Provides that a lien filed by the crime victim's board shall have no negative impact on the victim's consumer credit rating or application for credit.
Ayes (58): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, Diaz, Dilan, Duane, Espada, Farley, Flanagan, Foley, Fuschillo, Golden, Griffo, Hannon, Hassell-Thomps, Huntley, Johnson C, Johnson O, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Leibell, Libous, Little, Marcellino, Maziarz, McDonald, Montgomery, Nozzolio, Onorato, Oppenheimer, Padavan, Parker, Perkins, Ranzenhofer, Robach, Saland, Sampson, Savino, Schneiderman, Serrano, Seward, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousin, Thompson, Valesky, Volker, Winner, Young
Nays (1): DeFrancisco
Excused (2): Morahan, Skelos
BILL NUMBER: S4893
TITLE OF BILL : An act to amend the executive law, in relation to prohibiting any negative impact on a crime victim's credit rating from a lien created under section 634 of such law
PURPOSE OR GENERAL IDEA OF BILL : To prevent creditors from discriminating against applicants based on a crime victim's board lien created under §634 of the executive law.
SUMMARY OF SPECIFIC PROVISIONS : Section 1 amends subdivision 2 of §634 of the executive law, by adding a clause which stipulates that a lien filed under that section shall not be included in any complication of a victim's consumer credit report or mortgage eligibility.
EXISTING LAW : Existing law creates a lien for the amount the board pays in any claim. Lien notices are filed with county clerk offices. These liens, unless satisfied, exist in perpetuity.
Section 1 amends subdivision 2 of 8634 of the executive law, which stipulates that a lien filed under that section shall not be included in any complication of a victim's consumer credit report or mortgage eligibility.
JUSTIFICATION : When a crime victim receives an award from the Crime Victim's Board (CVB), a lien is created under Section 634 of the executive law and filed by the board in county clerk's offices statewide. This lien is put in place in order to ensure that any award collected by a crime victim from their attacker first goes toward repaying the CVB award, so that a victim does not collect twice for the same incident. The lien exists in perpetuity unless it is satisfied. The placing of this lien has an unintentional negative impact on the credit rating and ability to obtain a mortgage of crime victims that have received awards from the CVB.
Since a relatively small number of crime victims are able to bring a successful lawsuit against their attackers, most liens continue to remain in the county clerk's offices and are never relinquished. Banks and title insurance companies will often misidentify these liens and conclude that they are liens on real property. The board gets regular calls from crime victims trying to sell property or take out loans on property they own. Banks have regularly told crime victims that they cannot complete the transaction until they "take care" of the lien on their property. While the situation is normally resolved with a letter from the board, it is an unnecessary irritation to former crime victims and serves no rational purpose.
Further, it is an irritation that currently must exist for the claimant's lifetime, and beyond. This bill would clearly identify the lien as a crime victim's board lien and state that no party may discriminate on the basis of such a lien.
PRIOR LEGISLATIVE HISTORY : 2005-06 A.1171-A - Referred to Governmental Operations/S3126-A -Referred to Crime Victims, Crime and Correction 2003-04: A.3099 - Referred to Governmental Operations 2001-02: A.2560 - Referred to Governmental Operations S.547 of 2007/2008
FISCAL IMPLICATIONS : None.
EFFECTIVE DATE : This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4893 2009-2010 Regular Sessions IN SENATE April 27, 2009 ___________Introduced by Sen. NOZZOLIO -- read twice and ordered printed, and when printed to be committed to the Committee on Crime Victims, Crime and Correction AN ACT to amend the executive law, in relation to prohibiting any nega- tive impact on a crime victim's credit rating from a lien created under section 634 of such law THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 2 of section 634 of the executive law, as added by chapter 513 of the laws of 1982, is amended to read as follows: 2. Acceptance of an award made pursuant to this article shall create a lien in favor of the state on the proceeds of any recovery from the person or persons liable for the injury or death giving rise to the award by the board, whether by judgment, settlement or otherwise, after the deduction of the reasonable and necessary expenditures, including attorney's fees, incurred in effecting such recovery, to the total amount of the award made by the board. Such lien shall attach to any moneys received or to be received by the claimant or victim on account of losses resulting from the crime. Should the claimant or victim secure a recovery from the person or persons liable for the injury or death giving rise to the award by the board, whether by judgment, settlement or otherwise, such claimant may, upon notice to the board, apply to the court in which the action was instituted, or to any court of competent jurisdiction if no action was instituted, for an order apportioning the reasonable and necessary expenditures, including attor- ney's fees, incurred in effecting such recovery. Such expenditures shall be equitably apportioned by the court between the claimant and the board. A copy of such lien shall be mailed to the clerk of the county within which the crime occurred and such clerk will file the copy in accordance with the duties of such clerk as set forth in section five hundred twenty-five of the county law. The amount of such lien may beEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00722-01-9 S. 4893 2
compromised or settled by the board provided the board finds that such action is in the best interests of the state, or payment of the full amount of the lien to the state would cause undue hardship for the victim. NOTWITHSTANDING ANY OTHER CONTRARY PROVISION OF LAW, SUCH LIEN SHALL NOT BE INCLUDED IN ANY COMPILATION OF SUCH VICTIM'S CONSUMER CRED- IT REPORT OR CALCULATION OF A CREDIT SCORE OR ASSESSMENT OF ELIGIBILITY FOR CONSUMER CREDIT OR REAL ESTATE MORTGAGE. S 2. This act shall take effect immediately.