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Senate committee hears bill widening turnover receivers’ powers; consumer advocates warn of harm
Summary
Senator Central Parker laid out Senate Bill 3009 to the Committee on Jurisprudence, proposing mandatory receivers after six months of unpaid judgments and broader seizure authority for turnover receivers; creditor groups supported the committee substitute, while consumer advocates and legal-aid attorneys warned the changes would end long-standing protections for wages and other exempt cash.
Senator Central Parker laid out Senate Bill 3009 to the Committee on Jurisprudence, explaining a committee substitute that would require appointment of receivers after six months of unpaid judgments and allow receivers to seize nonexempt property discovered in enforcement efforts. Public witnesses and resource witnesses split sharply on the impacts.
The question at the heart of the hearing was a change to subsection f (identified in testimony as 31.002 subsection f) that opponents said narrows longstanding protections for exempt cash — notably recently deposited wages — and makes turnover receivers’ powers closer to garnishment. ‘‘The changes to subsection f ... look like small…
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