Senate Bill 1202 Summary

• Repeals outdated garnishment provisions (sections 8-507 through 8-523) and creates comprehensive new Chapter 7, Title 11 establishing modern garnishment procedures for wages, financial accounts, and other property.

• Establishes wage garnishment limits at 25% of disposable earnings or the amount exceeding 30 times the federal minimum hourly wage, whichever is less, with higher limits (50-65%) for child support and tax obligations.

• Protects exempt funds deposited in financial institutions by requiring garnishee review of the 64 days preceding service to identify exempt deposits (social security, PERSI, worker's compensation, etc.) and providing immunity for good faith determinations.

• Allows financial institutions to deduct a single $10 fee and employers to deduct a one-time $10 fee for garnishment processing, with sheriff fees set by county board resolution based on actual costs.

• Creates continuing garnishment procedures for employers, establishes interim return requirements at 14 or 60-day intervals for wage garnishments, and provides examination and discharge mechanisms for garnishees.