2012 -- H 7602 SUBSTITUTE A

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LC00895/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO COURTS AND CIVIL PROCEDURE--PROCEDURE GENERALLY --

PROPERTY EXEMPT FROM ATTACHMENT, HOMESTEAD EXEMPTION AND

PROPERTY TAX EXEMPTIONS

     Introduced By: Representatives Jackson, O`Neill, Gallison, Lally, and Keable

     Date Introduced: February 16, 2012

     Referred To: House Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 9-26-4 of the General Laws in Chapter 9-26 entitled "Levy and Sale

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on Execution" is hereby amended to read as follows:

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     9-26-4. Property exempt from attachment. -- The following goods and property shall

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be exempt from attachment on any warrant of distress or on any other writ, original, mesne, or

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judicial:

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      (1) The necessary wearing apparel of a debtor or of the debtor's family, if he or she has a

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family.

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      (2) The working tools of a debtor necessary in the debtor's usual occupation, not

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exceeding in value the sum of one thousand five hundred dollars ($1,500), and the professional

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library of any professional person in actual practice.

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      (3) The household furniture, clothing, and family stores of a housekeeper in the whole,

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including beds and bedding, not exceeding in value the sum of nine thousand six hundred dollars

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($9,600).

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      (4) The bibles, school books, and other books in use in the family, not exceeding in value

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the sum of three hundred dollars ($300).

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      (5) The debtor's interest in one lot or right of burial, as the case may be, in any cemetery.

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      (6) Wages due or accruing to any sailor.

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      (7) Debts secured by bills of exchange or negotiable promissory notes.

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      (8) (i) The entire salary or wages of any debtor due or payable from any charitable

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corporation, or from any person or corporation engaged in the disbursement or administration of

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any public charitable fund or money, whenever the salaries or wages are to be paid or supplied,

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directly or indirectly, from any fund or money appropriated or contributed for the relief of the

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poor or in aid of unemployment, and the debtor is the object of the relief or aid.

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      (ii) The entire wages or salary of any debtor due or payable from any employer, where

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the debtor has been the object of relief from any state, federal, or municipal corporation or agency

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for a period of one year from and after the time when the debtor ceases to be the object of such

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relief.

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      (iii) The salary or wages due or payable to any other debtor, not exceeding the sum of

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fifty dollars ($50.00).

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      (9) The salary and wages of the wife and the minor children of any debtor.

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      (10) Such other property, real, personal, or mixed, in possession or actions as is or shall

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be exempted from attachment and execution, either permanently or temporarily, by general or

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special acts, charters of incorporation, or by the policy of the law.

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      (11) An individual retirement account or individual retirement annuity as defined in

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sections 408 and 408A of the Internal Revenue Code, 26 U.S.C. sections 408 and 408A, and the

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payments or distributions from such an account or annuity, except that this exemption does not

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apply to any of the following:

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      (i) An order of a court pursuant to a judgment of divorce or separate maintenance.

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      (ii) An order of a court concerning child support.

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      (iii) Contributions to an individual retirement account or premiums on an individual

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retirement annuity, including the earnings or benefits from those contributions or premiums, that

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constitute an excess contribution within the meaning of Section 4973 of the Internal Revenue

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Code [26 U.S.C. section 4973].

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      (12) The right or interest of a person in an annuity, pension, profit sharing, or other

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retirement plan protected by the Employee Retirement Income Security Act of 1974, Public Law

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93-406, 29 U.S.C. section 1001 et seq. This exemption shall also apply to the operation of the

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Federal Bankruptcy Code, as permitted by Section 522(d)(10)(E) of Title 11 of the United States

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Code, 11 U.S.C. section 522(d)(10)(E). This exemption shall not apply to the right or interest of a

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person in an annuity, pension, profit sharing, or other retirement plan to the extent that that right

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or interest is subject to any of the following:

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      (i) An order of the court pursuant to a judgment of divorce or separated maintenance.

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      (ii) An order of a court concerning child support.

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      This exemption shall not apply to contributions to and the earnings of any of the

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retirement plans enumerated in this subdivision that are not qualified retirement plans as defined

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by Section 401 of the Internal Revenue Code, 26 U.S.C. section 401.

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      (13) Any and all motor vehicles owned by the debtor not to exceed an aggregate total of

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twelve thousand dollars ($12,000).

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      (14) Any and all jewelry owned by the debtor not to exceed an aggregate total of two

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thousand dollars ($2,000).

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      (15) An account balance, right, or interest of a person in a "prepaid tuition program" or a

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"tuition savings program" as defined in section 16-57-3(10) and (16), respectively. This

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exemption shall not apply to a balance, right, or interest to the extent that the balance, right, or

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interest is subject to any of the following:

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      (i) An order of a court pursuant to a judgment of divorce or separate maintenance;

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      (ii) An order of a court concerning child support.

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     (16) The cash surrender values and proceeds of life insurance policies issued upon the

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lives of citizens or residents of the state and the proceeds and contract values of annuity contracts

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issued to citizens or residents of the state, in whatever form shall not be liable to attachment,

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garnishment or legal process in favor of any creditor of the person whose life is so insured or of

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any creditor of the person who is the beneficiary of such life insurance policy or annuity contract,

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unless the insurance policy or annuity contract was effected for the benefit of such creditor;

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provided, that this exemption shall not apply to a claim by the state of Rhode Island.

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      (16)(17) In addition to the exemptions herein, a debtor in bankruptcy may exempt an

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additional five thousand dollars ($5,000) in any assets.

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     SECTION 2. This act shall take effect upon passage.

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LC00895/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO COURTS AND CIVIL PROCEDURE--PROCEDURE GENERALLY --

PROPERTY EXEMPT FROM ATTACHMENT, HOMESTEAD EXEMPTION AND

PROPERTY TAX EXEMPTIONS

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     This act would add the cash surrender values and proceeds of life insurance policies on

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the lives of residents of the state and the proceeds of annuity contracts of residents of the state to

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the category or properties exempt from attachment by creditors.

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     This act would take effect upon passage.

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LC00895/SUB A

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