(a) Except as provided in subdivision (e), if money is owing and unpaid to the judgment debtor by a state agency, the judgment creditor shall file the abstract or certified copy of the judgment and the affidavit with the state agency owing the money to the judgment debtor prior to the time the state agency presents the claim of the judgment debtor to the Controller. Where the affidavit is prepared under subdivision (c) of Section 708.730, the affidavit shall be filed with the Department of Child Support Services, and no abstract need be filed. Filing of the affidavit with the department shall be sufficient to require the Controller to transfer the funds claimed by the judgment debtor, notwithstanding that the claim of the judgment debtor has been filed with another state agency.
§ 708.740.Filing Abstract Or Copy of Judgment and Affidavit With State Agency Owing Money
Title 9. Enforcement of Judgments · Division 2 · Chapter 6. Miscellaneous Creditors' Remedies · Article 8. Collection of Judgment Where Judgment Debtor Is Creditor of Public Entity · Last amended 2000 · Last verified July 28, 2026
In one sentenceSection 708.740 requires the creditor to file the abstract and affidavit with the state agency before it presents the debtor's claim to the Controller, directs the agency to note the filing and amount, and requires the Controller to deduct amounts owed the state, deposit the balance needed to satisfy the judgment with the court, and pay any remainder to the debtor.
Full Text of § 708.740
(b) When presenting the claim of the judgment debtor to the Controller, the state agency shall do all of the following:
(1) Note the fact of the filing of the abstract or certified copy of the judgment and the affidavit.
(2) State the amount required to satisfy the judgment as shown by the affidavit.
(3) State any amounts advanced to the judgment debtor by the state, or owed by the judgment debtor to the state, for expenses or for any other purpose.
(c) Except as provided in subdivisions (d) and (e), to discharge the claim of the judgment debtor, the Controller shall (1) deposit with the court, by a warrant or check payable to the court, the amount due the judgment debtor (after deducting an amount sufficient to reimburse the state for any amounts advanced to the judgment debtor or owed by the judgment debtor to the state) required to satisfy the money judgment as shown by the affidavit in full or to the greatest extent and (2) pay the balance thereof, if any, to the judgment debtor.
(d) Where an affidavit stating the existence of a judgment for support has been submitted to the Department of Child Support Services, pursuant to subdivision (c) of Section 708.730, to discharge the claim of a judgment debtor, the Controller shall direct payment to the county agency designated by the local child support agency in his or her affidavit.
(e) Where the judgment is for support and the money owed is for lottery winnings or a refund of overpayment of tax, penalty, interest, or interest allowable with respect to an overpayment under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code, and the support obligation is not being enforced pursuant to Section 17400 of the Family Code, the judgment creditor may file the abstract or certified copy of the judgment with the local child support agency of the county in which the support judgment is entered or registered. The local child support agency shall then file the claim of the judgment creditor pursuant to subdivision (c) of Section 708.730. When funds are received by the local child support agency, it shall discharge any claim of the judgment debtor by forwarding those sums to the clerk of the court pursuant to subdivision (c) of this section. Any and all notices otherwise required of a judgment creditor or the clerk of the court, and any litigation to enforce rights under this subdivision shall be the responsibility of the judgment creditor, the same as if service had been directly on the Controller without the intervention of the local child support agency.
(f) Where the claim of the judgment debtor is less than ten dollars ($10) and the claim of the judgment creditor arises under an affidavit filed pursuant to subdivision (c) of Section 708.730, the Controller may disregard the claim of the judgment creditor and forward any and all sums due to the judgment debtor. In the event that there is more than one claimant for a refund, the Franchise Tax Board shall have discretion in allocating the overpayment among claimants.
(g) Should two or more local child support agencies submit claims on behalf of a judgment creditor, the Controller in his or her discretion may select which claim or claims he or she shall honor.
(h) Any claims which are honored in behalf of a judgment creditor shall be considered as refunds of tax overpayments to the judgment debtor.
(i) For purposes of this section, "support" means an obligation owing on behalf of a child, spouse, or family, or combination thereof.
Plain-English Summary
This section works through the mechanics of getting money out of a state agency and into the court's hands. The creditor files the abstract and affidavit with the specific state agency that owes the debtor money, and has to do so before that agency sends the debtor's claim along to the Controller for payment. Where the filing rests on the child-support affidavit procedure in § 708.730(c), the creditor instead files with the Department of Child Support Services, and no abstract is needed.
When the state agency presents the debtor's claim to the Controller, it has to flag that the abstract and affidavit were filed, state the amount needed to satisfy the judgment, and disclose any amounts the state has advanced to the debtor or that the debtor owes the state.
The Controller then does the actual splitting: after subtracting anything owed to the state, the Controller deposits with the court whatever is needed to satisfy the judgment, in full or as far as the available funds go, and pays whatever is left over to the debtor. Subdivisions (d) through (i) add special handling for support cases, small claims under ten dollars, and competing claims from multiple local child support agencies.
Frequently Asked Questions
When must the creditor file the abstract and affidavit with the state agency?
Before the state agency presents the judgment debtor's claim to the Controller for payment.
What must the state agency tell the Controller when presenting the claim?
That the abstract and affidavit were filed, the amount needed to satisfy the judgment, and any amounts advanced to or owed by the debtor.
How does the Controller divide the money owed to the debtor?
After deducting amounts owed to the state, the Controller deposits with the court the amount needed to satisfy the judgment, in full or to the extent funds allow, and pays any remaining balance to the debtor.
What happens if the debtor's claim is less than ten dollars?
Under subdivision (f), the Controller may disregard the creditor's claim and forward the full amount to the debtor.
Amendment History
Amended by Stats 2000 ch 808 (AB 1358), s 19, eff. 9/28/2000.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: controller deposit judgment californiastate agency owes money judgment debtor