1-1 By: Solomons, Marchant, Janek, Thompson H.B. No. 76
1-2 (Senate Sponsor - Carona)
1-3 (In the Senate - Received from the House April 9, 1999;
1-4 April 12, 1999, read first time and referred to Committee on
1-5 Jurisprudence; April 22, 1999, reported adversely, with favorable
1-6 Committee Substitute by the following vote: Yeas 4, Nays 0;
1-7 April 22, 1999, sent to printer.)
1-8 COMMITTEE SUBSTITUTE FOR H.B. No. 76 By: Wentworth
1-9 A BILL TO BE ENTITLED
1-10 AN ACT
1-11 relating to exempting certain individual retirement accounts from
1-12 attachment, execution, and seizure for the satisfaction of debts.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Sections 42.0021(a) and (b), Property Code, are
1-15 amended to read as follows:
1-16 (a) In addition to the exemption prescribed by Section
1-17 42.001, a person's right to the assets held in or to receive
1-18 payments, whether vested or not, under any stock bonus, pension,
1-19 profit-sharing, or similar plan, including a retirement plan for
1-20 self-employed individuals, and under any annuity or similar
1-21 contract purchased with assets distributed from that type of plan,
1-22 and under any retirement annuity or account described by Section
1-23 403(b) or 408A of the Internal Revenue Code of 1986, and under any
1-24 individual retirement account or any individual retirement annuity,
1-25 including a simplified employee pension plan, is exempt from
1-26 attachment, execution, and seizure for the satisfaction of debts
1-27 unless the plan, contract, or account does not qualify under the
1-28 applicable provisions of the Internal Revenue Code of 1986. A
1-29 person's right to the assets held in or to receive payments,
1-30 whether vested or not, under a government or church plan or
1-31 contract is also exempt unless the plan or contract does not
1-32 qualify under the definition of a government or church plan under
1-33 the applicable provisions of the federal Employee Retirement Income
1-34 Security Act of 1974. If this subsection is held invalid or
1-35 preempted by federal law in whole or in part or in certain
1-36 circumstances, the subsection remains in effect in all other
1-37 respects to the maximum extent permitted by law.
1-38 (b) Contributions to an individual retirement account, other
1-39 than contributions to a Roth IRA described in Section 408A,
1-40 Internal Revenue Code of 1986, or annuity that exceed the amounts
1-41 deductible under the applicable provisions of the Internal Revenue
1-42 Code of 1986 and any accrued earnings on such contributions are not
1-43 exempt under this section unless otherwise exempt by law. Amounts
1-44 qualifying as nontaxable rollover contributions under Section
1-45 402(a)(5), 403(a)(4), 403(b)(8), or 408(d)(3) of the Internal
1-46 Revenue Code of 1986 before January 1, 1993, are treated as exempt
1-47 amounts under Subsection (a). Amounts treated as qualified
1-48 rollover contributions under Section 408A, Internal Revenue Code of
1-49 1986, are treated as exempt amounts under Subsection (a). In
1-50 addition, amounts qualifying as nontaxable rollover contributions
1-51 under Section 402(c), 402(e)(6), 402(f), 403(a)(4), 403(a)(5),
1-52 403(b)(8), 403(b)(10), [or] 408(d)(3), or 408A of the Internal
1-53 Revenue Code of 1986 on or after January 1, 1993, are treated as
1-54 exempt amounts under Subsection (a).
1-55 SECTION 2. (a) This Act takes effect September 1, 1999.
1-56 (b) The change in law made by this Act applies to all
1-57 contributions made under Section 408A, Internal Revenue Code of
1-58 1986, before, on, or after the effective date of this Act.
1-59 SECTION 3. The importance of this legislation and the
1-60 crowded condition of the calendars in both houses create an
1-61 emergency and an imperative public necessity that the
1-62 constitutional rule requiring bills to be read on three several
1-63 days in each house be suspended, and this rule is hereby suspended.
1-64 * * * * *