Bill Text: CA AB1119 | 2023-2024 | Regular Session | Amended

California Assembly Bill 1119

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

Bill Title: Enforcement of judgments.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-10-08 - Chaptered by Secretary of State - Chapter 562, Statutes of 2023. [AB1119 Detail]

Download: California-2023-AB1119-Amended.html

Amended IN Assembly March 29, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1119

Introduced by Assembly Member Wicks

February 15, 2023

An act to amend Sections ~~708.110, 708.170, 1209, and 1993~~ 708.110 and 708.170 of the Code of Civil Procedure, relating to civil actions.

LEGISLATIVE COUNSEL'S DIGEST

AB 1119, as amended, Wicks. Enforcement of judgments.

Existing law permits a judgment creditor to apply to the court for an order requiring the judgment debtor, or another person who is in possession and control of property of the judgment debtor, to appear before the court to provide information to aid in the enforcement of a money judgment, as specified. Existing law requires the judgment creditor to personally serve a copy of that order on the judgment debtor not less than 10 days before the date set for the examination. Existing law permits the court to issue a warrant for the arrest of, a warrant to compel the attendance of, and may hold in contempt, a judgment debtor who fails to appear in response to such an order.

This bill would extend the notice of the examination required to be given to the judgment debtor to not less than 30 days before the ~~examination, and would provide that, instead of appearing for examination, a judgment debtor may file a financial affidavit~~ examination. The bill would authorize a judgment debtor in a case involving consumer debt, as defined, to file and serve a judgment debtor’s financial statement under penalty of perjury ~~stating that their income and assets are exempt from enforcement. If~~ in lieu of appearing for the examination. The bill would specify the information to be included in the judgment debtor’s financial statement and the financial statement of the debtor’s spouse, as applicable. The bill would require the financial statement to be filed under seal. If the judgment debtor files ~~an affidavit,~~ a judgment debtor’s financial statement, the bill would require the court to cancel the financial examination unless the judgment creditor presents evidence to the contrary and the court determines that there are ~~non-exempt~~ nonexempt assets warranting the examination. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program.

This bill would also prohibit a court from issuing a warrant for the arrest of a judgment debtor in a ~~limited civil case~~ case concerning consumer debt based on the judgment debtor’s failure to appear or failure to file a ~~financial affidavit.~~ judgment debtor’s financial statement. In these circumstances, the bill would authorize the court to issue an order to show cause to determine whether a warrant to compel the judgment debtor’s attendance should be issued, which the judgment debtor could satisfy by filing ~~the affidavit~~ a judgment debtor’s financial statement described above. The bill would also prohibit the issuance of an arrest warrant or the imprisonment of any judgment debtor for the judgment debtor’s failure to satisfy their debt or for contempt of or failure to comply with a court order to pay a debt in a limited civil case. The bill would require a court to update language included in its orders to reflect these changes.

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 no reimbursement is required by this act for a specified reason.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

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

SECTION 1.

Section 708.110 of the Code of Civil Procedure is amended to read:

708.110.

(a) The judgment creditor may apply to the proper court for an order requiring the judgment debtor to appear before the court, or before a referee appointed by the court, at a time and place specified in the order, to furnish information to aid in enforcement of the money judgment.

(b) If the judgment creditor has not caused the judgment debtor to be examined under this section during the preceding 120 days, the court shall make the order upon ex parte application of the judgment creditor.

(c) If the judgment creditor has caused the judgment debtor to be examined under this section during the preceding 120 days, the court shall make the order if the judgment creditor by affidavit or otherwise shows good cause for the order. The application shall be made on noticed motion if the court so directs or a court rule so requires. Otherwise, it may be made ex parte.

(d) The judgment creditor shall personally serve a copy of the order on the judgment debtor not less than 30 days before the date set for the examination. Service shall be made in the manner specified in Section 415.10. Service of the order creates a lien on the personal property of the judgment debtor for a period of one year from the date of the order unless extended or sooner terminated by the court.

(e) If the order is for a judgment debtor to appear in a case concerning consumer debt, the order shall contain the following statement in 14-point boldface type if printed or in capital letters if typed: “NOTICE TO JUDGMENT DEBTOR. If you fail to appear at the time and place specified in this order, the court may make an order requiring you to pay the reasonable attorney's fees incurred by the judgment creditor in this proceeding. Instead of appearing at the examination, you may file a judgment debtor’s financial statement in a form prescribed by the court and signed under penalty of perjury and serve copies of all filed documents on the judgment creditor no later than 10 days prior to the date set for the examination.”
~~(e)~~

(f) If the order is for a judgment debtor to appear in a case other than a case ~~designated as a limited civil case,~~ concerning consumer debt, the order shall contain the following statement in 14-point boldface type if printed or in capital letters if typed: “NOTICE TO JUDGMENT DEBTOR. If you fail to appear at the time and place specified in this order, you may be subject to arrest and punishment for contempt of court and the court may make an order requiring you to pay the reasonable attorney’s fees incurred by the judgment creditor in this proceeding. If all your income and assets are exempt from enforcement of judgment, as provided by law, then instead of appearing at the time and place specified in this order, you may file a financial affidavit in a form prescribed by the court and signed under penalty of perjury.” proceeding.”

(f)If the order is for a judgment debtor to appear in a case designated as a limited civil case, the order shall contain the following statement in 14-point boldface type if printed or in capital letters if typed: “NOTICE TO JUDGMENT DEBTOR. If you fail to appear at the time and place specified in this order, the court may make an order requiring you to pay the reasonable attorney's fees incurred by the judgment creditor in this proceeding. If all of your income and assets are exempt from enforcement of judgment, as provided by law, you may submit a financial affidavit in a form prescribed by the court and signed under penalty of perjury.”

(g) If the judgment debtor ~~states in a financial affidavit,~~ files a judgment debtor’s financial statement, signed under penalty of perjury, ~~and filed with the court, that all their income and assets are exempt,~~ pursuant to subdivision (e), the court shall acknowledge receipt of the ~~affidavit~~ judgment debtor’s financial statement and cancel the examination. No further examinations of the judgment debtor may be scheduled unless the judgment creditor presents evidence of the judgment debtor’s non-exempt income or assets and the court determines that there is a reasonable basis to believe that there are non-exempt assets or income warranting the scheduling of an examination of the debtor.

(h) A judgment debtor’s financial statement shall be submitted under penalty of perjury and shall include the following information. A spouse of a judgment debtor shall also submit the following information under penalty of perjury at the time that the judgment debtor submits the judgment debtor’s financial statement, unless the judgment debtor and spouse are living separate and apart.
(1) Person and relation of any dependent.
(2) Gross monthly income, including withholdings and take-home pay.
(3) Total monthly income.
(4) Money received from other sources.
(5) Property owned, including cash, bank accounts, real estate equity and other personal property.
(6) Itemized monthly expenses.
(7) Any outstanding debts, including balance owed and to whom.
(8) Any other facts which support the claim of exemption.
(i) A judgment debtor in a case concerning consumer debt who elects to file a financial statement in lieu of appearing before the court for an examination shall serve a copy of all filed documents on the judgment creditor no later than 10 days prior to the date set for the examination.
(j) All documents filed by the judgment debtor pursuant to subdivision (g) shall be filed under seal.
(k) “Consumer debt” means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes. Consumer debt 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.
(l) For purposes of this section, consumer debt does not include rental debt.
(m) For purposes of this section, “rental debt” means unpaid rent or other unpaid financial obligation of a tenant under the tenancy that has come due.

SEC. 2.

Section 708.170 of the Code of Civil Procedure is amended to read:

708.170.

(a) If an order requiring a person to appear for an examination under subdivision (f) of Section 708.110 was served by a sheriff, marshal, a person specially appointed by the court in the order, or a registered process server, and the person fails to ~~appear or fails to file a financial affidavit with the court:~~ appear:

(1) The court may do either of the following:

(A) Pursuant to a warrant, have the person brought before the court to answer for the failure to appear and may punish the person for contempt.

(B) Issue a warrant for the arrest of the person who failed to appear as required by the court order, pursuant to Section 1993.

(2) If the person’s failure to appear is without good cause, the judgment creditor shall be awarded reasonable attorney’s fees incurred in the examination proceeding. Attorney’s fees awarded against the judgment debtor shall be added to and become part of the principal amount of the judgment.

(b) Notwithstanding paragraph (1) of subdivision (a), Section 1209 or 1993, or any other applicable law or court ~~rule:~~ rule, for a case involving consumer debt:

(1) ~~For a matter designated as a limited civil case, no~~ No warrant for arrest or to appear shall be issued for a judgment debtor who fails to appear for an examination under Section ~~708.110.~~ 708.110 or file and serve the judgment debtor’s financial statement. In such cases, the court shall issue an order to show cause to determine whether to issue a warrant to compel the attendance of the judgment debtor.

(2) The court shall provide a judgment debtor who is ordered to appear pursuant to an order to show cause described in paragraph (1) with a reasonable opportunity to complete and file a ~~financial affidavit~~ judgment debtor’s financial statement described in subdivision (g) of Section 708.110. The warrant to compel the attendance of the judgment debtor shall be satisfied by the judgment debtor’s appearance or the filing of a signed ~~financial affidavit.~~ judgment debtor’s financial statement.

(3)A person shall not be imprisoned or jailed for failure to pay a debt arising in a limited civil case, nor shall any person be imprisoned or jailed for contempt of or failure to comply with a court order to pay a debt in a limited civil case.

(c) A person who willfully makes an improper service of an order for an examination which subsequently results in the arrest pursuant to subdivision (a) of the person who fails to appear is guilty of a misdemeanor.

SEC. 3.Section 1209 of the Code of Civil Procedure is amended to read:
1209.
~~(a)The following acts or omissions in respect to a court of justice, or proceedings therein, are contempts of the authority of the court:~~
~~(1)Disorderly, contemptuous, or insolent behavior toward the judge while holding the court, tending to interrupt the due course of a trial or other judicial proceeding.~~
~~(2)A breach of the peace, boisterous conduct, or violent disturbance, tending to interrupt the due course of a trial or other judicial proceeding.~~
(3)Misbehavior in office, or other willful neglect or violation of duty by an attorney, counsel, clerk, sheriff, coroner, or other person, appointed or elected to perform a judicial or ministerial service.
~~(4)Abuse of the process or proceedings of the court, or falsely pretending to act under authority of an order or process of the court.~~
~~(5)Disobedience of any lawful judgment, order, or process of the court.~~
(6)Willful disobedience by a juror of a court admonishment related to the prohibition on any form of communication or research about the case, including all forms of electronic or wireless communication or research.
~~(7)Rescuing any person or property in the custody of an officer by virtue of an order or process of that court.~~
~~(8)Unlawfully detaining a witness or party to an action while going to, remaining at, or returning from the court where the action is on the calendar for trial.~~
~~(9)Any other unlawful interference with the process or proceedings of a court.~~
~~(10)Disobedience of a subpoena duly served, or refusing to be sworn or answer as a witness.~~
(11)When summoned as a juror in a court, neglecting to attend or serve as a juror, or improperly conversing with a party to an action to be tried at the court, or with any other person, in relation to the merits of the action, or receiving a communication from a party or other person in respect to the action, without immediately disclosing the communication to the court.
(12)Disobedience by an inferior tribunal or judicial officer of the lawful judgment, order, or process of a superior court, or proceeding in an action or special proceeding contrary to law, after the action or special proceeding is removed from the jurisdiction of the inferior tribunal or judicial officer.
(b)A speech or publication reflecting upon or concerning a court or an officer thereof shall not be treated or punished as a contempt of the court unless made in the immediate presence of the court while in session and in such a manner as to actually interfere with its proceedings.
(c)Notwithstanding Section 1211 or any other law, if an order of contempt is made affecting an attorney, the attorney’s agent, investigator, or any person acting under the attorney’s direction, in the preparation and conduct of an action or proceeding, the execution of any sentence shall be stayed pending the filing within three judicial days of a petition for extraordinary relief testing the lawfulness of the court’s order, the violation of which is the basis of the contempt, except for conduct proscribed by subdivision (b) of Section 6068 of the Business and Professions Code, relating to an attorney’s duty to maintain respect due to the courts and judicial officers.
(d)Notwithstanding Section 1211 or any other law, if an order of contempt is made affecting a public safety employee acting within the scope of employment for reason of the employee’s failure to comply with a duly issued subpoena or subpoena duces tecum, the execution of any sentence shall be stayed pending the filing within three judicial days of a petition for extraordinary relief testing the lawfulness of the court’s order, a violation of which is the basis for the contempt.
As used in this subdivision, “public safety employee” includes any peace officer, firefighter, paramedic, or any other employee of a public law enforcement agency whose duty is either to maintain official records or to analyze or present evidence for investigative or prosecutorial purposes.
~~(e)Notwithstanding Section 1211 or any other law, if an order for contempt is made in a case designated as a limited civil case, no arrest warrant shall be issued.~~
SEC. 4.Section 1993 of the Code of Civil Procedure is amended to read:
1993.
(a)(1)As an alternative to issuing a warrant for contempt pursuant to paragraph (5) or (9) of subdivision (a) of Section 1209, the court may issue a warrant for the arrest of a witness who failed to appear pursuant to a subpoena or a person who failed to appear pursuant to a court order. The court, upon proof of the service of the subpoena or order, may issue a warrant to the sheriff of the county in which the witness or person may be located and the sheriff shall, upon payment of fees as provided in Section 26744.5 of the Government Code, arrest the witness or person and bring them before the court.
(2)Before issuing a warrant for a failure to appear pursuant to a subpoena pursuant to this section, the court shall issue a “failure to appear” notice informing the person subject to the subpoena that a failure to appear in response to the notice may result in the issuance of a warrant. This notice requirement may be omitted only upon a showing that the appearance of the person subject to the subpoena is material to the case and that urgency dictates the person’s immediate appearance.
~~(b)The warrant shall contain all of the following:~~
~~(1)The title and case number of the action.~~
~~(2)The name and physical description of the person to be arrested.~~
~~(3)The last known address of the person to be arrested.~~
~~(4)The date of issuance and county in which it is issued.~~
~~(5)The signature or name of the judicial officer issuing the warrant, the title of the judicial officer’s office, and the name of the court.~~
~~(6)A command to arrest the person for failing to appear pursuant to the subpoena or court order, and specifying the date of service of the subpoena or court order.~~
(7)A command to bring the person to be arrested before the issuing court, or the nearest court if in session, for the setting of bail in the amount of the warrant or to release on the person’s own recognizance. Any person so arrested shall be released from custody if the person cannot be brought before the court within 12 hours of arrest, and the person shall not be arrested if the court will not be in session during the 12-hour period following the arrest.
~~(8)A statement indicating the expiration date of the warrant as determined by the court.~~
~~(9)The amount of bail.~~
~~(10)An endorsement for nighttime service if good cause is shown, as provided in Section 840 of the Penal Code.~~
(11)A statement indicating whether the person may be released upon a promise to appear, as provided by Section 1993.1. The court shall permit release upon a promise to appear, unless it makes a written finding that the urgency and materiality of the person’s appearance in court precludes use of the promise to appear process.
~~(12)The date and time to appear in court if arrested and released pursuant to paragraph (11).~~
~~(c)A warrant for arrest shall not issue if a defendant in a limited civil case fails to appear for an examination ordered pursuant to Section 708.110.~~

SEC. 5. 3.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.