H.B. No. 2779

	AN ACT
	relating to the exemption for certain savings plans from
	attachment, execution, or other seizure for a creditor's claim.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 42.0021, Property Code, is amended to
	read as follows:
	Sec. 42.0021.  ADDITIONAL EXEMPTION FOR CERTAIN SAVINGS
	PLANS. (a)  In this section, "qualified savings plan" means
	[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, health, education, or similar plan
	or account, to the extent the plan or account is exempt from federal
	income tax or to the extent federal income tax on a person's
	interest in the plan or account is deferred until actual payment of
	benefits to the person. A plan or account that is subject to
	federal income tax is considered to be exempt from federal income
	tax for purposes of this section if the plan or account is subject
	to the tax solely under Sections 511 through 514, Internal Revenue
	Code of 1986.  The term includes:
	(1)  a retirement plan sponsored by a private employer,
	government, or church;
	(2)  [, including] a retirement plan for self-employed
	individuals;
	(3)  [, or] a simplified employee pension plan;
	(4)  [,] an individual retirement account or
	[individual retirement] annuity, including an inherited individual
	retirement account or [, individual retirement] annuity;
	(5)  a [,] Roth IRA, including an [or] inherited Roth
	IRA;
	(6)  [, or] a health savings account;
	(7)  a Coverdell education savings account;
	(8)  a plan or account established under Subchapter F,
	Chapter 54, Education Code, including a prepaid tuition contract;
	(9)  a plan or account established under Subchapter G,
	Chapter 54, Education Code, including a savings trust account;
	(10)  a qualified tuition program of any state that
	meets the requirements of Section 529, Internal Revenue Code of
	1986;
	(11)  a qualified ABLE program of any state that meets
	the requirements of Section 529A, Internal Revenue Code of 1986;
	and
	(12)  an [, and under any] annuity or similar contract
	purchased with assets distributed from a [that type of] plan or
	account described by this subsection.
	(b)  In addition to the exemption prescribed by Section
	42.001 and except as provided by this section, a person's interest
	in and right to receive payments from a qualified savings plan,
	whether vested or not, is exempt from attachment, execution, and
	seizure for the satisfaction of debts.
	(c)  An interest or right in a qualified savings plan that
	was [to the extent 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),
	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 or right of
	the decedent [person from whom the plan, annuity, account, or
	contract was acquired] was exempt on the date of the decedent's
	[person's] death.
	(d)  [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 a qualified savings plan that are
	excess contributions under Section 4973, [an individual retirement
	account that exceed the amounts permitted 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).]
	(e) [(c)]  Amounts distributed from a qualified savings plan
	are exempt from attachment, execution, and [plan, annuity, account,
	or contract entitled to an exemption under Subsection (a) are not
	subject to] seizure for a creditor's claim for 60 days after the
	date of distribution. If [if] the amounts qualify as a [nontaxable]
	rollover contribution under the Internal Revenue Code of 1986,
	whether taxable or nontaxable, the amounts will continue to be
	exempt thereafter under this section [Subsection (b)].
	(f)  A person's interest in a retirement plan that is solely
	an unfunded, unsecured promise by an employer to pay deferred
	compensation is not exempt under this section unless otherwise
	exempt by law.
	(g)  A person [(d)     A participant or beneficiary of a plan,
	annuity, account, or contract entitled to an exemption under
	Subsection (a), other than an individual retirement account or
	individual retirement annuity,] is not prohibited by this section
	from granting a valid and enforceable security interest in the
	person's interest in or right [participant's or beneficiary's right
	to the assets held in or] to receive payments from a qualified
	savings plan to the extent permitted by, and in accordance with, the
	Internal Revenue Code of 1986 and the terms of the qualified savings
	plan [under the exempt plan, annuity, account, or contract] to
	secure a loan to the person [participant or beneficiary] from the
	qualified savings plan. The person's interest in or right [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 person
	[participant or beneficiary] to secure the loan.
	(h) [(e)]  If any provision of this section is held
	[Subsection (a) is declared] invalid or preempted by federal law,
	in whole or in part or in certain circumstances, the remaining
	provisions of this section remain [as applied to a person who has
	not brought a proceeding under Title 11, United States Code, the
	subsection remains] in effect, to the maximum extent permitted by
	law[, as to any person who has filed that type of proceeding].
	(i) [(f)]  A reference in this section to the Internal
	Revenue Code of 1986 or a specific provision of the Internal Revenue
	Code of 1986 includes a subsequent amendment of that code or of the
	substance of that provision.
	SECTION 2.  Section 42.005, Property Code, is amended to
	read as follows:
	Sec. 42.005.  CHILD SUPPORT LIENS. (a)  Except as provided
	by Subsection (b), Sections 42.001, 42.002, and 42.0021 [of this
	code] do not apply to a child support lien established under
	Subchapter G, Chapter 157, Family Code.
	(b)  The exemption from attachment, execution, and seizure
	for the satisfaction of debts provided under Section 42.0021 for a
	plan or account described by Section 42.0021(a)(8), (9), or (10)
	applies to a child support lien established under Subchapter G,
	Chapter 157, Family Code.
	SECTION 3.  Section 42.0022, Property Code, is repealed.
	SECTION 4.  The changes in law made by this Act do not apply
	to property that is, as of the effective date of this Act, subject
	to a voluntary bankruptcy proceeding or to a valid claim of a holder
	of a final judgment who has, by levy, garnishment, or other legal
	process, obtained rights superior to those that would otherwise be
	held by a trustee in bankruptcy if a bankruptcy petition were then
	pending against the debtor. That property is subject to the law as
	it existed immediately before the effective date of this Act, and
	the prior law is continued in effect for that purpose.
	SECTION 5.  This Act takes effect September 1, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2779 was passed by the House on April
	24, 2019, by the following vote:  Yeas 145, Nays 0, 2 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2779 was passed by the Senate on May
	15, 2019, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor