By Carona                                               S.B. No. 84
         76R266 PAM-D                           
                                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 that exceed the amounts deductible under the applicable
 2-7     provisions of the Internal Revenue Code of 1986 and any accrued
 2-8     earnings on such contributions are not exempt under this section
 2-9     unless otherwise exempt by law.  Amounts qualifying as nontaxable
2-10     rollover contributions under Section 402(a)(5), 403(a)(4),
2-11     403(b)(8), or 408(d)(3) of the Internal Revenue Code of 1986 before
2-12     January 1, 1993, are treated as exempt amounts under Subsection
2-13     (a).  In addition, amounts qualifying as nontaxable rollover
2-14     contributions under Section 402(c), 402(e)(6), 402(f), 403(a)(4),
2-15     403(a)(5), 403(b)(8), 403(b)(10), [or] 408(d)(3), or 408A of the
2-16     Internal Revenue Code of 1986 on or after January 1, 1993, are
2-17     treated as exempt amounts under Subsection (a).
2-18           SECTION 2.  The change in law made by this Act applies only
2-19     to property that is subject to attachment, execution, and seizure
2-20     for the satisfaction of debts on or after the effective date of
2-21     this Act.  Property that was subject to attachment, execution, and
2-22     seizure for the satisfaction of debts before the effective date of
2-23     this Act is covered by the law in effect when the property became
2-24     subject to seizure, and the former law is continued in effect for
2-25     that purpose.
2-26           SECTION 3.  The importance of this legislation and the
2-27     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.