Proposition 209 would set a limit on interest rates for debt accrued from receiving healthcare services as equal to either the weekly average one-year constant maturity treasury yield or 3%, whichever is less. It would also increase the amount of value for certain property—including homestead, household furnishings, motor vehicles, and bank account funds—and earnings exempt from attachment, execution, forced sale, and any other debt collection processes.[1][2]*
The amount of a homestead exempt from debt collection would increase from $250,000 to $400,000. The value of household furnishings exempt from debt collection would increase from $6,000 to $15,000. The equity of a motor vehicle exempt from the debt collection process would be increased from $6,000 to $15,000, and if the individual who owes a debt, or their dependent, has a physical disability, this amount would be increased from $12,000 to $25,000. The values of all of the above would be adjusted yearly by the increase in the cost of living.[2]*
The amount of money held in a bank account or other financial institution exempt from debt collection would increase from $300 to $5,000. The disposable earnings subject to debt collection would be 10%, a change from 25%, or 60 times the minimum wage, a change from 30 times the minimum wage, whichever is less.
