Texas 2011 - 82nd Regular

Texas Senate Bill SB1810 Compare Versions

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1	1	82R28603 TJS-F
2	2	By: Carona S.B. No. 1810
3	3	(Truitt)
4	4	Substitute the following for S.B. No. 1810: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the exemption of certain retirement accounts from
10	10	access by creditors.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Sections 42.0021(a), (c), and (d), Property
13	13	Code, are amended to read as follows:
14	14	(a) In addition to the exemption prescribed by Section
15	15	42.001, a person's right to the assets held in or to receive
16	16	payments, whether vested or not, under any stock bonus, pension,
17	17	annuity, deferred compensation, profit-sharing, or similar plan,
18	18	including a retirement plan for self-employed individuals, or a
19	19	simplified employee pension plan, an individual retirement account
20	20	or individual retirement annuity, including an inherited
21	21	individual retirement account or individual retirement annuity, or
22	22	a health savings account, and under any annuity or similar contract
23	23	purchased with assets distributed from that type of plan or
24	24	account, [and under any retirement annuity or account described by
25	25	Section 403(b) or 408A of the Internal Revenue Code of 1986, and
26	26	under any individual retirement account or any individual
27	27	retirement annuity, including a simplified employee pension plan,
28	28	and under any health savings account described by Section 223 of the
29	29	Internal Revenue Code of 1986,] is exempt from attachment,
30	30	execution, and seizure for the satisfaction of debts to the extent
31	31	[unless] the plan, contract, annuity, or account is exempt from
32	32	federal income tax, or to the extent federal income tax on the
33	33	person's interest is deferred until actual payment of benefits to
34	34	the person under Section 223, 401(a), 403(a), 403(b), 408(a), 408A,
35	35	457(b), or 501(a), Internal Revenue Code of 1986, including a
36	36	government plan or church plan described by Section 414(d) or (e),
37	37	[does not qualify under the applicable provisions of the] Internal
38	38	Revenue Code of 1986. For purposes of this subsection, the interest
39	39	of a person in a plan, annuity, account, or contract acquired by
40	40	reason of the death of another person, whether as an owner,
41	41	participant, beneficiary, survivor, coannuitant, heir, or legatee,
42	42	is exempt to the same extent that the interest of the person from
43	43	whom the plan, annuity, account, or contract was acquired was
44	44	exempt on the date of the person's death. [A person's right to the
45	45	assets held in or to receive payments, whether vested or not, under
46	46	a government or church plan or contract is also exempt unless the
47	47	plan or contract does not qualify under the definition of a
48	48	government or church plan under the applicable provisions of the
49	49	federal Employee Retirement Income Security Act of 1974.] If this
50	50	subsection is held invalid or preempted by federal law in whole or
51	51	in part or in certain circumstances, the subsection remains in
52	52	effect in all other respects to the maximum extent permitted by law.
53	53	(c) Amounts distributed from a plan, annuity, account, or
54	54	contract entitled to an [the] exemption under Subsection (a) are
55	55	not subject to seizure for a creditor's claim for 60 days after the
56	56	date of distribution if the amounts qualify as a nontaxable
57	57	rollover contribution under Subsection (b).
58	58	(d) A participant or beneficiary of a [stock bonus, pension,
59	59	profit-sharing, retirement] plan, annuity, account, or contract
60	60	entitled to an exemption under Subsection (a), other than an
61	61	individual retirement account or individual retirement annuity,
62	62	[or government plan] is not prohibited from granting a valid and
63	63	enforceable security interest in the participant's or beneficiary's
64	64	right to the assets held in or to receive payments under the exempt
65	65	plan, annuity, account, or contract to secure a loan to the
66	66	participant or beneficiary from the exempt plan, annuity, account,
67	67	or contract, and the right to the assets held in or to receive
68	68	payments from the plan, annuity, account, or contract is subject to
69	69	attachment, execution, and seizure for the satisfaction of the
70	70	security interest or lien granted by the participant or beneficiary
71	71	to secure the loan.
72	72	SECTION 2. Section 42.0021, Property Code, as amended by
73	73	this Act, applies to an inherited individual retirement plan,
74	74	annuity, account, or contract without regard to whether the plan,
75	75	annuity, account, or contract was created before, on, or after the
76	76	effective date of this Act.
77	77	SECTION 3. The changes made by this Act are intended to
78	78	clarify rather than change existing law.
79	79	SECTION 4. This Act takes effect immediately if it receives
80	80	a vote of two-thirds of all the members elected to each house, as
81	81	provided by Section 39, Article III, Texas Constitution. If this
82	82	Act does not receive the vote necessary for immediate effect, this
83	83	Act takes effect September 1, 2011.