Connecticut 2021 Regular Session

Connecticut House Bill HB06466 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
	3	+	LCO 3425 \\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06466-R01-
	4	+	HB.docx
	5	+	1 of 7
3	6
4		-	House Bill No. 6466
	7	+	General Assembly Raised Bill No. 6466
	8	+	January Session, 2021
	9	+	LCO No. 3425
5	10
6		-	Public Act No. 21-161
	11	+
	12	+	Referred to Committee on JUDICIARY
	13	+
	14	+
	15	+	Introduced by:
	16	+	(JUD)
	17	+
7	18
8	19
9	20		AN ACT CONCERNING PR OPERTY THAT IS EXEMP T FROM A
10	21		JUDGMENT CREDITOR.
11	22		Be it enacted by the Senate and House of Representatives in General
12	23		Assembly convened:
13	24
14		-	Section 1. Section 52-352b of the general statutes is repealed and the
15		-	following is substituted in lieu thereof (Effective October 1, 2021):
16		-	The following property of any natural person shall be exempt:
17		-	[(a)] (1) Necessary apparel, bedding, foodstuffs, household furniture
18		-	and appliances;
19		-	[(b)] (2) Tools, books, instruments, farm animals and livestock feed,
20		-	which are necessary to the exemptioner in the course of his or her
21		-	occupation, profession or farming operation;
22		-	[(c)] (3) Burial plot for the exemptioner and his or her immediate
23		-	family;
24		-	[(d)] (4) Public assistance payments and any wages earned by a public
25		-	assistance recipient under an incentive earnings or similar program;
26		-	[(e)] (5) Health and disability insurance payments;
27		-	[(f)] (6) Health aids necessary to enable the exemptioner to work or to House Bill No. 6466
	25	+	Section 1. Section 52-352b of the general statutes is repealed and the 1
	26	+	following is substituted in lieu thereof (Effective October 1, 2021): 2
	27	+	The following property of any natural person shall be exempt: 3
	28	+	[(a)] (1) Necessary apparel, bedding, foodstuffs, household furniture 4
	29	+	and appliances; 5
	30	+	[(b)] (2) Tools, books, instruments, farm animals and livestock feed, 6
	31	+	which are necessary to the exemptioner in the course of his or her 7
	32	+	occupation, profession or farming operation; 8
	33	+	[(c)] (3) Burial plot for the exemptioner and his or her immediate 9
	34	+	family; 10
	35	+	[(d)] (4) Public assistance payments and any wages earned by a public 11
	36	+	assistance recipient under an incentive earnings or similar program; 12 Raised Bill No. 6466
28	37
29		-	Public Act No. 21-161 2 of 7
30	38
31		-	sustain health;
32		-	[(g)] (7) Workers' compensation, Social Security, veterans and
33		-	unemployment benefits;
34		-	[(h)] (8) Court-approved payments for child support;
35		-	[(i)] (9) Arms and military equipment, uniforms or musical
36		-	instruments owned by any member of the militia or armed forces of the
37		-	United States;
38		-	[(j) One motor vehicle] (10) Up to two motor vehicles to the value of
39		-	[three thousand five hundred] seven thousand dollars in the aggregate,
40		-	provided value shall be determined as the fair market value of the motor
41		-	[vehicle] vehicles less the amount of all liens and security interests
42		-	which encumber [it] them;
43		-	[(k)] (11) Wedding and engagement rings;
44		-	[(l)] (12) Residential utility deposits for one residence, and one
45		-	residential security deposit;
46		-	[(m)] (13) Any assets or interests of an exemptioner in, or payments
47		-	received by the exemptioner from, a plan or arrangement described in
48		-	section 52-321a, as amended by this act;
49		-	[(n)] (14) Alimony and support, other than child support, but only to
50		-	the extent that wages are exempt from execution under section 52-361a;
51		-	[(o)] (15) An award under a crime reparations act;
52		-	[(p)] (16) All benefits allowed by any association of persons in this
53		-	state towards the support of any of its members incapacitated by
54		-	sickness or infirmity from attending to his usual business;
55		-	[(q)] (17) All moneys due the exemptioner from any insurance House Bill No. 6466
	39	+	LCO 3425 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06466-
	40	+	R01-HB.docx }
	41	+	2 of 7
56	42
57		-	Public Act No. 21-161 3 of 7
	43	+	[(e)] (5) Health and disability insurance payments; 13
	44	+	[(f)] (6) Health aids necessary to enable the exemptioner to work or to 14
	45	+	sustain health; 15
	46	+	[(g)] (7) Workers' compensation, Social Security, veterans and 16
	47	+	unemployment benefits; 17
	48	+	[(h)] (8) Court-approved payments for child support; 18
	49	+	[(i)] (9) Arms and military equipment, uniforms or musical 19
	50	+	instruments owned by any member of the militia or armed forces of the 20
	51	+	United States; 21
	52	+	[(j)] (10) One motor vehicle to the value of [three thousand five 22
	53	+	hundred] seven thousand dollars, provided value shall be determined 23
	54	+	as the fair market value of the motor vehicle less the amount of all liens 24
	55	+	and security interests which encumber it; 25
	56	+	[(k)] (11) Wedding and engagement rings; 26
	57	+	[(l)] (12) Residential utility deposits for one residence, and one 27
	58	+	residential security deposit; 28
	59	+	[(m)] (13) Any assets or interests of an exemptioner in, or payments 29
	60	+	received by the exemptioner from, a plan or arrangement described in 30
	61	+	section 52-321a, as amended by this act; 31
	62	+	[(n)] (14) Alimony and support, other than child support, but only to 32
	63	+	the extent that wages are exempt from execution under section 52-361a; 33
	64	+	[(o)] (15) An award under a crime reparations act; 34
	65	+	[(p)] (16) All benefits allowed by any association of persons in this 35
	66	+	state towards the support of any of its members incapacitated by 36
	67	+	sickness or infirmity from attending to his usual business; 37
	68	+	[(q)] (17) All moneys due the exemptioner from any insurance 38 Raised Bill No. 6466
58	69
59		-	company on any insurance policy issued on exempt property, to the
60		-	same extent that the property was exempt;
61		-	[(r)] (18) Any interest of the exemptioner in any property not to
62		-	exceed in value one thousand dollars;
63		-	[(s)] (19) Any interest of the exemptioner not to exceed in value four
64		-	thousand dollars in any accrued dividend or interest under, or loan
65		-	value of, any unmatured life insurance contract owned by the
66		-	exemptioner under which the insured is the exemptioner or an
67		-	individual of whom the exemptioner is a dependent;
68		-	(20) The cash surrender value of any life insurance policy issued upon
69		-	the life of a citizen or resident of this state, unless the life insurance
70		-	policy was assigned to or was effected for the benefit of the creditor or
71		-	unless the purchase, sale, or transfer of the life insurance policy is made
72		-	with the intent to defraud the creditor;
73		-	[(t)] (21) The homestead of the exemptioner to the value of [seventy-
74		-	five thousand dollars, or, in the case of a money judgment arising out of
75		-	services provided at a hospital, to the value of one hundred twenty-five
76		-	thousand dollars] two hundred fifty thousand dollars, provided value
77		-	shall be determined as the fair market value of the real property less the
78		-	amount of any statutory or consensual lien which encumbers it, except
79		-	that, in the case of a money judgment arising out of a claim of sexual
80		-	abuse or exploitation of a minor, sexual assault or other wilful, wanton,
81		-	or reckless misconduct committed by a natural person, to the value of
82		-	seventy-five thousand dollars; and
83		-	[(u)] (22) Irrevocable transfers of money to an account held by a debt
84		-	adjuster licensed pursuant to sections 36a-655 to 36a-665, inclusive, for
85		-	the benefit of creditors of the exemptioner.
86		-	Sec. 2. Subdivision (1) of subsection (b) of section 12-162 of the general
87		-	statutes is repealed and the following is substituted in lieu thereof House Bill No. 6466
88	70
89		-	Public Act No. 21-161 4 of 7
	71	+	LCO 3425 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06466-
	72	+	R01-HB.docx }
	73	+	3 of 7
90	74
91		-	(Effective October 1, 2021):
92		-	(b) (1) Except as provided in subdivision (2) of this subsection, upon
93		-	the nonpayment of any property tax or any water or sanitation charges
94		-	when due, demand having been made therefor as prescribed by law for
95		-	the collection of such tax or such water or sanitation charges, an alias tax
96		-	warrant may be issued by the tax collector, which may be in the
97		-	following form:
98		-	"To a state marshal of the County of ...., or any constable of the Town
99		-	of .... Greeting: By authority of the state of Connecticut you are hereby
100		-	commanded to collect forthwith from .... of .... the sum of .... dollars, the
101		-	same being the amount of a tax or water or sanitation charges, with
102		-	interest or penalty and charges which have accumulated thereon, which
103		-	tax was levied or which water or sanitation charges were imposed by
104		-	(insert name of town, city or municipality laying the tax or imposing the
105		-	water or sanitation charges) upon (insert the real estate, personal
106		-	property, or both, as the case may be,) of said .... as of the .... day of .....
107		-	(In like manner insert the amount of any other property tax or other
108		-	water or sanitation charges which may have been levied or imposed in
109		-	any other year, including interest or penalty and charges which have
110		-	accumulated thereon). In default of payment of said amount you are
111		-	hereby commanded to levy for said tax or taxes or such water or
112		-	sanitation charges, including interest, penalty and charges, hereinafter
113		-	referred to as the amount due on such execution, upon any goods and
114		-	chattels of such person and dispose of the same as the law directs,
115		-	notwithstanding the provisions of [subsection (j)] subdivision (10) of
116		-	section 52-352b, and, after having satisfied the amount due on such
117		-	execution, return the surplus, if any, to him; or, except as otherwise
118		-	provided in section 12-162, you are to levy upon the real estate of such
119		-	person and sell such real property pursuant to section 12-157, to pay the
120		-	amount due on such execution; or you shall, in accordance with the
121		-	provisions of section 12-162, make demand upon the main office of any House Bill No. 6466
	75	+	company on any insurance policy issued on exempt property, to the 39
	76	+	same extent that the property was exempt; 40
	77	+	[(r)] (18) Any interest of the exemptioner in any property not to 41
	78	+	exceed in value one thousand dollars; 42
	79	+	[(s)] (19) Any interest of the exemptioner not to exceed in value four 43
	80	+	thousand dollars in any accrued dividend or interest under, or loan 44
	81	+	value of, any unmatured life insurance contract owned by the 45
	82	+	exemptioner under which the insured is the exemptioner or an 46
	83	+	individual of whom the exemptioner is a dependent; 47
	84	+	(20) The cash surrender value of any life insurance policy issued upon 48
	85	+	the life of a citizen or resident of this state, unless the life insurance 49
	86	+	policy was assigned to or was effected for the benefit of the creditor or 50
	87	+	unless the purchase, sale, or transfer of the life insurance policy is made 51
	88	+	with the intent to defraud the creditor; 52
	89	+	[(t)] (21) The homestead of the exemptioner to the value of [seventy-53
	90	+	five thousand dollars, or, in the case of a money judgment arising out of 54
	91	+	services provided at a hospital, to the value of one hundred twenty-five 55
	92	+	thousand dollars] two hundred fifty thousand dollars, provided value 56
	93	+	shall be determined as the fair market value of the real property less the 57
	94	+	amount of any statutory or consensual lien which encumbers it, except 58
	95	+	that, in the case of a money judgment arising out of a claim of sexual 59
	96	+	abuse or exploitation of a minor, sexual assault or other wilful, wanton, 60
	97	+	or reckless misconduct committed by a natural person, to the value of 61
	98	+	seventy-five thousand dollars; and 62
	99	+	[(u)] (22) Irrevocable transfers of money to an account held by a debt 63
	100	+	adjuster licensed pursuant to sections 36a-655 to 36a-665, inclusive, for 64
	101	+	the benefit of creditors of the exemptioner. 65
	102	+	Sec. 2. Subdivision (1) of subsection (b) of section 12-162 of the general 66
	103	+	statutes is repealed and the following is substituted in lieu thereof 67
	104	+	(Effective October 1, 2021): 68 Raised Bill No. 6466
122	105
123		-	Public Act No. 21-161 5 of 7
124	106
125		-	financial institution indebted to such person, subject to the provisions of
126		-	section 52-367a or 52-367b, as if judgment for the amount due on such
127		-	execution had been entered, for that portion of any type of deposit to
128		-	the credit of or property held for such person, not exceeding in total
129		-	value the amount due on such execution; or you are to garnishee the
130		-	wages due such person from any employer, in the same manner as if a
131		-	wage execution therefor had been entered, in accordance with section
132		-	52-361a.
133		-	Dated at .... this .... day of .... A.D. 20.., Tax Collector."
134		-	Sec. 3. Subsection (b) of section 52-321a of the general statutes is
135		-	repealed and the following is substituted in lieu thereof (Effective October
136		-	1, 2021):
137		-	(b) Nothing in this section shall impair the rights of an alternate payee
138		-	under a qualified domestic relations order, as defined in Section 414(p)
139		-	of the Internal Revenue Code of 1986, or any subsequent corresponding
140		-	internal revenue code of the United States, as from time to time
141		-	amended. Nothing in this section or in [subsection (m)] subdivision (13)
142		-	of section 52-352b, as amended by this act, shall impair the rights of the
143		-	state to proceed under section 52-361a to recover the costs of
144		-	incarceration under section 18-85a and regulations adopted in
145		-	accordance with section 18-85a from any federal, state or municipal
146		-	pension, annuity or insurance contract or similar arrangement described
147		-	in subdivision (5) of subsection (a) of this section, provided the rights of
148		-	an alternate payee under a qualified domestic relations order, as defined
149		-	in Section 414(p) of the Internal Revenue Code of 1986, or any
150		-	subsequent corresponding internal revenue code of the United States,
151		-	as from time to time amended, shall take precedence over any such
152		-	recovery. Nothing in this section or in [subsection (m)] subdivision (13)
153		-	of section 52-352b, as amended by this act, shall impair the rights of a
154		-	victim of crime to proceed under section 52-361a to recover damages
155		-	awarded by a court of competent jurisdiction from any federal, state or House Bill No. 6466
	107	+	LCO 3425 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06466-
	108	+	R01-HB.docx }
	109	+	4 of 7
156	110
157		-	Public Act No. 21-161 6 of 7
	111	+	(b) (1) Except as provided in subdivision (2) of this subsection, upon 69
	112	+	the nonpayment of any property tax or any water or sanitation charges 70
	113	+	when due, demand having been made therefor as prescribed by law for 71
	114	+	the collection of such tax or such water or sanitation charges, an alias tax 72
	115	+	warrant may be issued by the tax collector, which may be in the 73
	116	+	following form: 74
	117	+	"To a state marshal of the County of ...., or any constable of the Town 75
	118	+	of .... Greeting: By authority of the state of Connecticut you are hereby 76
	119	+	commanded to collect forthwith from .... of .... the sum of .... dollars, the 77
	120	+	same being the amount of a tax or water or sanitation charges, with 78
	121	+	interest or penalty and charges which have accumulated thereon, which 79
	122	+	tax was levied or which water or sanitation charges were imposed by 80
	123	+	(insert name of town, city or municipality laying the tax or imposing the 81
	124	+	water or sanitation charges) upon (insert the real estate, personal 82
	125	+	property, or both, as the case may be,) of said .... as of the .... day of ..... 83
	126	+	(In like manner insert the amount of any other property tax or other 84
	127	+	water or sanitation charges which may have been levied or imposed in 85
	128	+	any other year, including interest or penalty and charges which have 86
	129	+	accumulated thereon). In default of payment of said amount you are 87
	130	+	hereby commanded to levy for said tax or taxes or such water or 88
	131	+	sanitation charges, including interest, penalty and charges, hereinafter 89
	132	+	referred to as the amount due on such execution, upon any goods and 90
	133	+	chattels of such person and dispose of the same as the law directs, 91
	134	+	notwithstanding the provisions of [subsection (j)] subdivision (10) of 92
	135	+	section 52-352b, and, after having satisfied the amount due on such 93
	136	+	execution, return the surplus, if any, to him; or, except as otherwise 94
	137	+	provided in section 12-162, you are to levy upon the real estate of such 95
	138	+	person and sell such real property pursuant to section 12-157, to pay the 96
	139	+	amount due on such execution; or you shall, in accordance with the 97
	140	+	provisions of section 12-162, make demand upon the main office of any 98
	141	+	financial institution indebted to such person, subject to the provisions of 99
	142	+	section 52-367a or 52-367b, as if judgment for the amount due on such 100
	143	+	execution had been entered, for that portion of any type of deposit to 101
	144	+	the credit of or property held for such person, not exceeding in total 102 Raised Bill No. 6466
158	145
159		-	municipal pension, annuity or insurance contract or similar
160		-	arrangement described in subdivision (5) of subsection (a) of this section
161		-	when such damages are the result of a crime committed by a participant
162		-	or beneficiary of such pension, annuity or insurance contract or similar
163		-	arrangement, provided the rights of an alternate payee under a qualified
164		-	domestic relations order, as defined in Section 414(p) of the Internal
165		-	Revenue Code of 1986, or any subsequent corresponding internal
166		-	revenue code of the United States, as from time to time amended, shall
167		-	take precedence over any such recovery.
168		-	Sec. 4. Section 52-352a of the general statutes is repealed and the
169		-	following is substituted in lieu thereof (Effective October 1, 2021):
170		-	[For the purposes of this section and sections 52-352b and 52-353, the
171		-	following terms shall have the following meanings] As used in this
172		-	section and sections 52-352b, as amended by this act, and 52-353:
173		-	[(a)] (1) "Value" means fair market value of the exemptioner's equity
174		-	or unencumbered interest in the property;
175		-	[(b)] (2) "Necessary" means reasonably required to meet the needs of
176		-	the exemptioner and his or her dependents including any special needs
177		-	by reason of health or physical infirmity;
178		-	[(c)] (3) "Exempt" means, unless otherwise specified, not subject to
179		-	any form of process or court order for the purpose of debt collection;
180		-	[(d)] (4) "Exemptioner" means the natural person entitled to an
181		-	exemption under this section or section 52-352b, as amended by this act;
182		-	[(e)] (5) "Homestead" means owner-occupied real property, co-op or
183		-	mobile manufactured home, as defined in subdivision (1) of section 21-
184		-	64, used as a primary residence.
185		-	Sec. 5. Subsection (r) of section 52-367b of the general statutes is House Bill No. 6466
186	146
187		-	Public Act No. 21-161 7 of 7
	147	+	LCO 3425 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06466-
	148	+	R01-HB.docx }
	149	+	5 of 7
188	150
189		-	repealed and the following is substituted in lieu thereof (Effective October
190		-	1, 2021):
191		-	(r) For the purposes of this subsection, "exempt" has the same
192		-	meaning as provided in [subsection (c)] subdivision (3) of section 52-
193		-	352a, as amended by this act. Funds deposited in an account that has
194		-	been established for the express purpose of receiving electronic direct
195		-	deposits of public assistance or of Title IV-D child support payments
196		-	from the Department of Social Services shall be exempt.
	151	+	value the amount due on such execution; or you are to garnishee the 103
	152	+	wages due such person from any employer, in the same manner as if a 104
	153	+	wage execution therefor had been entered, in accordance with section 105
	154	+	52-361a. 106
	155	+	Dated at .... this .... day of .... A.D. 20.., Tax Collector." 107
	156	+	Sec. 3. Subsection (b) of section 52-321a of the general statutes is 108
	157	+	repealed and the following is substituted in lieu thereof (Effective October 109
	158	+	1, 2021): 110
	159	+	(b) Nothing in this section shall impair the rights of an alternate payee 111
	160	+	under a qualified domestic relations order, as defined in Section 414(p) 112
	161	+	of the Internal Revenue Code of 1986, or any subsequent corresponding 113
	162	+	internal revenue code of the United States, as from time to time 114
	163	+	amended. Nothing in this section or in [subsection (m)] subdivision (13) 115
	164	+	of section 52-352b, as amended by this act, shall impair the rights of the 116
	165	+	state to proceed under section 52-361a to recover the costs of 117
	166	+	incarceration under section 18-85a and regulations adopted in 118
	167	+	accordance with section 18-85a from any federal, state or municipal 119
	168	+	pension, annuity or insurance contract or similar arrangement described 120
	169	+	in subdivision (5) of subsection (a) of this section, provided the rights of 121
	170	+	an alternate payee under a qualified domestic relations order, as defined 122
	171	+	in Section 414(p) of the Internal Revenue Code of 1986, or any 123
	172	+	subsequent corresponding internal revenue code of the United States, 124
	173	+	as from time to time amended, shall take precedence over any such 125
	174	+	recovery. Nothing in this section or in [subsection (m)] subdivision (13) 126
	175	+	of section 52-352b, as amended by this act, shall impair the rights of a 127
	176	+	victim of crime to proceed under section 52-361a to recover damages 128
	177	+	awarded by a court of competent jurisdiction from any federal, state or 129
	178	+	municipal pension, annuity or insurance contract or similar 130
	179	+	arrangement described in subdivision (5) of subsection (a) of this section 131
	180	+	when such damages are the result of a crime committed by a participant 132
	181	+	or beneficiary of such pension, annuity or insurance contract or similar 133
	182	+	arrangement, provided the rights of an alternate payee under a qualified 134
	183	+	domestic relations order, as defined in Section 414(p) of the Internal 135 Raised Bill No. 6466
197	184
	185	+
	186	+	LCO 3425 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06466-
	187	+	R01-HB.docx }
	188	+	6 of 7
	189	+
	190	+	Revenue Code of 1986, or any subsequent corresponding internal 136
	191	+	revenue code of the United States, as from time to time amended, shall 137
	192	+	take precedence over any such recovery. 138
	193	+	Sec. 4. Section 52-352a of the general statutes is repealed and the 139
	194	+	following is substituted in lieu thereof (Effective October 1, 2021): 140
	195	+	[For the purposes of this section and sections 52-352b and 52-353, the 141
	196	+	following terms shall have the following meanings] As used in this 142
	197	+	section and sections 52-352b, as amended by this act, and 52-353: 143
	198	+	[(a)] (1) "Value" means fair market value of the exemptioner's equity 144
	199	+	or unencumbered interest in the property; 145
	200	+	[(b)] (2) "Necessary" means reasonably required to meet the needs of 146
	201	+	the exemptioner and his or her dependents including any special needs 147
	202	+	by reason of health or physical infirmity; 148
	203	+	[(c)] (3) "Exempt" means, unless otherwise specified, not subject to 149
	204	+	any form of process or court order for the purpose of debt collection; 150
	205	+	[(d)] (4) "Exemptioner" means the natural person entitled to an 151
	206	+	exemption under this section or section 52-352b, as amended by this act; 152
	207	+	[(e)] (5) "Homestead" means owner-occupied real property, co-op or 153
	208	+	mobile manufactured home, as defined in subdivision (1) of section 21-154
	209	+	64, used as a primary residence. 155
	210	+	Sec. 5. Subsection (r) of section 52-367b of the general statutes is 156
	211	+	repealed and the following is substituted in lieu thereof (Effective October 157
	212	+	1, 2021): 158
	213	+	(r) For the purposes of this subsection, "exempt" has the same 159
	214	+	meaning as provided in [subsection (c)] subdivision (3) of section 52-160
	215	+	352a, as amended by this act. Funds deposited in an account that has 161
	216	+	been established for the express purpose of receiving electronic direct 162
	217	+	deposits of public assistance or of Title IV-D child support payments 163 Raised Bill No. 6466
	218	+
	219	+
	220	+	LCO 3425 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06466-
	221	+	R01-HB.docx }
	222	+	7 of 7
	223	+
	224	+	from the Department of Social Services shall be exempt. 164
	225	+	This act shall take effect as follows and shall amend the following
	226	+	sections:
	227	+
	228	+	Section 1 October 1, 2021 52-352b
	229	+	Sec. 2 October 1, 2021 12-162(b)(1)
	230	+	Sec. 3 October 1, 2021 52-321a(b)
	231	+	Sec. 4 October 1, 2021 52-352a
	232	+	Sec. 5 October 1, 2021 52-367b(r)
	233	+
	234	+	JUD Joint Favorable
198	235