Bill S4728A-2013

Relates to income withholding for child support

Relates to income withholding for child support.

Details

Actions

  • Jul 31, 2013: SIGNED CHAP.270
  • Jul 19, 2013: DELIVERED TO GOVERNOR
  • Jun 20, 2013: returned to senate
  • Jun 20, 2013: passed assembly
  • Jun 20, 2013: ordered to third reading rules cal.565
  • Jun 20, 2013: substituted for a7951
  • Jun 18, 2013: referred to codes
  • Jun 18, 2013: DELIVERED TO ASSEMBLY
  • Jun 18, 2013: PASSED SENATE
  • Jun 18, 2013: ORDERED TO THIRD READING CAL.1441
  • Jun 11, 2013: PRINT NUMBER 4728A
  • Jun 11, 2013: AMEND (T) AND RECOMMIT TO RULES
  • Apr 19, 2013: REFERRED TO RULES

Meetings

Calendars

Votes

Memo

BILL NUMBER:S4728A

TITLE OF BILL: An act to amend the civil practice law and rules and the social services law, in relation to income withholding for child support

Purpose of Bill:

This bill promotes government efficiencies for the child support program in New York. It aligns the payment processing of non-Title IV-D and Title IV-D income withholding orders.

Summary of Provisions:

Section 1 would amend Civil Practice Law and Rules (CPLR) § 5241(a) to provide a definition for who can be an "issuer" of an income execution.

Section 2 would amend CPLR § 5241(b)(1) to replace the term "creditor" with issuer.

Section 3 would amend CPLR § 5241(c)(1) to specify that the income execution shall be on a form promulgated by OTDA.

Section 4 would amend CPLR § 5241(d) to replace the term "creditor" with "issuer".

Section 5 would amend CPLR § 5241(f) to replace the term "creditor" with "issuer".

Section 6 would amend CPLR § 5241(g) to direct the employer or income payor to follow the directions provided in the income execution with regard to information to be included with each payment remitted.

Section 7 would amend CPLR § 5242 (c), (d), (e), (f) and (g). Subdivision (c) is amended to change "wages" to "income" so that the terminology aligns with that used in CPLR § 5241(a) which subdivision is applicable to both CPLR § 5241 and CPLR § 5242. This section directs the courts, in non-Title IV-D cases, to use the form for income withholding promulgated by OTDA for such purpose. In tandem with the amendments to CPLR § 5241, this section requires the form promulgated by OTDA to comply with the requirements contained in 42 U.S.C. § 666(b) so that it can be characterized as an income withholding order/notice under that statute. Where the income deduction order is for child support or combined child and spousal support orders, the court must serve a copy of the income deduction order on the employer/income payor, the parties, and the state disbursement unit. This section requires employers and income payors to follow the instructions provided on the income deduction order which requires remittances to be paid to and through the state disbursement unit in a child support or combined child and spousal support order and to the creditor in a spousal support only order.

Section 8 would amend Social Services Law § 111-b to authorize OTDA or its fiscal agent to act as the federally-mandated "state disbursement unit" for the purpose of collecting and disbursing support received from employers and income payors in non-Title IV-D cases. It would

further amend the law to align the disbursement timeframe from five to two business days of receipt as required by federal law.

Section 9 provides that the state disbursement unit shall, during the 30 days prior to the effective date of the bill, provide 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 which requires payments to be remitted through the state disbursement unit shall be made payable to the state disbursement unit instead of the creditor on and after such effective date.

Section 10 provides that it will take effect two hundred seventy days following enactment, 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.

Existing Law:

Section 5241 of the CPLR sets forth the procedure and notice requirements pertaining to income withholding for purposes of the enforcement of support obligations. It authorizes the support collection unit (SCU), sheriff, the clerk of court, or an attorney for the creditor to issue an execution for support enforcement, commonly called the "income execution."

Section 5242 of the CPLR authorizes the court to enter an income deduction order for support enforcement.

Subdivision 14 of section 111-b of the Social Services Law provides the authority for OTDA to "receive" and "transmit" support paid pursuant to any order of child support or combined order for child and spousal support which the court has ordered to be paid pursuant to an income deduction order. The department is required to maintain a record of its receipt and transmission of the support which record is to be supplied to a party upon request, but shall not furnish any additional services to enforce the support obligation unless the party seeking enforcement applies for child support services pursuant to Social Services Law § 111-g.

Prior Legislative History:

This is a new bill.

Statement in Support:

Effective May 31, 2012, a new federally-mandated income withholding form (known as an "IWO") must be used for income withholding in Title IV-D cases as well as non-Title IV-D cases initially issued on or after January 1, 1994. This form requires all income withholding in both IV-D and non-IV-D cases to be paid through the state disbursement unit. The form provides only very limited opportunity to add state-specific information relevant to the income withholding process.

In New York, CPLR § 5241 provides for income withholding by SCUs, private attorneys, sheriffs and clerks of court through issuance of an income execution. CPLR § 5242 provides authority for the court to issue an income deduction order to withhold income for the enforcement

of support obligations. Where these mechanisms involve income withholding for the purpose of enforcing a child or combined child and spousal support obligation, they fall under the federal "IWO" mandates set forth in 42 U.S.C. §§ 654b(a)(1)(B); 666(a)(1), (a)(8), and (b).

Provisions in state law for non-IV-D income withholding are different from the IV-D provisions CPLR § 5242(c)(2) requires employers to remit payments to OTDA pursuant to the agency's authority to receive and transmit such funds for non-IV-D child support or combined child and spousal support cases under Social Services Law § 111-b(14). However, CPLR § 5242(c)(2) also specifies that each remittance shall be made payable to the creditor named in the order. In addition, this section provides that such remittances are to be made within ten (10) days of the date that the debtor is paid; however 42 U.S.C. § 666(b)(6) -which applies to non-IV-D cases because of 42 U.S.C. 666(a)(8)(B)(iii) - sets forth a seven (7) business day requirement.

Directing employers and income payors to follow the instructions on the form promulgated by OTDA will simplify and streamline procedures by making the requirement for non-IV-D cases align with the IV-D case requirements. Similarly, reducing the timeframe for remittances across the board to seven (7) business days will assist in simplifying the process for employers and income payors. More importantly, once statutory authorization is provided to allow remittances to be made payable to the state disbursement unit, employers and income payers will be able to send non-IV-D remittances with IV-D remittances, thus allowing for electronic transmission of funds.

Social Services Law § 111-b(14) is the authorizing statute for the "unit" designated by OTDA referenced in CPLR § 5242(c)(1) to receive non-IV-D income withholding. Amendments are necessary to the section to align with the federal mandate requiring the "state disbursement unit" to collect and disburse the support received pursuant to federal distribution rules, i.e., requiring a change from five to two business days.

Budget Implications:

These amendments will ensure compliance with all federal requirements related to income withholding, thereby avoiding any potential federal fiscal penalties. The amendments address a technical yet important issue by aligning the payment processing of non-Title IV-D income withholding orders with Title IV-D income withholding orders. Although it is anticipated that this will involve a very small number of cases, there will be some costs associated with this proposal, particularly related to systems changes needed to process the withholding. These costs can be accommodated within existing appropriations.

Effective Date:

The bill takes effect two hundred seventy days following enactment, except that any rule or regulation necessary for the timely implementation on its effective date may be promulgated on or before such date.


Text

STATE OF NEW YORK ________________________________________________________________________ 4728--A 2013-2014 Regular Sessions IN SENATE April 19, 2013 ___________
Introduced by COMMITTEE ON RULES -- (at request of the Office of Tempo- rary and Disability Assistance) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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.
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;
(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
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
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
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
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.

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