NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7699
SPONSOR: Dinowitz TITLE OF BILL: An act to amend the civil practice law and rules, in
relation to income execution service and levy upon default or failure to
serve judgment debtor
PURPOSE OR GENERAL IDEA OF BILL:
To clarify and modernize the process of income execution service and
levy upon default or failure to serve judgment debtor.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill amends subdivisions a, d, e, and j of section 5231
of the civil practice law and rules to clarify the process of income
execution service on judgment debtors by designating the initial service
upon a judgment debtor residing within New York as "first service". CPLR
5231 (d). In case of default by the resident judgment debtor or failure
to serve such resident judgment debtor, the subsequent service levying
upon the money that such resident judgment debtor is receiving or will
receive is designated "second service". CPLR 5231(e). Section 1 of the
bill also clarifies that second service shall be made upon a person or
entity from whom the resident judgment debtor is receiving or will
receive money. This change more closely tracks the language in current
CPLR 5231(b), which permits the issuance of an income execution "(w)here
a judgment debtor is receiving or will receive money from any source,"
and not simply from a "person" (emphasis added)
Subdivisions e and j of section 5231 of the civil practice law and rules
are amended in Section 1 of the bill to allow for second service of an
income execution upon the person or entity from whom the judgment debtor
is receiving or will receive money in any county in which the person or
entity has an office or place of business.
Section 1 further amends subdivisions a, d, e, and j of section 5231 of
the civil practice law and rules for consistency and for the inclusion
of gender neutral language.
Section 2 of the bill provides for an immediate effective date.
JUSTIFICATION:
The statutory provisions governing the steps to perform an income
execution in CPLR 5231, most of which have been on the books for over
half a century, are in need of clarification and modernization given
current business practices and the overall intent underlying this law.
Specifically, this bill would keep intact the New York resident judgment
debtor's ability to satisfy his or her obligation and directly pay
installments outlined in the income execution. This is accomplished by
"first service" of the income execution on the judgment debtor by the
sheriff or other authorized enforcement officer. In the event such judg-
ment debtor does not fulfill this obligation within the twenty days
prescribed under CPLR 5231(e), or the sheriff is unable to serve the
income execution on the judgment debtor, "second service" should be
allowed by the enforcement officer upon a person or entity from whom the
judgment debtor is receiving or will receive money at any office or
place of business of that person or entity.
This second service provision will not prejudice the judgment debtor who
has forfeited the chance to personally satisfy the installments due
pursuant to the income execution by not complying with first service
under. CPLR 5231(d), Once second service has been authorized by CPLR
5231(e), it is now the person or entity who owes money to the judgment
debtor, and not the judgment debtor, that must be served. It should not
matter if that person or entity is served where the judgment debtor
lives or works, as long as service is made on that person or entity
under the methods prescribed by CPLR 5231(e). In fact, many employers
actually require that income executions be forwarded to a central office
regardless of where the judgment debtor is employed. Therefore, this
legislation would allow the enforcement officer to make second service,
for example, at any of the offices of the debtor's employer notwith-
standing where the debtor is actually employed.
This legislation would not circumvent one of the central goals of CPLR
5231, which is to afford the judgment debtor the option to pay the
installments due pursuant to the income execution without his or her
employer being made aware of the debt. Rather, these amendments would
ensure that once this option has not been exercised by the judgment
debtor, there is a clean and efficient path for second service of an
income execution on the person or entity who owes money to the judgment
debtor.
PRIOR LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
