By: Carona S.B. No. 84
A BILL TO BE ENTITLED
AN ACT
1-1 relating to exempting certain property from attachment, execution,
1-2 and seizure for the satisfaction of debts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsections (a) and (b), Section 42.0021,
1-5 Property Code, are amended to read as follows:
1-6 (a) In addition to the exemption prescribed by Section
1-7 42.001, a person's right to the assets held in or to receive
1-8 payments, whether vested or not, under any stock bonus, pension,
1-9 profit-sharing, or similar plan, including a retirement plan for
1-10 self-employed individuals, and under any annuity or similar
1-11 contract purchased with assets distributed from that type of plan,
1-12 and under any retirement annuity or account described by Section
1-13 403(b) or 408A of the Internal Revenue Code of 1986, and under any
1-14 individual retirement account or any individual retirement annuity,
1-15 including a simplified employee pension plan, is exempt from
1-16 attachment, execution, and seizure for the satisfaction of debts
1-17 unless the plan, contract, or account does not qualify under the
1-18 applicable provisions of the Internal Revenue Code of 1986. A
1-19 person's right to the assets held in or to receive payments,
1-20 whether vested or not, under a government or church plan or
1-21 contract is also exempt unless the plan or contract does not
1-22 qualify under the definition of a government or church plan under
1-23 the applicable provisions of the federal Employee Retirement Income
1-24 Security Act of 1974. If this subsection is held invalid or
2-1 preempted by federal law in whole or in part or in certain
2-2 circumstances, the subsection remains in effect in all other
2-3 respects to the maximum extent permitted by law.
2-4 (b) Contributions to an individual retirement account or
2-5 annuity that exceed the amounts deductible under the applicable
2-6 provisions of the Internal Revenue Code of 1986 and any accrued
2-7 earnings on such contributions are not exempt under this section
2-8 unless otherwise exempt by law. Amounts qualifying as nontaxable
2-9 rollover contributions under Section 402(a)(5), 403(a)(4),
2-10 403(b)(8), or 408(d)(3) of the Internal Revenue Code of 1986 before
2-11 January 1, 1993, are treated as exempt amounts under Subsection
2-12 (a). In addition, amounts qualifying as nontaxable rollover
2-13 contributions under Section 402(c), 402(e)(6), 402(f), 403(a)(4),
2-14 403(a)(5), 403(b)(8), 403(b)(10), [or] 408(d)(3), or 408A of the
2-15 Internal Revenue Code of 1986 on or after January 1, 1993, are
2-16 treated as exempt amounts under Subsection (a).
2-17 SECTION 2. The change in law made by this Act applies only
2-18 to property that is subject to attachment, execution, and seizure
2-19 for the satisfaction of debts on or after the effective date of
2-20 this Act. Property that was subject to attachment, execution, and
2-21 seizure for the satisfaction of debts before the effective date of
2-22 this Act is covered by the law in effect when the property became
2-23 subject to seizure, and the former law is continued in effect for
2-24 that purpose.
2-25 SECTION 3. The importance of this legislation and the
2-26 crowded condition of the calendars in both houses create an
3-1 emergency and an imperative public necessity that the
3-2 constitutional rule requiring bills to be read on three several
3-3 days in each house be suspended, and this rule is hereby suspended,
3-4 and that this Act take effect and be in force from and after its
3-5 passage, and it is so enacted.