Chapter 4.6Exemption of Golden State Stimulus Payments and Golden State Grant Payments from Garnishment Orders

Section § 8152

Explanation

This law explains that certain payments like the Golden State Stimulus and Golden State Grant are automatically protected from being taken by a court order to pay off debts, known as garnishment orders. However, this protection doesn't apply if the money is needed for child support, spousal support, or restitution to crime victims.

Financial institutions that receive these payments directly from the state must make sure they aren't included in debt collections if they are properly identified as such payments. They have to check accounts over a two-month 'lookback period' to identify these payments and ensure they are not garnished.

Banks that comply in good faith with these rules won't face penalties for their actions related to these payments. The law defines terms like 'account review,' 'garnishment order,' and 'lookback period' to clarify the processes involved.

(a)Copy CA Welfare and Institutions Code § 8152(a)
(1)Copy CA Welfare and Institutions Code § 8152(a)(1) A Golden State Stimulus payment made by the Controller pursuant to Section 8150 or 8150.2, a Golden State Grant payment made by the State Department of Social Services or contracted entities pursuant to Section 8151, and a payment made pursuant to Section 12201.7 shall be automatically exempt from a garnishment order.
(2)CA Welfare and Institutions Code § 8152(a)(2) This subdivision does not apply to a garnishment order in connection with an action for, or a judgment awarding, child support, spousal support, family support, or a criminal restitution payable to victims.
(b)CA Welfare and Institutions Code § 8152(b) Notwithstanding any other law, a financial institution receiving directly from the state the payments described in subdivision (a) shall exempt those payments from any garnishment order if the payment is marked by the state as a “Golden State Stimulus payment,” “Golden State Stimulus II payment,” or “Golden State Grant payment” or includes some other industry-standard unique identifier that is reasonably sufficient to allow the financial institution to identify the funds as a Golden State Stimulus payment, Golden State Stimulus II payment, or Golden State Grant payment.
(c)Copy CA Welfare and Institutions Code § 8152(c)
(1)Copy CA Welfare and Institutions Code § 8152(c)(1) In exempting a Golden State Stimulus payment, a Golden State Stimulus II payment, or Golden State Grant payment from a garnishment order, a financial institution shall identify an exempt deposit using a lookback period during an account review.
(2)CA Welfare and Institutions Code § 8152(c)(2) The financial institution shall perform a one-time account review consistent with the requirements described in subsection (a) of Section 212.5 of Title 31 of the Code of Federal Regulations.
(d)CA Welfare and Institutions Code § 8152(d) A financial institution that attempts in good faith to comply with this section shall not be subject to liability or regulatory action under a federal or state law, regulation, court or other order, or regulatory interpretation for actions concerning applicable payments.
(e)CA Welfare and Institutions Code § 8152(e) As used in this section:
(1)CA Welfare and Institutions Code § 8152(e)(1) “Account review” means the process of examining deposits in an account to determine if a benefit agency has deposited a benefit payment into the account during the lookback period.
(2)CA Welfare and Institutions Code § 8152(e)(2) “Garnishment order” means a writ, order, notice, summons, judgment, levy, or similar written instruction issued by a court, a state or state agency, or a municipality or municipal corporation, including an order to freeze the assets in an account, to effect a garnishment against a debtor.
(3)CA Welfare and Institutions Code § 8152(e)(3) “Lookback period” means the two-month period that begins on the date preceding the date of account review and ends on the corresponding date of the month two months earlier or on the last date of the month two months earlier if the corresponding date does not exist.
Golden State Stimulus Golden State Grant garnishment protection financial institutions child support exception spousal support exception lookback period account review exempt deposits crimes restitution debt collection funds identification bank liability protection regulatory compliance
(Amended by Stats. 2021, Ch. 71, Sec. 7. (SB 139) Effective July 12, 2021.)