Bill Text: TX SB775 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to the exemption of certain personal property from garnishment, attachment, execution, or other seizure by creditors.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-03-01 - Referred to State Affairs [SB775 Detail]

Download: Texas-2023-SB775-Introduced.html
 
 
  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
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