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S1066..........................................by COMMERCE AND HUMAN RESOURCES
GARNISHMENT - SERVICE - Amends existing law relating to garnishments to
specify how banking or trust corporations may designate offices for service;
to provide that service on a designated office shall be effective as to moneys
in the banking or trust corporation's offices located outside the state of
Idaho; to specify the effect of service; to require the Department of Finance
to post a list of designated offices on its web page; and to revise provisions
relating to personal service of garnishment documents.
02/06 Senate intro - 1st rdg - to printing
02/07 Rpt prt - to Com/HuRes
02/24 Rpt out - rec d/p - to 2nd rdg
02/25 2nd rdg - to 3rd rdg
03/03 3rd rdg - PASSED - 34-1-0
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
Calabretta, Cameron, Compton, Darrington, Gannon, Geddes, Goedde, Hill,
Inram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
McWilliams, Noble, Noh, Pearce, Richardson, Schroeder, Sorensen,
Stegner, Stennett, Sweet, Werk, Williams
NAYS -- Davis
Absent and excused -- None
Floor Sponsor - Andreason
Title apvd - to House
03/04 House intro - 1st rdg - to Bus
03/14 Rpt out - rec d/p - to 2nd rdg
03/17 2nd rdg - to 3rd rdg
03/20 3rd rdg - PASSED - 66-2-2
AYES -- Andersen, Barraclough, Barrett, Bauer, Bell, Bieter, Black,
Block, Boe, Bolz, Bradford, Cannon, Clark, Collins, Crow, Cuddy, Deal,
Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg,
Kulczyk, Langford, Langhorst, Martinez, McGeachin, McKague, Meyer,
Miller, Mitchell, Moyle, Naccarato, Nielsen, Raybould, Ridinger, Ring,
Ringo, Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd,
Shirley, Skippen, Smith(30), Smylie, Snodgrass, Stevenson, Tilman,
Trail, Wills, Wood, Mr. Speaker
NAYS -- Campbell, Smith(24)
Absent and excused -- Bedke, Lake
Floor Sponsor - Tilman
Title apvd - to Senate
03/21 To enrol
03/24 Rpt enrol - Pres signed
03/25 Sp signed
03/26 To Governor
03/27 Governor signed
Session Law Chapter 158
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE SENATE
SENATE BILL NO. 1066
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO GARNISHMENTS; AMENDING SECTION 8-507, IDAHO CODE, TO CLARIFY THE
3 TERM CORPORATION TO INCLUDE BANKING OR TRUST CORPORATIONS, TO PROVIDE FOR
4 SERVICE UPON MANAGERS OR DESIGNATED AGENTS, TO REMOVE LANGUAGE RELATING TO
5 SERVICE UPON CERTAIN BANKING OR TRUST CORPORATIONS, TO SPECIFY HOW BANKING
6 OR TRUST CORPORATIONS MAY DESIGNATE OFFICES FOR SERVICE OF CERTAIN DOCU-
7 MENTS, TO PROVIDE THAT THE DEPARTMENT OF FINANCE SHALL POST A LIST OF DES-
8 IGNATED OFFICES ON ITS WEB PAGE, TO REMOVE LANGUAGE REFERENCING BRANCHES
9 OR BRANCH BANKS, TO PROVIDE THAT SERVICE ON A DESIGNATED OFFICE SHALL BE
10 EFFECTIVE AS TO MONEYS IN THE BANKING OR TRUST CORPORATION'S OFFICES
11 LOCATED OUTSIDE THE STATE OF IDAHO, TO SPECIFY THE EFFECT OF SERVICE MADE
12 ON AN OFFICE NOT DESIGNATED BY BANKING OR TRUST CORPORATIONS AND TO SPEC-
13 IFY THE EFFECT OF SERVICE GENERALLY; AND AMENDING SECTION 8-507D, IDAHO
14 CODE, TO REVISE PROVISIONS RELATING TO PERSONAL SERVICE OF GARNISHMENT
15 DOCUMENTS AND TO MAKE A TECHNICAL CORRECTION.
16 Be It Enacted by the Legislature of the State of Idaho:
17 SECTION 1. That Section 8-507, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 8-507. GARNISHMENT -- SERVICE OF WRIT OF ATTACHMENT, EXECUTION, OR GAR-
20 NISHMENT -- BANKS. (a) Upon receiving written directions from the plaintiff or
21 his attorney, that any person or corporation, public or private, has in his or
22 its possession or control, any credits or other personal property belonging to
23 the defendant, or is owing any debt to the defendant, the sheriff shall serve
24 upon any such person, or corporation identified in the plaintiff's written
25 directions all of the following documents:
26 (1) a copy of the writ;
27 (2) a notice that such credits, or other property, or debts, as the case
28 may be, are attached in pursuance of such writ;
29 (3) a notice of exemptions available under federal and state law;
30 (4) instructions to debtors and third parties for asserting a claim of
31 exemption;
32 (5) a form for making a claim of exemption; and
33 (6) if the garnishee is a bank or depository institution, a search fee of
34 five dollars ($5.00) and the last known mailing address of the defendant
35 and, if known, a tax identification number, that will enable the garnishee
36 to identify the defendant on its records.
37 The documents specified in paragraphs (3) through (5) of this subsection
38 shall be in a form substantially similar to the form provided in section
39 8-507C, Idaho Code.
40 (b) In case of service upon a corporation including, but not limited to
41 any banking or trust corporation, the same may be had by delivering a copy of
42 the papers to be served, if upon a private corporation, to any officer, man-
43 ager or designated agent thereof, and if upon a public or municipal corpora-
2
1 tion, to the mayor, president of the council or board of trustees, or any pre-
2 siding officer, or to the secretary or clerk thereof. Provided, further, that
3 no service of any writ of attachment, nor of execution, nor any garnishment,
4 shall be made under this section, or otherwise, on any banking or trust corpo-
5 ration operating branch banks or more than one (1) office where deposits are
6 received, except by delivery of copies of the writs, notices and/or other
7 papers required, to one (1) of the officers or managing agents of such corpo-
8 ration employed in and at, and in charge of some particular office or branch
9 of said corporation, and being so made, such writ or garnishment shall be
10 valid and effective only as to moneys to the defendant's credit in that par-
11 ticular office or branch and as to other personal property belonging to the
12 defendant held in the possession or control of the officers or managing agents
13 of said corporation employed in and at, and in charge of such office or
14 branch.
15 In the event a banking or trust corporation operates more than one (1)
16 office where deposits are received within the state of Idaho, the banking or
17 trust corporation may, by notifying the Idaho department of finance, designate
18 a particular office for the service of attachment, execution and garnishment
19 papers. Such office may be located either within or outside the state of
20 Idaho. The Idaho department of finance shall post the list of such designated
21 offices on its web page for access by the public.
22 If a banking or trust corporation operating branch banks or more than one
23 (1) office where deposits are received has designated a particular branch or
24 office for the attachment, execution, or garnishment, then service of such
25 papers shall be made on the branch or office so designated. In such case, a
26 writ of attachment, execution, or garnishment shall be valid and effective as
27 to moneys to the defendant's credit held in the possession or control of any
28 of the banking or trust corporation's branches or offices located within or
29 outside the state of Idaho.
30 If service of the attachment, execution or garnishment papers is not made
31 on the designated office of the banking or trust corporation, but instead is
32 made on another office of the banking or trust corporation located in the
33 state of Idaho, then service of such papers shall be valid and effective as to
34 moneys to the defendant's credit in that particular office and as to other
35 personal property belonging to the defendant held in the possession or control
36 of that particular office, but shall only become valid and effective as to
37 moneys to the defendant's credit held in the possession or control of any of
38 the bank or trust corporation's other offices upon receipt of the attachment,
39 execution or garnishment papers by the designated office. Such banking or
40 trust corporation may, but is under no obligation to, transmit the original or
41 a copy of the papers from the particular office served to the designated
42 office.
43 Service on any banking or trust corporation is effective as against the
44 moneys and other personal property to the defendant's credit which are in the
45 possession or control of the banking or trust corporation named in the gar-
46 nishment, but not any affiliate, parent or subsidiary not named. If the gar-
47 nishment fails to sufficiently distinguish the banking or trust corporation
48 from any affiliate, parent or subsidiary thereof, such that it is not clear
49 which entity is intended to be the garnishee, the garnishment may be returned
50 unsatisfied.
51 (c) The provisions of this section and sections 8-507A through 8-507D,
52 Idaho Code, shall apply to any levy by execution pursuant to chapters 2 and 3,
53 title 11, Idaho Code.
54 SECTION 2. That Section 8-507D, Idaho Code, be, and the same is hereby
3
1 amended to read as follows:
2 8-507D. DOCUMENTS TO BE PROVIDED BY PLAINTIFF -- DUTIES OF SHERIFF --
3 SERVICE AND MAILING CRITERIA -- TIME COMPUTATION. With respect to any attach-
4 ment, garnishment or execution, the plaintiff shall provide the sheriff with
5 sufficient copies of the writ and other documents required to be served for
6 service on the defendant and each additional party identified in the
7 plaintiff's written directions and shall provide an envelope addressed to each
8 person required to be served. If the documents are to be mailed, proper post-
9 age shall be affixed. The sheriff shall not delay service for lack of suffi-
10 cient copies or postage and shall make any additional copies and affix any
11 additional postage necessary. The sheriff may charge the plaintiff for the
12 actual costs of any additional copies and postage required, which costs shall
13 be in addition to the fees permitted under section 31-3203, Idaho Code.
14 Personal service shall be accomplished in the same manner provided for
15 service of summons under the Idaho rules of civil procedure. Provided however,
16 that in the case of garnishments the county sheriff shall have the option of
17 accomplishing personal service by United States certified mail, return receipt
18 requested, or United States first class mail with a facsimile acknowledgment
19 of such service by the employer, in the case of garnishments garnishee. Mail-
20 ing shall be by first class mail. Unless otherwise provided to the contrary,
21 the date when an item is deposited in the United States mails shall constitute
22 the date of mailing and the date of service where service by mail is permitted
23 shall be the date when the garnishee signs the return receipt for the certi-
24 fied mail or the date the garnishee sends its facsimile acknowledgment of ser-
25 vice. In computing any period of time within which an act is to be accom-
26 plished, the day of the act after which the designated period of time begins
27 to run is not to be included. The last day of the period so computed is to be
28 included, unless it falls on a weekend or legal holiday, in which event the
29 period runs until the close of business of the first business day after the
30 weekend or holiday, except that this provision shall not extend the time
31 within which hearing on a motion to contest a claim of exemption or third
32 party claim must be set as provided in section 8-540, Idaho Code, and section
33 11-203, Idaho Code.
34 The sheriff shall not be required to investigate or assure the accuracy
35 and completeness of the addresses of the parties to be served or any other
36 information provided by the plaintiff.
STATEMENT OF PURPOSE
RS 12698
The purpose of this bill is to clarify the procedures of garnishment,
particularly where the garnishee is a banking or trust corporation with
more than one office in Idaho. Under current law, banks can designate
a particular office to accept all garnishments on the bank, but the law
does not specify how banks are supposed to make that designation. This
bill would provide for designation by notice to the Department of
Finance, which would publish a list of all such designated offices on
its website. In addition, this bill clarifies the effect of a
garnishment served on a bank, either at its designated office or at any
of its other offices. This bill also makes clear that garnishments may
be served by mail.
FISCAL NOTE
This bill will have no impact on the general fund. The Department of
Finance will have to maintain a list of designated bank offices on its
website, but that negligible expense will be paid via dedicated funds.
Contact:
Name: Patrick V. Collins
Hawley Troxell Ennis & Hawley LLP
Counsel for the Idaho Bankers Association
Phone: (208) 344-6000
STATEMENT OF PURPOSE/FISCAL NOTE S 1066