ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
state judgments; liens; homestead; enforcement
Purpose
Applies the exemption from the 10-year judgement renewal requirement to all civil judgements obtained by the state. Requires civil judgements in favor of the state to become a lien on a judgement debtor's homestead property and disallows the homestead exemption from applying when the lien is in effect.
Background
Arizona s homestead exemption protects up to $150,000 of a person s equity in their dwelling from attachment, execution or forced sale. The exemption applies to a person s house and land, condominium or cooperative or mobile home and land. A person or married couple may only claim one homestead exemption and must reside in the dwelling or home for which the exemption is claimed (A.R.S. 33-1101).
A judgement creditor may seek payment of debts owed by filing a judgment in the office of the county recorder in the county where the judgement creditor desires the judgement to become a lien on a judgement debtor's real property (A.R.S. 33-961). Once recorded, the judgment becomes a lien on the judgement debtor's real property for 10 years after the judgment is filed, unless the property is exempt from execution. A civil judgment lien obtained by the state remains in effect until satisfied or lifted. A recorded judgment may not become a lien on homestead property and any person entitled to a homestead on real property holds the homestead property free and clear of any judgment lien, even when the value of the property exceeds the amount of the homestead, with certain exceptions (A.R.S. 33-964 and 33-1103).
A party in whose favor a judgment is given may have a writ of execution or other process issued for its enforcement. The judgment must be enforced within 10 years after entry of the judgment or within 10 years after any renewal of the judgment. A judgment may be renewed by affidavit. Currently, statute does not require civil judgements obtained by the state to be renewed after 10 years from the date of entry to be enforceable (A.R.S. 12-1551).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Applies the exemption from the 10-year judgement renewal requirement to civil judgements obtained by the state that are:
a) entered on or after September 13, 2013; or
b) entered before September 13, 2013, and that were current and collectable under applicable laws on September 13, 2013.
2. Requires, retroactive to all judgments in favor of the state without regard to when the judgment was recorded, civil judgements in favor of the state to become a lien on a judgement debtor's real property, including the judgement debtor's homestead property, until the lien is satisfied or lifted.
3. Specifies that a homestead property is not exempt from process or sale under a civil judgment lien in favor of the state on the property, regardless of the date the judgement was recorded.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
House Action
WM 2/12/20 DP 9-0-0-1
3rd Read 2/25/20 59-1-0
Prepared by Senate Research
March 9, 2020
MG/AB/gs