Bill Text: CA SB1200 | 2021-2022 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Amended.html

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Amended  IN  Senate  April 21, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 1200

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Introduced by Senator Skinner

February 17, 2022

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An act to amend Sections 683.110, 683.120, 683.130, 683.140, 683.150, 683.160, 683.170, and 685.010 of the Code of Civil Procedure, relating to civil procedure.

LEGISLATIVE COUNSEL'S DIGEST

SB 1200, as amended, Skinner. Enforcement of judgments: renewal and interest.

(1) Existing law provides that the period of enforceability of a money judgment or a judgment for possession of 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 limit the scope of money judgments subject to renewal to a money judgment pursuant to which a lien has been created, limited to only the purpose of renewing the lien, and would make conforming changes. The 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.

(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 decrease the rate of interest to 3% per annum if the money judgment is entered in favor of public entity or if the money judgment is entered in a claim related to personal debt or personal credit, as defined.

This bill would create the exception that interest accrues at the United States Prime Rate 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: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 683.110 of the Code of Civil Procedure is amended to read:

683.110.

 (a) The period of enforceability of a money judgment pursuant to which a lien has been created or a judgment for possession or sale of property may be extended by renewal of the judgment as provided in this article. In the case of a money judgment pursuant to which a lien has been created, renewal shall be limited to only the purpose of renewing the lien.

(b) A judgment described in subdivision (a) 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.

SEC. 2.

 Section 683.120 of the Code of Civil Procedure is amended to read:

683.120.

 (a) The judgment creditor may renew a judgment described in subdivision (a) of Section 683.110 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 and for the purpose 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.

SEC. 3.

 Section 683.130 of the Code of Civil Procedure is amended to read:

683.130.

 The application for renewal of a judgment may be filed at any time before the expiration of the 10-year period of enforceability provided by Section 683.020 or, if the judgment is a renewed judgment, at any time before the expiration of the 10-year period of enforceability of the renewed judgment provided by Section 683.120.

SEC. 4.

 Section 683.140 of the Code of Civil Procedure is amended to read:

683.140.

 The application for renewal of the judgment shall be executed under oath and shall include all of the following:

(a) The title of the court where the judgment is entered and the cause and number of the action.

(b) The date of entry of the judgment and of any renewals of the judgment and where entered in the records of the court.

(c) The name and address of the judgment creditor and the name and last known address of the judgment debtor. However, the judgment creditor shall omit the name of a judgment debtor from the application for a writ of execution if the liability of that judgment debtor has ceased with regard to the judgment, including either of the following occurrences:

(1) The judgment debtor has obtained a discharge of the judgment pursuant to Title 11 of the United States Code and notice thereof has been filed with the court.

(2) The judgment creditor files an acknowledgment of satisfaction of judgment with regard to the judgment debtor pursuant to Chapter 1 (commencing with Section 724.010) of Division 5.

(d) In the case of a money judgment pursuant to which a lien has been created, the information necessary to compute the amount of the judgment as renewed. In the case of a judgment for possession or sale of property, a description of the performance remaining due.

SEC. 5.

 Section 683.150 of the Code of Civil Procedure is amended to read:

683.150.

 (a) Upon the filing of the application, the court clerk shall enter the renewal of the judgment in the court records.

(b) The fee for filing an application for renewal of judgment is as provided in subdivision (b) of Section 70626 of the Government Code.

(c) In the case of a money judgment pursuant to which a lien has been created, the entry of renewal shall state:

(1) The amount of the judgment as renewed. This amount is the amount required to satisfy the judgment on the date of the filing of the application for renewal and includes the fee for the filing of the application for renewal.

(2) The purpose is limited to only renewal of the lien.

(d) In the case of a judgment for possession or sale of property, the entry of renewal shall describe the performance remaining due.

SEC. 6.

 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. 7.

 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. 8.

 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)Interest accrues at the rate of 3 percent per annum on the principal amount of the following money judgments remaining unsatisfied:(A) Except as provided in subparagraph (C), interest accrues at the United States Prime Rate as it existed on December 31 of the year prior to the year judgment was entered 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.

(A)A money judgment entered in favor of a public entity. For purposes of this subparagraph, “public entity” has the same definition as in Section 708.710.

(B)A money judgment entered in a claim related to personal debt or personal credit. For purposes of this subparagraph, the following definitions apply:

(i)“Personal debt” and “personal credit” mean money, property, or their equivalent, due or owing or alleged to be due or owing from a natural person by reason of a personal credit transaction.

(ii)“Personal credit transaction” means a transaction in which a natural person acquires property, services, or money on credit for personal, family, or household purposes, including the following:

(B) The claims specified in subparagraph (A) include, but are not limited to, a claim based on any of the following transactions:

(I)

(i) An agreement governing the use of a credit card as defined in subdivision (a) of Section 1747.02 of the Civil Code.

(II)

(ii) A conditional sale contract as defined in subdivision (a) of Section 2981 of the Civil Code.

(III)

(iii) A deferred deposit transaction as defined in subdivision (a) of Section 23001 of` the Financial Code.

(C) (i) This paragraph does not apply to a money judgment that is based in whole or in part upon a finding of fraud or elder abuse.

(ii) Interest that accrues pursuant to this paragraph shall be limited to no more than five percent per annum.

(D) 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) “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.