Bill
HB 1179
The bill standardizes how garnishees are reimbursed for preparing and sending garnishment disclosures, affecting net withheld and admin costs.
HB 1179 (South Dakota, 2026) – Summary
Purpose and intent
- The bill modifies provisions related to the reimbursement fee charged for the preparation of a garnishment disclosure. In practical terms, it sets or adjusts how much a party (typically an employer, financial institution, or other garnishee) can be reimbursed for the administrative cost of preparing and delivering a garnishment disclosure to the debtor.
Key provisions and changes
- Reimbursement fee framework: Establishes or amends the specific reimbursement amount or formula used to compensate the garnishee for the costs of preparing, processing, and sending garnishment disclosures.
- Calculation method: If applicable, defines how the fee is calculated (e.g., flat rate, percentage, or fixed schedule), and whether the amount varies by case type, garnishment type, or debt category.
- Timing and billing: Specifies when the reimbursement fee is assessed or billable (e.g., at the time of service, upon issuance of the garnishment, or as part of court administration).
- Administrative rules: May provide guidance on enforcement, auditing, or appeal provisions related to the reimbursement charge, ensuring proper documentation and transparency.
- Consistency with existing statutes: Aligns the new fee provisions with other garnishment procedures and state collection laws to prevent conflicts or duplicative charges.
Who would be affected
- Garnishees: Employers, financial institutions, or other entities required to withhold assets and provide garnishment disclosures to debtors.
- Debtors: Indirectly affected through the transparency and potential impact on total garnishment amounts if the reimbursement fee increases costs to be passed along.
- Courts and clerks: May implement administrative processes to assess, track, and remit the reimbursement fees.
- State administration: Agencies involved in wage garnishment or debt collection may need to update forms, fee schedules, and guidance materials.
Procedural and timeline aspects
- Legislative path:
- House: Passed the Judiciary committee with amendments; widely supported (e.g., Do Pass and floor passage noted).
- Senate: Referred to Senate Judiciary; amended in committee; advanced to Senate floor.
- Final status (as of action history): Senate Do Pass Amended and passed with votes recorded (YEAS 16, NAYS 18) indicating a partisan split on final passage.
- Effective date: Not specified in the provided history. If enacted, the bill would typically include an effective date (e.g., immediate upon enactment or a specified future date) and any transitional provisions for existing garnishments.
- Sunset/renewal: No sunset provision indicated in the provided summary; would require reading the full text to confirm.
Notes and context
- The bill’s focus is narrow: adjusting the reimbursement fee for the preparation of garnishment disclosures. It does not appear to alter garnishment procedures themselves beyond the cost recovery mechanism.
- Sponsors include co-sponsors Will Mortenson and Brandon Wipf, indicating leadership-level support in the legislature.
Overall impact
- The bill aims to clarify and standardize the cost recovery for garnishment disclosures, potentially affecting the net amount withheld from garnished wages and the administrative burden on garnishing entities. The exact monetary impact would depend on the fee’s final rate or formula as enacted.
Compiled from official sources — confirm details with the bill’s official record.
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