Colorado § 13-54.5-101 - Definitions.

§ 13-54.5-101. Definitions.

As used in this article 54.5, unless the context otherwise requires:

(1) "Continuing garnishment" means any procedure for payment of a judgment debt by withholding earnings to which a judgment debtor becomes entitled for the duration of the writ of continuing garnishment.

(2) (a) "Earnings" means:

(I) Compensation paid or payable to an individual employee or independent contractor for personal labor or services;

(II) Funds held in or payable from any health, accident, or disability insurance.

(b) For the purposes of writs of garnishment that are the result of a judgment taken for arrearages for child support or for child support debt, for restitution for the theft, embezzlement, misappropriation, or wrongful conversion of public property, or in the event of a judgment for a willful and intentional violation of fiduciary duties to a public pension plan where the offender or a related party received direct financial gain, "earnings" also means:

(I) Workers' compensation benefits;

(II) Any pension or retirement benefits or payments, including but not limited to those paid pursuant to articles 51, 54, 54.5, and 54.6 of title 24, C.R.S., and articles 30.5 and 31 of title 31, C.R.S.;

(III) Dividends, severance pay, royalties, monetary gifts, monetary prizes, excluding lottery winnings not required by the rules of the Colorado lottery commission to be paid only at the lottery office, taxable distributions from general partnerships, limited partnerships, closely held corporations, or limited liability companies, interest, trust income, annuities, capital gains, or rents;

(IV) Any funds held in or payable from any health, accident, disability, or casualty insurance to the extent that such insurance replaces wages or provides income in lieu of wages; and

(V) Tips declared by the individual for purposes of reporting to the federal internal revenue service or tips imputed to bring the employee's gross earnings to the minimum wage for the number of hours worked, whichever is greater.

(c) For the purposes of writs of garnishment issued by the state agency responsible for administering the state medical assistance program, which writs are issued as a result of a judgment for medical support for child support or for medical support debt, "earnings" includes:

(I) Payments received from a third party to cover the health-care cost of the child but which payments have not been applied to cover the child's health-care costs; and

(II) State tax refunds.

(d) For the purposes of writs of garnishment issued by a county department of human or social services responsible for administering the state public assistance programs and the Colorado child care assistance program, which writs are issued as a result of a judgment for a debt for fraudulently obtained public assistance or child care assistance, fraudulently obtained overpayments of public assistance or child care assistance, or excess public assistance or child care assistance paid for which the recipient was ineligible, "earnings" includes workers' compensation benefits.

(e) For the purposes of attachments of earnings or writs of garnishment that are the result of a judgment taken for court assessments including fines, fees, costs, restitution, and surcharges pursuant to section 16-11-101.6 or section 16-18.5-105, C.R.S., "earnings" also means those enumerated under paragraph (a) of this subsection (2).

(3) "Garnishee" means a person other than a judgment creditor or judgment debtor who is in possession of earnings or property of the judgment debtor and who is subject to garnishment in accordance with the provisions of this article.

(4) "Garnishment" means any procedure through which the property or earnings of an individual in the possession or control of a garnishee are required to be withheld for payment of a judgment debt.

(5) "Judgment creditor" means any individual, corporation, partnership, or other legal entity that has recovered a money judgment against a judgment debtor in a court of competent jurisdiction.

(6) "Judgment debtor" means any person, including a corporation, partnership, or other legal entity, who has a judgment entered against him in a court of competent jurisdiction.

(7) "Notice of exemption and pending levy" means the document required to be served on the judgment debtor in any garnishment proceeding, except continuing garnishment, as soon as practicable following the service of the writ of garnishment on the garnishee. A "notice of exemption and pending levy" includes a statement that the judgment creditor intends to satisfy the judgment against the judgment debtor out of the judgment debtor's personal property held by a third party and that the judgment debtor has the right to claim certain property as exempt.

Source: L. 84: Entire article added, p. 469, § 1, effective January 1, 1985. L. 85: (7) amended, p. 582, § 1, effective May 3. L. 87: (2) amended, p. 595, § 23, effective July 10. L. 90: (2) amended, p. 564, § 33, effective July 1. L. 91: (2) amended, p. 384, § 5, effective May 1. L. 92: (2) amended, p. 577, § 4, effective July 1. L. 93: (2)(b) amended, p. 1871, § 4, effective June 6. L. 94: (2)(a)(I) amended, p. 1536, § 3, effective May 31; (2) amended, p. 1595, § 4, effective July 1; (2)(b) amended, p. 1252, § 5, effective July 1. L. 96: (2) amended, p. 591, § 2, effective July 1. L. 98: (2)(b)(II) amended, p. 920, § 6, effective July 1. L. 99: (2)(b)(II) amended, p. 620, § 14, effective August 4. L. 2005: IP(2)(b) and (2)(b)(II) amended, p. 71, § 2, effective August 8. L. 2006: (2)(d) added, p. 947, § 3, effective August 7. L. 2009: (2)(b)(II) amended, (SB 09-282), ch. 288, p. 1397, § 58, effective January 1, 2010. L. 2010: (2)(b)(II) amended, (HB 10-1422), ch. 419, p. 2068, § 23, effective August 11. L. 2012: (2)(e) added, (HB 12-1310), ch. 268, p. 1392, § 3, effective June 7. L. 2015: (1), (2)(a)(I), and (2)(b)(III) amended, (SB 15-283), ch. 301, p. 1239, § 4, effective July 1. L. 2018: IP and (2)(d) amended, (SB 18-092), ch. 38, p. 399, § 10, effective August 8. L. 2022: (2)(d) amended, (HB 22-1295), ch. 123, p. 828, § 28, effective July 1.

Editor's note: Amendments to subsection (2) by Senate Bill 94-088, Senate Bill 94-164, and House Bill 94-1345 were harmonized.

Cross references: For the legislative intent contained in the 2006 act enacting subsection (2)(d), see section 8(2) of chapter 208, Session Laws of Colorado 2006. For the legislative declaration in SB 18-092, see section 1 of chapter 38, Session Laws of Colorado 2018.

ANNOTATION

Law reviews. For article, "Rights of the Debtor and Creditor to Retirement Plan Benefits", see 20 Colo. Law. 199 (1991).

The definition of "earnings" before 1991 was broad enough to include tips. United Guar. Residential Ins. Co. v. Dimmick, 916 P.2d 638 (Colo. App. 1996).