Connecticut 2021 Regular Session

Connecticut House Bill HB06466 Latest Draft

Bill / Chaptered Version Filed 06/24/2021

                             
 
 
House Bill No. 6466 
 
Public Act No. 21-161 
 
 
AN ACT CONCERNING PROPERTY THAT IS EXEMPT 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 Section 52-352b of the general statutes is repealed and the 
following is substituted in lieu thereof (Effective October 1, 2021): 
The following property of any natural person shall be exempt: 
[(a)] (1) Necessary apparel, bedding, foodstuffs, household furniture 
and appliances; 
[(b)] (2) Tools, books, instruments, farm animals and livestock feed, 
which are necessary to the exemptioner in the course of his or her 
occupation, profession or farming operation; 
[(c)] (3) Burial plot for the exemptioner and his or her immediate 
family; 
[(d)] (4) Public assistance payments and any wages earned by a public 
assistance recipient under an incentive earnings or similar program; 
[(e)] (5) Health and disability insurance payments; 
[(f)] (6) Health aids necessary to enable the exemptioner to work or to  House Bill No. 6466 
 
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sustain health; 
[(g)] (7) Workers' compensation, Social Security, veterans and 
unemployment benefits; 
[(h)] (8) Court-approved payments for child support; 
[(i)] (9) Arms and military equipment, uniforms or musical 
instruments owned by any member of the militia or armed forces of the 
United States; 
[(j) One motor vehicle] (10) Up to two motor vehicles to the value of 
[three thousand five hundred] seven thousand dollars in the aggregate, 
provided value shall be determined as the fair market value of the motor 
[vehicle] vehicles less the amount of all liens and security interests 
which encumber [it] them; 
[(k)] (11) Wedding and engagement rings; 
[(l)] (12) Residential utility deposits for one residence, and one 
residential security deposit; 
[(m)] (13) Any assets or interests of an exemptioner in, or payments 
received by the exemptioner from, a plan or arrangement described in 
section 52-321a, as amended by this act; 
[(n)] (14) Alimony and support, other than child support, but only to 
the extent that wages are exempt from execution under section 52-361a; 
[(o)] (15) An award under a crime reparations act; 
[(p)] (16) All benefits allowed by any association of persons in this 
state towards the support of any of its members incapacitated by 
sickness or infirmity from attending to his usual business; 
[(q)] (17) All moneys due the exemptioner from any insurance  House Bill No. 6466 
 
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company on any insurance policy issued on exempt property, to the 
same extent that the property was exempt; 
[(r)] (18) Any interest of the exemptioner in any property not to 
exceed in value one thousand dollars; 
[(s)] (19) Any interest of the exemptioner not to exceed in value four 
thousand dollars in any accrued dividend or interest under, or loan 
value of, any unmatured life insurance contract owned by the 
exemptioner under which the insured is the exemptioner or an 
individual of whom the exemptioner is a dependent; 
(20) The cash surrender value of any life insurance policy issued upon 
the life of a citizen or resident of this state, unless the life insurance 
policy was assigned to or was effected for the benefit of the creditor or 
unless the purchase, sale, or transfer of the life insurance policy is made 
with the intent to defraud the creditor; 
[(t)] (21) The homestead of the exemptioner to the value of [seventy-
five thousand dollars, or, in the case of a money judgment arising out of 
services provided at a hospital, to the value of one hundred twenty-five 
thousand dollars] two hundred fifty thousand dollars, provided value 
shall be determined as the fair market value of the real property less the 
amount of any statutory or consensual lien which encumbers it, except 
that, in the case of a money judgment arising out of a claim of sexual 
abuse or exploitation of a minor, sexual assault or other wilful, wanton, 
or reckless misconduct committed by a natural person, to the value of 
seventy-five thousand dollars; and 
[(u)] (22) Irrevocable transfers of money to an account held by a debt 
adjuster licensed pursuant to sections 36a-655 to 36a-665, inclusive, for 
the benefit of creditors of the exemptioner.  
Sec. 2. Subdivision (1) of subsection (b) of section 12-162 of the general 
statutes is repealed and the following is substituted in lieu thereof  House Bill No. 6466 
 
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(Effective October 1, 2021): 
(b) (1) Except as provided in subdivision (2) of this subsection, upon 
the nonpayment of any property tax or any water or sanitation charges 
when due, demand having been made therefor as prescribed by law for 
the collection of such tax or such water or sanitation charges, an alias tax 
warrant may be issued by the tax collector, which may be in the 
following form: 
"To a state marshal of the County of ...., or any constable of the Town 
of .... Greeting: By authority of the state of Connecticut you are hereby 
commanded to collect forthwith from .... of .... the sum of .... dollars, the 
same being the amount of a tax or water or sanitation charges, with 
interest or penalty and charges which have accumulated thereon, which 
tax was levied or which water or sanitation charges were imposed by 
(insert name of town, city or municipality laying the tax or imposing the 
water or sanitation charges) upon (insert the real estate, personal 
property, or both, as the case may be,) of said .... as of the .... day of ..... 
(In like manner insert the amount of any other property tax or other 
water or sanitation charges which may have been levied or imposed in 
any other year, including interest or penalty and charges which have 
accumulated thereon). In default of payment of said amount you are 
hereby commanded to levy for said tax or taxes or such water or 
sanitation charges, including interest, penalty and charges, hereinafter 
referred to as the amount due on such execution, upon any goods and 
chattels of such person and dispose of the same as the law directs, 
notwithstanding the provisions of [subsection (j)] subdivision (10) of 
section 52-352b, and, after having satisfied the amount due on such 
execution, return the surplus, if any, to him; or, except as otherwise 
provided in section 12-162, you are to levy upon the real estate of such 
person and sell such real property pursuant to section 12-157, to pay the 
amount due on such execution; or you shall, in accordance with the 
provisions of section 12-162, make demand upon the main office of any  House Bill No. 6466 
 
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financial institution indebted to such person, subject to the provisions of 
section 52-367a or 52-367b, as if judgment for the amount due on such 
execution had been entered, for that portion of any type of deposit to 
the credit of or property held for such person, not exceeding in total 
value the amount due on such execution; or you are to garnishee the 
wages due such person from any employer, in the same manner as if a 
wage execution therefor had been entered, in accordance with section 
52-361a. 
Dated at .... this .... day of .... A.D. 20.., Tax Collector." 
Sec. 3. Subsection (b) of section 52-321a of the general statutes is 
repealed and the following is substituted in lieu thereof (Effective October 
1, 2021): 
(b) Nothing in this section shall impair the rights of an alternate payee 
under a qualified domestic relations order, as defined in Section 414(p) 
of the Internal Revenue Code of 1986, or any subsequent corresponding 
internal revenue code of the United States, as from time to time 
amended. Nothing in this section or in [subsection (m)] subdivision (13) 
of section 52-352b, as amended by this act, shall impair the rights of the 
state to proceed under section 52-361a to recover the costs of 
incarceration under section 18-85a and regulations adopted in 
accordance with section 18-85a from any federal, state or municipal 
pension, annuity or insurance contract or similar arrangement described 
in subdivision (5) of subsection (a) of this section, provided the rights of 
an alternate payee under a qualified domestic relations order, as defined 
in Section 414(p) of the Internal Revenue Code of 1986, or any 
subsequent corresponding internal revenue code of the United States, 
as from time to time amended, shall take precedence over any such 
recovery. Nothing in this section or in [subsection (m)] subdivision (13) 
of section 52-352b, as amended by this act, shall impair the rights of a 
victim of crime to proceed under section 52-361a to recover damages 
awarded by a court of competent jurisdiction from any federal, state or  House Bill No. 6466 
 
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municipal pension, annuity or insurance contract or similar 
arrangement described in subdivision (5) of subsection (a) of this section 
when such damages are the result of a crime committed by a participant 
or beneficiary of such pension, annuity or insurance contract or similar 
arrangement, provided the rights of an alternate payee under a qualified 
domestic relations order, as defined in Section 414(p) of the Internal 
Revenue Code of 1986, or any subsequent corresponding internal 
revenue code of the United States, as from time to time amended, shall 
take precedence over any such recovery. 
Sec. 4. Section 52-352a of the general statutes is repealed and the 
following is substituted in lieu thereof (Effective October 1, 2021): 
[For the purposes of this section and sections 52-352b and 52-353, the 
following terms shall have the following meanings] As used in this 
section and sections 52-352b, as amended by this act, and 52-353: 
[(a)] (1) "Value" means fair market value of the exemptioner's equity 
or unencumbered interest in the property; 
[(b)] (2) "Necessary" means reasonably required to meet the needs of 
the exemptioner and his or her dependents including any special needs 
by reason of health or physical infirmity; 
[(c)] (3) "Exempt" means, unless otherwise specified, not subject to 
any form of process or court order for the purpose of debt collection; 
[(d)] (4) "Exemptioner" means the natural person entitled to an 
exemption under this section or section 52-352b, as amended by this act; 
[(e)] (5) "Homestead" means owner-occupied real property, co-op or 
mobile manufactured home, as defined in subdivision (1) of section 21-
64, used as a primary residence.  
Sec. 5. Subsection (r) of section 52-367b of the general statutes is  House Bill No. 6466 
 
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repealed and the following is substituted in lieu thereof (Effective October 
1, 2021): 
(r) For the purposes of this subsection, "exempt" has the same 
meaning as provided in [subsection (c)] subdivision (3) of section 52-
352a, as amended by this act. Funds deposited in an account that has 
been established for the express purpose of receiving electronic direct 
deposits of public assistance or of Title IV-D child support payments 
from the Department of Social Services shall be exempt.