Senate Bill No. 173, introduced by Senator Morris, amends the Code of Civil Procedure regarding the garnishment process for federally insured financial institutions. The bill modifies Article 2415(B) and enacts new sections 2415(C) and (D). It allows a garnishee that is a federally insured financial institution to deliver funds on deposit belonging to a judgment debtor directly to the sheriff without a court order under specific conditions. If the funds are $1,000 or less and the garnishee has received no notice of opposition to the garnishment, the funds can be delivered immediately. For amounts greater than $1,000, the garnishee must wait 30 days after filing its garnishment answer before delivering the funds.

Additionally, the bill clarifies that the provisions do not apply to the garnishment of wages, salaries, tips reported to the employer, or commissions. The effective date for these changes is set for August 1, 2026. Overall, the bill aims to streamline the garnishment process for financial institutions while ensuring that the rights of judgment debtors are considered.