S.B. No. 1810

	AN ACT
	relating to the exemption of certain retirement accounts from
	access by creditors.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subsections (a), (c), and (d), Section 42.0021,
	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,
	annuity, deferred compensation, profit-sharing, or similar plan,
	including a retirement plan for self-employed individuals, or a
	simplified employee pension plan, an individual retirement account
	or individual retirement annuity, including an inherited
	individual retirement account or individual retirement annuity, or
	a health savings account, and under any annuity or similar contract
	purchased with assets distributed from that type of plan or
	account, [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 to the extent
	[unless] the plan, contract, annuity, or account is exempt from
	federal income tax, or to the extent federal income tax on the
	person's interest is deferred until actual payment of benefits to
	the person under Section 223, 401(a), 403(a), 403(b), 408(a), 408A,
	457(b), or 501(a), Internal Revenue Code of 1986, including a
	government plan or church plan described by Section 414(d) or (e),
	[does not qualify under the applicable provisions of the] Internal
	Revenue Code of 1986.  For purposes of this subsection, the interest
	of a person in a plan, annuity, account, or contract acquired by
	reason of the death of another person, whether as an owner,
	participant, beneficiary, survivor, coannuitant, heir, or legatee,
	is exempt to the same extent that the interest of the person from
	whom the plan, annuity, account, or contract was acquired was
	exempt on the date of the person's death [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.
	(c)  Amounts distributed from a plan, annuity, account, or
	contract entitled to an [the] exemption under Subsection (a) are
	not subject to seizure for a creditor's claim for 60 days after the
	date of distribution if the amounts qualify as a nontaxable
	rollover contribution under Subsection (b).
	(d)  A participant or beneficiary of a [stock bonus, pension,
	profit-sharing, retirement] plan, annuity, account, or contract
	entitled to an exemption under Subsection (a), other than an
	individual retirement account or individual retirement annuity,
	[or government plan] is not prohibited from granting a valid and
	enforceable security interest in the participant's or beneficiary's
	right to the assets held in or to receive payments under the exempt
	plan, annuity, account, or contract to secure a loan to the
	participant or beneficiary from the exempt plan, annuity, account,
	or contract, and the right to the assets held in or to receive
	payments from the plan, annuity, account, or contract is subject to
	attachment, execution, and seizure for the satisfaction of the
	security interest or lien granted by the participant or beneficiary
	to secure the loan.
	SECTION 2.  Section 42.0021, Property Code, as amended by
	this Act, applies to an inherited individual retirement plan,
	annuity, account, or contract without regard to whether the plan,
	annuity, account, or contract was created before, on, or after the
	effective date of this Act.
	SECTION 3.  The changes made by this Act are intended to
	clarify rather than change existing law.
	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, 2011.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1810 passed the Senate on
	April 21, 2011, by the following vote: Yeas 31, Nays 0; and that
	the Senate concurred in House amendment on May 27, 2011, by the
	following vote: Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1810 passed the House, with
	amendment, on May 25, 2011, by the following vote: Yeas 146,
	Nays 0, one present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor