Bill Text: TX HB3481 | 2023-2024 | 88th Legislature | Comm Sub

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Bill Title: Relating to the exemption of certain personal property from seizure under a court order to collect a judgment on a consumer debt.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-05-11 - Placed on General State Calendar [HB3481 Detail]

Download: Texas-2023-HB3481-Comm_Sub.html

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88R22825 AJA-F
By: Leach H.B. No. 3481
Substitute the following for H.B. No. 3481:
By: Murr C.S.H.B. No. 3481

A BILL TO BE ENTITLED
AN ACT
relating to the exemption of certain personal property from seizure
under a court order to collect a judgment on a consumer debt.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.002, Civil Practice and Remedies
Code, is amended by adding Subsections (i), (j), and (k) to read as
follows:
(i) A court order under this section to collect a judgment
on a consumer debt, as defined by Section 392.001, Finance Code,
must exempt from freezing and turnover an amount equal to $3,000 to
cover basic needs. The order must direct the judgment creditor or
receiver to apply the exemption under this subsection to amounts in
a demand deposit account first, followed by any other accounts, as
applicable. If 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 by this subsection includes any amounts
protected under 31 C.F.R. Part 212 and does not limit amounts
protected under other exemptions to the extent those exemptions
exceed the amount of the exemption prescribed by this subsection.
This subsection does not apply to the enforcement of court-ordered
alimony, child support, or spousal maintenance payments.
(j) In implementing Subsection (i) with regard to an account
held by a financial institution on behalf of a judgment debtor, a
court order under this section must direct the judgment creditor or
receiver to send a levy letter to the financial institution. With
that levy letter, the judgment creditor or receiver shall include
the form promulgated under Subsection (k).
(k) The supreme court shall promulgate a form that
establishes a simple and streamlined process for a financial
institution to implement the exemption provided by Subsection (i).
SECTION 2. Section 31.010(a), Civil Practice and Remedies
Code, is amended to read as follows:
(a) A financial institution that receives a request to turn
over assets or financial information of a judgment debtor to a
judgment creditor or a receiver under a turnover order or
receivership under Section 31.002 shall be provided and may rely
on:
(1) a certified copy of the order or injunction of the
court; [or]
(2) a certified copy of the order of appointment of a
receiver under Section 64.001, including a certified copy of:
(A) any document establishing the qualification
of the receiver under Section 64.021;
(B) the sworn affidavit under Section 64.022; and
(C) the bond under Section 64.023; or
(3) a form promulgated under Section 31.002(k).
SECTION 3. (a) Not later than May 1, 2024, the Supreme
Court of Texas shall promulgate a form for purposes of Section
31.002(k), Civil Practice and Remedies Code, as added by this Act.
(b) This section takes effect September 1, 2023.
SECTION 4. Except as otherwise provided by this Act, this
Act takes effect September 1, 2024.