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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption of certain personal property from |
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garnishment, attachment, execution, or other seizure by creditors. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 42.001, Property Code, is amended by |
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amending Subsection (b) and adding Subsection (f) to read as |
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follows: |
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(b) The following personal property is exempt from seizure |
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and is not included in the aggregate limitations prescribed by |
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Subsection (a): |
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(1) current wages for personal services, except for |
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the enforcement of court-ordered child support payments; |
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(2) professionally prescribed health aids of a debtor |
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or a dependent of a debtor; |
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(3) alimony, support, or separate maintenance |
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received or to be received by the debtor for the support of the |
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debtor or a dependent of the debtor; [and] |
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(4) a religious bible or other book containing sacred |
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writings of a religion that is seized by a creditor other than a |
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lessor of real property who is exercising the lessor's contractual |
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or statutory right to seize personal property after a tenant |
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breaches a lease agreement for or abandons the real property; and |
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(5) a total amount on deposit in one or more accounts |
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equal to the monthly equivalent of 250% of the federal poverty |
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guidelines for a family of four, except for the enforcement of |
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court-ordered alimony, child support, or spousal maintenance |
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payments. |
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(f) Notwithstanding any other law, a judgment debtor is not |
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required to assert an exemption from seizure before accessing the |
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amount described by Subsection (b)(5). |
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SECTION 2. Subchapter A, Chapter 22, Government Code, is |
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amended by adding Section 22.0042 to read as follows: |
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Sec. 22.0042. RULES REGARDING EXEMPTIONS FROM SEIZURE OF |
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PROPERTY; FORM. (a) The supreme court shall adopt rules that: |
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(1) establish a simple and expedited procedure for a |
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judgment debtor to assert an exemption to the seizure of personal |
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property by a judgment creditor or a turnover receiver; |
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(2) require a court to stay a proceeding, for a |
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reasonable period, to allow for the assertion of an exemption under |
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Subdivision (1); and |
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(3) if a judgment debtor timely asserts an exemption |
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under Subdivision (1), require a court to promptly set a hearing and |
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stay proceedings until a hearing is held. |
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(b) Rules adopted under this section shall require the |
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provision of a notice in plain language to a judgment debtor |
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regarding the right to assert one or more exemptions under |
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Subsection (a)(1). The notice must: |
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(1) be provided to the judgment debtor not later than |
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the third day after the date that an account owned by the judgment |
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debtor is seized by the judgment creditor; |
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(2) be in English with an integrated Spanish |
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translation that can be readily understood by the public and the |
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court; |
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(3) include the form promulgated under Subsection (c); |
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(4) list all exemptions under state and federal law to |
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the seizure of personal property; and |
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(5) provide information for accessing free or low-cost |
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legal assistance. |
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(c) Rules adopted under this section shall include the |
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promulgation of a form in plain language for asserting an exemption |
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under Subsection (a)(1). A form promulgated under this subsection |
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must: |
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(1) be in English with an integrated Spanish |
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translation that can be readily understood by the public and the |
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court; and |
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(2) include instructions for the use of the form. |
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(d) A court shall accept a form promulgated under Subsection |
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(c) unless the form has been completed in a manner that causes a |
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substantive defect that cannot be cured. |
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SECTION 3. Section 31.002, Civil Practices and Remedies |
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Code is amended by adding Subsection (i) to read as follows: |
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(i) For collection of judgments on consumer debt, as defined |
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by Texas Finance Code Section 392.001(2), a court order under this |
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section must exempt a total amount on deposit in one or more |
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accounts equal to the monthly equivalent of 250% of the federal |
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poverty guidelines for a family of four from freezing and turnover. |
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This subsection does not apply to the enforcement of court-ordered |
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alimony, child support, or spousal maintenance payments. |
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SECTION 4. Chapter 63, Civil Practices and Remedies Code, |
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is amended by adding Section 63.009 to read as follows: |
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Sec. 63.009 EXEMPTION FOR BASIC NEEDS. For collection of |
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judgments on consumer debt, as defined by Texas Finance Code |
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Section 392.001(2), a total amount on deposit in one or more |
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accounts equal to the monthly equivalent of 250% of the federal |
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poverty guidelines for a family of four is exempt and shall not be |
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frozen or turned over. A writ of garnishment issued under this |
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chapter to collect a consumer debt must instruct the garnishee to |
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exempt this total amount. This section does not apply to the |
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enforcement of court-ordered alimony, child support, or spousal |
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maintenance payments. |
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SECTION 5. Not later than May 1, 2022, the Supreme Court of |
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Texas shall adopt rules and promulgate forms under Section 22.0042, |
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Government Code, as added by this Act. |
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SECTION 6. This Act takes effect September 1, 2021. |