AB 233,
as amended, Wieckowski. Wage garnishment:begin delete exempt earningsend deletebegin insert restrictions: student loansend insert.
The Wage Garnishment Law prescribes the procedure for withholding an employee’s earnings for purposes of paying a debt. The law requires that a levy of execution upon the earnings of an employee be made by service of an earnings withholding order upon the employer. An earnings withholding order is issued by a levying officer upon receiving an application submitted by a judgment creditor, as specified. An employer is required, except as otherwise provided by statute, to withhold the amounts required by an earnings withholding order from all earnings of the employee payable for any pay period of the employee which ends during the withholding period.
This bill wouldbegin delete prohibit the issuance of an earnings withholding order for purposes of collecting debt onend deletebegin insert
provide that an earnings withholding order shall not be used for purposes of enforcing a judgment for the collection of debt that is fromend insert a student loan that is not made, insured, or guaranteed by the United State Government pursuant to the Federal Family Education Loan Program or the William D. Ford Federal Direct Loan Program.begin insert The bill would require a court to terminate an earnings withholding order upon proof by a judgment debtor that it was issued in violation of these provisions.end insert
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 706.053 is added to the end insertbegin insertCode of Civil
2Procedureend insertbegin insert, end insertimmediately after Section 706.052begin insert, to read:end insert
An earnings withholding order shall not be used for
4purposes of enforcing a judgment for the collection of debt that
5the judgment debtor proves is from a student loan that is not made,
6insured, or guaranteed by the United States Government pursuant
7to the Federal Family Education Loan Program (20 U.S.C. Sec.
81071 et seq.) or the William D. Ford Federal Direct Loan Program
9(34 C.F.R. 685.100). A court shall terminate an earnings
10withholding order upon proof by the judgment debtor that the
11earnings withholding order enforces a judgment in violation of
12this section.
Section 706.035 is added to the Code of Civil
14Procedure, to read:
An earnings withholding order shall not be issued
16pursuant to this chapter for purposes of collecting debt on a student
17loan that is not made, insured, or guaranteed by the United State
18Government pursuant to the Federal Family Education Loan
19Program (20 U.S.C. Sec. 1071 et seq.) or the William D. Ford
20Federal Direct Loan Program (34 C.F.R. 685.100).
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