As Introduced

127th General Assembly
Regular Session
2007-2008
S. B. No. 281


Senator Seitz 

Cosponsors: Senators Cates, Jacobson, Mumper, Niehaus, Schuler, Spada, Wagoner, Boccieri, Cafaro, Fedor, Kearney, Mason, Miller, D., Morano, Roberts, Sawyer 

A BILL
To amend section 2329.66 of the Revised Code to 1
increase the exemptions for property that a debtor 2
may hold exempt from execution, garnishment, 3
attachment, or sale for the satisfaction of a 4
judgment or order to reflect the higher exemptions 5
available for such property under the United 6
States Bankruptcy Code and to provide for 7
automatic adjustments to those exemptions based on 8
changes in the Consumer Price Index.9


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

       Section 1. That section 2329.66 of the Revised Code be 10
amended to read as follows:11

       Sec. 2329.66.  (A) Every person who is domiciled in this12
state may hold property exempt from execution, garnishment,13
attachment, or sale to satisfy a judgment or order, as follows:14

       (1)(a) In the case of a judgment or order regarding money15
owed for health care services rendered or health care supplies16
provided to the person or a dependent of the person, one parcel or17
item of real or personal property that the person or a dependent18
of the person uses as a residence. Division (A)(1)(a) of this19
section does not preclude, affect, or invalidate the creation20
under this chapter of a judgment lien upon the exempted property21
but only delays the enforcement of the lien until the property is22
sold or otherwise transferred by the owner or in accordance with23
other applicable laws to a person or entity other than the24
surviving spouse or surviving minor children of the judgment25
debtor. Every person who is domiciled in this state may hold26
exempt from a judgment lien created pursuant to division (A)(1)(a)27
of this section the person's interest, not to exceed fivetwenty28
thousand two hundred dollars, in the exempted property.29

       (b) In the case of all other judgments and orders, the30
person's interest, not to exceed fivetwenty thousand two hundred31
dollars, in one parcel or item of real or personal property that 32
the person or a dependent of the person uses as a residence.33

       (2) The person's interest, not to exceed onethree thousand 34
two hundred twenty-five dollars, in one motor vehicle;35

       (3) The person's interest, not to exceed two hundred dollars36
in any particular item, in wearing apparel, beds, and bedding, and37
the person's interest, not to exceed three hundred dollars in each38
item, in one cooking unit and one refrigerator or other food39
preservation unit;40

       (4)(a) The person's interest, not to exceed four hundred41
dollars, in cash on hand, money due and payable, money to become42
due within ninety days, tax refunds, and money on deposit with a43
bank, savings and loan association, credit union, public utility,44
landlord, or other person. Division (A)(4)(a)(3) of this section45
applies only in bankruptcy proceedings. This exemption may include 46
the portion of personal earnings that is not exempt under division 47
(A)(13) of this section.48

       (b) Subject to division (A)(4)(d) of this section, the(4)(a) 49
The person's interest, not to exceed twofive hundred twenty-five50
dollars in any particular item or ten thousand seven hundred 51
seventy-five dollars in aggregate value, in household furnishings, 52
household goods, wearing apparel, appliances, books, animals, 53
crops, musical instruments, firearms, and hunting and fishing 54
equipment, that are held primarily for the personal, family, or 55
household use of the person;56

       (c) Subject to division (A)(4)(d) of this section, the(b) 57
The person's aggregate interest in one or more items of jewelry, 58
not to exceed fourone thousand three hundred fifty dollars in one 59
item of jewelry and not to exceed two hundred dollars in every 60
other item of jewelry;61

       (d) Divisions (A)(4)(b) and (c) of this section do not62
include items of personal property listed in division (A)(3) of63
this section.64

       If the person does not claim an exemption under division65
(A)(1) of this section, the total exemption claimed under division66
(A)(4)(b) of this section shall be added to the total exemption67
claimed under division (A)(4)(c) of this section, and the total68
shall not exceed two thousand dollars. If the person claims an69
exemption under division (A)(1) of this section, the total70
exemption claimed under division (A)(4)(b) of this section shall71
be added to the total exemption claimed under division (A)(4)(c)72
of this section, and the total shall not exceed one thousand five73
hundred dollars, held primarily for the personal, family, or 74
household use of the person or any of the person's dependents.75

       (5) The person's interest, not to exceed an aggregate of76
seven hundred fiftytwo thousand twenty-five dollars, in all 77
implements, professional books, or tools of the person's 78
profession, trade, or business, including agriculture;79

       (6)(a) The person's interest in a beneficiary fund set apart, 80
appropriated, or paid by a benevolent association or society, as 81
exempted by section 2329.63 of the Revised Code;82

       (b) The person's interest in contracts of life or endowment83
insurance or annuities, as exempted by section 3911.10 of the84
Revised Code;85

       (c) The person's interest in a policy of group insurance or86
the proceeds of a policy of group insurance, as exempted by87
section 3917.05 of the Revised Code;88

       (d) The person's interest in money, benefits, charity,89
relief, or aid to be paid, provided, or rendered by a fraternal90
benefit society, as exempted by section 3921.18 of the Revised91
Code;92

       (e) The person's interest in the portion of benefits under93
policies of sickness and accident insurance and in lump sum 94
payments for dismemberment and other losses insured under those95
policies, as exempted by section 3923.19 of the Revised Code.96

       (7) The person's professionally prescribed or medically97
necessary health aids;98

       (8) The person's interest in a burial lot, including, but not 99
limited to, exemptions under section 517.09 or 1721.07 of the100
Revised Code;101

       (9) The person's interest in the following:102

       (a) Moneys paid or payable for living maintenance or rights,103
as exempted by section 3304.19 of the Revised Code;104

       (b) Workers' compensation, as exempted by section 4123.67 of105
the Revised Code;106

       (c) Unemployment compensation benefits, as exempted by107
section 4141.32 of the Revised Code;108

       (d) Cash assistance payments under the Ohio works first109
program, as exempted by section 5107.75 of the Revised Code;110

       (e) Benefits and services under the prevention, retention,111
and contingency program, as exempted by section 5108.08 of the112
Revised Code;113

       (f) Disability financial assistance payments, as exempted by 114
section 5115.06 of the Revised Code.115

       (10)(a) Except in cases in which the person was convicted of116
or pleaded guilty to a violation of section 2921.41 of the Revised117
Code and in which an order for the withholding of restitution from118
payments was issued under division (C)(2)(b) of that section or in119
cases in which an order for withholding was issued under section120
2907.15 of the Revised Code, and only to the extent provided in121
the order, and except as provided in sections 3105.171, 3105.63,122
3119.80, 3119.81, 3121.02, 3121.03, and 3123.06 of the Revised123
Code, the person's right to a pension, benefit, annuity,124
retirement allowance, or accumulated contributions, the person's125
right to a participant account in any deferred compensation126
program offered by the Ohio public employees deferred compensation127
board, a government unit, or a municipal corporation, or the128
person's other accrued or accruing rights, as exempted by section129
145.56, 146.13, 148.09, 742.47, 3307.41, 3309.66, or 5505.22 of130
the Revised Code, and the person's right to benefits from the Ohio131
public safety officers death benefit fund;132

       (b) Except as provided in sections 3119.80, 3119.81, 3121.02, 133
3121.03, and 3123.06 of the Revised Code, the person's right to 134
receive a payment under any pension, annuity, or similar plan or 135
contract, not including a payment from a stock bonus or136
profit-sharing plan or a payment included in division (A)(6)(b) or137
(10)(a) of this section, on account of illness, disability, death,138
age, or length of service, to the extent reasonably necessary for139
the support of the person and any of the person's dependents,140
except if all the following apply:141

       (i) The plan or contract was established by or under the142
auspices of an insider that employed the person at the time the143
person's rights under the plan or contract arose.144

       (ii) The payment is on account of age or length of service.145

       (iii) The plan or contract is not qualified under the146
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as147
amended.148

       (c) Except for any portion of the assets that were deposited149
for the purpose of evading the payment of any debt and except as150
provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and151
3123.06 of the Revised Code, the person's right in the assets held152
in, or to receive any payment under, any individual retirement153
account, individual retirement annuity, "Roth IRA," or education154
individual retirement account that provides benefits by reason of155
illness, disability, death, or age, to the extent that the assets,156
payments, or benefits described in division (A)(10)(c) of this157
section are attributable to any of the following:158

       (i) Contributions of the person that were less than or equal159
to the applicable limits on deductible contributions to an160
individual retirement account or individual retirement annuity in161
the year that the contributions were made, whether or not the162
person was eligible to deduct the contributions on the person's163
federal tax return for the year in which the contributions were164
made;165

       (ii) Contributions of the person that were less than or equal 166
to the applicable limits on contributions to a Roth IRA or167
education individual retirement account in the year that the168
contributions were made;169

       (iii) Contributions of the person that are within the170
applicable limits on rollover contributions under subsections 219,171
402(c), 403(a)(4), 403(b)(8), 408(b), 408(d)(3), 408A(c)(3)(B),172
408A(d)(3), and 530(d)(5) of the "Internal Revenue Code of 1986,"173
100 Stat. 2085, 26 U.S.C.A. 1, as amended.174

       (d) Except for any portion of the assets that were deposited175
for the purpose of evading the payment of any debt and except as176
provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and177
3123.06 of the Revised Code, the person's right in the assets held178
in, or to receive any payment under, any Keogh or "H.R. 10" plan179
that provides benefits by reason of illness, disability, death, or180
age, to the extent reasonably necessary for the support of the181
person and any of the person's dependents.182

       (11) The person's right to receive spousal support, child183
support, an allowance, or other maintenance to the extent184
reasonably necessary for the support of the person and any of the185
person's dependents;186

       (12) The person's right to receive, or moneys received during 187
the preceding twelve calendar months from, any of the following:188

       (a) An award of reparations under sections 2743.51 to 2743.72 189
of the Revised Code, to the extent exempted by division (D) of 190
section 2743.66 of the Revised Code;191

       (b) A payment on account of the wrongful death of an192
individual of whom the person was a dependent on the date of the193
individual's death, to the extent reasonably necessary for the194
support of the person and any of the person's dependents;195

       (c) Except in cases in which the person who receives the196
payment is an inmate, as defined in section 2969.21 of the Revised197
Code, and in which the payment resulted from a civil action or198
appeal against a government entity or employee, as defined in199
section 2969.21 of the Revised Code, a payment, not to exceed five200
twenty thousand two hundred dollars, on account of personal bodily 201
injury, not including pain and suffering or compensation for 202
actual pecuniary loss, of the person or an individual for whom the 203
person is a dependent;204

       (d) A payment in compensation for loss of future earnings of205
the person or an individual of whom the person is or was a206
dependent, to the extent reasonably necessary for the support of207
the debtor and any of the debtor's dependents.208

       (13) Except as provided in sections 3119.80, 3119.81,209
3121.02, 3121.03, and 3123.06 of the Revised Code, personal210
earnings of the person owed to the person for services in an211
amount equal to the greater of the following amounts:212

       (a) If paid weekly, thirty times the current federal minimum213
hourly wage; if paid biweekly, sixty times the current federal214
minimum hourly wage; if paid semimonthly, sixty-five times the215
current federal minimum hourly wage; or if paid monthly, one216
hundred thirty times the current federal minimum hourly wage that217
is in effect at the time the earnings are payable, as prescribed218
by the "Fair Labor Standards Act of 1938," 52 Stat. 1060, 29219
U.S.C. 206(a)(1), as amended;220

       (b) Seventy-five per cent of the disposable earnings owed to221
the person.222

       (14) The person's right in specific partnership property, as223
exempted by division (B)(3) of section 1775.24 of the Revised224
Code;225

       (15) A seal and official register of a notary public, as226
exempted by section 147.04 of the Revised Code;227

       (16) The person's interest in a tuition unit or a payment228
under section 3334.09 of the Revised Code pursuant to a tuition 229
payment contract, as exempted by section 3334.15 of the Revised230
Code;231

       (17) Any other property that is specifically exempted from232
execution, attachment, garnishment, or sale by federal statutes233
other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11234
U.S.C.A. 101, as amended;235

       (18) The person's aggregate interest in any property, not to 236
exceed four hundredone thousand seventy-five dollars, in any 237
propertyand any unused amount, not to exceed ten thousand one 238
hundred twenty-five dollars, of the exemption provided under 239
division (A)(1) of this section, except that division (A)(18) of 240
this section applies only in bankruptcy proceedings.241

       (B) On April 1, 2010, and on the first day of April in each 242
third calendar year after 2010, each dollar amount set forth in 243
this section shall be adjusted, when determining the amount that 244
is exempt from execution, garnishment, attachment, or sale 245
pursuant to this section, to reflect the change in the consumer 246
price index for all urban consumers, as published by the United 247
States department of labor, or, if that index is no longer 248
published, a generally available comparable index, for the 249
three-year period ending on the thirty-first day of December of 250
the preceding year. Any adjustments required by this division 251
shall be rounded to the nearest twenty-five dollars.252

       (C) As used in this section:253

       (1) "Disposable earnings" means net earnings after the254
garnishee has made deductions required by law, excluding the255
deductions ordered pursuant to section 3119.80, 3119.81, 3121.02,256
3121.03, or 3123.06 of the Revised Code.257

       (2) "Insider" means:258

       (a) If the person who claims an exemption is an individual, a 259
relative of the individual, a relative of a general partner of the 260
individual, a partnership in which the individual is a general261
partner, a general partner of the individual, or a corporation of262
which the individual is a director, officer, or in control;263

       (b) If the person who claims an exemption is a corporation, a 264
director or officer of the corporation; a person in control of the 265
corporation; a partnership in which the corporation is a general 266
partner; a general partner of the corporation; or a relative of a 267
general partner, director, officer, or person in control of the 268
corporation;269

       (c) If the person who claims an exemption is a partnership, a 270
general partner in the partnership; a general partner of the271
partnership; a person in control of the partnership; a partnership272
in which the partnership is a general partner; or a relative in, a273
general partner of, or a person in control of the partnership;274

       (d) An entity or person to which or whom any of the following 275
applies:276

       (i) The entity directly or indirectly owns, controls, or277
holds with power to vote, twenty per cent or more of the278
outstanding voting securities of the person who claims an279
exemption, unless the entity holds the securities in a fiduciary280
or agency capacity without sole discretionary power to vote the281
securities or holds the securities solely to secure to debt and282
the entity has not in fact exercised the power to vote.283

       (ii) The entity is a corporation, twenty per cent or more of284
whose outstanding voting securities are directly or indirectly285
owned, controlled, or held with power to vote, by the person who286
claims an exemption or by an entity to which division287
(B)(C)(2)(d)(i) of this section applies.288

       (iii) A person whose business is operated under a lease or289
operating agreement by the person who claims an exemption, or a290
person substantially all of whose business is operated under an291
operating agreement with the person who claims an exemption.292

       (iv) The entity operates the business or all or substantially 293
all of the property of the person who claims an exemption under a 294
lease or operating agreement.295

       (e) An insider, as otherwise defined in this section, of a296
person or entity to which division (B)(C)(2)(d)(i), (ii), (iii), 297
or (iv) of this section applies, as if the person or entity were a298
person who claims an exemption;299

       (f) A managing agent of the person who claims an exemption.300

       (3) "Participant account" has the same meaning as in section301
148.01 of the Revised Code.302

       (4) "Government unit" has the same meaning as in section303
148.06 of the Revised Code.304

       (C)(D) For purposes of this section, "interest" shall be305
determined as follows:306

       (1) In bankruptcy proceedings, as of the date a petition is307
filed with the bankruptcy court commencing a case under Title 11308
of the United States Code;309

       (2) In all cases other than bankruptcy proceedings, as of the 310
date of an appraisal, if necessary under section 2329.68 of the 311
Revised Code, or the issuance of a writ of execution.312

       An interest, as determined under division (C)(D)(1) or (2) of313
this section, shall not include the amount of any lien otherwise314
valid pursuant to section 2329.661 of the Revised Code.315

       Section 2. That existing section 2329.66 of the Revised Code 316
is hereby repealed.317