BILL NUMBER: SB 433	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 10, 2007

INTRODUCED BY   Senator Harman

                        FEBRUARY 21, 2007

   An act to amend Section 704.720 of the Code of Civil Procedure,
relating to homestead exemptions.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 433, as amended, Harman. Homestead exemptions.
   Existing law provides for a homestead exemption for judgment
debtors. Existing law governs circumstances under which the exemption
is applicable, the amount that may be exempt, and the duration of
the exemption.
   This bill would provide that a judgment debtor who is not
currently residing in the homestead is entitled to the exemption
while a separated or former spouse resides in or exercises control
over the possession of the homestead until entry of judgment or other
legally enforceable agreement dividing the community property, as
specified.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 704.720 of the Code of Civil Procedure is
amended to read:
   704.720.  (a) A homestead is exempt from sale under this division
to the extent provided in Section 704.800.
   (b) If a homestead is sold under this division or is damaged or
destroyed or is acquired for public use, the proceeds of sale or of
insurance or other indemnification for damage or destruction of the
homestead or the proceeds received as compensation for a homestead
acquired for public use are exempt in the amount of the homestead
exemption provided in Section 704.730. The proceeds are exempt for a
period of six months after the time the proceeds are actually
received by the judgment debtor, except that, if a homestead
exemption is applied to other property of the judgment debtor or the
judgment debtor's spouse during that period, the proceeds thereafter
are not exempt.
   (c) If the judgment debtor and spouse of the judgment debtor
reside in separate homesteads, only the homestead of one of the
spouses is exempt and only the proceeds of the exempt homestead are
exempt.
   (d) If a judgment debtor is not currently residing in the
homestead, but his or her separated or former spouse continues to
reside in or exercise control over possession of the homestead, that
judgment debtor continues to be entitled to an exemption under this
article until entry of judgment or other legally enforceable
agreement dividing the community property between the judgment debtor
and the separated or former spouse, or until a later time period as
specified by court order.  Nothing in this subdivision shall
entitle the judgment debtor to more than   one exempt
homestead. Notwithstanding subdivision (d) of Section 704.710, for
purposes of this article, "spouse" may include a separated or former
spouse consistent with this subdivision.