1-1 By: Carona S.B. No. 84
1-2 (In the Senate - Filed December 7, 1998; January 26, 1999,
1-3 read first time and referred to Committee on Jurisprudence;
1-4 February 18, 1999, reported favorably by the following vote: Yeas
1-5 5, Nays 0; February 18, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to exempting certain property from attachment, execution,
1-9 and seizure for the satisfaction of debts.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subsections (a) and (b), Section 42.0021,
1-12 Property Code, are amended to read as follows:
1-13 (a) In addition to the exemption prescribed by Section
1-14 42.001, a person's right to the assets held in or to receive
1-15 payments, whether vested or not, under any stock bonus, pension,
1-16 profit-sharing, or similar plan, including a retirement plan for
1-17 self-employed individuals, and under any annuity or similar
1-18 contract purchased with assets distributed from that type of plan,
1-19 and under any retirement annuity or account described by Section
1-20 403(b) or 408A of the Internal Revenue Code of 1986, and under any
1-21 individual retirement account or any individual retirement annuity,
1-22 including a simplified employee pension plan, is exempt from
1-23 attachment, execution, and seizure for the satisfaction of debts
1-24 unless the plan, contract, or account does not qualify under the
1-25 applicable provisions of the Internal Revenue Code of 1986. A
1-26 person's right to the assets held in or to receive payments,
1-27 whether vested or not, under a government or church plan or
1-28 contract is also exempt unless the plan or contract does not
1-29 qualify under the definition of a government or church plan under
1-30 the applicable provisions of the federal Employee Retirement Income
1-31 Security Act of 1974. If this subsection is held invalid or
1-32 preempted by federal law in whole or in part or in certain
1-33 circumstances, the subsection remains in effect in all other
1-34 respects to the maximum extent permitted by law.
1-35 (b) Contributions to an individual retirement account or
1-36 annuity that exceed the amounts deductible under the applicable
1-37 provisions of the Internal Revenue Code of 1986 and any accrued
1-38 earnings on such contributions are not exempt under this section
1-39 unless otherwise exempt by law. Amounts qualifying as nontaxable
1-40 rollover contributions under Section 402(a)(5), 403(a)(4),
1-41 403(b)(8), or 408(d)(3) of the Internal Revenue Code of 1986 before
1-42 January 1, 1993, are treated as exempt amounts under Subsection
1-43 (a). In addition, amounts qualifying as nontaxable rollover
1-44 contributions under Section 402(c), 402(e)(6), 402(f), 403(a)(4),
1-45 403(a)(5), 403(b)(8), 403(b)(10), [or] 408(d)(3), or 408A of the
1-46 Internal Revenue Code of 1986 on or after January 1, 1993, are
1-47 treated as exempt amounts under Subsection (a).
1-48 SECTION 2. The change in law made by this Act applies only
1-49 to property that is subject to attachment, execution, and seizure
1-50 for the satisfaction of debts on or after the effective date of
1-51 this Act. Property that was subject to attachment, execution, and
1-52 seizure for the satisfaction of debts before the effective date of
1-53 this Act is covered by the law in effect when the property became
1-54 subject to seizure, and the former law is continued in effect for
1-55 that purpose.
1-56 SECTION 3. The importance of this legislation and the
1-57 crowded condition of the calendars in both houses create an
1-58 emergency and an imperative public necessity that the
1-59 constitutional rule requiring bills to be read on three several
1-60 days in each house be suspended, and this rule is hereby suspended,
1-61 and that this Act take effect and be in force from and after its
1-62 passage, and it is so enacted.
1-63 * * * * *