Bill Text: CA AB3283 | 2023-2024 | Regular Session | Chaptered
Bill Title: Enforcement of judgments: claims of exemption.
Spectrum: Committee Bill
Status: (Passed) 2024-09-12 - Chaptered by Secretary of State - Chapter 229, Statutes of 2024. [AB3283 Detail]
Download: California-2023-AB3283-Chaptered.html
Assembly Bill
No. 3283
CHAPTER 229
An act to amend Section 703.580 of the Code of Civil Procedure, relating to civil actions.
[
Approved by
Governor
September 12, 2024.
Filed with
Secretary of State
September 12, 2024.
]
LEGISLATIVE COUNSEL'S DIGEST
AB 3283, Committee on Judiciary.
Enforcement of judgments: claims of exemption.
Existing law provides that property that has been levied upon in a civil action may be claimed as exempt by a judgment debtor who files a claim of exemption with the levying officer. Existing law requires a judgment creditor who opposes a claim of exemption to file with the court a notice of opposition to the claim of exemption and a notice of motion for an order determining the claim of exemption. Existing law provides that filing an exemption and notice of opposition of a claim to exemption constitute pleadings. Existing law provides that a defendant makes an appearance in a civil action when the defendant files certain pleadings or motions, such as an answer to a complaint.
This bill would instead provide that a claim of exemption and notice of opposition to a claim of exemption do not constitute an appearance, and would limit the court’s
power over the claimant to deciding the claim of exemption.
This bill would incorporate additional changes to Section 703.580 of the Code of Civil Procedure proposed by AB 2837 to be operative only if this bill and AB 2837 are enacted and this bill is enacted last.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 703.580 of the Code of Civil Procedure is amended to read:703.580.
(a) The claim of exemption and notice of opposition to the claim of exemption do not constitute an appearance pursuant to Section 1014. The power of the court over the exemption claimant is limited to determining the claim of exemption.(b) At a hearing under this section, the exemption claimant has the burden of proof.
(c) The claim of exemption is deemed controverted by the notice of opposition to the claim of exemption and both shall be received in evidence. If no other evidence is offered, the court, if satisfied that sufficient facts are shown by the claim of exemption (including the
financial statement if one is required) and the notice of opposition, may make its determination thereon. If not satisfied, the court shall order the hearing continued for the production of other evidence, oral or documentary.
(d) At the conclusion of the hearing, the court shall determine by order whether or not the property is exempt in whole or in part. Subject to Section 703.600, the order is determinative of the right of the judgment creditor to apply the property to the satisfaction of the judgment. No findings are required in a proceeding under this section.
(e) The court clerk shall promptly transmit a certified copy of the order to the levying officer. Subject to Section 703.610, the levying officer shall, in compliance with the order, release the property or apply the
property to the satisfaction of the money judgment.
(f) Unless otherwise ordered by the court, if an exemption is not determined within the time provided by Section 703.570, the property claimed to be exempt shall be released.
SEC. 1.5.
Section 703.580 of the Code of Civil Procedure is amended to read:703.580.
(a) The claim of exemption and notice of opposition to the claim of exemption do not constitute an appearance pursuant to Section 1014. The power of the court over the exemption claimant is limited to determining the claim of exemption.(b) At a hearing under this
section, the exemption claimant has the burden of proof.
(c) The claim of exemption is deemed controverted by the notice of opposition to the claim of exemption and both shall be received in evidence. If no other evidence is offered, the court, if satisfied that sufficient facts are shown by the claim of exemption (including the financial statement if one is required) and the notice of opposition, may make its determination thereon. If a claim of exemption asserts that money in a judgment debtor’s deposit account is or was necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor as provided in Section 704.225, the court shall review the judgment debtor’s financial statement and make findings thereon. If not satisfied, the court
may
order the hearing continued for the production of other evidence, oral or documentary.
(d) At the conclusion of the hearing, the court shall determine by order whether or not the property is exempt in whole or in part.
(1) Subject to Section 703.600, the order is determinative of the right of the judgment creditor to apply the property to the satisfaction of the judgment.
(2) Where the judgment upon which the writ is issued is for personal debt, as defined in subdivision (d) of Section 683.110, the court shall order the return of any property that was exempt without the need for a claim and that was levied upon within the 12 months preceding the date of the order on the claim of exemption. This paragraph does not limit a judge’s authority to order, for good cause, the return of any exempt property taken more than 12 months preceding the date of the order on the claim of exemption.
(3) Where the judgment upon which the writ is issued is
for personal debt, as defined in subdivision (d) of Section 683.110, the court shall order the return of any property that the debtor has demonstrated would have been exempt by claim of exemption and that was levied upon within the six months preceding the date of the order on the claim of exemption. This paragraph does not limit a judge’s authority to order, for good cause, the return of any exempt property taken more than six months preceding the date of the order on the claim of exemption.
(4) If property is exempt without the need for a claim under this title or as a result of a claim of exemption, the court shall order the return of the exempt property from the levying officer, judgment creditor, or other person who is in
possession of the property, to the judgment debtor. A levying officer shall return the exempt property within 20 business days of receipt of notice of the order. A judgment creditor shall return the exempt property within 10 business days of entry of the order.
(e) The court clerk shall promptly transmit a certified copy of the order to the levying officer. Subject to Section 703.610, the levying officer shall, in compliance with the order, release the property or apply the property to the satisfaction of the money judgment.
(f) Unless otherwise ordered by the court, if an exemption is not determined within the time provided by Section 703.570, the property claimed to be exempt shall be released.
