Bill Text: CA SB1200 | 2021-2022 | Regular Session | Chaptered
Bill Title: Enforcement of judgments: renewal and interest.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2022-09-30 - Chaptered by Secretary of State. Chapter 883, Statutes of 2022. [SB1200 Detail]
Download: California-2021-SB1200-Chaptered.html
Senate Bill
No. 1200
CHAPTER 883
An act to amend Sections 683.050, 683.110, 683.120, 683.160, 683.170, and 685.010 of the Code of Civil Procedure, relating to civil procedure.
[
Approved by
Governor
September 30, 2022.
Filed with
Secretary of State
September 30, 2022.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 1200, Skinner.
Enforcement of judgments: renewal and interest.
(1) Existing law provides that a judgment is enforceable upon entry, except as specified, and generally permits a judgment creditor to bring an action on a judgment, provided that it is brought within ten years. Existing law provides that the period of enforceability of a money judgment or a judgment for possession or sale of property may be extended by renewal of the judgment upon application by the judgment creditor filed with the court in which the judgment was entered. Existing law allows a judgment debtor to make a motion to vacate or modify the renewal within 30 days of service of a notice of renewal of the judgment.
This bill would increase the amount of days after service of the notice of renewal that a judgment debtor may make a motion to vacate or modify a renewal to 60 days. The bill would allow a judgment
creditor to renew the period of enforceability in cases of a money judgment of under $200,000 that remains unsatisfied for a claim relating to medical expenses and for a money judgment of under $50,000 that remains unsatisfied for a claim related to personal debt, as specified, only once and for a period of 5 years from the date the application is filed. The bill would prohibit a judgment creditor from bringing an action on those types of money judgments. The bill would prohibit an application for renewal of a judgment from being filed if the judgment was renewed on or before December 31, 2022.
(2) Existing law provides that interest accrues at the rate of 10% per annum on the principal amount of a money judgment remaining unsatisfied in a civil action.
This bill would, for judgments entered on
or after January 1, 2023, or where an application for renewal of judgment is filed on or after January 1, 2023, create the exception that interest accrues at the rate of 5% per annum for a money judgment of under $200,000 that remains unsatisfied for a claim related to medical expenses and for a money judgment of under $50,000 that remains unsatisfied for a claim related to personal debt, as specified.
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 683.050 of the Code of Civil Procedure is amended to read:683.050.
(a) Except as provided in subdivision (b), nothing in this chapter limits any right the judgment creditor may have to bring an action on a judgment, but any such action shall be commenced within the period prescribed by Section 337.5.(b) Notwithstanding subdivision (a), no action on a judgment may be brought on a judgment identified in subdivision (c) of Section 683.110.
SEC. 2.
Section 683.110 of the Code of Civil Procedure is amended to read:683.110.
(a) The period of enforceability of a money judgment or a judgment for possession or sale of property may be extended by renewal of the judgment as provided in this article.(b) A judgment shall not be renewed under this article if the application for renewal is filed within five years from the time the judgment was previously renewed under this article.
(c) Notwithstanding subdivision (a), a judgment creditor
may renew the period of enforceability of the following types of money judgments only once pursuant to subdivision (c) of Section 683.120:
(1) A judgment on a claim related to medical expenses if the principal amount of the money judgment remaining unsatisfied against a debtor is under two hundred thousand dollars ($200,000).
(2) A judgment on a claim related to personal debt if the principal amount of the money judgment remaining unsatisfied against a debtor is under fifty thousand dollars ($50,000).
(d) For purposes of this section, the following definitions apply:
(1) “Debtor” means a natural person from whom money is due or owing or alleged to be
due or owing.
(2) “Due or owing” does not include debts incurred due to, or obtained by tortious or fraudulent conduct or judgments for unpaid wages, damages, or penalties owed to an employee.
(3) “Personal debt” means money due or owing or alleged to be due or owing from a natural person arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for the debtor’s personal, family, or household purposes.
SEC. 3.
Section 683.120 of the Code of Civil Procedure is amended to read:683.120.
(a) The judgment creditor may renew a judgment by filing an application for renewal of the judgment with the court in which the judgment was entered.(b) Except as otherwise provided in this article, the filing of the application renews the judgment in the amount determined under Section 683.150 and extends the period of enforceability of the judgment as renewed for a period of 10 years from the date the application is filed.
(c) Notwithstanding
subdivisions (a) and (b), for a judgment identified in subdivision (c) of Section 683.110, a judgment creditor may renew the judgment only once. The filing of the application under this subdivision renews the judgment in the amount determined under Section 683.150 and extends the period of enforceability of the judgment as renewed for a period of five years from the date the application is filed. No application may be filed if the judgment was renewed on or before December 31, 2022.
(d) In the case of a money judgment payable in installments, for the purposes of enforcement and of any later renewal, the amount of the judgment as renewed shall be treated as a lump-sum money judgment entered on the date the application is
filed.
SEC. 4.
Section 683.160 of the Code of Civil Procedure is amended to read:683.160.
(a) The judgment creditor shall serve a notice of renewal of the judgment on the judgment debtor. Service shall be made personally or by first-class mail and proof of service shall be filed with the court clerk. The notice shall be in a form prescribed by the Judicial Council and shall inform the judgment debtor that the judgment debtor has 60 days within which to make a motion to vacate or modify the renewal.(b) Until proof of service is filed pursuant to subdivision (a), no writ may be issued, nor may any enforcement proceedings be commenced to enforce the judgment, except to the extent that the judgment would be enforceable had it not been
renewed.
SEC. 5.
Section 683.170 of the Code of Civil Procedure is amended to read:683.170.
(a) The renewal of a judgment pursuant to this article may be vacated on any ground that would be a defense to an action on the judgment, including the ground that the amount of the renewed judgment as entered pursuant to this article is incorrect, and shall be vacated if the application for renewal was filed within five years from the time the judgment was previously renewed under this article.(b) Not later than 60 days after service of the notice of renewal pursuant to Section 683.160, the judgment debtor may apply by noticed motion under this section for an order of the court vacating the renewal of the judgment. The notice of motion shall be
served on the judgment creditor. Service shall be made personally or by mail.
(c) Upon the hearing of the motion, the renewal may be ordered vacated upon any ground provided in subdivision (a), and another and different renewal may be entered, including, but not limited to, the renewal of the judgment in a different amount if the decision of the court is that the judgment creditor is entitled to renewal in a different amount.
SEC. 6.
Section 685.010 of the Code of Civil Procedure is amended to read:685.010.
(a) (1) Except as provided in paragraph (2), interest accrues at the rate of 10 percent per annum on the principal amount of a money judgment remaining unsatisfied.(2) (A) For judgments entered on or after January 1, 2023, or where an application for renewal of judgment is filed on or after January 1, 2023, interest accrues at the rate of 5 percent per annum on the principal amount of a money judgment remaining unsatisfied in the following cases:
(i) The principal amount of a money judgment of under two hundred thousand dollars ($200,000)
remaining unsatisfied against a debtor for a claim related to medical expenses.
(ii) The principal amount of a money judgment of under fifty thousand dollars ($50,000) remaining unsatisfied against a debtor for a claim related to personal debt.
(B) The claims specified in subparagraph (A) include, but are not limited to, a claim based on any of the following transactions:
(i) An agreement governing the use of a credit card as defined in subdivision (a) of Section 1747.02 of the Civil Code.
(ii) A conditional sale contract as defined in subdivision (a) of Section 2981 of the Civil Code.
(iii) A deferred
deposit transaction as defined in subdivision (a) of Section 23001 of the Financial Code.
(C) For purposes of this paragraph, the following definitions apply:
(i) “Debtor” means a natural person from whom money is due or owing or alleged to be due or owing.
(ii) “Due or owing” does not include debts incurred due to, or
obtained by tortious or fraudulent conduct or judgments for unpaid wages, damages, or penalties owed to an employee.
(iii) “Personal debt” means money due or owing or alleged to be due or owing from a natural person arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for the debtor’s personal, family, or household purposes.
(b) The Legislature reserves the right to change the rate of interest provided in subdivision (a) at any time, regardless of the date of entry of the judgment or the date any obligation upon which the judgment is based was incurred. A change in the rate of interest may be made applicable only to the interest that accrues after the operative date of the statute that
changes the rate.
