Assigned to JUD                                                                                                                                                                                                                                         FOR COMMITTEE

ARIZONA STATE SENATE

Fifty-Fifth Legislature, First Regular Session

FACT SHEET FOR H.B. 2579

limited jurisdiction courts; judgment assignment

Purpose

                      Allows the prevailing party in a small claims action to assign a monetary judgment to another person who is licensed to collect debts.

Background

                      A small claims division of a justice court has concurrent original jurisdiction with the justice court in all civil actions in which the debt, damage, tort, injury or value of the personal property claims either by a plaintiff or defendant does not exceed $3,500, exclusive of interest and costs, and in actions in which a party seeks to disaffirm, avoid or rescind a contract, or seeks equitable relief, and the amount at issue does not exceed $3,500. The small claims division does not have jurisdiction over: 1) matters excluded from justice court jurisdiction; 2) actions involving claims of defamation by libel or slander; 3) actions in forcible entry, forcible detainer or unlawful detainer; 4) actions for specific performance; 5) actions brought or defended on behalf of a class; 6) actions requesting or involving prejudgment remedies; 7) actions involving injunctive relief;
8) traffic violations and other criminal matters; and 9) actions against the state, its political subdivisions or an officer or employee of the state or its political subdivisions in the person's official capacity (A.R.S.   22-503).

                      There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Allows the prevailing party in a small claims action to assign a monetary judgment to another person that is licensed in Arizona to collect debts and that may appear in the small claims court as the prevailing party only for the purpose of enforcing the judgment.

2. Stipulates that a person assigned a judgment for collection does not represent the prevailing party.

3.   Requires the small claims court to treat a person assigned a judgment for collection as the prevailing party for all actions that relate to enforcing the judgment.

4.   Makes technical changes.

5.   Becomes effective on the general effective date.

House Action

JUD                                 2/10/21           DP         7-3-0-0

3^rd Read                   2/24/21                                 60-0-0

Prepared by Senate Research

March 16, 2021

JA/RC/kja