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Committee advances SB 197 after amendment setting garnishment floor tied to federal minimum wage
Summary
Senate Bill 197 on wage garnishment was amended to remove some DFI rulemaking duties and to fix a protected-earnings floor at 83 times the federal minimum wage (about $601.75); the committee approved the amended bill after discussion and moved it to the floor 6–2.
The Insurance and Financial Institutions committee voted to advance an amended version of Senate Bill 197, a garnishment bill that sponsor Senator Greg Walker said both simplifies implementation and raises the floor for protected earnings.
Senator Greg Walker presented the amendment, saying it removes Department of Financial Institutions (DFI) rulemaking responsibilities for certain index calculations at DFI’s request and replaces an index-based approach with fixed numeric values. “DFI doesn’t wanna do this rule,” Walker said, arguing the change reduces an onerous, expensive implementation burden on the agency.
Walker also explained the amendment fixes one protection at 83 times the federal minimum wage — roughly $601.75 — as the baseline for exempt earnings, rather than leaving the figure to an administrative index. He explained the figure using local entry-level wages and a simple household-cost calculation: housing, a modest food plan, a car payment and basic expenses. “This is based upon a calculation of basic costs that have risen significantly since 17 years ago,” Walker said.
Several committee members pressed the sponsor for arithmetic and definitional clarity. Senator Crasco said she was having trouble reconciling the formula and the interaction of the 25% limit and the protected floor; Walker replied the 83-hour multiplier works out to approximately $601.75 and that the amendment is intended to mirror the prior protection in a simpler form. Senator Gaskell asked whether “disposable earnings” is effectively net pay after legally required withholdings; Walker confirmed it is.
Senator Freeman, during the roll call, urged balance between debt collection and protecting working people: “These people didn’t wake up and have something happen…they owe a debt, and somebody should be able to collect that debt,” he said while explaining his vote.
The committee adopted the amendment and then voted the amended bill out of committee 6 to 2. Members who supported the bill said the change updates protections that had not been raised in many years while preserving creditors’ ability to collect; dissenting members expressed concern about the impact on debt collection.
The amended SB 197 now goes to the Senate floor for further consideration.
