H.B. No. 330




AN ACT

relating to exempting health savings accounts from seizure for 
satisfaction of debts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading to Section 42.0021, Property Code, 
is amended to read as follows:
	Sec. 42.0021.  ADDITIONAL EXEMPTION FOR CERTAIN SAVINGS 
PLANS [RETIREMENT PLAN].
	SECTION 2.  Sections 42.0021(a) and (b), Property Code, are 
amended to read as follows:
	(a)  In addition to the exemption prescribed by Section 
42.001, a person's right to the assets held in or to receive 
payments, whether vested or not, under any stock bonus, pension, 
profit-sharing, or similar plan, including a retirement plan for 
self-employed individuals, and under any annuity or similar 
contract purchased with assets distributed from that type of plan, 
and under any retirement annuity or account described by Section 
403(b) or 408A of the Internal Revenue Code of 1986, and under any 
individual retirement account or any individual retirement 
annuity, including a simplified employee pension plan, and under 
any health savings account described by Section 223 of the Internal 
Revenue Code of 1986, is exempt from attachment, execution, and 
seizure for the satisfaction of debts unless the plan, contract, or 
account does not qualify under the applicable provisions of the 
Internal Revenue Code of 1986.  A person's right to the assets held 
in or to receive payments, whether vested or not, under a government 
or church plan or contract is also exempt unless the plan or 
contract does not qualify under the definition of a government or 
church plan under the applicable provisions of the federal Employee 
Retirement Income Security Act of 1974.  If this subsection is held 
invalid or preempted by federal law in whole or in part or in 
certain circumstances, the subsection remains in effect in all 
other respects to the maximum extent permitted by law.
	(b)  Contributions to an individual retirement account, 
other than contributions to a Roth IRA described in Section 408A, 
Internal Revenue Code of 1986, or an annuity that exceed the amounts 
deductible under the applicable provisions of the Internal Revenue 
Code of 1986 and any accrued earnings on such contributions are not 
exempt under this section unless otherwise exempt by law.  Amounts 
qualifying as nontaxable rollover contributions under Section 
402(a)(5), 403(a)(4), 403(b)(8), or 408(d)(3) of the Internal 
Revenue Code of 1986 before January 1, 1993, are treated as exempt 
amounts under Subsection (a).  Amounts treated as qualified 
rollover contributions under Section 408A, Internal Revenue Code of 
1986, are treated as exempt amounts under Subsection (a).  In 
addition, amounts qualifying as nontaxable rollover contributions 
under Section 402(c), 402(e)(6), 402(f), 403(a)(4), 403(a)(5), 
403(b)(8), 403(b)(10), 408(d)(3), or 408A of the Internal Revenue 
Code of 1986 on or after January 1, 1993, are treated as exempt 
amounts under Subsection (a).  Amounts qualifying as nontaxable 
rollover contributions under Section 223(f)(5) of the Internal 
Revenue Code of 1986 on or after January 1, 2004, are treated as 
exempt amounts under Subsection (a).
	SECTION 3.  The change in law made by this Act applies to all 
contributions made under Section 223, Internal Revenue Code of 
1986, before, on, or after the effective date of this Act.
	SECTION 4.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 330 was passed by the House on March 
31, 2005, by the following vote:  Yeas 144, Nays 0, 2 present, not 
voting.

                                                  ______________________________
                                                     Chief Clerk of the House   

	I certify that H.B. No. 330 was passed by the Senate on May 
10, 2005, by the following vote:  Yeas 24, Nays 0.

                                                  ______________________________
                                                     Secretary of the Senate    



APPROVED:  _____________________                                            
 
                   Date                                                      




 
          _____________________                                          
 
                 Governor