By: Zaffirini S.B. No. 775
A BILL TO BE ENTITLED
AN ACT
relating to the exemption of certain personal property from
garnishment, attachment, execution, or other seizure by creditors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.002, Civil Practices and Remedies
Code is amended by adding Subsection (i) to read as follows:
(i) For collection of judgments on consumer debt, as defined
by Texas Finance Code Section 392.001(2), a court order under this
section must exempt an amount to cover basic needs equal to $3,000
from freezing and turnover. The order must direct the judgment
creditor or receiver to apply the exemption under this section to
amounts in a demand deposit account first, followed by any other
accounts, as applicable. In the event the judgment debtor has more
than one demand deposit account or other combination of accounts,
the exemption shall be applied to the largest demand deposit
account first followed by any additional accounts in the order of
most to least funds available. The exemption provided in this
section includes any amounts protected under 31 C.F.R. Part 212 and
does not limit other exemptions to the extent those exemptions
exceed this amount. This subsection does not apply to the
enforcement of court-ordered alimony, child support, or spousal
maintenance payments.
SECTION 2. Section 31.002, Civil Practices and Remedies
Code is amended by adding Subsection (j) to read as follows:
(j) In implementing subsection (i) with regard to an account
held on behalf of a judgment debtor by a financial institution, an
order under this section shall direct the judgment creditor or
receiver in the first instance to send a levy letter to the
financial institution. With that levy letter, the judgment
creditor or receiver shall include a separate form that is
identical to or substantially the same as subsection (k).
Section 3. Section 31.002, Civil Practices and Remedies Code
is amended by adding Subsection (k) to read as follows:
(k) The following demand for information, when completed,
meets the obligations of the judgment creditor or receiver under
subsection (j):
DUTIES OF FINANCIAL INSTITUTION
As noted in the levy letter and its attachments, the judgment
debtor, (name of judgment debtor), has an unsatisfied
judgment debt and is obligated by an order of the court to turnover
non-exempt assets to the [identify judgment creditor or receiver]
to satisfy that debt. Any funds equal to or less than $3,000 are
not subject to levy and shall not be disbursed to a judgment
creditor or receiver in response to a levy letter. As reflected by
the court order attached to the levy letter, this exemption shall
be applied to the largest demand deposit account first followed by
any additional accounts in the order of most to least funds
available. The exemption provided in this section includes any
amounts protected under 31 C.F.R. Part 212 and does not limit those
amounts or other amounts protected under other exemptions to the
extent those exemptions exceed this amount. This exemption does
not apply to the enforcement of court-ordered alimony, child
support, or spousal maintenance payments.
Section 4. Section 31.010(a), Civil Practices and Remedies
Code is amended by adding paragraph (3) to read as follows:
(3) A duties of financial institution form in the same or
substantially the same form as set forth in section 31.002(k).
SECTION 5. This Act takes effect September 1, 2023