By Janek H.B. No. 1081
76R4788 PAM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting certain property from attachment, execution,
1-3 and seizure for the satisfaction of debts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 42.0021(a) and (b), Property Code, are
1-6 amended to read as follows:
1-7 (a) In addition to the exemption prescribed by Section
1-8 42.001, a person's right to the assets held in or to receive
1-9 payments, whether vested or not, under any stock bonus, pension,
1-10 profit-sharing, or similar plan, including a retirement plan for
1-11 self-employed individuals, and under any annuity or similar
1-12 contract purchased with assets distributed from that type of plan,
1-13 and under any retirement annuity or account described by Section
1-14 403(b) or 408A of the Internal Revenue Code of 1986, and under any
1-15 individual retirement account or any individual retirement annuity,
1-16 including a simplified employee pension plan, is exempt from
1-17 attachment, execution, and seizure for the satisfaction of debts
1-18 unless the plan, contract, or account does not qualify under the
1-19 applicable provisions of the Internal Revenue Code of 1986. A
1-20 person's right to the assets held in or to receive payments,
1-21 whether vested or not, under a government or church plan or
1-22 contract is also exempt unless the plan or contract does not
1-23 qualify under the definition of a government or church plan under
1-24 the applicable provisions of the federal Employee Retirement Income
2-1 Security Act of 1974. If this subsection is held invalid or
2-2 preempted by federal law in whole or in part or in certain
2-3 circumstances, the subsection remains in effect in all other
2-4 respects to the maximum extent permitted by law.
2-5 (b) Contributions to an individual retirement account or
2-6 annuity, excluding an individual retirement account described by
2-7 Section 408A of the Internal Revenue Code of 1986, that exceed the
2-8 amounts deductible under the applicable provisions of the Internal
2-9 Revenue Code of 1986 and any accrued earnings on such contributions
2-10 are not exempt under this section unless otherwise exempt by law.
2-11 Amounts qualifying as nontaxable rollover contributions under
2-12 Section 402(a)(5), 403(a)(4), 403(b)(8), or 408(d)(3) of the
2-13 Internal Revenue Code of 1986 before January 1, 1993, are treated
2-14 as exempt amounts under Subsection (a). Amounts [In addition,
2-15 amounts] qualifying as nontaxable rollover contributions under
2-16 Section 402(c), 402(e)(6), 402(f), 403(a)(4), 403(a)(5), 403(b)(8),
2-17 403(b)(10), or 408(d)(3) of the Internal Revenue Code of 1986 on or
2-18 after January 1, 1993, are treated as exempt amounts under
2-19 Subsection (a). Amounts considered qualified rollover
2-20 contributions under Section 408A of the Internal Revenue Code of
2-21 1986 are treated as exempt amounts under Subsection (a).
2-22 SECTION 2. (a) This Act takes effect September 1, 1999.
2-23 (b) The change in law made by this Act applies only to
2-24 property that is subject to attachment, execution, and seizure for
2-25 the satisfaction of debts on or after the effective date of this
2-26 Act. Property that was subject to attachment, execution, and
2-27 seizure for the satisfaction of debts before the effective date of
3-1 this Act is covered by the law in effect when the property became
3-2 subject to seizure, and the former law is continued in effect for
3-3 that purpose.
3-4 SECTION 3. The importance of this legislation and the
3-5 crowded condition of the calendars in both houses create an
3-6 emergency and an imperative public necessity that the
3-7 constitutional rule requiring bills to be read on three several
3-8 days in each house be suspended, and this rule is hereby suspended.