Bill Text: IA HF569 | 2015-2016 | 86th General Assembly | Enrolled

Iowa House Bill 569 (Prior Session Legislation)

Bill Title: A bill for an act relating to notice of garnishment and levy to a judgment debtor. Effective 7-1-15.

Sponsorship: Committee Bill

Status: (Passed) 2015-04-24 - Signed by Governor. H.J. 924. [HF569 Detail]

Download: Iowa-2015-HF569-Enrolled.html

House File 569 - Enrolled




                              HOUSE FILE       
                              BY  COMMITTEE ON JUDICIARY

                              (SUCCESSOR TO HSB 168)
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                                   A BILL FOR
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                                         House File 569

                             AN ACT
 RELATING TO NOTICE OF GARNISHMENT AND LEVY TO A JUDGMENT
    DEBTOR.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    Section 1.  Section 626.50, Code 2015, is amended to read as
 follows:
    626.50  Duty to levy == notice of ownership or exemption ==
 notice to defendant.
    1.  An officer is bound to levy an execution on any personal
 property in the possession of, or that the officer has reason
 to believe belongs to, the defendant, or on which the plaintiff
 directs the officer to levy, after having received written
 instructions for the levy from the plaintiff or the attorney
 who had the execution issued to the sheriff, unless the officer
 has received notice in writing under oath from some other
 person, or that person's agent or attorney, that the property
 belongs to the person, stating the nature of the person's
 interests in the property, how and from whom the person
 acquired the property, and the consideration paid for the
 property; or from the defendant, that the property is exempt
 from execution.
    2.  a.  The officer making the levy in subsection 1 shall
 promptly serve written notice of the levy on the defendant.
 The notice shall be served in the same manner as provided for
 original notice.
    b.  This section subsection is not applicable to garnishment
 proceedings.
    Sec. 2.  Section 642.5, subsection 2, Code 2015, is amended
 to read as follows:
    2.  The sheriff shall append file the answers to the
  examination to the sheriff's return within seven business days
 of receiving the answers.
    Sec. 3.  Section 642.14, Code 2015, is amended to read as
 follows:
    642.14  Notice of garnishment proceedings.
    Judgment against the garnishee shall not be entered until
 notice as required by section 642.14A or 642.14B has been
 served upon the defendant in the main action has had ten days'
 notice of the garnishment proceedings, to be served in the
 same manner as original notices. However, if the garnishment
 is to earnings owed such defendant by the garnishee, judgment
 may be entered if notice to the defendant is served with the
 notice of garnishment to the garnishee who shall deliver the
 notice to the defendant with the remainder of or in lieu of the
 defendant's earnings. The garnishee shall state in answer to
 the service of notice of garnishment whether or not service of
 notice was delivered to the defendant.
    The notice required by this section shall contain the full
 text of section 630.3A.
    Sec. 4.  Section 642.14A, Code 2015, is amended to read as
 follows:
    642.14A  Notice of garnishment and levy to defendant ==
  non=employer garnishees.
    1.  Within seven If the garnishment is to property other than
 earnings an employer owes a defendant, the judgment creditor
 shall serve upon a debtor who is a natural person not later
 than seven business days after execution is served upon a
 garnishee, the sheriff shall send the sheriff's filing of a
 garnishee's answers pursuant to section 642.5, subsection 2,
 which show that the garnishee is indebted to the defendant, a
 notice of garnishment and levy to the defendant in the main
 action informing notifying the defendant that certain real and
 personal property of the defendant may be exempt from execution
 or garnishment and that a hearing process is available for the
 defendant to claim such exemptions of the information required
 in subsection 3.
    2.  The notice required by this section shall be served by
 personal service or restricted certified mail and first class
 mail to the last known address of the defendant and to the
 defendant's attorney. The judgment creditor shall provide
 the sheriff with the last known address of the defendant and
 the defendant's attorney if there is an attorney of record.
  Service shall not be made by a party to the action or an
 attorney for a party to the action. Service may be made by
 taking acknowledgment of service from the defendant. Proof of
 mailing or personal such service by the sheriff shall be by
 affidavit filed with the court.
    3.  The notice required by this section shall:
    a.  Inform the defendant that judgment has been entered in
 the main action and the defendant's funds or other property is
 subject to execution under the judgment.
    b.  Inform the defendant that the defendant has the right
 to claim funds or other property exempt from execution or
 garnishment and a right to be timely heard on those claims
  request and have a timely hearing before a judge to claim such
 exemptions.
    c.  Inform the defendant that if the defendant does not file
 a motion or other appropriate pleading to claim funds or other
 property exempt from execution or garnishment under state or
 federal law, the defendant may lose any such rights and the
 funds or other property may be applied to the judgment against
 the defendant.
    d.  Inform the defendant that state and federal laws may
 place limits on the amount of earnings that may be garnished
 annually and per pay period and limits on other funds and
 property that may be garnished or levied against.
    e.  Contain the full text of section 630.3A.
    f.  State that the defendant may wish to consult a lawyer for
 advice as to the meaning of the notice.
    g.  Inform the defendant that any garnishment for fines
 imposed on a defendant in a criminal case is subject to section
 909.6, including the provision that any law which exempts a
 person's personal property from any lien or legal process is
 not applicable for such garnishment.
    4.  An additional court filing fee shall not be assessed for
 proceedings under this section.
    Sec. 5.  NEW SECTION.  642.14B  Notice to defendant ==
 employer garnishees.
    If the garnishment is to earnings an employer owes a
 defendant, the employer shall deliver the notice of garnishment
 to the defendant with the remainder of or in lieu of the
 defendant's earnings. The garnishee shall state in answer to
 the sheriff's examination whether or not service of the notice
 of garnishment was delivered to the defendant. The notice
 required by this section shall contain the information required
 by section 642.14A, subsection 3, and shall be delivered by
 personal service, mail, or electronic means.
    Sec. 6.  NEW SECTION.  642.25  Sheriff not an agent.
    The sheriff's actions under this chapter, including service
 of notice, shall not be construed to be that of an agent of any
 person or party in the proceedings.


                                                             
                               KRAIG PAULSEN
                               Speaker of the House


                                                             
                               PAM JOCHUM
                               President of the Senate
    I hereby certify that this bill originated in the House and
 is known as House File 569, Eighty=sixth General Assembly.


                                                             
                               CARMINE BOAL
                               Chief Clerk of the House
 Approved                , 2015


                                                             
                               TERRY E. BRANSTAD
                               Governor

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