This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0029z1.DOCX
DATE: 4/29/2024
HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS
BILL #: HB 29 Value of Motor Vehicles Exempt from Legal Process
SPONSOR(S): Benjamin and others
TIED BILLS: IDEN./SIM. BILLS: SB 158
FINAL HOUSE FLOOR ACTION: 112 Y’s
0 N’s GOVERNOR’S ACTION: Approved
SUMMARY ANALYSIS
HB 29 passed the House on March 5, 2024, as SB 158.
The Florida Constitution allows a debtor to exempt a homestead property, regardless of value, from the claims
of creditors as long as it is used as a residence. In addition to this constitutional exemption of homestead
property and other personal property, Florida law protects certain assets from legal process so that they also
remain beyond a creditor’s reach, including:
Funds held in individual retirement accounts (“IRA”) and other tax-exempt accounts.
The cash surrender value of a life insurance policy and the proceeds of an annuity contract.
Funds held in qualified tuition programs and medical, Coverdell education, and hurricane savings
accounts.
Disability income benefits.
Wages, unless the debtor agrees to waive the exemption in writing.
Social security benefits; unemployment compensation, or public assistance benefits; veterans’ benefits;
alimony, support, or separate maintenance; and stock or pension plans under specified circumstances.
A debtor’s interest in any professionally prescribed health aids for the debtor or for a debtor’s
dependent.
A debtor’s interest in a refund or a credit received or to be received pursuant to the Internal Revenue
Code; however, this exemption is not applicable to a debt owed for child support or spousal support.
A debtor’s interest in personal property, not to exceed $4,000, if the debtor does not claim or receive the
benefits of a homestead exemption; however, this exemption is not applicable to a debt owed for child
support or spousal support.
A debtor’s interest, not to exceed $1,000 in value, in a single motor vehicle.
HB 29 increases the maximum value of an exempt motor vehicle from $1,000 to $5,000.
The bill does not appear to have a fiscal impact on state or local governments.
The bill was approved by the Governor on April 26, 2024, ch. 2024-110, L.O.F., and will become effective on
July 1, 2024.
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DATE: 4/29/2024
I. SUBSTANTIVE INFORMATION
A. EFFECT OF CHANGES:
Background
Constitutional Exemptions
The Florida Constitution allows a debtor to exempt a homestead property, regardless of value, from the
claims of creditors as long as it is used as a residence, as well as up to $1,000 in personal property.
1
Other Asset Exemptions
In addition to the exemption of homestead property and personal property provided by the Florida
Constitution, chapter 222, F.S., protects certain assets from legal process so that they remain out of a
creditor’s reach, including:
Funds held in an individual retirement account (“IRA”) and other tax-exempt accounts.
2
A life insurance policy’s proceeds.
3
A life insurance policy’s cash surrender value and an annuity contract’s proceeds.
4
Funds held in qualified tuition programs and medical, Coverdell education, and hurricane
savings accounts.
5
Disability income benefits.
6
Wages, unless the debtor agrees to waive the exemption in writing.
7
Certain personal property items.
8
Any professionally prescribed health aids.
9
Social security benefits; unemployment compensation, or public assistance benefits; veterans’
benefits; alimony, support, or separate maintenance; and stock or pension plans under
specified circumstances.
10
A debtor’s interest in a motor vehicle, up to $1,000 in value.
11
Effect of the Bill
HB 29 amends section 222.25, F.S., to increase the maximum value for a single exempt motor vehicle
from $1,000 to $5,000.
The bill was approved by the Governor on April 26, 2024, ch. 2024-110, L.O.F., and will become
effective on July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
1
Art. X, s. 4, Fla. Const.
2
S. 222.21, F.S.
3
S. 222.13, F.S.
4
S. 222.14, F.S.
5
S. 222.22, F.S.
6
S. 222.18, F.S.
7
Ss. 222.11 and 225.15, F.S.
8
S. 222.061, F.S.
9
S. 222.25, F.S.
10
S. 222.201, F.S.
11
S. 222.25(1), F.S.
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DATE: 4/29/2024
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.