By: Carona S.B. No. 1810
(In the Senate - Filed March 11, 2011; March 24, 2011, read
first time and referred to Committee on Business and Commerce;
April 11, 2011, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 7, Nays 0; April 11, 2011,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1810 By: Carona
A BILL TO BE ENTITLED
AN ACT
relating to the exemption of certain retirement accounts from
access by creditors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 42.0021, Property Code, is amended by
amending Subsection (a) and adding Subsection (g) to read as
follows:
(a) In addition to the exemption prescribed by Section
42.001, a person's right to the assets held in or to receive
payments, whether vested or not, under any stock bonus, pension,
profit-sharing, or similar plan, including a retirement plan for
self-employed individuals, and under any annuity or similar
contract purchased with assets distributed from that type of plan,
and under any retirement annuity or account described by Section
403(b) or 408A of the Internal Revenue Code of 1986, and under any
individual retirement account or any individual retirement
annuity, including a simplified employee pension plan, and under
any health savings account described by Section 223 of the Internal
Revenue Code of 1986, is exempt from attachment, execution, and
seizure for the satisfaction of debts unless the plan, contract,
annuity, or account does not qualify under the applicable
provisions of the Internal Revenue Code of 1986. For purposes of
this subsection, the interest of a beneficiary in a plan, contract,
annuity, or account acquired by reason of the death of any person,
whether or not the beneficiary's spouse, is considered qualified
under the applicable provisions of the Internal Revenue Code of
1986 to the same extent that the interest of the person from whom
the plan, contract, annuity, or account was acquired was qualified
on the date of the person's death. A person's right to the assets
held in or to receive payments, whether vested or not, under a
government or church plan or contract is also exempt unless the plan
or contract does not qualify under the definition of a government or
church plan under the applicable provisions of the federal Employee
Retirement Income Security Act of 1974. If this subsection is held
invalid or preempted by federal law in whole or in part or in
certain circumstances, the subsection remains in effect in all
other respects to the maximum extent permitted by law.
(g) Assets and amounts exempted under Subsection (a) are
exempt regardless of whether the person is an owner, participant,
or beneficiary of the plan, contract, annuity, or account.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.
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