Money judgments: earnings withholdings.

Under existing law, an employer is required to withhold the amounts provided by an earnings withholding order from all earnings of the employee payable for any pay period that ends during the withholding period. Existing law permits a judgment debtor to claim an exemption from earnings withholding if no prior hearing has been held concerning the earnings withholding order, or if there has been a material change in circumstances since the last hearing concerning the earnings withholding order. A creditor is entitled to a hearing on a judgment debtor's claim of exemption from earnings withholding to satisfy a money judgment if the creditor files a notice of opposition to the claim of exemption. This bill would require, after a judgment debtor files the claim of exemption and financial statement with the levying officer, the levying officer to serve the judgment debtor's employer with a copy of the original earnings withholding order, a copy of the claim of exemption unaccompanied by the financial statement, and a signed instruction ordering the employer to adjust the amount of earnings withheld to reflect the amount of additional earnings that the judgment debtor asserts are exempt. If the judgment debtor's claim of exemption asserts that all of his or her earnings are exempt, the instruction would order the employer to reduce the amount of earnings withheld to zero. The bill would further require the employer to comply with the provisions of the signed instruction. Under this bill, if the judgment creditor does not file a timely notice of opposition to the claim of exemption, the levying officer would be required to serve notice upon the employer to continue withholding earnings in compliance with the claim of exemption. This bill would also provide that if, after a hearing, the court denies the judgment debtor's claim in whole or in part, the clerk is required to transmit, or provide by mail, facsimile, e-mail, or other electronic means, a copy of the court's order to the levying officer, who must promptly serve a notice to the judgment debtor's employer detailing the court's order concerning the earnings withholdings. Additionally, this bill would provide that these provisions would become operative on July 1, 2013, and would require the Judicial Council to adopt any necessary revisions to notices, claims of exemptions, orders, or other specified documents on or before that date. By increasing the duties of local ministerial officers relating to the service of process and notice, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.