BILL NUMBER: AB 929 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 9, 2012
AMENDED IN SENATE AUGUST 31, 2011
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Wieckowski
FEBRUARY 18, 2011
An act to amend Sections 703.140 , 703.150, and 704.730
of the Code of Civil Procedure, relating to debtor exemptions.
LEGISLATIVE COUNSEL'S DIGEST
AB 929, as amended, Wieckowski. Debtor exemptions: bankruptcy.
Existing law identifies property of a debtor that is exempt from
all procedures for enforcement of a money judgment. Under existing
law, those exemptions are available to a debtor in a federal
bankruptcy case, whether a money judgment is being enforced by
execution sale or other procedure, unless the debtor elects certain
alternative exemptions. Existing law requires the Judicial
Council to, every 3 years, adjust the amount of the exemptions
applicable to that exempt property based on the change in the annual
California Consumer Price Index for All Urban Consumers, and to
prepare conforming forms for those adjustments. Existing
law also provides that a specified portion of equity in a
homestead, as defined, is exempt from execution to satisfy a judgment
debt, and sets forth the amounts of the homestead exemptions
available under specified circumstances. Existing law requires
the Judicial Council to, every 3 years, adjust the amount of the
exemptions described above based on the change in the annual
California Consumer Price Index for All Urban Consumers, as
specified.
This bill would increase the dollar amount of the exemptions for a
debtor's interest in motor vehicles, jewelry, and implements,
professional books, or tools of the trade of the debtor or the debtor'
s dependent.
This bill would, beginning April 1, 2016, and every 3 years
thereafter, require the Judicial Council to submit to the Legislature
the amount by which the dollar amounts of the homestead exemptions
described above may be adjusted based on the change in the annual
California Consumer Price Index for All Urban Consumers, as
specified.
This bill would also increase the amounts of the homestead
exemptions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 703.140 of the Code of Civil Procedure is
amended to read:
703.140. (a) In a case under Title 11 of the United States Code,
all of the exemptions provided by this chapter, including the
homestead exemption, other than the provisions of subdivision (b) are
applicable regardless of whether there is a money judgment against
the debtor or whether a money judgment is being enforced by execution
sale or any other procedure, but the exemptions provided by
subdivision (b) may be elected in lieu of all other exemptions
provided by this chapter, as follows:
(1) If a husband and wife are joined in the petition, they jointly
may elect to utilize the applicable exemption provisions of this
chapter other than the provisions of subdivision (b), or to utilize
the applicable exemptions set forth in subdivision (b), but not both.
(2) If the petition is filed individually, and not jointly, for a
husband or a wife, the exemptions provided by this chapter other than
the provisions of subdivision (b) are applicable, except that, if
both the husband and the wife effectively waive in writing the right
to claim, during the period the case commenced by filing the petition
is pending, the exemptions provided by the applicable exemption
provisions of this chapter, other than subdivision (b), in any case
commenced by filing a petition for either of them under Title 11 of
the United States Code, then they may elect to instead utilize the
applicable exemptions set forth in subdivision (b).
(3) If the petition is filed for an unmarried person, that person
may elect to utilize the applicable exemption provisions of this
chapter other than subdivision (b), or to utilize the applicable
exemptions set forth in subdivision (b), but not both.
(b) The following exemptions may be elected as provided in
subdivision (a):
(1) The debtor's aggregate interest, not to exceed
seventeen thousand four hundred twenty-five dollars ($17,425)
twenty -four thousand sixty do
llars ($24,060) in value, in real property or personal property
that the debtor or a dependent of the debtor uses as a residence, in
a cooperative that owns property that the debtor or a dependent of
the debtor uses as a residence.
(2) The debtor's interest, not to exceed four thousand eight
hundred dollars ($4,800) in value, in one or more motor vehicles.
(3) The debtor's interest, not to exceed four hundred
fifty dollars ($450) six hundred dollars ($600)
in value in any particular item, in household furnishings, household
goods, wearing apparel, appliances, books, animals, crops, or musical
instruments, that are held primarily for the personal, family, or
household use of the debtor or a dependent of the debtor.
(4) The debtor's aggregate interest, not to exceed five
thousand dollars ($5,000) one thousand four hundred
twenty -five dollars ($1,425) in value, in jewelry
held primarily for the personal, family, or household use of the
debtor or a dependent of the debtor.
(5) The debtor's aggregate interest, not to exceed in value
nine hundred twenty-five dollars ($925) one
thousand two hundred eighty dollars ($1,280) plus any unused
amount of the exemption provided under paragraph (1), in any
property.
(6) The debtor's aggregate interest, not to exceed six
thousand seventy-five dollars ($6,075) seven thousand
one hundred seventy -five dollars ($7,175) in value,
in any implements, professional books, or tools of the trade of the
debtor or the trade of a dependent of the debtor.
(7) Any unmatured life insurance contract owned by the debtor,
other than a credit life insurance contract.
(8) The debtor's aggregate interest, not to exceed in value
nine thousand three hundred dollars ($9,300)
twelve thousand eight hundred sixty dollars ($12,860) , in any
accrued dividend or interest under, or loan value of, any unmatured
life insurance contract owned by the debtor under which the insured
is the debtor or an individual of whom the debtor is a dependent.
(9) Professionally prescribed health aids for the debtor or a
dependent of the debtor.
(10) The debtor's right to receive any of the following:
(A) A social security benefit, unemployment compensation, or a
local public assistance benefit.
(B) A veterans' benefit.
(C) A disability, illness, or unemployment benefit.
(D) Alimony, support, or separate maintenance, to the extent
reasonably necessary for the support of the debtor and any dependent
of the debtor.
(E) A payment under a stock bonus, pension, profit-sharing,
annuity, or similar plan or contract on account of illness,
disability, death, age, or length of service, to the extent
reasonably necessary for the support of the debtor and any dependent
of the debtor, unless all of the following apply:
(i) That plan or contract was established by or under the auspices
of an insider that employed the debtor at the time the debtor's
rights under the plan or contract arose.
(ii) The payment is on account of age or length of service.
(iii) That plan or contract does not qualify under Section 401(a),
403(a), 403(b), 408, or 408A of the Internal Revenue Code of 1986.
(11) The debtor's right to receive, or property that is traceable
to, any of the following:
(A) An award under a crime victim's reparation law.
(B) A payment on account of the wrongful death of an individual of
whom the debtor was a dependent, to the extent reasonably necessary
for the support of the debtor and any dependent of the debtor.
(C) A payment under a life insurance contract that insured the
life of an individual of whom the debtor was a dependent on the date
of that individual's death, to the extent reasonably necessary for
the support of the debtor and any dependent of the debtor.
(D) A payment, not to exceed seventeen thousand four
hundred twenty-five dollars ($17,425) twenty
-four thousand sixty dollars ($24,060) , on account of
personal bodily injury , not including pain and suffering or
compensation for actual pecuniary loss, of the debtor or
an individual of whom the debtor is a dependent.
(E) A payment in compensation of loss of future earnings of the
debtor or an individual of whom the debtor is or was a dependent, to
the extent reasonably necessary for the support of the debtor and any
dependent of the debtor.
SEC. 2. Section 703.150 of the Code of
Civil Procedure is amended to read:
703.150. (a) On April 1, 2004, and at each three-year interval
ending on April 1 thereafter, the dollar amounts of exemptions
provided in subdivision (b) of Section 703.140 in effect immediately
before that date shall be adjusted as provided in subdivision (d).
(b) On April 1, 2007, and at each three-year interval ending on
April 1 thereafter, the dollar amounts of exemptions provided in
Article 3 (commencing with Section 704.010) in effect immediately
before that date shall be adjusted as provided in subdivision (d).
(c) On April 1, 2013 2016 , and at
each three-year interval ending on April 1 thereafter, the Judicial
Council shall submit to the Legislature the amount by which the
dollar amounts of exemptions provided in subdivision (a) of Section
704.730 in effect immediately before that date may be increased as
provided in subdivision (d). Those increases shall not take effect
unless they are approved by the Legislature.
(d) The Judicial Council shall determine the amount of the
adjustment based on the change in the annual California Consumer
Price Index for All Urban Consumers, published by the Department of
Industrial Relations, Division of Labor Statistics, for the most
recent three-year period ending on December 31 preceding the
adjustment, with each adjusted amount rounded to the nearest
twenty-five dollars ($25).
(e) Beginning April 1, 2004, the Judicial Council shall publish a
list of the current dollar amounts of exemptions provided in
subdivision (b) of Section 703.140 and in Article 3 (commencing with
Section 704.010), together with the date of the next scheduled
adjustment. In any year that the Legislature votes to increase the
exemptions provided in subdivision (a) of Section 704.730, the
Judicial Council shall publish a list of current dollar amounts of
exemptions.
(f) Adjustments made under subdivision (a) do not apply with
respect to cases commenced before the date of the adjustment, subject
to any contrary rule applicable under the federal Bankruptcy Code.
The applicability of adjustments made under subdivisions (b) and (c)
is governed by Section 703.050.
SEC. 2. SEC. 3. Section 704.730 of
the Code of Civil Procedure is amended to read:
704.730. (a) The amount of the homestead exemption is one of the
following:
(1) One hundred fifty thousand dollars ($150,000) unless the
judgment debtor or spouse of the judgment debtor who resides in the
homestead is a person described in paragraph (2) or (3).
(2) Two hundred fifty thousand dollars ($250,000) if the judgment
debtor or spouse of the judgment debtor who resides in the homestead
is at the time of the attempted sale of the homestead a member of a
family unit, and there is at least one member of the family unit who
owns no interest in the homestead or whose only interest in the
homestead is a community property interest with the judgment debtor.
(3) Three hundred fifty thousand dollars ($350,000) if the
judgment debtor or spouse of the judgment debtor who resides in the
homestead is at the time of the attempted sale of the homestead any
one of the following:
(A) A person 65 years of age or older.
(B) A person physically or mentally disabled who as a result of
that disability is unable to engage in substantial gainful
employment. There is a rebuttable presumption affecting the burden of
proof that a person receiving disability insurance benefit payments
under Title II or supplemental security income payments under Title
XVI of the federal Social Security Act satisfies the requirements of
this paragraph as to his or her inability to engage in substantial
gainful employment.
(C) A person 55 years of age or older with a gross annual income
of not more than twenty-two thousand dollars ($22,000)
twenty -five thousand dollars ($25,000)
or, if the judgment debtor is married, a gross annual income,
including the gross annual income of the judgment debtor's spouse, of
not more than twenty-nine thousand dollars ($29,000)
thirty -five thousand dollars
($35,000) and the sale is an involuntary sale.
(b) Notwithstanding any other provision of this section, the
combined homestead exemptions of spouses on the same judgment shall
not exceed the amount specified in paragraph (2) or (3), whichever is
applicable, of subdivision (a), regardless of whether the spouses
are jointly obligated on the judgment and regardless of whether the
homestead consists of community or separate property or both.
Notwithstanding any other provision of this article, if both spouses
are entitled to a homestead exemption, the exemption of proceeds of
the homestead shall be apportioned between the spouses on the basis
of their proportionate interests in the homestead.