BILL NUMBER: AB 451	CHAPTERED
	BILL TEXT

	CHAPTER   82
	FILED WITH SECRETARY OF STATE   JULY 21, 1997
	APPROVED BY GOVERNOR   JULY 21, 1997
	PASSED THE ASSEMBLY   JULY 3, 1997
	PASSED THE SENATE   JUNE 26, 1997
	AMENDED IN SENATE   JUNE 3, 1997

INTRODUCED BY  Assembly Member Havice

                        FEBRUARY 24, 1997

   An act to amend Section 704.730 of the Code of Civil Procedure,
relating to homestead exemptions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 451, Havice.  Homestead exemption.
   Under existing law, a specified portion of the value of a
homestead is exempt from execution to satisfy a judgment debt.
Existing law provides a $100,000 homestead exemption if the judgment
debtor or his or her spouse who resides in the homestead is, at the
time of the attempted sale of the homestead, a person 65 years of age
or older, a person physically or mentally disabled, as specified, or
a person 55 years of age or older in certain limited circumstances.

   This bill would increase this homestead exemption to $125,000.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  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) Fifty thousand dollars ($50,000) 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) Seventy-five thousand dollars ($75,000) 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) One hundred twenty-five thousand dollars ($125,000) 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 and 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 fifteen thousand dollars ($15,000) 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 thousand dollars ($20,000) 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.