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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption of certain personal property from seizure |
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under a court order to collect a judgment on a consumer debt. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.002, Civil Practice and Remedies |
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Code, is amended by adding Subsections (i), (j), and (k) to read as |
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follows: |
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(i) A court order under this section to collect a judgment |
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on a consumer debt, as defined by Section 392.001, Finance Code, |
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must exempt from freezing and turnover an amount equal to $3,000 to |
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cover basic needs. The order must direct the judgment creditor or |
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receiver to apply the exemption under this subsection to amounts in |
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a demand deposit account first, followed by any other accounts, as |
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applicable. If the judgment debtor has more than one demand deposit |
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account or other combination of accounts, the exemption shall be |
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applied to the largest demand deposit account first followed by any |
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additional accounts in the order of most to least funds available. |
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The exemption provided by this subsection includes any amounts |
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protected under 31 C.F.R. Part 212 and does not limit amounts |
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protected under other exemptions to the extent those exemptions |
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exceed the amount of the exemption prescribed by this subsection. |
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This subsection does not apply to the enforcement of court-ordered |
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alimony, child support, or spousal maintenance payments. |
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(j) In implementing Subsection (i) with regard to an account |
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held by a financial institution on behalf of a judgment debtor, a |
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court order under this section must direct the judgment creditor or |
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receiver to send a levy letter to the financial institution. With |
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that levy letter, the judgment creditor or receiver shall include |
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the form promulgated under Subsection (k). |
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(k) The supreme court shall promulgate a form that |
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establishes a simple and streamlined process for a financial |
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institution to implement the exemption provided by Subsection (i). |
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SECTION 2. Section 31.010(a), Civil Practice and Remedies |
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Code, is amended to read as follows: |
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(a) A financial institution that receives a request to turn |
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over assets or financial information of a judgment debtor to a |
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judgment creditor or a receiver under a turnover order or |
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receivership under Section 31.002 shall be provided and may rely |
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on: |
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(1) a certified copy of the order or injunction of the |
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court; [or] |
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(2) a certified copy of the order of appointment of a |
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receiver under Section 64.001, including a certified copy of: |
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(A) any document establishing the qualification |
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of the receiver under Section 64.021; |
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(B) the sworn affidavit under Section 64.022; and |
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(C) the bond under Section 64.023; or |
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(3) a form promulgated under Section 31.002(k). |
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SECTION 3. (a) Not later than May 1, 2024, the Supreme |
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Court of Texas shall promulgate a form for purposes of Section |
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31.002(k), Civil Practice and Remedies Code, as added by this Act. |
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(b) This section takes effect September 1, 2023. |
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SECTION 4. Except as otherwise provided by this Act, this |
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Act takes effect September 1, 2024. |