As Passed by the House                        1            

122nd General Assembly                                             4            

   Regular Session                        Am. 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            

    HAINES-HARRIS-METZGER-BEATTY-SALERNO-MOTTLEY-LEWIS-REID-       10           

                  O'BRIEN-SAWYER-ROBERTS-MASON                     11           


                                                                   13           

                           A   B I L L                                          

             To amend section 2329.66 of the Revised Code to       15           

                remove a limitation on a person's right to hold    16           

                the assets in, and the payments from, an           17           

                individual retirement account or  an individual    18           

                retirement annuity exempt from execution,          19           

                garnishment, or attachment.                        20           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        22           

      Section 1.  That section 2329.66 of the Revised Code be      24           

amended to read as follows:                                        25           

      Sec. 2329.66.  (A)  Every person who is domiciled in this    34           

state may hold property exempt from execution, garnishment,        35           

attachment, or sale to satisfy a judgment or order, as follows:    36           

      (1)(a)  In the case of a judgment or order regarding money   38           

owed for health care services rendered or health care supplies     39           

provided to the person or a dependent of the person, one parcel    40           

or item of real or personal property that the person or a          41           

dependent of the person uses as a residence.  Division (A)(1)(a)   42           

of this section does not preclude, affect, or invalidate the       43           

creation under this chapter of a judgment lien upon the exempted   44           

property but only delays the enforcement of the lien until the     45           

property is sold or otherwise transferred by the owner or in       46           

accordance with other applicable laws to a person or entity other  47           

than the surviving spouse or surviving minor children of the       48           

                                                          2      

                                                                 
judgment debtor.  Every person who is domiciled in this state may  49           

hold exempt from a judgment lien created pursuant to division      50           

(A)(1)(a) of this section the person's interest, not to exceed     51           

five thousand dollars, in the exempted property.                   52           

      (b)  In the case of all other judgments and orders, the      54           

person's interest, not to exceed five thousand dollars, in one     55           

parcel or item of real or personal property that the person or a   56           

dependent of the person uses as a residence.                       57           

      (2)  The person's interest, not to exceed one thousand       59           

dollars, in one motor vehicle;                                     60           

      (3)  The person's interest, not to exceed two hundred        62           

dollars in any particular item, in wearing apparel, beds, and      63           

bedding, and the person's interest, not to exceed three hundred    64           

dollars in each item, in one cooking unit and one refrigerator or  65           

other food preservation unit;                                      66           

      (4)(a)  The person's interest, not to exceed four hundred    68           

dollars, in cash on hand, money due and payable, money to become   69           

due within ninety days, tax refunds, and money on deposit with a   70           

bank, savings and loan association, credit union, public utility,  71           

landlord, or other person.  Division (A)(4)(a) of this section     72           

applies only in bankruptcy proceedings.  This exemption may        73           

include the portion of personal earnings that is not exempt under  74           

division (A)(13) of this section.                                  75           

      (b)  Subject to division (A)(4)(d) of this section, the      77           

person's interest, not to exceed two hundred dollars in any        78           

particular item, in household furnishings, household goods,        79           

appliances, books, animals, crops, musical instruments, firearms,  80           

and hunting and fishing equipment, that are held primarily for     81           

the personal, family, or household use of the person.              82           

      (c)  Subject to division (A)(4)(d) of this section, the      84           

person's interest in one or more items of jewelry, not to exceed   85           

four hundred dollars in one item of jewelry and not to exceed two  86           

hundred dollars in every other item of jewelry.                    87           

      (d)  Divisions (A)(4)(b) and (c) of this section do not      89           

                                                          3      

                                                                 
include items of personal property listed in division (A)(3) of    90           

this section.                                                      91           

      If the person does not claim an exemption under division     93           

(A)(1) of this section, the total exemption claimed under          94           

division (A)(4)(b) of this section shall be added to the total     95           

exemption claimed under division (A)(4)(c) of this section, and    96           

the total shall not exceed two thousand dollars.  If the person    97           

claims an exemption under division (A)(1) of this section, the     98           

total exemption claimed under division (A)(4)(b) of this section   99           

shall be added to the total exemption claimed under division       100          

(A)(4)(c) of this section, and the total shall not exceed one      101          

thousand five hundred dollars.                                     102          

      (5)  The person's interest, not to exceed an aggregate of    104          

seven hundred fifty dollars, in all implements, professional       105          

books, or tools of the person's profession, trade, or business,    106          

including agriculture;                                             108          

      (6)(a)  The person's interest in a beneficiary fund set      110          

apart, appropriated, or paid by a benevolent association or        111          

society, as exempted by section 2329.63 of the Revised Code;       112          

      (b)  The person's interest in contracts of life or           114          

endowment insurance or annuities, as exempted by section 3911.10   115          

of the Revised Code;                                               116          

      (c)  The person's interest in a policy of group insurance    118          

or the proceeds of a policy of group insurance, as exempted by     119          

section 3917.05 of the Revised Code;                               120          

      (d)  The person's interest in money, benefits, charity,      122          

relief, or aid to be paid, provided, or rendered by a fraternal    123          

benefit society, as exempted by section 3921.18 of the Revised     124          

Code;                                                              125          

      (e)  The person's interest in the portion of benefits under  127          

policies of sickness and accident insurance and in lump-sum        128          

payments for dismemberment and other losses insured under those    129          

policies, as exempted by section 3923.19 of the Revised Code.      130          

      (7)  The person's professionally prescribed or medically     132          

                                                          4      

                                                                 
necessary health aids;                                             133          

      (8)  The person's interest in a burial lot, including, but   135          

not limited to, exemptions under section 517.09 or 1721.07 of the  136          

Revised Code;                                                      137          

      (9)  The person's interest in the following:                 139          

      (a)  Moneys paid or payable for living maintenance or        141          

rights, as exempted by section 3304.19 of the Revised Code;        142          

      (b)  Workers' compensation, as exempted by section 4123.67   145          

of the Revised Code;                                               146          

      (c)  Unemployment compensation benefits, as exempted by      148          

section 4141.32 of the Revised Code;                               149          

      (d)  Aid to dependent children payments, as exempted by      151          

section 5107.12 of the Revised Code;                               152          

      (e)  Disability assistance payments, as exempted by section  154          

5115.07 of the Revised Code.                                       155          

      (10)(a)  Except in cases in which the person was convicted   157          

of or pleaded guilty to a violation of section 2921.41 of the      158          

Revised Code and in which an order for the withholding of          159          

restitution from payments was issued under division (C)(2)(b) of   160          

that section or in cases in which an order for withholding was     161          

issued under section 2907.15 of the Revised Code, and only to the  162          

extent provided in the order, and except as provided in sections   166          

2929.181, 3105.171, 3105.63, 3111.23, and 3113.21 of the Revised   168          

Code, the person's right to a pension, benefit, annuity,           169          

retirement allowance, or accumulated contributions, the person's   170          

right to a participant account in any deferred compensation        171          

program offered by the Ohio public employees deferred              172          

compensation board, a government unit, or a municipal              173          

corporation, or the person's other accrued or accruing rights, as  174          

exempted by section 145.56, 145.75, 146.13, 742.47, 3307.71,       175          

3309.66, or 5505.22 of the Revised Code, and the person's right    176          

to benefits from the firemen and policemen's death benefit fund;   177          

      (b)  Except as provided in sections 3111.23 and 3113.21 of   180          

the Revised Code, the person's right to receive a payment under    181          

                                                          5      

                                                                 
any pension, annuity, or similar plan or contract, not including   182          

a payment from a stock bonus or profit-sharing plan or a payment   183          

included in division (A)(6)(b) or (10)(a) of this section, on      184          

account of illness, disability, death, age, or length of service,  185          

to the extent reasonably necessary for the support of the person   186          

and any of the person's dependents, except if all the following    187          

apply:                                                             188          

      (i)  The plan or contract was established by or under the    190          

auspices of an insider that employed the person at the time the    191          

person's rights under the plan or contract arose.                  192          

      (ii)  The payment is on account of age or length of          194          

service.                                                           195          

      (iii)  The plan or contract is not qualified under the       197          

"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as   198          

amended.                                                           199          

      (c)  Except for any portion of the assets that were          201          

deposited for the purpose of evading the payment of any debt and   202          

except as provided in sections 3111.23 and 3113.21 of the Revised  204          

Code, the person's right in the assets held in, or to receive any  206          

payment under, any individual retirement account, OR individual    207          

retirement annuity, or Keogh or "H.R. 10" plan that provides       208          

benefits by reason of illness, disability, death, or age, to the   209          

extent reasonably necessary for the support of the person and any  210          

of the person's dependents.                                        211          

      (d)  EXCEPT FOR ANY PORTION OF THE ASSETS THAT WERE          214          

DEPOSITED FOR THE PURPOSE OF EVADING THE PAYMENT OF ANY DEBT AND   215          

EXCEPT AS PROVIDED IN SECTIONS 3111.23 AND 3113.21 OF THE REVISED  216          

CODE, THE PERSON'S RIGHT IN THE ASSETS HELD IN, OR TO RECEIVE ANY  217          

PAYMENT UNDER, ANY KEOGH OR "H.R. 10" PLAN THAT PROVIDES BENEFITS  218          

BY REASON OF ILLNESS, DISABILITY, DEATH, OR AGE, TO THE EXTENT     219          

REASONABLY NECESSARY FOR THE SUPPORT OF THE PERSON AND ANY OF THE  220          

PERSON'S DEPENDENTS.                                               221          

      (11)  The person's right to receive spousal support, child   223          

support, an allowance, or other maintenance to the extent          224          

                                                          6      

                                                                 
reasonably necessary for the support of the person and any of the  225          

person's dependents;                                               227          

      (12)  The person's right to receive, or moneys received      229          

during the preceding twelve calendar months from, any of the       230          

following:                                                         231          

      (a)  An award of reparations under sections 2743.51 to       233          

2743.72 of the Revised Code, to the extent exempted by division    234          

(D) of section 2743.66 of the Revised Code;                        235          

      (b)  A payment on account of the wrongful death of an        237          

individual of whom the person was a dependent on the date of the   238          

individual's death, to the extent reasonably necessary for the     239          

support of the person and any of the person's dependents;          240          

      (c)  Except in cases in which the person who receives the    242          

payment is an inmate, as defined in section 2969.21 of the         243          

Revised Code, and in which the payment resulted from a civil       244          

action or appeal against a government entity or employee, as       245          

defined in section 2969.21 of the Revised Code, a payment, not to               

exceed five thousand dollars, on account of personal bodily        247          

injury, not including pain and suffering or compensation for       248          

actual pecuniary loss, of the person or an individual for whom     249          

the person is a dependent;                                                      

      (d)  A payment in compensation for loss of future earnings   251          

of the person or an individual of whom the person is or was a      252          

dependent, to the extent reasonably necessary for the support of   253          

the debtor and any of the debtor's dependents.                     254          

      (13)  Except as provided in sections 3111.23 and 3113.21 of  257          

the Revised Code, personal earnings of the person owed to the                   

person for services rendered within thirty days before the         259          

issuing of an attachment or other process, the rendition of a      260          

judgment, or the making of an order, under which the attempt may   261          

be made to subject those earnings to the payment of a debt,        262          

damage, fine, or amercement, in an amount equal to the greater of  263          

the following amounts:                                                          

      (a)  If paid weekly, thirty times the current federal        265          

                                                          7      

                                                                 
minimum hourly wage; if paid biweekly, sixty times the current     266          

federal minimum hourly wage; if paid semimonthly, sixty-five       267          

times the current federal minimum hourly wage; or if paid          268          

monthly, one hundred thirty times the current federal minimum      269          

hourly wage that is in effect at the time the earnings are         270          

payable, as prescribed by the "Fair Labor Standards Act of 1938,"  271          

52 Stat. 1060, 29 U.S.C. 206(a)(1), as amended;                    272          

      (b)  Seventy-five per cent of the disposable earnings owed   274          

to the person.                                                     275          

      (14)  The person's right in specific partnership property,   277          

as exempted by division (B)(3) of section 1775.24 of the Revised   278          

Code;                                                              279          

      (15)  A seal and official register of a notary public, as    281          

exempted by section 147.04 of the Revised Code;                    282          

      (16)  The person's interest in a tuition credit or a         284          

payment under section 3334.09 of the Revised Code pursuant to a    285          

tuition credit contract, as exempted by section 3334.15 of the     286          

Revised Code;                                                                   

      (17)  Any other property that is specifically exempted from  288          

execution, attachment, garnishment, or sale by federal statutes    289          

other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11  290          

U.S.C.A. 101, as amended;                                          291          

      (18)  The person's interest, not to exceed four hundred      293          

dollars, in any property, except that division (A)(18) of this     294          

section applies only in bankruptcy proceedings.                    295          

      (B)  As used in this section:                                297          

      (1)  "Disposable earnings" means net earnings after the      299          

garnishee has made deductions required by law, excluding the       300          

deductions ordered pursuant to section 3111.23 or 3113.21 of the   302          

Revised Code.                                                      303          

      (2)  "Insider" means:                                        305          

      (a)  If the person who claims an exemption is an             307          

individual, a relative of the individual, a relative of a general  308          

partner of the individual, a partnership in which the individual   309          

                                                          8      

                                                                 
is a general partner, a general partner of the individual, or a    310          

corporation of which the individual is a director, officer, or in  311          

control;                                                           312          

      (b)  If the person who claims an exemption is a              314          

corporation, a director or officer of the corporation; a person    315          

in control of the corporation; a partnership in which the          316          

corporation is a general partner; a general partner of the         317          

corporation; or a relative of a general partner, director,         318          

officer, or person in control of the corporation;                  319          

      (c)  If the person who claims an exemption is a              321          

partnership, a general partner in the partnership; a general       322          

partner of the partnership; a person in control of the             323          

partnership; a partnership in which the partnership is a general   324          

partner; or a relative in, a general partner of, or a person in    325          

control of the partnership;                                        326          

      (d)  An entity or person to which or whom any of the         328          

following applies:                                                 329          

      (i)  The entity directly or indirectly owns, controls, or    331          

holds with power to vote, twenty per cent or more of the           332          

outstanding voting securities of the person who claims an          333          

exemption, unless the entity holds the securities in a fiduciary   334          

or agency capacity without sole discretionary power to vote the    335          

securities or holds the securities solely to secure to debt and    336          

the entity has not in fact exercised the power to vote.            337          

      (ii)  The entity is a corporation, twenty per cent or more   339          

of whose outstanding voting securities are directly or indirectly  340          

owned, controlled, or held with power to vote, by the person who   341          

claims an exemption or by an entity to which division              342          

(B)(2)(d)(i) of this section applies.                              343          

      (iii)  A person whose business is operated under a lease or  345          

operating agreement by the person who claims an exemption, or a    346          

person substantially all of whose business is operated under an    347          

operating agreement with the person who claims an exemption.       348          

      (iv)  The entity operates the business or all or             350          

                                                          9      

                                                                 
substantially all of the property of the person who claims an      351          

exemption under a lease or operating agreement.                    352          

      (e)  An insider, as otherwise defined in this section, of a  354          

person or entity to which division (B)(2)(d)(i), (ii), (iii), or   355          

(iv) of this section applies, as if the person or entity were a    356          

person who claims an exemption;                                    357          

      (f)  A managing agent of the person who claims an            359          

exemption.                                                         360          

      (3)  "Participant account" has the same meaning as in        362          

section 145.71 of the Revised Code.                                363          

      (4)  "Government unit" has the same meaning as in section    365          

145.74 of the Revised Code.                                        366          

      (C)  For purposes of this section, "interest" shall be       368          

determined as follows:                                             369          

      (1)  In bankruptcy proceedings, as of the date a petition    371          

is filed with the bankruptcy court commencing a case under Title   372          

11 of the United States Code;                                      373          

      (2)  In all cases other than bankruptcy proceedings, as of   375          

the date of an appraisal, if necessary under section 2329.68 of    376          

the Revised Code, or the issuance of a writ of execution.          377          

      An interest, as determined under division (C)(1) or (2) of   379          

this section, shall not include the amount of any lien otherwise   380          

valid pursuant to section 2329.661 of the Revised Code.            381          

      Section 2.  That existing section 2329.66 of the Revised     383          

Code is hereby repealed.                                           384