Maryland 2023 Regular Session

Maryland Senate Bill SB106 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	WES MOORE, Governor Ch. 720
2	1
3		-	– 1 –
4		-	Chapter 720
5		-	(Senate Bill 106)
6	2
7		-	AN ACT concerning
	3	+	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
	4	+	[Brackets] indicate matter deleted from existing law.
	5	+	Underlining indicates amendments to bill.
	6	+	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
	7	+	amendment.
	8	+	sb0106
8	9
9		-	Courts – Judgments – Exemptions From Execution
	10	+	SENATE BILL 106
	11	+	D3 3lr0579
	12	+	HB 322/22 – JUD (PRE–FILED) CF HB 42
	13	+	By: Senator Sydnor
	14	+	Requested: October 19, 2022
	15	+	Introduced and read first time: January 11, 2023
	16	+	Assigned to: Judicial Proceedings
	17	+	Committee Report: Favorable with amendments
	18	+	Senate action: Adopted
	19	+	Read second time: February 25, 2023
10	20
11		-	FOR the purpose of exempting up to a certain amount of money in certain accounts of a
12		-	judgment debtor from execution on the judgment without an election by the debtor
13		-	to exempt the money; establishing procedures a depository institution is required to
14		-	follow on receipt of a writ of garnishment or other levy or attachment under certain
15		-	circumstances; establishing a certain limit on the cumulative value of property and
16		-	cash that may be exempted; requiring a writ of garnishment issued for certain
17		-	accounts to instruct the garnishee that it is to garnish only a certain amount; and
18		-	generally relating to exemptions from execution of a judgment.
	21	+	CHAPTER ______
19	22
20		-	BY repealing and reenacting, with amendments,
21		-	Article – Courts and Judicial Proceedings
22		-	Section 11–504
23		-	Annotated Code of Maryland
24		-	(2020 Replacement Volume and 2022 Supplement)
	23	+	AN ACT concerning 1
25	24
26		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
27		-	That the Laws of Maryland read as follows:
	25	+	Courts – Judgments – Exemptions From Execution 2
28	26
29		-	Article – Courts and Judicial Proceedings
	27	+	FOR the purpose of exempting up to a certain amount of money in certain accounts of a 3
	28	+	judgment debtor from execution on the judgment without an election by the debtor 4
	29	+	to exempt the money; establishing procedures a depository institution is required to 5
	30	+	follow on receipt of a writ of garnishment or other levy or attachment under certain 6
	31	+	circumstances; establishing a certain limit on the cumulative value of property and 7
	32	+	cash that may be exempted; requiring a writ of garnishment issued for certain 8
	33	+	accounts to instruct the garnishee that it is to garnish only a certain amount; and 9
	34	+	generally relating to exemptions from execution of a judgment. 10
30	35
31		-	11–504.
	36	+	BY repealing and reenacting, with amendments, 11
	37	+	Article – Courts and Judicial Proceedings 12
	38	+	Section 11–504 13
	39	+	Annotated Code of Maryland 14
	40	+	(2020 Replacement Volume and 2022 Supplement) 15
32	41
33		-	(a) In this section, “value” means fair market value as of the date upon which the
	42	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
	43	+	That the Laws of Maryland read as follows: 17
34	44
35		-	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
36		-	INDICATED.
	45	+	Article – Courts and Judicial Proceedings 18
37	46
38		-	(2) “DEPOSITORY INSTITUTIO N” MEANS A BANK , CREDIT UNION ,
39		-	TRUST COMPANY , SAVINGS BANK, OR SAVINGS AND LOAN ASSOCIATION , OR ANY OF
40		-	THEIR AFFILIATES OR SUBSIDIARIES.
	47	+	11–504. 19
	48	+	2 SENATE BILL 106
41	49
42		-	(3) “VALUE” MEANS FAIR MARKET VA LUE AS OF THE DATE O N WHICH
43		-	THE execution or other judicial process becomes effective against the property of the debtor,
44		-	or the date of filing the petition under the federal Bankruptcy Code.
45	50
46		-	(b) The following items are exempt from execution on a judgment:
47		-	Ch. 720 2023 LAWS OF MARYLAND
	51	+	(a) In this section, “value” means fair market value as of the date upon which the 1
48	52
49		-	– 2 –
50		-	(1) Wearing apparel, books, tools, instruments, or appliances, in an amount
51		-	not to exceed $5,000 in value necessary for the practice of any trade or profession except
52		-	those kept for sale, lease, or barter.
	53	+	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
	54	+	INDICATED. 3
53	55
54		-	(2) Except as provided in subsection (i) of this section, money payable in
55		-	the event of sickness, accident, injury, or death of any person, including compensation for
56		-	loss of future earnings. This exemption includes but is not limited to money payable on
57		-	account of judgments, arbitrations, compromises, insurance, benefits, compensation, and
58		-	relief. Disability income benefits are not exempt if the judgment is for necessities contracted
59		-	for after the disability is incurred.
	56	+	(2) “DEPOSITORY INSTITUTIO N” MEANS A BANK , CREDIT UNION , 4
	57	+	TRUST COMPANY , SAVINGS BANK, OR SAVINGS AND LOAN ASSOCIATION , OR ANY OF 5
	58	+	THEIR AFFILIATES OR SUBSIDIARIES. 6
60	59
61		-	(3) Professionally prescribed health aids for the debtor or any dependent of
62		-	the debtor.
	60	+	(3) “VALUE” MEANS FAIR MARKET VA LUE AS OF THE DATE O N WHICH 7
	61	+	THE execution or other judicial process becomes effective against the property of the debtor, 8
	62	+	or the date of filing the petition under the federal Bankruptcy Code. 9
63	63
64		-	(4) The debtor’s interest, not to exceed $1,000 in value, in household
65		-	furnishings, household goods, wearing apparel, appliances, books, animals kept as pets,
66		-	and other items that are held primarily for the personal, family, or household use of the
67		-	debtor or any dependent of the debtor.
	64	+	(b) The following items are exempt from execution on a judgment: 10
68	65
69		-	(5) UP SUBJECT TO SUBSECTION (C)(3) OF THIS SECTION, UP TO $500
70		-	IN A DEPOSIT ACCOUNT OR OTHER ACCOUNT OF THE DEBTOR HELD B Y A BANK,
71		-	CREDIT UNION , TRUST COMPANY , SAVINGS BANK , OR SAVINGS AND LOAN
72		-	ASSOCIATION OR ANY O F THEIR AFFILIATES O R SUBSIDIARIES DEPOSITORY
73		-	INSTITUTION, WITHOUT ELECTION OF THE DEBTOR.
	66	+	(1) Wearing apparel, books, tools, instruments, or appliances, in an amount 11
	67	+	not to exceed $5,000 in value necessary for the practice of any trade or profession except 12
	68	+	those kept for sale, lease, or barter. 13
74	69
75		-	~~[(5)]~~ (6) ~~Cash or property~~ of ~~any kind equivalent~~ in ~~value to $6,000 is~~
76		-	~~exempt, if within 30 days from~~ the ~~date~~ of ~~the attachment~~ or ~~the levy by the sheriff~~, ~~the~~
77		-	~~debtor elects~~ to ~~exempt cash or selected items of property in an amount not to exceed a~~
78		-	~~cumulative value~~ of ~~$6,000~~, ~~EXCEPT THAT THE CUMU LATIVE VALUE OF CASH~~ AND
79		-	~~PROPERTY EXEMPTED UN DER THIS ITEM AND IT EM (5) OF THIS SUBSECTION M AY~~
80		-	~~NOT EXCEED $6,000~~.
	70	+	(2) Except as provided in subsection (i) of this section, money payable in 14
	71	+	the event of sickness, accident, injury, or death of any person, including compensation for 15
	72	+	loss of future earnings. This exemption includes but is not limited to money payable on 16
	73	+	account of judgments, arbitrations, compromises, insurance, benefits, compensation, and 17
	74	+	relief. Disability income benefits are not exempt if the judgment is for necessities contracted 18
	75	+	for after the disability is incurred. 19
81	76
82		-	~~[(6)]~~ (7) ~~Money payable~~ or ~~paid in accordance with an agreement or court~~
83		-	~~order for child support~~.
	77	+	(3) Professionally prescribed health aids for the debtor or any dependent of 20
	78	+	the debtor. 21
84	79
85		-	[(7)] (8) Money payable or paid in accordance with an agreement or court
86		-	order for alimony to the same extent that wages are exempt from attachment under [§
87		-	15–601.1(b)(1)(ii) or (2)(i)] § 15–601.1(B)(1)(I) of the Commercial Law Article.
	80	+	(4) The debtor’s interest, not to exceed $1,000 in value, in household 22
	81	+	furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, 23
	82	+	and other items that are held primarily for the personal, family, or household use of the 24
	83	+	debtor or any dependent of the debtor. 25
88	84
89		-	[(8)] (9) The debtor’s beneficial interest in any trust property that is
90		-	immune from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts
91		-	Article.
92		-	WES MOORE, Governor Ch. 720
	85	+	(5) UP SUBJECT TO SUBSECTION (C)(3) OF THIS SECTION, UP TO $500 26
	86	+	IN A DEPOSIT ACCOUNT OR OTHER ACCOUNT OF THE DEBTOR HELD B Y A BANK, 27
	87	+	CREDIT UNION , TRUST COMPANY , SAVINGS BANK , OR SAVINGS AND LOAN 28
	88	+	ASSOCIATION OR ANY O F THEIR AFFILIATES O R SUBSIDIARIES DEPOSITORY 29
	89	+	INSTITUTION, WITHOUT ELECTION OF THE DEBTOR. 30
93	90
94		-	– 3 –
95		-	[(9)] (10) With respect to claims by a separate creditor of a husband or
96		-	wife, trust property that is immune from the claims of the separate creditors of the husband
97		-	or wife under § 14.5–511 of the Estates and Trusts Article.
	91	+	[(5)] (6) Cash or property of any kind equivalent in value to $6,000 is 31
	92	+	exempt, if within 30 days from the date of the attachment or the levy by the sheriff, the 32
	93	+	debtor elects to exempt cash or selected items of property in an amount not to exceed a 33
	94	+	cumulative value of $6,000, EXCEPT THAT THE CUMU LATIVE VALUE OF CASH AND 34
	95	+	PROPERTY EXEMPTED UN DER THIS ITEM AND IT EM (5) OF THIS SUBSECTION M AY 35
	96	+	NOT EXCEED $6,000. 36 SENATE BILL 106 3
98	97
99		-	(c) (1) (I) In order to determine whether the property listed in subsection
100		-	(b)(4) and [(5)] (6) of this section is subject to execution, the sheriff shall appraise the
101		-	property at the time of levy. The sheriff shall return the appraisal with the writ.
102	98
103		-	[(2)] (II) An appraisal made by the sheriff under this [subsection]
104		-	PARAGRAPH is subject to review by the court on motion of the debtor.
105	99
106		-	[(3)] (~~III~~) ~~Procedures will be as prescribed by rules issued by the~~ Court of
107		-	~~Appeals~~.
	100	+	[(6)] (7) Money payable or paid in accordance with an agreement or court 1
	101	+	order for child support. 2
108	102
109		-	(2) (I) A WRIT OF GARNISHMENT ISSUED FOR A DEPOSIT ACCOUNT
110		-	OR OTHER ACCOUNT HEL D BY A BANK, CREDIT UNION , TRUST COMPANY , SAVINGS
111		-	BANK, OR SAVINGS AND LOAN ASSOCIATION OR ANY O F THEIR AFFILIATES OR
112		-	SUBSIDIARIES DEPOSITORY INSTITUTI ON SHALL INSTRUCT THE G ARNISHEE THAT ,
113		-	SUBJECT TO ADDITIONA L EXEMPTIONS , IT IS TO GARNISH ONL Y THE AMOUNT
114		-	EXCEEDING THE AMOUNT EXEMPTED WITHOUT ELE CTION OF THE DEBTOR .
	103	+	[(7)] (8) Money payable or paid in accordance with an agreement or court 3
	104	+	order for alimony to the same extent that wages are exempt from attachment under [§ 4
	105	+	15–601.1(b)(1)(ii) or (2)(i)] § 15–601.1(B)(1)(I) of the Commercial Law Article. 5
115	106
116		-	(II) ~~A DEPOSITORY INSTITUTI ON MAY NOT BE LIABLE TO~~ THE
117		-	~~JUDGMENT CREDITOR FO R ACTIONS TAKEN IN G OOD FAITH RELIANCE O N~~ THE
118		-	~~INSTRUCTIONS IN THE WRIT OF GARNISHMENT REQUIRED UNDER THIS PARAGRAPH~~ .
	107	+	[(8)] (9) The debtor’s beneficial interest in any trust property that is 6
	108	+	immune from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts 7
	109	+	Article. 8
119	110
120		-	(3) (I) A DEPOSITORY INSTITUTI ON SHALL, ON RECEIPT OF A WRIT
121		-	OF GARNISHMENT OR OT HER LEVY OR ATTACHME NT, ANSWER THE WRIT OF
122		-	GARNISHMENT OR OTHER LEVY OR ATTACHMENT A ND, IF THE DEBTOR MAINTA INS
123		-	ANY DEPOSIT ACCOUNTS WITH THE DEPOSITORY INSTITUTION, STATE:
	111	+	[(9)] (10) With respect to claims by a separate creditor of a husband or 9
	112	+	wife, trust property that is immune from the claims of the separate creditors of the husband 10
	113	+	or wife under § 14.5–511 of the Estates and Trusts Article. 11
124	114
125		-	1. THAT THE TOTAL AMOUNT DOES NOT EXCEED $500;
126		-	OR
	115	+	(c) (1) (I) In order to determine whether the property listed in subsection 12
	116	+	(b)(4) and [(5)] (6) of this section is subject to execution, the sheriff shall appraise the 13
	117	+	property at the time of levy. The sheriff shall return the appraisal with the writ. 14
127	118
128		-	2. THE ~~AMOUNT OF FUNDS I N EXCESS OF $500 THAT HAS~~
129		-	~~BEEN HELD PENDING FU RTHER ORDER~~ OF ~~COURT~~ .
	119	+	[(2)] (II) An appraisal made by the sheriff under this [subsection] 15
	120	+	PARAGRAPH is subject to review by the court on motion of the debtor. 16
130	121
131		-	(II) FOR ANY FUNDS IN EXCE SS OF $500, THE DEPOSITORY
132		-	INSTITUTION SHALL FO LLOW ALL OTHER CUSTO MARY PROCEDURE S FOR HANDLING
133		-	A WRIT OF GARNISHMEN T OR OTHER LEVY OR A TTACHMENT , INCLUDING FREEZING
134		-	OF FUNDS.
	122	+	[(3)] (III) Procedures will be as prescribed by rules issued by the Court of 17
	123	+	Appeals. 18
135	124
136		-	(III) 1. IF A DEBTOR HOLDS AN INTEREST IN MULTIPLE
137		-	DEPOSIT ACCOUNTS AT A SINGLE DEPOSITORY INSTITUTION, THE DEPOSITORY Ch. 720 2023 LAWS OF MARYLAND
	125	+	(2) (I) A WRIT OF GARNISHMENT ISSUED FOR A DEPOSIT ACCOUNT 19
	126	+	OR OTHER ACCOUNT HEL D BY A BANK, CREDIT UNION , TRUST COMPANY , SAVINGS 20
	127	+	BANK, OR SAVINGS AND LOAN ASSOCIATION OR ANY O F THEIR AFFILIATES OR 21
	128	+	SUBSIDIARIES DEPOSITORY INSTITUTI ON SHALL INSTRUCT THE G ARNISHEE THAT , 22
	129	+	SUBJECT TO ADDITIONA L EXEMPTIONS , IT IS TO GARNISH ONL Y THE AMOUNT 23
	130	+	EXCEEDING THE AMOUNT EXEMPTED WITHOUT ELE CTION OF THE DEBTOR . 24
138	131
139		-	~~– 4 –~~
140		-	~~INSTITUTION MAY DETE RMINE HOW AND TO W HICH ACCOUNT OR ACCO UNTS~~ THE
141		-	~~$500 EXEMPTION SHOULD BE APPLIED~~.
	132	+	(II) A DEPOSITORY INSTITUTI ON MAY NOT BE LIABLE TO THE 25
	133	+	JUDGMENT CREDITOR FO R ACTIONS TAKEN IN G OOD FAITH RELIANCE O N THE 26
	134	+	INSTRUCTIONS IN THE WRIT OF GARNISHMENT REQUIRED UNDER THIS PARAGRAPH . 27
142	135
143		-	2. THIS SUBPARAGRAPH DOE S NOT CREATE A CAUSE OF
144		-	ACTION AGAINST A DEP OSITORY INSTITUTION THAT COMPLIES WITH A WRIT OF
145		-	GARNISHMENT OR OTHER LEVY OR ATTACHMENT .
	136	+	(3) (I) A DEPOSITORY INSTITUTI ON SHALL, ON RECEIPT OF A WRIT 28
	137	+	OF GARNISHMENT OR OT HER LEVY OR ATTACHME NT, ANSWER THE WRIT OF 29
	138	+	GARNISHMENT OR OTHER LEVY OR ATTACHMENT A ND, IF THE DEBTOR MAINTA INS 30
	139	+	ANY DEPOSIT ACCOUNTS WITH THE DEPOSITORY INSTITUTION, STATE: 31
146	140
147		-	(IV) THE EXEMPTION UNDER SUBSECTION (B)(5) OF THIS
148		-	SECTION:
	141	+	1. THAT THE TOTAL AMOUNT DOES NOT EXCEED $500; 32
	142	+	OR 33
	143	+	4 SENATE BILL 106
149	144
150		-	1. APPLIES SEPARATELY TO EACH DEPOSITORY
151		-	INSTITUTION AND TO E ACH WRIT OF GARNISHM ENT DIRECTED TO A DE POSITORY
152		-	INSTITUTION; AND
153	145
154		-	2. ~~DOES NOT PRECLUDE OR REDUCE A DEBTOR ’S~~
155		-	~~RIGHTS TO ANY OTHER EXEMPTION PROVIDED B Y STATE OR FEDERAL LAW~~ .
	146	+	2. THE AMOUNT OF FUNDS I N EXCESS OF $500 THAT HAS 1
	147	+	BEEN HELD PENDING FU RTHER ORDER OF COURT . 2
156	148
157		-	(d) The debtor may not waive, by cognovit note or otherwise, the provisions of
158		-	subsections (b) and (h) of this section.
	149	+	(II) FOR ANY FUNDS IN EXCE SS OF $500, THE DEPOSITORY 3
	150	+	INSTITUTION SHALL FO LLOW ALL OTHER CUSTO MARY PROCEDURES FOR HANDLING 4
	151	+	A WRIT OF GARNISHMEN T OR OTHER LEVY OR A TTACHMENT , INCLUDING FREEZING 5
	152	+	OF FUNDS. 6
159	153
160		-	(e) The exemptions in this section do not apply to wage attachments.
	154	+	(III) 1. IF A DEBTOR HOLDS AN INTEREST IN MULTIPLE 7
	155	+	DEPOSIT ACCOUNTS AT A SINGLE DEPOSITORY INSTITUTION, THE DEPOSITORY 8
	156	+	INSTITUTION MAY DETE RMINE HOW AND TO WH ICH ACCOUNT OR ACCOU NTS THE 9
	157	+	$500 EXEMPTION SHOULD BE APPLIED. 10
161	158
162		-	(f) (1) (i) In addition to the exemptions provided in subsection (b) of this
163		-	section, and in other statutes of this State, in any proceeding under Title 11 of the United
164		-	States Code, entitled “Bankruptcy”, any individual debtor domiciled in this State may
165		-	exempt the debtor’s aggregate interest in:
	159	+	2. THIS SUBPARAGRAPH DOE S NOT CREATE A CAUSE OF 11
	160	+	ACTION AGAINST A DEP OSITORY INSTITUTION THAT COMPLIES WITH A WRIT OF 12
	161	+	GARNISHMENT OR OTHER LEVY OR ATTACHMENT . 13
166	162
167		-	1. Personal property, up to $5,000; and
	163	+	(IV) THE EXEMPTION UNDER SUBSECTION (B)(5) OF THIS 14
	164	+	SECTION: 15
168	165
169		-	2. Subject to subparagraph (ii) of this paragraph:
	166	+	1. APPLIES SEPARATELY TO EACH DEPOSITORY 16
	167	+	INSTITUTION AND TO E ACH WRIT OF GARNISHM ENT DIRECTED TO A DE POSITORY 17
	168	+	INSTITUTION; AND 18
170	169
171		-	A. Owner–occupied residential real property, including a
172		-	condominium unit or a manufactured home that has been converted to real property in
173		-	accordance with § 8B–201 of the Real Property Article; or
	170	+	2. DOES NOT PRECLUDE OR REDUCE A DEBTOR ’S 19
	171	+	RIGHTS TO ANY OTHER EXEMPTION PROVIDED B Y STATE OR FEDERAL LAW . 20
174	172
175		-	~~B. A cooperative housing corporation that owns property that~~
176		-	~~the debtor occupies as a residence~~.
	173	+	(d) The debtor may not waive, by cognovit note or otherwise, the provisions of 21
	174	+	subsections (b) and (h) of this section. 22
177	175
178		-	(ii) The exemption allowed under subparagraph (i)2 of this
179		-	paragraph may not exceed the amount under 11 U.S.C. § 522(d)(1), adjusted in accordance
180		-	with 11 U.S.C. § 104, subject to the provisions of paragraphs (2) and (3) of this subsection.
	176	+	(e) The exemptions in this section do not apply to wage attachments. 23
181	177
182		-	(2) An individual may not claim the exemption under paragraph (1)(i)2 of
183		-	this subsection on a particular property if:
184		-	WES MOORE, Governor Ch. 720
	178	+	(f) (1) (i) In addition to the exemptions provided in subsection (b) of this 24
	179	+	section, and in other statutes of this State, in any proceeding under Title 11 of the United 25
	180	+	States Code, entitled “Bankruptcy”, any individual debtor domiciled in this State may 26
	181	+	exempt the debtor’s aggregate interest in: 27
185	182
186		-	– 5 –
187		-	(i) The individual has claimed successfully the exemption on the
188		-	property within 8 years prior to the filing of the bankruptcy proceeding in which the
189		-	exemption under this subsection is claimed; or
	183	+	1. Personal property, up to $5,000; and 28
190	184
191		-	(ii) The individual’s spouse, child, child’s spouse, parent, sibling,
192		-	grandparent, or grandchild has claimed successfully the exemption on the property within
193		-	8 years prior to the filing of the bankruptcy proceeding in which the exemption under this
194		-	subsection is claimed.
	185	+	2. Subject to subparagraph (ii) of this paragraph: 29
195	186
196		-	(3) The exemption under paragraph (1)(i)2 of this subsection may not be
197		-	claimed by both a husband and wife in the same bankruptcy proceeding.
	187	+	A. Owner–occupied residential real property, including a 30
	188	+	condominium unit or a manufactured home that has been converted to real property in 31
	189	+	accordance with § 8B–201 of the Real Property Article; or 32
	190	+	SENATE BILL 106 5
198	191
199		-	(g) In any bankruptcy proceeding, a debtor is not entitled to the federal
200		-	exemptions provided by § 522(d) of the federal Bankruptcy Code.
201	192
202		-	(h) (1) In addition to the exemptions provided in subsections (b) and (f) of this
203		-	section and any other provisions of law, any money or other assets payable to a participant
204		-	or beneficiary from, or any interest of any participant or beneficiary in, a retirement plan
205		-	qualified under § 401(a), § 403(a), § 403(b), § 408, § 408A, § 414(d), or § 414(e) of the United
206		-	States Internal Revenue Code of 1986, as amended, or § 409 (as in effect prior to January
207		-	1984) of the United States Internal Revenue Code of 1954, as amended, shall be exempt
208		-	from any and all claims of the creditors of the beneficiary or participant, other than claims
209		-	by the Maryland Department of Health.
	193	+	B. A cooperative housing corporation that owns property that 1
	194	+	the debtor occupies as a residence. 2
210	195
211		-	(2) Paragraph (1) of this subsection does not apply to:
	196	+	(ii) The exemption allowed under subparagraph (i)2 of this 3
	197	+	paragraph may not exceed the amount under 11 U.S.C. § 522(d)(1), adjusted in accordance 4
	198	+	with 11 U.S.C. § 104, subject to the provisions of paragraphs (2) and (3) of this subsection. 5
212	199
213		-	(i) An ~~alternate payee~~ under ~~a qualified domestic relations order, as~~
214		-	~~defined in § 414(p) of the United States Internal Revenue Code of 1986, as amended;~~
	200	+	(2) An individual may not claim the exemption under paragraph (1)(i)2 of 6
	201	+	this subsection on a particular property if: 7
215	202
216		-	(ii) A retirement plan, qualified under § 401(a) of the United States
217		-	Internal Revenue Code of 1986, as amended, as a creditor of an individual retirement
218		-	account qualified under § 408 of the United States Internal Revenue Code of 1986, as
219		-	amended; or
	203	+	(i) The individual has claimed successfully the exemption on the 8
	204	+	property within 8 years prior to the filing of the bankruptcy proceeding in which the 9
	205	+	exemption under this subsection is claimed; or 10
220	206
221		-	(iii) The assets of a bankruptcy case filed before January 1, 1988.
	207	+	(ii) The individual’s spouse, child, child’s spouse, parent, sibling, 11
	208	+	grandparent, or grandchild has claimed successfully the exemption on the property within 12
	209	+	8 years prior to the filing of the bankruptcy proceeding in which the exemption under this 13
	210	+	subsection is claimed. 14
222	211
223		-	(3) The interest of an alternate payee in a plan described under paragraph
224		-	(1) of this subsection shall be exempt from any and all claims of any creditor of the alternate
225		-	payee, except claims by the Maryland Department of Health.
	212	+	(3) The exemption under paragraph (1)(i)2 of this subsection may not be 15
	213	+	claimed by both a husband and wife in the same bankruptcy proceeding. 16
226	214
227		-	(4) If a contribution to a retirement plan described under paragraph (1) of
228		-	this subsection exceeds the amount deductible or, in the case of contribution under § 408A
229		-	of the Internal Revenue Code, the maximum contribution allowed under the applicable
230		-	provisions of the United States Internal Revenue Code of 1986, as amended, the portion of
231		-	that contribution that exceeds the amount deductible or, in the case of contribution under Ch. 720 2023 LAWS OF MARYLAND
	215	+	(g) In any bankruptcy proceeding, a debtor is not entitled to the federal 17
	216	+	exemptions provided by § 522(d) of the federal Bankruptcy Code. 18
232	217
233		-	– 6 –
234		-	§ 408A of the Internal Revenue Code, the maximum contribution allowed, and any accrued
235		-	earnings on such a portion, are not exempt under paragraph (1) of this subsection.
	218	+	(h) (1) In addition to the exemptions provided in subsections (b) and (f) of this 19
	219	+	section and any other provisions of law, any money or other assets payable to a participant 20
	220	+	or beneficiary from, or any interest of any participant or beneficiary in, a retirement plan 21
	221	+	qualified under § 401(a), § 403(a), § 403(b), § 408, § 408A, § 414(d), or § 414(e) of the United 22
	222	+	States Internal Revenue Code of 1986, as amended, or § 409 (as in effect prior to January 23
	223	+	1984) of the United States Internal Revenue Code of 1954, as amended, shall be exempt 24
	224	+	from any and all claims of the creditors of the beneficiary or participant, other than claims 25
	225	+	by the Maryland Department of Health. 26
236	226
237		-	(i) (1) In this subsection, “net recovery” means the sum of money to be
238		-	distributed to the debtor after deduction of attorney’s fees, expenses, medical bills, and
239		-	satisfaction of any liens or subrogation claims arising out of the claims for personal injury,
240		-	including those arising under:
	227	+	(2) Paragraph (1) of this subsection does not apply to: 27
241	228
242		-	(i) The Medicare Secondary Payer Act, 42 U.S.C. § 1395y;
	229	+	(i) An alternate payee under a qualified domestic relations order, as 28
	230	+	defined in § 414(p) of the United States Internal Revenue Code of 1986, as amended; 29
243	231
244		-	(ii) A program of the Maryland Department of Health for which a
245		-	right of subrogation exists under §§ 15–120 and 15–121.1 of the Health – General Article;
	232	+	(ii) A retirement plan, qualified under § 401(a) of the United States 30
	233	+	Internal Revenue Code of 1986, as amended, as a creditor of an individual retirement 31
	234	+	account qualified under § 408 of the United States Internal Revenue Code of 1986, as 32
	235	+	amended; or 33
246	236
247		-	(iii) ~~An employee benefit plan subject to~~ the ~~federal Employee~~
248		-	~~Retirement Income Security Act of 1974;~~ or
	237	+	(iii) The assets of a bankruptcy case filed before January 1, 1988. 34
	238	+	6 SENATE BILL 106
249	239
250		-	(iv) A health insurance contract.
251	240
252		-	(2) Twenty–five percent of the net recovery by the debtor on a claim for
253		-	personal injury is subject to execution on a judgment for a child support arrearage.
	241	+	(3) The interest of an alternate payee in a plan described under paragraph 1
	242	+	(1) of this subsection shall be exempt from any and all claims of any creditor of the alternate 2
	243	+	payee, except claims by the Maryland Department of Health. 3
254	244
255		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to
256		-	apply only prospectively and may not be applied or interpreted to have any effect on or
257		-	application to any writ of garnishment or writ of execution issued before the effective date
258		-	of this Act.
	245	+	(4) If a contribution to a retirement plan described under paragraph (1) of 4
	246	+	this subsection exceeds the amount deductible or, in the case of contribution under § 408A 5
	247	+	of the Internal Revenue Code, the maximum contribution allowed under the applicable 6
	248	+	provisions of the United States Internal Revenue Code of 1986, as amended, the portion of 7
	249	+	that contribution that exceeds the amount deductible or, in the case of contribution under 8
	250	+	§ 408A of the Internal Revenue Code, the maximum contribution allowed, and any accrued 9
	251	+	earnings on such a portion, are not exempt under paragraph (1) of this subsection. 10
259	252
260		-	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
261		-	October 1, 2023.
	253	+	(i) (1) In this subsection, “net recovery” means the sum of money to be 11
	254	+	distributed to the debtor after deduction of attorney’s fees, expenses, medical bills, and 12
	255	+	satisfaction of any liens or subrogation claims arising out of the claims for personal injury, 13
	256	+	including those arising under: 14
262	257
263		-	Approved by the Governor, May 16, 2023.
	258	+	(i) The Medicare Secondary Payer Act, 42 U.S.C. § 1395y; 15
	259	+
	260	+	(ii) A program of the Maryland Department of Health for which a 16
	261	+	right of subrogation exists under §§ 15–120 and 15–121.1 of the Health – General Article; 17
	262	+
	263	+	(iii) An employee benefit plan subject to the federal Employee 18
	264	+	Retirement Income Security Act of 1974; or 19
	265	+
	266	+	(iv) A health insurance contract. 20
	267	+
	268	+	(2) Twenty–five percent of the net recovery by the debtor on a claim for 21
	269	+	personal injury is subject to execution on a judgment for a child support arrearage. 22
	270	+
	271	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 23
	272	+	apply only prospectively and may not be applied or interpreted to have any effect on or 24
	273	+	application to any writ of garnishment or writ of execution issued before the effective date 25
	274	+	of this Act. 26
	275	+
	276	+	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
	277	+	October 1, 2023. 28
	278	+