Bill Text: CA SB1477 | 2021-2022 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enforcement of judgments: wage garnishment.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2022-09-29 - Chaptered by Secretary of State. Chapter 849, Statutes of 2022. [SB1477 Detail]
Download: California-2021-SB1477-Amended.html
An act to amend, repeal, and add Section 706.050 of, to amend Sections 708.110, 708.120, 708.140, and 708.170 of, the Code of Civil Procedure, and to amend Sections 4004 and 17500 of the Family Code, relating to the enforcement of judgments. An act to amend Sections 708.110, 708.120, 708.140, and 708.170 of, and to amend, repeal, and add Section 706.050 of, the Code of Civil Procedure, relating to the enforcement of judgments.
YESNO
Local Program:
NO
SEC. 7. Section 4004 of the Family Code is amended to read: 4004. SEC. 8. Section 17500 of the Family Code is amended to read: 17500.
Bill Title: Enforcement of judgments: wage garnishment.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2022-09-29 - Chaptered by Secretary of State. Chapter 849, Statutes of 2022. [SB1477 Detail]
Download: California-2021-SB1477-Amended.html
|
Amended
IN
Senate
March 24, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 1477
| Introduced by Senator Wieckowski |
February 18, 2022 |
LEGISLATIVE COUNSEL'S DIGEST
SB 1477, as amended, Wieckowski.
Enforcement of judgments: wage garnishment and child support. garnishment.
(1) Existing law sets forth procedures for the levy of a judgment debtor’s wages when required to enforce a money judgment. Existing law specifies that the maximum amount of a judgment debtor’s disposable earnings for any workweek that is subject to levy shall not exceed the lesser of certain specified percentages, including 50% of the amount by which the disposable earnings for the week exceed 40 times the state minimum hourly wage. Existing law specifies certain multipliers to determine the maximum amount of disposable earning subject to levy for any pay period other than a weekly pay period.
This bill would, in place of the percentage specified above, set the maximum amount of disposable earnings of a judgment debtor that is subject to levy at 10% of the amount by which the individual’s disposable earnings for a given
week exceed 80 times the state minimum hourly wage. The bill would increase the multipliers used to determine the maximum amount of earnings subject to levy for any pay period other than a weekly pay period. The bill would make these provisions operative on January 1, 2023.
(2) Existing law permits a judgment creditor to apply to the court for an order requiring the judgment debtor to appear before the court to provide information to aid in the enforcement of a money judgment. Existing law permits the court to issue an arrest warrant for a judgment debtor who fails to appear.
This bill would remove the court’s authorization to issue an arrest warrant for the above purpose.
(3)Existing law requires the parties to a proceeding in which child support is at issue to disclose whether a party is currently receiving, or intends to apply for,
assistance under the California Work Opportunity and Responsibility to Kids (CalWORKs) program for the maintenance of the child.
This bill would instead require the parties to disclose whether a party is currently receiving, or currently applying for, that assistance.
(4)Existing law requires, as a condition of eligibility for benefits under certain public assistance programs, including the CalWORKs and Medi-Cal programs, that applicants or recipients assign to the county any rights they may have to child support, as specified. Existing law delegates to the Department of Child Support Services and local child support agencies the responsibility for collecting and enforcing child support obligations, including child support delinquencies, as defined. Existing law sets the interest accrual rate on the principal amount of a money judgment that remains unsatisfied at 10% per annum, and permits the
Legislature to change that interest rate, if the change is applied prospectively.
This bill would instead prohibit the department and local child support agencies from collecting interest that accrues on or after January 1, 2023, on the principal amount of child support that has been assigned as described above.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 706.050 of the Code of Civil Procedure is amended to read:706.050.
(a) Except as otherwise provided in this chapter, the maximum amount of disposable earnings of an individual judgment debtor for any workweek that is subject to levy under an earnings withholding order shall not exceed the lesser of the following:(1) Twenty-five percent of the individual’s disposable earnings for that week.
(2) Fifty percent of the amount by which the individual’s disposable earnings for that week exceed 40 times the state minimum hourly wage in effect at the time the earnings are payable. If a judgment debtor works in a location where the local minimum hourly wage is greater than the state minimum hourly wage,
the local minimum hourly wage in effect at the time the earnings are payable shall be used for the calculation made pursuant to this paragraph.
(b) For any pay period other than weekly, the following multipliers shall be used to determine the maximum amount of disposable earnings subject to levy under an earnings withholding order that is proportional in effect to the calculation described in paragraph (2) of subdivision (a), except as specified in paragraph (1):
(1) For a daily pay period, the amounts shall be identical to the amounts described in subdivision (a).
(2) For a biweekly pay period, multiply the applicable hourly minimum wage by 80 work hours.
(3) For a semimonthly pay period, multiply the applicable hourly minimum wage by 862/3 work hours.
(4) For a monthly pay period, multiply the applicable hourly minimum wage by 1731/3 work hours.
(c) This section shall become inoperative on January 1, 2023, and, as of January 1, 2024, is repealed, unless a later enacted statute that becomes operative on or before January 1, 2024, deletes or extends the dates on which it becomes inoperative and is repealed.
SEC. 2.
Section 706.050 is added to the Code of Civil Procedure, to read:706.050.
(a) Except as otherwise provided in this chapter, the maximum amount of disposable earnings of an individual judgment debtor for any workweek that is subject to levy under an earnings withholding order shall not exceed the lesser of the following:(1) Twenty-five percent of the individual’s disposable earnings for that week.
(2) Ten percent of the amount by which the individual’s disposable earnings for that week exceed 80 times the state minimum hourly wage in effect at the time the earnings are payable. If a judgment debtor works in a location where the local minimum hourly wage is greater than
the state minimum hourly wage, the local minimum hourly wage in effect at the time the earnings are payable shall be used for the calculation made pursuant to this paragraph.
(b) For any pay period other than weekly, the following multipliers shall be used to determine the maximum amount of disposable earnings subject to levy under an earnings withholding order that is proportional in effect to the calculation described in paragraph (2) of subdivision (a), except as specified in paragraph (1):
(1) For a daily pay period, the amounts shall be identical to the amounts described in subdivision (a).
(2) For a biweekly pay period, multiply the applicable hourly minimum wage by 160 work hours.
(3) For a semimonthly pay period, multiply the applicable hourly minimum wage by 1731/3 work hours.
(4) For a monthly pay period, multiply the applicable hourly minimum wage by 3462/3 work hours.
(c) This section shall become operative on January 1, 2023.
SEC. 3.
Section 708.110 of the Code of Civil Procedure is amended to read:708.110.
(a) The judgment creditor may apply to the proper court for an order requiring the judgment debtor to appear before the court, or before a referee appointed by the court, at a time and place specified in the order, to furnish information to aid in enforcement of the money judgment.(b) If the judgment creditor has not caused the judgment debtor to be examined under this section during the preceding 120 days, the court shall make the order upon ex parte application of the judgment creditor.
(c) If the judgment creditor has caused the judgment debtor to be examined under this section
during the preceding 120 days, the court shall make the order if the judgment creditor by affidavit or otherwise shows good cause for the order. The application shall be made on noticed motion if the court so directs or a court rule so requires. Otherwise, it may be made ex parte.
(d) The judgment creditor shall personally serve a copy of the order on the judgment debtor not less than 10 days before the date set for the examination. Service shall be made in the manner specified in Section 415.10. Service of the order creates a lien on the personal property of the judgment debtor for a period of one year from the date of the order unless extended or sooner terminated by the court.
(e) The order shall contain the following statement in 14-point boldface type if printed or in
capital letters if typed: “NOTICE TO JUDGMENT DEBTOR. If you fail to appear at the time and place specified in this order,
the court may make an order requiring you to pay the reasonable attorney’s fees incurred by the judgment creditor in this proceeding.”
SEC. 4.
Section 708.120 of the Code of Civil Procedure is amended to read:708.120.
(a) Upon ex parte application by a judgment creditor who has a money judgment and proof by the judgment creditor by affidavit or otherwise to the satisfaction of the proper court that a third person has possession or control of property in which the judgment debtor has an interest or is indebted to the judgment debtor in an amount exceeding two hundred fifty dollars ($250), the court shall make an order directing the third person to appear before the court, or before a referee appointed by the court, at a time and place specified in the order, to answer concerning such property or debt. The affidavit in support of the judgment creditor’s application may be based on the affiant’s information and belief.(b) Not less than 10 days prior to the date set for the examination, a copy of the order shall be:
(1) Served personally on the third person.
(2) Served personally or by mail on the judgment debtor.
(c) If the property in the third person’s possession or control in which the judgment debtor has an interest or the debt owed by the third person to the judgment debtor is described in the affidavit or application for an order under subdivision (a) in a manner reasonably adequate to permit it to be identified, service of the order on the third person creates a lien on the judgment debtor’s interest in the property or on the debt for a period of one year from the date
of the order unless extended or sooner terminated by the court.
(d) The judgment debtor may claim that all or any portion of the property or debt is exempt from enforcement of a money judgment by application to the court on noticed motion, filed with the court and personally served on the judgment creditor not less than three days before the date set for the examination. The judgment debtor shall execute an affidavit in support of the application that includes all of the matters set forth in subdivision (b) of Section 703.520. If a claim of exemption is made pursuant to this section, a notice of opposition to the claim of exemption is not required. The court shall determine any claim of exemption made pursuant to this section. Failure of the judgment debtor to make a claim of exemption does not preclude the judgment debtor from later
claiming the exemption unless the property or debt is described in the order in a manner reasonably adequate to permit it to be identified and the judgment debtor receives notice of the examination proceeding at least 10 days before the date set for the examination.
(e) An order made pursuant to subdivision (a) shall contain the following statements in 14-point boldface type if printed or in capital letters if typed:
(1) “NOTICE TO PERSON SERVED. If you fail to appear at the time and place specified in this order, the court may make an order requiring you to pay the reasonable attorney’s fees incurred by the judgment creditor in this proceeding.”
(2) “NOTICE TO JUDGMENT DEBTOR. The person in whose favor the
judgment was entered in this action claims that the person to be examined pursuant to this order has possession or control of property which is yours or owes you a debt. This property or debt is as follows: (Description of property or debt).
If you claim that all or any portion of this property or debt is exempt from enforcement of the money judgment, you must file your exemption claim in writing with the court and personally serve a copy on the judgment creditor not less than three days before the date set for the examination. You must appear at the time and place set for this examination to establish your claim of exemption or your exemption may be waived.”
If you claim that all or any portion of this property or debt is exempt from enforcement of the money judgment, you must file your exemption claim in writing with the court and personally serve a copy on the judgment creditor not less than three days before the date set for the examination. You must appear at the time and place set for this examination to establish your claim of exemption or your exemption may be waived.”
(f) An order made pursuant to subdivision (a) is not effective unless, at the time it is served on the third person, the person
serving the order tenders to the third person fees for the mileage necessary to be traveled from the third person’s residence to the place of examination. The mileage fees shall be in the same amount generally provided for witnesses when legally required to attend civil proceedings in the court where the examination proceeding is to be conducted.
SEC. 5.
Section 708.140 of the Code of Civil Procedure is amended to read:708.140.
(a) The examination proceedings authorized by this article may be conducted by a referee appointed by the court. The referee may issue, modify, or vacate an order authorized by Section 708.205 and may make a protective order authorized by Section 708.200, and has the same power as the court to grant adjournments, to preserve order, and to subpoena witnesses to attend the examination, but only the court that ordered the reference has power to do the following:(1) Punish for contempt for disobeying an order of the referee.
(2) Make an award of attorney’s fees pursuant to Section 708.170.
(3) Determine a contested claim of exemption or determine a third-party claim under Section 708.180.
(b) Only a member of the State Bar of California is eligible for appointment as a referee pursuant to this article. A person who was duly appointed as a referee prior to July 1, 1983, pursuant to the law in operation at the time of appointment, and who is available to perform the duties of a referee on July 1, 1983, shall be exempt from the requirements of this subdivision.
(c) Nothing in subdivision (a) limits the power of a court to appoint a temporary judge pursuant to Section 21 of Article VI of the California Constitution.
SEC. 6.
Section 708.170 of the Code of Civil Procedure is amended to read:708.170.
(a) If an order requiring a person to appear for an examination was served by a sheriff, marshal, a person specially appointed by the court in the order, or a registered process server, and the person fails to appear:(1) The court may, pursuant to a warrant, have the person brought before the court to answer for the failure to appear and may punish the person for contempt.
(2) If the person’s failure to appear is without good cause, the judgment creditor shall be awarded reasonable attorney’s fees incurred in the examination proceeding. Attorney’s fees awarded against the
judgment debtor shall be added to and become part of the principal amount of the judgment.
(b) The court is not authorized to issue an arrest warrant pursuant to Section 1993 for the purposes set forth in this section.
In a proceeding where there is at issue the support of a child, the court shall require the parties to reveal whether a party is currently receiving, or currently applying for, public assistance under the Family Economic Security Act of 1982 (Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code) for the maintenance of the child.
(a)In carrying out its obligations under Title IV-D of the Social Security Act (42 U.S.C. Sec. 651 et seq.), the department and the local child support agency shall have the responsibility for promptly and effectively collecting and enforcing child support obligations.
(b)The department and the local child support agency are the public agencies responsible for administering wage withholding for the purposes of Title IV-D of the Social Security Act (42 U.S.C. Sec. 651 et seq.).
(c)Except as provided in Section 17450, the local child support agency shall submit child support delinquencies to the department for purposes of supplementing the collection efforts of
the local child support agencies. Submissions shall be in the form and manner and at the time prescribed by the department. Collection shall be made by the department in accordance with Section 17450. For purposes of this subdivision, “child support delinquency” means an arrearage or otherwise past due amount that accrues when an obligor fails to make any court-ordered support payment when due, which is more than 60 days past due, and the aggregate amount of which exceeds one hundred dollars ($100).
(d)If a child support delinquency exists at the time a case is opened by the local child support agency, the responsibility for the collection of the child support delinquency shall be submitted to the department no later than 30 days after receipt of the case by the local child support agency.
(e)Notwithstanding any other law, if child support is assigned pursuant to Section 11477 of the Welfare and Institutions Code, the department or local child support agency shall not collect interest that accrues on or after January 1, 2023, on the principal amount that has been assigned.
