Bill Summary – FastDemocracy

The Florida Senate
                    BILL ANALYSIS AND FISCAL IMPACT STATEMENT
                (This document is based on the provisions contained in the legislation as of the latest date listed below.)
                               Prepared By: The Professional Staff of the Committee on Rules
BILL:             SB 158
INTRODUCER:       Senator Polsky
SUBJECT:          Value of Motor Vehicles Exempt from Legal Process
DATE:             January 29, 2024                REVISED:
           ANALYST                      STAFF DIRECTOR                 REFERENCE                                 ACTION
1. Davis                              Cibula                                JU              Favorable
2. Hackett                            Ryon                                  CA              Favorable
3. Davis                              Twogood                               RC              Favorable
    I.    Summary:
          SB 158 increases from $1,000 to $5,000, the maximum value of a debtor’s motor vehicle that is
          exempt from attachment, garnishment, or other legal process. The $1,000 amount was
          established in 1993 and has not been increased since then.
          The bill takes effect July 1, 2024.
    II.   Present Situation:
          The Florida Constitution protects a homestead, used as a residence, and personal property that
          does not exceed $1,000, from the forced sale by creditors.1 The purpose of the homestead
          exemption is a matter of public policy - to maintain the home as a shelter for a family and
          prevent the family from becoming dependent on public assistance.2
          In a similar manner, the Florida Statutes protect certain assets from the claims of creditors.
          Chapter 222 exempts, or protects, the following items:
           A life insurance policy.3
           The cash surrender value of a life insurance policy and the proceeds of an annuity contract. 4
           Disability income benefits.5
           Pension money and funds placed in certain tax-exempt accounts.6
1
  FLA. CONST. art. X, s. 4.
2
  28A Fla. Jur. 2d Homesteads s. 3. (2023).
3
  Section 222.13(1), F.S.
4
  Section 222.14, F.S.
5
  Section 222.18, F.S.
6
  Section 222.21, F.S.
BILL:   SB 158                                                                                                          Page 2
             Assets held in qualified tuition programs, health savings and medical savings accounts,
              Coverdell education savings accounts, which are also known as an educational IRA, and
              hurricane savings accounts.7
             Certain wages, unless the person has agreed in writing to waive the exemption.8
             Personal property when properly inventoried and filed with a court.9
             Professionally prescribed health aids for the debtor or his or her dependent.10
             Items exempted under the federal Bankruptcy Reform Act of 1978 including a social security
              benefit, unemployment compensation, or a local public assistance benefit; a veterans’
              benefit; a disability, illness, or unemployment benefit; alimony, support, or separate
              maintenance, to the extent reasonably necessary for the support of the debtor and his or her
              dependent; and payments under a stock bonus, pension, profit-sharing, annuity, or similar
              plan under specified circumstances.11
             A debtor’s interest in a single motor vehicle which does not exceed $1,000 in value.12
III.     Effect of Proposed Changes:
         The bill increases the value of an exempt motor vehicle from $1,000 to $5,000. This $1,000 limit
         was placed in statute in 1993 and has not been increased since.13
         According to the U.S. Bureau of Labor Statistics Consumer Price Index Inflation Calculator,14
         $1,000 in October 1993 is the equivalent of $2,107.42 in November 2023.
         The bill takes effect July 1, 2024.
IV.      Constitutional Issues:
         A.       Municipality/County Mandates Restrictions:
                  None.
         B.       Public Records/Open Meetings Issues:
                  None.
         C.       Trust Funds Restrictions:
                  None.
7
  Section 222.22, F.S.
8
  Section 222.11, F.S.
9
  Section 222.061, F.S.
10
   Section 222.25, F.S.
11
   Section 222.201, F.S. and 11 U.S. Code s. 522(d)(10).
12
   Section 222.25(1), F.S.
13
   Chapter 93-256, s. 3, Laws of Fla.
14
   U.S. Bureau of Labor Statistics, CPI Inflation Calculator, https://www.bls.gov/data/inflation_calculator.htm (last visited on
Jan. 4, 2024).
 BILL:   SB 158                                                                                                                         Page 3
          D.       State Tax or Fee Increases:
                   None.
          E.       Other Constitutional Issues:
                   None identified.
  V.      Fiscal Impact Statement:
          A.       Tax/Fee Issues:
                   None.
          B.       Private Sector Impact:
                   None.
          C.       Government Sector Impact:
                   None.
 VI.      Technical Deficiencies:
          None.
VII.      Related Issues:
          None.
VIII.     Statutes Affected:
          This bill substantially amends section 222.25 of the Florida Statutes.
 IX.      Additional Information:
          A.       Committee Substitute – Statement of Changes:
                   (Summarizing differences between the Committee Substitute and the prior version of the bill.)
                   None.
          B.       Amendments:
                   None.
           This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Statutes affected: 
S 158 Filed: 222.25
S 158 er: 222.25