LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07236-R01- HB.docx 1 of 7 General Assembly Substitute Bill No. 7236 January Session, 2019 AN ACT CONCERNING PR OPERTY THAT IS EXEMP T FROM A JUDGMENT CREDITOR. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 52-352b of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2019): 2 The following property of any natural person shall be exempt: 3 [(a)] (1) Necessary apparel, bedding, foodstuffs, household furniture 4 and appliances; 5 [(b)] (2) Tools, books, instruments, farm animals and livestock feed, 6 which are necessary to the exemptioner in the course of his or her 7 occupation, profession or farming operation; 8 [(c)] (3) Burial plot for the exemptioner and his or her immediate 9 family; 10 [(d)] (4) Public assistance payments and any wages earned by a 11 public assistance recipient under an incentive earnings or similar 12 program; 13 [(e)] (5) Health and disability insurance payments; 14 [(f)] (6) Health aids necessary to enable the exemptioner to work or 15 Substitute Bill No. 7236 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07236- R01-HB.docx } 2 of 7 to sustain health; 16 [(g)] (7) Workers' compensation, Social Security, veterans and 17 unemployment benefits; 18 [(h)] (8) Court-approved payments for child support; 19 [(i)] (9) Arms and military equipment, uniforms or musical 20 instruments owned by any member of the militia or armed forces of 21 the United States; 22 [(j)] (10) One motor vehicle to the value of [three thousand five 23 hundred] seven thousand dollars, provided value shall be determined 24 as the fair market value of the motor vehicle less the amount of all liens 25 and security interests which encumber it; 26 [(k)] (11) Wedding and engagement rings; 27 [(l)] (12) Residential utility deposits for one residence, and one 28 residential security deposit; 29 [(m)] (13) Any assets or interests of an exemptioner in, or payments 30 received by the exemptioner from, a plan or arrangement described in 31 section 52-321a; 32 [(n)] (14) Alimony and support, other than child support, but only 33 to the extent that wages are exempt from execution under section 52-34 361a, as amended by this act; 35 [(o)] (15) An award under a crime reparations act; 36 [(p)] (16) All benefits allowed by any association of persons in this 37 state towards the support of any of its members incapacitated by 38 sickness or infirmity from attending to his usual business; 39 [(q)] (17) All moneys due the exemptioner from any insurance 40 company on any insurance policy issued on exempt property, to the 41 same extent that the property was exempt; 42 Substitute Bill No. 7236 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07236- R01-HB.docx } 3 of 7 [(r)] (18) Any interest of the exemptioner in any property not to 43 exceed in value one thousand dollars; 44 [(s)] (19) Any interest of the exemptioner not to exceed in value four 45 thousand dollars in any accrued dividend or interest under, or loan 46 value of, any unmatured life insurance contract owned by the 47 exemptioner under which the insured is the exemptioner or an 48 individual of whom the exemptioner is a dependent; 49 [(t)] (20) The homestead of the exemptioner to the value of [seventy-50 five thousand dollars, or, in the case of a money judgment arising out 51 of services provided at a hospital, to the value of one hundred twenty-52 five] one hundred fifty thousand dollars, provided value shall be 53 determined as the fair market value of the real property less the 54 amount of any statutory or consensual lien which encumbers it, except 55 that, in the case of a money judgment arising out of a claim of sexual 56 abuse or exploitation of a minor, sexual assault or other wilful, wanton 57 or reckless misconduct committed by a natural person, to the value of 58 seventy-five thousand dollars; and 59 [(u)] (21) Irrevocable transfers of money to an account held by a 60 debt adjuster licensed pursuant to sections 36a-655 to 36a-665, 61 inclusive, for the benefit of creditors of the exemptioner. 62 Sec. 2. Subdivision (1) of subsection (b) of section 12-162 of the 63 general statutes is repealed and the following is substituted in lieu 64 thereof (Effective October 1, 2019): 65 (b) (1) Except as provided in subdivision (2) of this subsection, upon 66 the nonpayment of any property tax or any water or sanitation charges 67 when due, demand having been made therefor as prescribed by law 68 for the collection of such tax or such water or sanitation charges, an 69 alias tax warrant may be issued by the tax collector, which may be in 70 the following form: 71 "To a state marshal of the County of ...., or any constable of the 72 Town of .... Greeting: By authority of the state of Connecticut you are 73 Substitute Bill No. 7236 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07236- R01-HB.docx } 4 of 7 hereby commanded to collect forthwith from .... of .... the sum of .... 74 dollars, the same being the amount of a tax or water or sanitation 75 charges, with interest or penalty and charges which have accumulated 76 thereon, which tax was levied or which water or sanitation charges 77 were imposed by (insert name of town, city or municipality laying the 78 tax or imposing the water or sanitation charges) upon (insert the real 79 estate, personal property, or both, as the case may be,) of said .... as of 80 the .... day of ..... (In like manner insert the amount of any other 81 property tax or other water or sanitation charges which may have been 82 levied or imposed in any other year, including interest or penalty and 83 charges which have accumulated thereon). In default of payment of 84 said amount you are hereby commanded to levy for said tax or taxes 85 or such water or sanitation charges, including interest, penalty and 86 charges, hereinafter referred to as the amount due on such execution, 87 upon any goods and chattels of such person and dispose of the same as 88 the law directs, notwithstanding the provisions of [subsection (j)] 89 subdivision (10) of section 52-352b, and, after having satisfied the 90 amount due on such execution, return the surplus, if any, to him; or, 91 except as otherwise provided in section 12-162, you are to levy upon 92 the real estate of such person and sell such real property pursuant to 93 section 12-157, to pay the amount due on such execution; or you shall, 94 in accordance with the provisions of section 12-162, make demand 95 upon the main office of any financial institution indebted to such 96 person, subject to the provisions of section 52-367a or 52-367b, as if 97 judgment for the amount due on such execution had been entered, for 98 that portion of any type of deposit to the credit of or property held for 99 such person, not exceeding in total value the amount due on such 100 execution; or you are to garnishee the wages due such person from any 101 employer, in the same manner as if a wage execution therefor had been 102 entered, in accordance with section 52-361a. 103 Dated at .... this .... day of .... A.D. 20.., Tax Collector." 104 Sec. 3. Subsection (b) of section 52-321a of the general statutes is 105 repealed and the following is substituted in lieu thereof (Effective 106 Substitute Bill No. 7236 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07236- R01-HB.docx } 5 of 7 October 1, 2019): 107 (b) Nothing in this section shall impair the rights of an alternate 108 payee under a qualified domestic relations order, as defined in Section 109 414(p) of the Internal Revenue Code of 1986, or any subsequent 110 corresponding internal revenue code of the United States, as from time 111 to time amended. Nothing in this section or in [subsection (m)] 112 subdivision (13) of section 52-352b, as amended by this act, shall 113 impair the rights of the state to proceed under section 52-361a to 114 recover the costs of incarceration under section 18-85a and regulations 115 adopted in accordance with section 18-85a from any federal, state or 116 municipal pension, annuity or insurance contract or similar 117 arrangement described in subdivision (5) of subsection (a) of this 118 section, provided the rights of an alternate payee under a qualified 119 domestic relations order, as defined in Section 414(p) of the Internal 120 Revenue Code of 1986, or any subsequent corresponding internal 121 revenue code of the United States, as from time to time amended, shall 122 take precedence over any such recovery. Nothing in this section or in 123 [subsection (m)] subdivision (13) of section 52-352b, as amended by 124 this act, shall impair the rights of a victim of crime to proceed under 125 section 52-361a to recover damages awarded by a court of competent 126 jurisdiction from any federal, state or municipal pension, annuity or 127 insurance contract or similar arrangement described in subdivision (5) 128 of subsection (a) of this section when such damages are the result of a 129 crime committed by a participant or beneficiary of such pension, 130 annuity or insurance contract or similar arrangement, provided the 131 rights of an alternate payee under a qualified domestic relations order, 132 as defined in Section 414(p) of the Internal Revenue Code of 1986, or 133 any subsequent corresponding internal revenue code of the United 134 States, as from time to time amended, shall take precedence over any 135 such recovery. 136 Sec. 4. Section 52-352a of the general statutes is repealed and the 137 following is substituted in lieu thereof (Effective October 1, 2019): 138 [For the purposes of this section and sections 52-352b and 52-353, 139 Substitute Bill No. 7236 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07236- R01-HB.docx } 6 of 7 the following terms shall have the following meanings] As used in this 140 section and sections 52-352b, as amended by this act, and 52-353: 141 [(a)] (1) "Value" means fair market value of the exemptioner's equity 142 or unencumbered interest in the property; 143 [(b)] (2) "Necessary" means reasonably required to meet the needs of 144 the exemptioner and his or her dependents including any special 145 needs by reason of health or physical infirmity; 146 [(c)] (3) "Exempt" means, unless otherwise specified, not subject to 147 any form of process or court order for the purpose of debt collection; 148 [(d)] (4) "Exemptioner" means the natural person entitled to an 149 exemption under this section or section 52-352b, as amended by this 150 act; 151 [(e)] (5) "Homestead" means owner-occupied real property, co-op or 152 mobile manufactured home, as defined in subdivision (1) of section 21-153 64, used as a primary residence. 154 Sec. 5. Subsection (r) of section 52-367b of the general statutes is 155 repealed and the following is substituted in lieu thereof (Effective 156 October 1, 2019): 157 (r) For the purposes of this subsection, "exempt" has the same 158 meaning as provided in [subsection (c)] subdivision (3) of section 52-159 352a, as amended by this act. Funds deposited in an account that has 160 been established for the express purpose of receiving electronic direct 161 deposits of public assistance or of Title IV-D child support payments 162 from the Department of Social Services shall be exempt. 163 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2019 52-352b Sec. 2 October 1, 2019 12-162(b)(1) Sec. 3 October 1, 2019 52-321a(b) Substitute Bill No. 7236 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07236- R01-HB.docx } 7 of 7 Sec. 4 October 1, 2019 52-352a Sec. 5 October 1, 2019 52-367b(r) JUD Joint Favorable Subst.