| 1 | 1 | | 88R22825 AJA-F |
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| 2 | 2 | | By: Leach H.B. No. 3481 |
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| 3 | 3 | | Substitute the following for H.B. No. 3481: |
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| 4 | 4 | | By: Murr C.S.H.B. No. 3481 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the exemption of certain personal property from seizure |
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| 10 | 10 | | under a court order to collect a judgment on a consumer debt. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 31.002, Civil Practice and Remedies |
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| 13 | 13 | | Code, is amended by adding Subsections (i), (j), and (k) to read as |
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| 14 | 14 | | follows: |
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| 15 | 15 | | (i) A court order under this section to collect a judgment |
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| 16 | 16 | | on a consumer debt, as defined by Section 392.001, Finance Code, |
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| 17 | 17 | | must exempt from freezing and turnover an amount equal to $3,000 to |
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| 18 | 18 | | cover basic needs. The order must direct the judgment creditor or |
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| 19 | 19 | | receiver to apply the exemption under this subsection to amounts in |
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| 20 | 20 | | a demand deposit account first, followed by any other accounts, as |
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| 21 | 21 | | applicable. If the judgment debtor has more than one demand deposit |
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| 22 | 22 | | account or other combination of accounts, the exemption shall be |
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| 23 | 23 | | applied to the largest demand deposit account first followed by any |
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| 24 | 24 | | additional accounts in the order of most to least funds available. |
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| 25 | 25 | | The exemption provided by this subsection includes any amounts |
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| 26 | 26 | | protected under 31 C.F.R. Part 212 and does not limit amounts |
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| 27 | 27 | | protected under other exemptions to the extent those exemptions |
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| 28 | 28 | | exceed the amount of the exemption prescribed by this subsection. |
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| 29 | 29 | | This subsection does not apply to the enforcement of court-ordered |
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| 30 | 30 | | alimony, child support, or spousal maintenance payments. |
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| 31 | 31 | | (j) In implementing Subsection (i) with regard to an account |
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| 32 | 32 | | held by a financial institution on behalf of a judgment debtor, a |
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| 33 | 33 | | court order under this section must direct the judgment creditor or |
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| 34 | 34 | | receiver to send a levy letter to the financial institution. With |
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| 35 | 35 | | that levy letter, the judgment creditor or receiver shall include |
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| 36 | 36 | | the form promulgated under Subsection (k). |
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| 37 | 37 | | (k) The supreme court shall promulgate a form that |
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| 38 | 38 | | establishes a simple and streamlined process for a financial |
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| 39 | 39 | | institution to implement the exemption provided by Subsection (i). |
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| 40 | 40 | | SECTION 2. Section 31.010(a), Civil Practice and Remedies |
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| 41 | 41 | | Code, is amended to read as follows: |
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| 42 | 42 | | (a) A financial institution that receives a request to turn |
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| 43 | 43 | | over assets or financial information of a judgment debtor to a |
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| 44 | 44 | | judgment creditor or a receiver under a turnover order or |
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| 45 | 45 | | receivership under Section 31.002 shall be provided and may rely |
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| 46 | 46 | | on: |
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| 47 | 47 | | (1) a certified copy of the order or injunction of the |
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| 48 | 48 | | court; [or] |
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| 49 | 49 | | (2) a certified copy of the order of appointment of a |
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| 50 | 50 | | receiver under Section 64.001, including a certified copy of: |
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| 51 | 51 | | (A) any document establishing the qualification |
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| 52 | 52 | | of the receiver under Section 64.021; |
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| 53 | 53 | | (B) the sworn affidavit under Section 64.022; and |
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| 54 | 54 | | (C) the bond under Section 64.023; or |
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| 55 | 55 | | (3) a form promulgated under Section 31.002(k). |
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| 56 | 56 | | SECTION 3. (a) Not later than May 1, 2024, the Supreme |
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| 57 | 57 | | Court of Texas shall promulgate a form for purposes of Section |
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| 58 | 58 | | 31.002(k), Civil Practice and Remedies Code, as added by this Act. |
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| 59 | 59 | | (b) This section takes effect September 1, 2023. |
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| 60 | 60 | | SECTION 4. Except as otherwise provided by this Act, this |
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| 61 | 61 | | Act takes effect September 1, 2024. |
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