House
Study
Bill
168
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
BALTIMORE)
A
BILL
FOR
An
Act
relating
to
notice
of
garnishment
and
levy
to
a
judgment
1
debtor.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
626.50,
Code
2015,
is
amended
to
read
as
1
follows:
2
626.50
Duty
to
levy
——
notice
of
ownership
or
exemption
——
3
notice
to
defendant.
4
1.
An
officer
is
bound
to
levy
an
execution
on
any
personal
5
property
in
the
possession
of,
or
that
the
officer
has
reason
6
to
believe
belongs
to,
the
defendant,
or
on
which
the
plaintiff
7
directs
the
officer
to
levy,
after
having
received
written
8
instructions
for
the
levy
from
the
plaintiff
or
the
attorney
9
who
had
the
execution
issued
to
the
sheriff,
unless
the
officer
10
has
received
notice
in
writing
under
oath
from
some
other
11
person,
or
that
person’s
agent
or
attorney,
that
the
property
12
belongs
to
the
person,
stating
the
nature
of
the
person’s
13
interests
in
the
property,
how
and
from
whom
the
person
14
acquired
the
property,
and
the
consideration
paid
for
the
15
property;
or
from
the
defendant,
that
the
property
is
exempt
16
from
execution.
17
2.
a.
The
officer
making
the
levy
in
subsection
1
shall
18
promptly
serve
written
notice
of
the
levy
on
the
defendant.
19
The
notice
shall
be
served
in
the
same
manner
as
provided
for
20
original
notice.
21
b.
This
section
subsection
is
not
applicable
to
garnishment
22
proceedings.
23
Sec.
2.
Section
642.5,
subsection
2,
Code
2015,
is
amended
24
to
read
as
follows:
25
2.
The
sheriff
shall
append
file
the
answers
to
the
26
examination
to
the
sheriff’s
return
within
seven
business
days
27
of
receiving
the
answers
.
28
Sec.
3.
Section
642.14,
Code
2015,
is
amended
to
read
as
29
follows:
30
642.14
Notice
of
garnishment
proceedings.
31
Judgment
against
the
garnishee
shall
not
be
entered
until
32
notice
as
required
by
section
642.14A
or
642.14B
has
been
33
served
upon
the
defendant
in
the
main
action
has
had
ten
days’
34
notice
of
the
garnishment
proceedings,
to
be
served
in
the
35
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same
manner
as
original
notices
.
However,
if
the
garnishment
1
is
to
earnings
owed
such
defendant
by
the
garnishee,
judgment
2
may
be
entered
if
notice
to
the
defendant
is
served
with
the
3
notice
of
garnishment
to
the
garnishee
who
shall
deliver
the
4
notice
to
the
defendant
with
the
remainder
of
or
in
lieu
of
the
5
defendant’s
earnings.
The
garnishee
shall
state
in
answer
to
6
the
service
of
notice
of
garnishment
whether
or
not
service
of
7
notice
was
delivered
to
the
defendant.
8
The
notice
required
by
this
section
shall
contain
the
full
9
text
of
section
630.3A
.
10
Sec.
4.
Section
642.14A,
Code
2015,
is
amended
to
read
as
11
follows:
12
642.14A
Notice
of
garnishment
and
levy
to
defendant
——
13
non-employer
garnishees
.
14
1.
Within
seven
If
the
garnishment
is
to
property
other
than
15
earnings
an
employer
owes
a
defendant,
the
judgment
creditor,
16
personally
or
through
an
agent
or
attorney,
shall
serve
upon
a
17
debtor
who
is
a
natural
person
not
later
than
ten
business
days
18
after
execution
is
served
upon
a
garnishee,
the
sheriff
shall
19
send
the
sheriff’s
filing
of
a
garnishee’s
answers
pursuant
20
to
section
642.5,
subsection
2,
which
show
that
the
garnishee
21
is
indebted
to
the
defendant,
a
notice
of
garnishment
and
22
levy
to
the
defendant
in
the
main
action
informing
notifying
23
the
defendant
that
certain
real
and
personal
property
of
the
24
defendant
may
be
exempt
from
execution
or
garnishment
and
that
25
a
hearing
process
is
available
for
the
defendant
to
claim
such
26
exemptions
of
the
information
required
in
subsection
3
.
27
2.
The
notice
required
by
this
section
shall
be
served
by
28
personal
service
or
restricted
certified
mail
and
first
class
29
mail
to
the
last
known
address
of
the
defendant
and
to
the
30
defendant’s
attorney
.
The
judgment
creditor
shall
provide
the
31
sheriff
with
the
last
known
address
of
the
defendant
and
the
32
defendant’s
attorney
if
there
is
an
attorney
of
record.
Proof
33
of
mailing
or
personal
such
service
by
the
sheriff
shall
be
by
34
affidavit
filed
with
the
court
.
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3.
The
notice
required
by
this
section
shall:
1
a.
Inform
the
defendant
that
judgment
has
been
entered
in
2
the
main
action
and
the
defendant’s
funds
or
other
property
is
3
subject
to
execution
under
the
judgment.
4
b.
Inform
the
defendant
that
the
defendant
has
the
right
5
to
claim
funds
or
other
property
exempt
from
execution
or
6
garnishment
and
a
right
to
be
timely
heard
on
those
claims
7
request
and
have
a
timely
hearing
before
a
judge
to
claim
such
8
exemptions
.
9
c.
Inform
the
defendant
that
if
the
defendant
does
not
file
10
a
motion
or
other
appropriate
pleading
to
claim
funds
or
other
11
property
exempt
from
execution
or
garnishment
under
state
or
12
federal
law,
the
defendant
may
lose
any
such
rights
and
the
13
funds
or
other
property
may
be
applied
to
the
judgment
against
14
the
defendant.
15
d.
Inform
the
defendant
that
state
and
federal
laws
may
16
place
limits
on
the
amount
of
earnings
that
may
be
garnished
17
annually
and
per
pay
period
and
limits
on
other
funds
and
18
property
that
may
be
garnished
or
levied
against.
19
e.
Contain
the
full
text
of
section
630.3A
.
20
f.
State
that
the
defendant
may
wish
to
consult
a
lawyer
for
21
advice
as
to
the
meaning
of
the
notice.
22
4.
An
additional
court
filing
fee
shall
not
be
assessed
for
23
proceedings
under
this
section
.
24
Sec.
5.
NEW
SECTION
.
642.14B
Notice
to
defendant
——
25
employer
garnishees.
26
If
the
garnishment
is
to
earnings
an
employer
owes
a
27
defendant,
the
employer
shall
deliver
the
notice
of
garnishment
28
to
the
defendant
with
the
remainder
of
or
in
lieu
of
the
29
defendant’s
earnings.
The
garnishee
shall
state
in
answer
to
30
the
sheriff’s
examination
whether
or
not
service
of
the
notice
31
of
garnishment
was
delivered
to
the
defendant.
The
notice
32
required
by
this
section
shall
contain
the
information
required
33
by
section
642.14A,
subsection
3,
and
shall
be
delivered
by
34
personal
service,
mail,
or
electronic
means.
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Sec.
6.
NEW
SECTION
.
642.25
Sheriff
not
an
agent.
1
The
sheriff’s
actions
under
this
chapter
shall
not
be
2
construed
to
be
that
of
an
agent
of
any
person
or
party
in
the
3
proceedings.
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
This
bill
relates
to
notice
of
garnishment
and
levy
to
a
8
judgment
debtor.
9
The
bill
amends
Code
section
626.50
to
provide
that
in
10
garnishment
proceedings,
an
officer
who
has
received
written
11
instructions
for
the
levy
from
a
plaintiff
who
had
an
execution
12
issued
to
a
sheriff
is
bound
to
levy
an
execution
on
any
13
personal
property
in
the
possession
of,
or
that
belongs
to,
the
14
defendant,
unless
either
another
person
provides
the
officer
15
notice
in
writing
that
the
property
belongs
to
such
person
or
16
the
defendant
provides
the
officer
notice
in
writing
that
the
17
personal
property
is
exempt
from
execution.
18
Under
current
law
when
a
sheriff,
at
the
direction
of
19
a
plaintiff,
submits
interrogatories
to
a
garnishee,
the
20
sheriff
appends
the
examination
to
the
sheriff’s
return.
The
21
bill
requires
the
sheriff,
within
seven
business
days
after
22
receiving
the
answers,
to
file
the
garnishee’s
answers
in
the
23
case.
24
Under
current
law,
judgment
against
a
garnishee
who
is
not
25
the
judgment
debtor’s
employer
cannot
be
entered
until
the
26
defendant
in
the
main
action
(i.e.,
the
judgment
debtor)
has
27
had
10
days’
notice
of
the
garnishment
proceedings.
Current
28
Code
section
642.14A
requires
that
within
seven
days
after
29
execution
is
served
upon
a
garnishee,
a
sheriff
is
required
to
30
send
a
notice
of
garnishment
and
levy
to
the
judgment
debtor
31
and
the
judgment
debtor’s
attorney
which
contains
information
32
about
exemption
from
garnishment
for
certain
types
of
property.
33
The
bill
provides
that
judgment
against
a
garnishee
who
is
34
not
the
judgment
debtor’s
employer
cannot
be
entered
until
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notice
required
by
Code
section
642.14A
is
served
on
the
1
judgment
debtor.
The
bill
provides
that,
under
Code
section
2
642.14A,
instead
of
the
sheriff
sending
notice
of
garnishment
3
and
levy
within
seven
days
after
execution,
the
judgment
4
creditor
shall
serve
a
natural
person
debtor
with
notice
of
5
garnishment
and
levy
not
later
than
10
business
days
after
6
the
sheriff’s
filing
of
the
garnishee’s
answers.
The
bill
7
eliminates
the
requirement
that
the
judgment
debtor’s
attorney
8
receive
a
copy
of
the
notice.
9
Under
current
Code
section
642.14,
judgment
against
an
10
employer
garnishee
may
be
entered
if
the
employer
delivers
11
the
notice
of
garnishment
to
the
judgment
debtor
with
the
12
remainder
of
or
in
lieu
of
the
judgment
debtor’s
earnings.
13
The
bill
moves
this
requirement
to
new
Code
section
642.14B
14
to
more
clearly
distinguish
the
requirements
of
employer
15
and
non-employer
garnishees.
The
bill
requires
an
employer
16
garnishee
to
provide
the
information
currently
required
by
Code
17
section
642.14A(3)
to
the
judgment
debtor.
18
The
bill
provides
that
a
sheriff’s
actions
under
Code
19
chapter
642
shall
not
be
construed
to
be
that
of
an
agent
of
any
20
person
or
party
in
the
garnishment
proceedings.
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