As Reported by the House Health, Retirement and Aging Committee 1
122nd General Assembly 4
Regular Session Sub. H. B. No. 108 5
1997-1998 6
REPRESENTATIVES TIBERI-CORBIN-TAYLOR-HOOD-CATES-FORD-GARCIA- 8
VAN VYVEN-VESPER-HODGES-OLMAN-GRENDELL-TERWILLEGER-BRADING 9
11
A B I L L
To amend section 2329.66 of the Revised Code to 13
remove limitations on a person's right to hold 14
the assets in, and the payments from, an 15
individual retirement account or an individual 16
retirement annuity exempt from execution, 17
garnishment, or attachment. 18
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 20
Section 1. That section 2329.66 of the Revised Code be 22
amended to read as follows: 23
Sec. 2329.66. (A) Every person who is domiciled in this 32
state may hold property exempt from execution, garnishment, 33
attachment, or sale to satisfy a judgment or order, as follows: 34
(1)(a) In the case of a judgment or order regarding money 36
owed for health care services rendered or health care supplies 37
provided to the person or a dependent of the person, one parcel 38
or item of real or personal property that the person or a 39
dependent of the person uses as a residence. Division (A)(1)(a) 40
of this section does not preclude, affect, or invalidate the 41
creation under this chapter of a judgment lien upon the exempted 42
property but only delays the enforcement of the lien until the 43
property is sold or otherwise transferred by the owner or in 44
accordance with other applicable laws to a person or entity other 45
than the surviving spouse or surviving minor children of the 46
judgment debtor. Every person who is domiciled in this state may 47
hold exempt from a judgment lien created pursuant to division 48
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(A)(1)(a) of this section the person's interest, not to exceed 49
five thousand dollars, in the exempted property. 50
(b) In the case of all other judgments and orders, the 52
person's interest, not to exceed five thousand dollars, in one 53
parcel or item of real or personal property that the person or a 54
dependent of the person uses as a residence. 55
(2) The person's interest, not to exceed one thousand 57
dollars, in one motor vehicle; 58
(3) The person's interest, not to exceed two hundred 60
dollars in any particular item, in wearing apparel, beds, and 61
bedding, and the person's interest, not to exceed three hundred 62
dollars in each item, in one cooking unit and one refrigerator or 63
other food preservation unit; 64
(4)(a) The person's interest, not to exceed four hundred 66
dollars, in cash on hand, money due and payable, money to become 67
due within ninety days, tax refunds, and money on deposit with a 68
bank, savings and loan association, credit union, public utility, 69
landlord, or other person. Division (A)(4)(a) of this section 70
applies only in bankruptcy proceedings. This exemption may 71
include the portion of personal earnings that is not exempt under 72
division (A)(13) of this section. 73
(b) Subject to division (A)(4)(d) of this section, the 75
person's interest, not to exceed two hundred dollars in any 76
particular item, in household furnishings, household goods, 77
appliances, books, animals, crops, musical instruments, firearms, 78
and hunting and fishing equipment, that are held primarily for 79
the personal, family, or household use of the person. 80
(c) Subject to division (A)(4)(d) of this section, the 82
person's interest in one or more items of jewelry, not to exceed 83
four hundred dollars in one item of jewelry and not to exceed two 84
hundred dollars in every other item of jewelry. 85
(d) Divisions (A)(4)(b) and (c) of this section do not 87
include items of personal property listed in division (A)(3) of 88
this section. 89
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If the person does not claim an exemption under division 91
(A)(1) of this section, the total exemption claimed under 92
division (A)(4)(b) of this section shall be added to the total 93
exemption claimed under division (A)(4)(c) of this section, and 94
the total shall not exceed two thousand dollars. If the person 95
claims an exemption under division (A)(1) of this section, the 96
total exemption claimed under division (A)(4)(b) of this section 97
shall be added to the total exemption claimed under division 98
(A)(4)(c) of this section, and the total shall not exceed one 99
thousand five hundred dollars. 100
(5) The person's interest, not to exceed an aggregate of 102
seven hundred fifty dollars, in all implements, professional 103
books, or tools of the person's profession, trade, or business, 104
including agriculture; 106
(6)(a) The person's interest in a beneficiary fund set 108
apart, appropriated, or paid by a benevolent association or 109
society, as exempted by section 2329.63 of the Revised Code; 110
(b) The person's interest in contracts of life or 112
endowment insurance or annuities, as exempted by section 3911.10 113
of the Revised Code; 114
(c) The person's interest in a policy of group insurance 116
or the proceeds of a policy of group insurance, as exempted by 117
section 3917.05 of the Revised Code; 118
(d) The person's interest in money, benefits, charity, 120
relief, or aid to be paid, provided, or rendered by a fraternal 121
benefit society, as exempted by section 3921.18 of the Revised 122
Code; 123
(e) The person's interest in the portion of benefits under 125
policies of sickness and accident insurance and in lump-sum 126
payments for dismemberment and other losses insured under those 127
policies, as exempted by section 3923.19 of the Revised Code. 128
(7) The person's professionally prescribed or medically 130
necessary health aids; 131
(8) The person's interest in a burial lot, including, but 133
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not limited to, exemptions under section 517.09 or 1721.07 of the 134
Revised Code; 135
(9) The person's interest in the following: 137
(a) Moneys paid or payable for living maintenance or 139
rights, as exempted by section 3304.19 of the Revised Code; 140
(b) Workers' compensation, as exempted by section 4123.67 143
of the Revised Code; 144
(c) Unemployment compensation benefits, as exempted by 146
section 4141.32 of the Revised Code; 147
(d) Aid to dependent children payments, as exempted by 149
section 5107.12 of the Revised Code; 150
(e) Disability assistance payments, as exempted by section 152
5115.07 of the Revised Code. 153
(10)(a) Except in cases in which the person was convicted 155
of or pleaded guilty to a violation of section 2921.41 of the 156
Revised Code and in which an order for the withholding of 157
restitution from payments was issued under division (C)(2)(b) of 158
that section or in cases in which an order for withholding was 159
issued under section 2907.15 of the Revised Code, and only to the 160
extent provided in the order, and except as provided in sections 164
2929.181, 3105.171, 3105.63, 3111.23, and 3113.21 of the Revised 166
Code, the person's right to a pension, benefit, annuity, 167
retirement allowance, or accumulated contributions, the person's 168
right to a participant account in any deferred compensation 169
program offered by the Ohio public employees deferred 170
compensation board, a government unit, or a municipal 171
corporation, or the person's other accrued or accruing rights, as 172
exempted by section 145.56, 145.75, 146.13, 742.47, 3307.71, 173
3309.66, or 5505.22 of the Revised Code, and the person's right 174
to benefits from the firemen and policemen's death benefit fund; 175
(b) Except as provided in sections 3111.23 and 3113.21 of 178
the Revised Code, the person's right to receive a payment under 179
any pension, annuity, or similar plan or contract, not including 180
a payment from a stock bonus or profit-sharing plan or a payment 181
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included in division (A)(6)(b) or (10)(a) of this section, on 182
account of illness, disability, death, age, or length of service, 183
to the extent reasonably necessary for the support of the person 184
and any of the person's dependents, except if all the following 185
apply: 186
(i) The plan or contract was established by or under the 188
auspices of an insider that employed the person at the time the 189
person's rights under the plan or contract arose. 190
(ii) The payment is on account of age or length of 192
service. 193
(iii) The plan or contract is not qualified under the 195
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as 196
amended. 197
(c) Except for any portion of the assets that were 199
deposited for the purpose of evading the payment of any debt and 200
except as provided in sections 3111.23 and 3113.21 of the Revised 202
Code, the person's right in the assets held in, or to receive any 204
payment under, any individual retirement account, OR individual 205
retirement annuity, or Keogh or "H.R. 10" plan that provides 206
benefits by reason of illness, disability, death, or age, to the 207
extent reasonably necessary for the support of the person and any 208
of the person's dependents. FOR PURPOSES OF SECTIONS 3111.23 AND 209
3113.21 OF THE REVISED CODE, NEITHER THE PRINCIPAL AND ANY 212
INTEREST ACCUMULATED IN AN INDIVIDUAL RETIREMENT ACCOUNT OR
INDIVIDUAL RETIREMENT ANNUITY, NOR ANY PAYMENTS RECEIVED FROM 213
SUCH AN ACCOUNT OR ANNUITY, SHALL BE CONSIDERED TO BE FUNDS ON 214
DEPOSIT OR A FORM OF INCOME. 215
(d) EXCEPT FOR ANY PORTION OF THE ASSETS THAT WERE 218
DEPOSITED FOR THE PURPOSE OF EVADING THE PAYMENT OF ANY DEBT AND 219
EXCEPT AS PROVIDED IN SECTIONS 3111.23 AND 3113.21 OF THE REVISED 220
CODE, THE PERSON'S RIGHT IN THE ASSETS HELD IN, OR TO RECEIVE ANY 221
PAYMENT UNDER, ANY KEOGH OR "H.R. 10" PLAN THAT PROVIDES BENEFITS 222
BY REASON OF ILLNESS, DISABILITY, DEATH, OR AGE, TO THE EXTENT 223
REASONABLY NECESSARY FOR THE SUPPORT OF THE PERSON AND ANY OF THE 224
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PERSON'S DEPENDENTS. 225
(11) The person's right to receive spousal support, child 227
support, an allowance, or other maintenance to the extent 228
reasonably necessary for the support of the person and any of the 229
person's dependents; 231
(12) The person's right to receive, or moneys received 233
during the preceding twelve calendar months from, any of the 234
following: 235
(a) An award of reparations under sections 2743.51 to 237
2743.72 of the Revised Code, to the extent exempted by division 238
(D) of section 2743.66 of the Revised Code; 239
(b) A payment on account of the wrongful death of an 241
individual of whom the person was a dependent on the date of the 242
individual's death, to the extent reasonably necessary for the 243
support of the person and any of the person's dependents; 244
(c) Except in cases in which the person who receives the 246
payment is an inmate, as defined in section 2969.21 of the 247
Revised Code, and in which the payment resulted from a civil 248
action or appeal against a government entity or employee, as 249
defined in section 2969.21 of the Revised Code, a payment, not to
exceed five thousand dollars, on account of personal bodily 251
injury, not including pain and suffering or compensation for 252
actual pecuniary loss, of the person or an individual for whom 253
the person is a dependent;
(d) A payment in compensation for loss of future earnings 255
of the person or an individual of whom the person is or was a 256
dependent, to the extent reasonably necessary for the support of 257
the debtor and any of the debtor's dependents. 258
(13) Except as provided in sections 3111.23 and 3113.21 of 261
the Revised Code, personal earnings of the person owed to the
person for services rendered within thirty days before the 263
issuing of an attachment or other process, the rendition of a 264
judgment, or the making of an order, under which the attempt may 265
be made to subject those earnings to the payment of a debt, 266
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damage, fine, or amercement, in an amount equal to the greater of 267
the following amounts:
(a) If paid weekly, thirty times the current federal 269
minimum hourly wage; if paid biweekly, sixty times the current 270
federal minimum hourly wage; if paid semimonthly, sixty-five 271
times the current federal minimum hourly wage; or if paid 272
monthly, one hundred thirty times the current federal minimum 273
hourly wage that is in effect at the time the earnings are 274
payable, as prescribed by the "Fair Labor Standards Act of 1938," 275
52 Stat. 1060, 29 U.S.C. 206(a)(1), as amended; 276
(b) Seventy-five per cent of the disposable earnings owed 278
to the person. 279
(14) The person's right in specific partnership property, 281
as exempted by division (B)(3) of section 1775.24 of the Revised 282
Code; 283
(15) A seal and official register of a notary public, as 285
exempted by section 147.04 of the Revised Code; 286
(16) The person's interest in a tuition credit or a 288
payment under section 3334.09 of the Revised Code pursuant to a 289
tuition credit contract, as exempted by section 3334.15 of the 290
Revised Code;
(17) Any other property that is specifically exempted from 292
execution, attachment, garnishment, or sale by federal statutes 293
other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11 294
U.S.C.A. 101, as amended; 295
(18) The person's interest, not to exceed four hundred 297
dollars, in any property, except that division (A)(18) of this 298
section applies only in bankruptcy proceedings. 299
(B) As used in this section: 301
(1) "Disposable earnings" means net earnings after the 303
garnishee has made deductions required by law, excluding the 304
deductions ordered pursuant to section 3111.23 or 3113.21 of the 306
Revised Code. 307
(2) "Insider" means: 309
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(a) If the person who claims an exemption is an 311
individual, a relative of the individual, a relative of a general 312
partner of the individual, a partnership in which the individual 313
is a general partner, a general partner of the individual, or a 314
corporation of which the individual is a director, officer, or in 315
control; 316
(b) If the person who claims an exemption is a 318
corporation, a director or officer of the corporation; a person 319
in control of the corporation; a partnership in which the 320
corporation is a general partner; a general partner of the 321
corporation; or a relative of a general partner, director, 322
officer, or person in control of the corporation; 323
(c) If the person who claims an exemption is a 325
partnership, a general partner in the partnership; a general 326
partner of the partnership; a person in control of the 327
partnership; a partnership in which the partnership is a general 328
partner; or a relative in, a general partner of, or a person in 329
control of the partnership; 330
(d) An entity or person to which or whom any of the 332
following applies: 333
(i) The entity directly or indirectly owns, controls, or 335
holds with power to vote, twenty per cent or more of the 336
outstanding voting securities of the person who claims an 337
exemption, unless the entity holds the securities in a fiduciary 338
or agency capacity without sole discretionary power to vote the 339
securities or holds the securities solely to secure to debt and 340
the entity has not in fact exercised the power to vote. 341
(ii) The entity is a corporation, twenty per cent or more 343
of whose outstanding voting securities are directly or indirectly 344
owned, controlled, or held with power to vote, by the person who 345
claims an exemption or by an entity to which division 346
(B)(2)(d)(i) of this section applies. 347
(iii) A person whose business is operated under a lease or 349
operating agreement by the person who claims an exemption, or a 350
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person substantially all of whose business is operated under an 351
operating agreement with the person who claims an exemption. 352
(iv) The entity operates the business or all or 354
substantially all of the property of the person who claims an 355
exemption under a lease or operating agreement. 356
(e) An insider, as otherwise defined in this section, of a 358
person or entity to which division (B)(2)(d)(i), (ii), (iii), or 359
(iv) of this section applies, as if the person or entity were a 360
person who claims an exemption; 361
(f) A managing agent of the person who claims an 363
exemption. 364
(3) "Participant account" has the same meaning as in 366
section 145.71 of the Revised Code. 367
(4) "Government unit" has the same meaning as in section 369
145.74 of the Revised Code. 370
(C) For purposes of this section, "interest" shall be 372
determined as follows: 373
(1) In bankruptcy proceedings, as of the date a petition 375
is filed with the bankruptcy court commencing a case under Title 376
11 of the United States Code; 377
(2) In all cases other than bankruptcy proceedings, as of 379
the date of an appraisal, if necessary under section 2329.68 of 380
the Revised Code, or the issuance of a writ of execution. 381
An interest, as determined under division (C)(1) or (2) of 383
this section, shall not include the amount of any lien otherwise 384
valid pursuant to section 2329.661 of the Revised Code. 385
Section 2. That existing section 2329.66 of the Revised 387
Code is hereby repealed. 388