Texas 2013 - 83rd Regular

Texas Senate Bill SB649 Compare Versions

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1	1	By: Rodriguez S.B. No. 649
2	2	(Thompson of Harris)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption of certain property from seizure by
8	8	creditors.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 1108.052, Insurance Code, is amended to
11	11	read as follows:
12	12	Sec. 1108.052. EXEMPTIONS UNAFFECTED BY BENEFICIARY
13	13	DESIGNATION. The exemptions provided by Section 1108.051 apply
14	14	regardless of whether:
15	15	(1) the power to change the beneficiary is reserved to
16	16	the insured; or
17	17	(2) the insured or the insured's estate is a
18	18	[contingent] beneficiary.
19	19	SECTION 2. Subsections (a) and (b), Section 42.0021,
20	20	Property Code, are amended to read as follows:
21	21	(a) In addition to the exemption prescribed by Section
22	22	42.001, a person's right to the assets held in or to receive
23	23	payments, whether vested or not, under any stock bonus, pension,
24	24	annuity, deferred compensation, profit-sharing, or similar plan,
25	25	including a retirement plan for self-employed individuals, or a
26	26	simplified employee pension plan, an individual retirement account
27	27	or individual retirement annuity, including an inherited
28	28	individual retirement account, [or] individual retirement annuity,
29	29	Roth IRA, or inherited Roth IRA, or a health savings account, and
30	30	under any annuity or similar contract purchased with assets
31	31	distributed from that type of plan or account, is exempt from
32	32	attachment, execution, and seizure for the satisfaction of debts to
33	33	the extent the plan, contract, annuity, or account is exempt from
34	34	federal income tax, or to the extent federal income tax on the
35	35	person's interest is deferred until actual payment of benefits to
36	36	the person under Section 223, 401(a), 403(a), 403(b), 408(a), 408A,
37	37	457(b), or 501(a), Internal Revenue Code of 1986, including a
38	38	government plan or church plan described by Section 414(d) or (e),
39	39	Internal Revenue Code of 1986. For purposes of this subsection, the
40	40	interest of a person in a plan, annuity, account, or contract
41	41	acquired by reason of the death of another person, whether as an
42	42	owner, participant, beneficiary, survivor, coannuitant, heir, or
43	43	legatee, is exempt to the same extent that the interest of the
44	44	person from whom the plan, annuity, account, or contract was
45	45	acquired was exempt on the date of the person's death. If this
46	46	subsection is held invalid or preempted by federal law in whole or
47	47	in part or in certain circumstances, the subsection remains in
48	48	effect in all other respects to the maximum extent permitted by law.
49	49	(b) Contributions to an individual retirement account[,
50	50	other than contributions to a Roth IRA described in Section 408A,
51	51	Internal Revenue Code of 1986, or an annuity] that exceed the
52	52	amounts permitted [deductible] under the applicable provisions of
53	53	the Internal Revenue Code of 1986 and any accrued earnings on such
54	54	contributions are not exempt under this section unless otherwise
55	55	exempt by law. Amounts qualifying as nontaxable rollover
56	56	contributions under Section 402(a)(5), 403(a)(4), 403(b)(8), or
57	57	408(d)(3) of the Internal Revenue Code of 1986 before January 1,
58	58	1993, are treated as exempt amounts under Subsection (a). Amounts
59	59	treated as qualified rollover contributions under Section 408A,
60	60	Internal Revenue Code of 1986, are treated as exempt amounts under
61	61	Subsection (a). In addition, amounts qualifying as nontaxable
62	62	rollover contributions under Section 402(c), 402(e)(6), 402(f),
63	63	403(a)(4), 403(a)(5), 403(b)(8), 403(b)(10), 408(d)(3), or 408A of
64	64	the Internal Revenue Code of 1986 on or after January 1, 1993, are
65	65	treated as exempt amounts under Subsection (a). Amounts qualifying
66	66	as nontaxable rollover contributions under Section 223(f)(5) of the
67	67	Internal Revenue Code of 1986 on or after January 1, 2004, are
68	68	treated as exempt amounts under Subsection (a).
69	69	SECTION 3. The changes in law made by this Act do not apply
70	70	to property that is, as of the effective date of this Act, subject
71	71	to a voluntary bankruptcy proceeding or to a valid claim of a holder
72	72	of a final judgment who has, by levy, garnishment, or other legal
73	73	process, obtained rights superior to those that would otherwise be
74	74	held by a trustee in bankruptcy if a bankruptcy petition were then
75	75	pending against the debtor. That property is subject to the law as
76	76	it existed immediately before the effective date of this Act, and
77	77	the prior law is continued in effect for that purpose.
78	78	SECTION 4. This Act takes effect September 1, 2013.