
 therefor by certified mail, return receipt requested.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

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