As Introduced 1
122nd General Assembly 4
Regular Session H. B. No. 108 5
1997-1998 6
REPRESENTATIVES TIBERI-CORBIN-TAYLOR-HOOD-CATES-FORD-GARCIA 8
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A B I L L
To amend section 2329.66 of the Revised Code to 12
remove the limitations on a person's right to 13
hold the assets in, and the payments from, an 14
individual retirement account or an individual 15
retirement annuity exempt from execution, 16
garnishment, or attachment. 17
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That section 2329.66 of the Revised Code be 21
amended to read as follows: 22
Sec. 2329.66. (A) Every person who is domiciled in this 31
state may hold property exempt from execution, garnishment, 32
attachment, or sale to satisfy a judgment or order, as follows: 33
(1)(a) In the case of a judgment or order regarding money 35
owed for health care services rendered or health care supplies 36
provided to the person or a dependent of the person, one parcel 37
or item of real or personal property that the person or a 38
dependent of the person uses as a residence. Division (A)(1)(a) 39
of this section does not preclude, affect, or invalidate the 40
creation under this chapter of a judgment lien upon the exempted 41
property but only delays the enforcement of the lien until the 42
property is sold or otherwise transferred by the owner or in 43
accordance with other applicable laws to a person or entity other 44
than the surviving spouse or surviving minor children of the 45
judgment debtor. Every person who is domiciled in this state may 46
hold exempt from a judgment lien created pursuant to division 47
(A)(1)(a) of this section the person's interest, not to exceed 48
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five thousand dollars, in the exempted property. 49
(b) In the case of all other judgments and orders, the 51
person's interest, not to exceed five thousand dollars, in one 52
parcel or item of real or personal property that the person or a 53
dependent of the person uses as a residence. 54
(2) The person's interest, not to exceed one thousand 56
dollars, in one motor vehicle; 57
(3) The person's interest, not to exceed two hundred 59
dollars in any particular item, in wearing apparel, beds, and 60
bedding, and the person's interest, not to exceed three hundred 61
dollars in each item, in one cooking unit and one refrigerator or 62
other food preservation unit; 63
(4)(a) The person's interest, not to exceed four hundred 65
dollars, in cash on hand, money due and payable, money to become 66
due within ninety days, tax refunds, and money on deposit with a 67
bank, savings and loan association, credit union, public utility, 68
landlord, or other person. Division (A)(4)(a) of this section 69
applies only in bankruptcy proceedings. This exemption may 70
include the portion of personal earnings that is not exempt under 71
division (A)(13) of this section. 72
(b) Subject to division (A)(4)(d) of this section, the 74
person's interest, not to exceed two hundred dollars in any 75
particular item, in household furnishings, household goods, 76
appliances, books, animals, crops, musical instruments, firearms, 77
and hunting and fishing equipment, that are held primarily for 78
the personal, family, or household use of the person. 79
(c) Subject to division (A)(4)(d) of this section, the 81
person's interest in one or more items of jewelry, not to exceed 82
four hundred dollars in one item of jewelry and not to exceed two 83
hundred dollars in every other item of jewelry. 84
(d) Divisions (A)(4)(b) and (c) of this section do not 86
include items of personal property listed in division (A)(3) of 87
this section. 88
If the person does not claim an exemption under division 90
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(A)(1) of this section, the total exemption claimed under 91
division (A)(4)(b) of this section shall be added to the total 92
exemption claimed under division (A)(4)(c) of this section, and 93
the total shall not exceed two thousand dollars. If the person 94
claims an exemption under division (A)(1) of this section, the 95
total exemption claimed under division (A)(4)(b) of this section 96
shall be added to the total exemption claimed under division 97
(A)(4)(c) of this section, and the total shall not exceed one 98
thousand five hundred dollars. 99
(5) The person's interest, not to exceed an aggregate of 101
seven hundred fifty dollars, in all implements, professional 102
books, or tools of the person's profession, trade, or business, 103
including agriculture; 105
(6)(a) The person's interest in a beneficiary fund set 107
apart, appropriated, or paid by a benevolent association or 108
society, as exempted by section 2329.63 of the Revised Code; 109
(b) The person's interest in contracts of life or 111
endowment insurance or annuities, as exempted by section 3911.10 112
of the Revised Code; 113
(c) The person's interest in a policy of group insurance 115
or the proceeds of a policy of group insurance, as exempted by 116
section 3917.05 of the Revised Code; 117
(d) The person's interest in money, benefits, charity, 119
relief, or aid to be paid, provided, or rendered by a fraternal 120
benefit society, as exempted by section 3921.18 of the Revised 121
Code; 122
(e) The person's interest in the portion of benefits under 124
policies of sickness and accident insurance and in lump-sum 125
payments for dismemberment and other losses insured under those 126
policies, as exempted by section 3923.19 of the Revised Code. 127
(7) The person's professionally prescribed or medically 129
necessary health aids; 130
(8) The person's interest in a burial lot, including, but 132
not limited to, exemptions under section 517.09 or 1721.07 of the 133
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Revised Code; 134
(9) The person's interest in the following: 136
(a) Moneys paid or payable for living maintenance or 138
rights, as exempted by section 3304.19 of the Revised Code; 139
(b) Workers' compensation, as exempted by section 4123.67 142
of the Revised Code; 143
(c) Unemployment compensation benefits, as exempted by 145
section 4141.32 of the Revised Code; 146
(d) Aid to dependent children payments, as exempted by 148
section 5107.12 of the Revised Code; 149
(e) Disability assistance payments, as exempted by section 151
5115.07 of the Revised Code. 152
(10)(a) Except in cases in which the person was convicted 154
of or pleaded guilty to a violation of section 2921.41 of the 155
Revised Code and in which an order for the withholding of 156
restitution from payments was issued under division (C)(2)(b) of 157
that section or in cases in which an order for withholding was 158
issued under section 2907.15 of the Revised Code, and only to the 159
extent provided in the order, and except as provided in sections 163
2929.181, 3105.171, 3105.63, 3111.23, and 3113.21 of the Revised 165
Code, the person's right to a pension, benefit, annuity, 166
retirement allowance, or accumulated contributions, the person's 167
right to a participant account in any deferred compensation 168
program offered by the Ohio public employees deferred 169
compensation board, a government unit, or a municipal 170
corporation, or the person's other accrued or accruing rights, as 171
exempted by section 145.56, 145.75, 146.13, 742.47, 3307.71, 172
3309.66, or 5505.22 of the Revised Code, and the person's right 173
to benefits from the firemen and policemen's death benefit fund; 174
(b) Except as provided in sections 3111.23 and 3113.21 of 177
the Revised Code, the person's right to receive a payment under 178
any pension, annuity, or similar plan or contract, not including 179
a payment from a stock bonus or profit-sharing plan or a payment 180
included in division (A)(6)(b) or (10)(a) of this section, on 181
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account of illness, disability, death, age, or length of service, 182
to the extent reasonably necessary for the support of the person 183
and any of the person's dependents, except if all the following 184
apply: 185
(i) The plan or contract was established by or under the 187
auspices of an insider that employed the person at the time the 188
person's rights under the plan or contract arose. 189
(ii) The payment is on account of age or length of 191
service. 192
(iii) The plan or contract is not qualified under the 194
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as 195
amended. 196
(c) Except for any portion of the assets that were 198
deposited for the purpose of evading the payment of any debt and 199
except as provided in sections 3111.23 and 3113.21 of the Revised 201
Code, the THE person's right in the assets held in, or to receive 202
any payment under, any individual retirement account, OR 203
individual retirement annuity, or Keogh or "H.R. 10" plan that 205
provides benefits by reason of illness, disability, death, or 206
age, to the extent reasonably necessary for the support of the 207
person and any of the person's dependents. FOR PURPOSES OF 208
SECTIONS 3111.23 AND 3113.21 OF THE REVISED CODE, NEITHER THE 210
PRINCIPAL AND ANY INTEREST ACCUMULATED IN AN INDIVIDUAL 211
RETIREMENT ACCOUNT OR INDIVIDUAL RETIREMENT ANNUITY, NOR ANY 212
PAYMENTS RECEIVED FROM SUCH AN ACCOUNT OR ANNUITY, SHALL BE 213
CONSIDERED TO BE FUNDS ON DEPOSIT OR A FORM OF INCOME. 214
(d) EXCEPT FOR ANY PORTION OF THE ASSETS THAT WERE 217
DEPOSITED FOR THE PURPOSE OF EVADING THE PAYMENT OF ANY DEBT AND 218
EXCEPT AS PROVIDED IN SECTIONS 3111.23 AND 3113.21 OF THE REVISED 219
CODE, THE PERSON'S RIGHT IN THE ASSETS HELD IN, OR TO RECEIVE ANY 220
PAYMENT UNDER, ANY KEOGH OR "H.R. 10" PLAN THAT PROVIDES BENEFITS 221
BY REASON OF ILLNESS, DISABILITY, DEATH, OR AGE, TO THE EXTENT 222
REASONABLY NECESSARY FOR THE SUPPORT OF THE PERSON AND ANY OF THE 223
PERSON'S DEPENDENTS. 224
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(11) The person's right to receive spousal support, child 226
support, an allowance, or other maintenance to the extent 227
reasonably necessary for the support of the person and any of the 228
person's dependents; 230
(12) The person's right to receive, or moneys received 232
during the preceding twelve calendar months from, any of the 233
following: 234
(a) An award of reparations under sections 2743.51 to 236
2743.72 of the Revised Code, to the extent exempted by division 237
(D) of section 2743.66 of the Revised Code; 238
(b) A payment on account of the wrongful death of an 240
individual of whom the person was a dependent on the date of the 241
individual's death, to the extent reasonably necessary for the 242
support of the person and any of the person's dependents; 243
(c) Except in cases in which the person who receives the 245
payment is an inmate, as defined in section 2969.21 of the 246
Revised Code, and in which the payment resulted from a civil 247
action or appeal against a government entity or employee, as 248
defined in section 2969.21 of the Revised Code, a payment, not to
exceed five thousand dollars, on account of personal bodily 250
injury, not including pain and suffering or compensation for 251
actual pecuniary loss, of the person or an individual for whom 252
the person is a dependent;
(d) A payment in compensation for loss of future earnings 254
of the person or an individual of whom the person is or was a 255
dependent, to the extent reasonably necessary for the support of 256
the debtor and any of the debtor's dependents. 257
(13) Except as provided in sections 3111.23 and 3113.21 of 260
the Revised Code, personal earnings of the person owed to the
person for services rendered within thirty days before the 262
issuing of an attachment or other process, the rendition of a 263
judgment, or the making of an order, under which the attempt may 264
be made to subject those earnings to the payment of a debt, 265
damage, fine, or amercement, in an amount equal to the greater of 266
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the following amounts:
(a) If paid weekly, thirty times the current federal 268
minimum hourly wage; if paid biweekly, sixty times the current 269
federal minimum hourly wage; if paid semimonthly, sixty-five 270
times the current federal minimum hourly wage; or if paid 271
monthly, one hundred thirty times the current federal minimum 272
hourly wage that is in effect at the time the earnings are 273
payable, as prescribed by the "Fair Labor Standards Act of 1938," 274
52 Stat. 1060, 29 U.S.C. 206(a)(1), as amended; 275
(b) Seventy-five per cent of the disposable earnings owed 277
to the person. 278
(14) The person's right in specific partnership property, 280
as exempted by division (B)(3) of section 1775.24 of the Revised 281
Code; 282
(15) A seal and official register of a notary public, as 284
exempted by section 147.04 of the Revised Code; 285
(16) The person's interest in a tuition credit or a 287
payment under section 3334.09 of the Revised Code pursuant to a 288
tuition credit contract, as exempted by section 3334.15 of the 289
Revised Code;
(17) Any other property that is specifically exempted from 291
execution, attachment, garnishment, or sale by federal statutes 292
other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11 293
U.S.C.A. 101, as amended; 294
(18) The person's interest, not to exceed four hundred 296
dollars, in any property, except that division (A)(18) of this 297
section applies only in bankruptcy proceedings. 298
(B) As used in this section: 300
(1) "Disposable earnings" means net earnings after the 302
garnishee has made deductions required by law, excluding the 303
deductions ordered pursuant to section 3111.23 or 3113.21 of the 305
Revised Code. 306
(2) "Insider" means: 308
(a) If the person who claims an exemption is an 310
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individual, a relative of the individual, a relative of a general 311
partner of the individual, a partnership in which the individual 312
is a general partner, a general partner of the individual, or a 313
corporation of which the individual is a director, officer, or in 314
control; 315
(b) If the person who claims an exemption is a 317
corporation, a director or officer of the corporation; a person 318
in control of the corporation; a partnership in which the 319
corporation is a general partner; a general partner of the 320
corporation; or a relative of a general partner, director, 321
officer, or person in control of the corporation; 322
(c) If the person who claims an exemption is a 324
partnership, a general partner in the partnership; a general 325
partner of the partnership; a person in control of the 326
partnership; a partnership in which the partnership is a general 327
partner; or a relative in, a general partner of, or a person in 328
control of the partnership; 329
(d) An entity or person to which or whom any of the 331
following applies: 332
(i) The entity directly or indirectly owns, controls, or 334
holds with power to vote, twenty per cent or more of the 335
outstanding voting securities of the person who claims an 336
exemption, unless the entity holds the securities in a fiduciary 337
or agency capacity without sole discretionary power to vote the 338
securities or holds the securities solely to secure to debt and 339
the entity has not in fact exercised the power to vote. 340
(ii) The entity is a corporation, twenty per cent or more 342
of whose outstanding voting securities are directly or indirectly 343
owned, controlled, or held with power to vote, by the person who 344
claims an exemption or by an entity to which division 345
(B)(2)(d)(i) of this section applies. 346
(iii) A person whose business is operated under a lease or 348
operating agreement by the person who claims an exemption, or a 349
person substantially all of whose business is operated under an 350
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operating agreement with the person who claims an exemption. 351
(iv) The entity operates the business or all or 353
substantially all of the property of the person who claims an 354
exemption under a lease or operating agreement. 355
(e) An insider, as otherwise defined in this section, of a 357
person or entity to which division (B)(2)(d)(i), (ii), (iii), or 358
(iv) of this section applies, as if the person or entity were a 359
person who claims an exemption; 360
(f) A managing agent of the person who claims an 362
exemption. 363
(3) "Participant account" has the same meaning as in 365
section 145.71 of the Revised Code. 366
(4) "Government unit" has the same meaning as in section 368
145.74 of the Revised Code. 369
(C) For purposes of this section, "interest" shall be 371
determined as follows: 372
(1) In bankruptcy proceedings, as of the date a petition 374
is filed with the bankruptcy court commencing a case under Title 375
11 of the United States Code; 376
(2) In all cases other than bankruptcy proceedings, as of 378
the date of an appraisal, if necessary under section 2329.68 of 379
the Revised Code, or the issuance of a writ of execution. 380
An interest, as determined under division (C)(1) or (2) of 382
this section, shall not include the amount of any lien otherwise 383
valid pursuant to section 2329.661 of the Revised Code. 384
Section 2. That existing section 2329.66 of the Revised 386
Code is hereby repealed. 387