Bill lets banks forward small garnishments to sheriff to avoid holding unclaimed funds

Senator Morris presented Senate Bill 173, a measure urged by the Louisiana Bankers Association to simplify administration of small garnishments. Morris said many banks are left holding many small amounts "for lots of different judgment creditors" because the extra court step to withdraw funds can cost "$200 or $300," and the new rule would permit banks to forward sums under $1,000 to the sheriff after the statutory time has lapsed instead of waiting for another motion.

A representative of the Louisiana Bankers Association was present in support. Committee members questioned whether the change would affect larger garnishments (the sponsor said amounts $1,000 or greater would still require the full process) and whether the bill could be abused; the sponsor said the bill targets only small amounts to avoid banks holding long‑term, low‑value funds.

The committee reported SB173 favorably by voice vote.