Garnishment Fee Amendments
What changed between versions
State agencies can now issue administrative garnishment orders directly for unpaid civil debts or restitution without first obtaining a court order.
New requirements were added for the content of administrative garnishment orders, including specific details about the debt, the defendant, and the property being seized.
The fee paid by garnishees (companies holding money) was updated to $10 for single garnishments and $25 for continuing garnishments, with specific rules on when these fees can be deducted from the money being sent to the state.
The bill defines the maximum amount of disposable earnings that can be garnished, setting a cap at the lesser of 25% of earnings or an amount calculated based on the federal minimum wage.
New procedures were added for when a garnishee fails to comply, including the ability for the state office to ask a court to order the company to appear and explain why they should not be held liable.
The bill includes technical updates to align the administrative garnishment section with the existing court garnishment fee structure and clarifies liability for garnishing the wrong person.
