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AN ACT
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relating to the exemption of certain property from seizure by |
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creditors. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1108.052, Insurance Code, is amended to |
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read as follows: |
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Sec. 1108.052. EXEMPTIONS UNAFFECTED BY BENEFICIARY |
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DESIGNATION. The exemptions provided by Section 1108.051 apply |
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regardless of whether: |
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(1) the power to change the beneficiary is reserved to |
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the insured; or |
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(2) the insured or the insured's estate is a |
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[contingent] beneficiary. |
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SECTION 2. Subsections (a) and (b), Section 42.0021, |
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Property Code, are amended to read as follows: |
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(a) In addition to the exemption prescribed by Section |
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42.001, a person's right to the assets held in or to receive |
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payments, whether vested or not, under any stock bonus, pension, |
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annuity, deferred compensation, profit-sharing, or similar plan, |
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including a retirement plan for self-employed individuals, or a |
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simplified employee pension plan, an individual retirement account |
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or individual retirement annuity, including an inherited |
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individual retirement account, [or] individual retirement annuity, |
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Roth IRA, or inherited Roth IRA, or a health savings account, and |
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under any annuity or similar contract purchased with assets |
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distributed from that type of plan or account, is exempt from |
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attachment, execution, and seizure for the satisfaction of debts to |
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the extent the plan, contract, annuity, or account is exempt from |
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federal income tax, or to the extent federal income tax on the |
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person's interest is deferred until actual payment of benefits to |
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the person under Section 223, 401(a), 403(a), 403(b), 408(a), 408A, |
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457(b), or 501(a), Internal Revenue Code of 1986, including a |
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government plan or church plan described by Section 414(d) or (e), |
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Internal Revenue Code of 1986. For purposes of this subsection, the |
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interest of a person in a plan, annuity, account, or contract |
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acquired by reason of the death of another person, whether as an |
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owner, participant, beneficiary, survivor, coannuitant, heir, or |
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legatee, is exempt to the same extent that the interest of the |
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person from whom the plan, annuity, account, or contract was |
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acquired was exempt on the date of the person's death. If this |
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subsection is held invalid or preempted by federal law in whole or |
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in part or in certain circumstances, the subsection remains in |
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effect in all other respects to the maximum extent permitted by law. |
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(b) Contributions to an individual retirement account[,
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other than contributions to a Roth IRA described in Section 408A,
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Internal Revenue Code of 1986, or an annuity] that exceed the |
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amounts permitted [deductible] under the applicable provisions of |
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the Internal Revenue Code of 1986 and any accrued earnings on such |
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contributions are not exempt under this section unless otherwise |
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exempt by law. Amounts qualifying as nontaxable rollover |
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contributions under Section 402(a)(5), 403(a)(4), 403(b)(8), or |
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408(d)(3) of the Internal Revenue Code of 1986 before January 1, |
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1993, are treated as exempt amounts under Subsection (a). Amounts |
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treated as qualified rollover contributions under Section 408A, |
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Internal Revenue Code of 1986, are treated as exempt amounts under |
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Subsection (a). In addition, amounts qualifying as nontaxable |
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rollover contributions under Section 402(c), 402(e)(6), 402(f), |
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403(a)(4), 403(a)(5), 403(b)(8), 403(b)(10), 408(d)(3), or 408A of |
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the Internal Revenue Code of 1986 on or after January 1, 1993, are |
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treated as exempt amounts under Subsection (a). Amounts qualifying |
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as nontaxable rollover contributions under Section 223(f)(5) of the |
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Internal Revenue Code of 1986 on or after January 1, 2004, are |
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treated as exempt amounts under Subsection (a). |
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SECTION 3. The changes in law made by this Act do not apply |
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to property that is, as of the effective date of this Act, subject |
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to a voluntary bankruptcy proceeding or to a valid claim of a holder |
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of a final judgment who has, by levy, garnishment, or other legal |
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process, obtained rights superior to those that would otherwise be |
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held by a trustee in bankruptcy if a bankruptcy petition were then |
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pending against the debtor. That property is subject to the law as |
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it existed immediately before the effective date of this Act, and |
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the prior law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2013. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 649 passed the Senate on |
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March 21, 2013, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 649 passed the House on |
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May 2, 2013, by the following vote: Yeas 146, Nays 1, two present |
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not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |