1     
GARNISHMENT AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Brad L. Dee

5     
Senate Sponsor: Lyle W. Hillyard

6     

7     LONG TITLE
8     General Description:
9          This bill lifts the ban on certain property from execution under specific circumstances.
10     Highlighted Provisions:
11          This bill:
12          ▸     excludes disability and veterans benefits from property exempt from execution if
13     the recipient has been convicted of a felony and ordered to pay restitution to a
14     victim.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          78B-5-505, as last amended by Laws of Utah 2015, Chapter 212
22     

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 78B-5-505 is amended to read:
25          78B-5-505. Property exempt from execution.
26          (1) (a) An individual is entitled to exemption of the following property:
27          (i) a burial plot for the individual and the individual's family;

28          (ii) health aids reasonably necessary to enable the individual or a dependent to work or
29     sustain health;
30          (iii) benefits the individual or the individual's dependent have received or are entitled
31     to receive from any source because of:
32          (A) disability;
33          (B) illness; or
34          (C) unemployment;
35          (iv) benefits paid or payable for medical, surgical, or hospital care to the extent they are
36     used by an individual or the individual's dependent to pay for that care;
37          (v) veterans benefits;
38          (vi) money or property received, and rights to receive money or property for child
39     support;
40          (vii) money or property received, and rights to receive money or property for alimony
41     or separate maintenance, to the extent reasonably necessary for the support of the individual
42     and the individual's dependents;
43          (viii) (A) one:
44          (I) clothes washer and dryer;
45          (II) refrigerator;
46          (III) freezer;
47          (IV) stove;
48          (V) microwave oven; and
49          (VI) sewing machine;
50          (B) all carpets in use;
51          (C) provisions sufficient for 12 months actually provided for individual or family use;
52          (D) all wearing apparel of every individual and dependent, not including jewelry or
53     furs; and
54          (E) all beds and bedding for every individual or dependent;
55          (ix) except for works of art held by the debtor as part of a trade or business, works of
56     art:
57          (A) depicting the debtor or the debtor and his resident family; or
58          (B) produced by the debtor or the debtor and his resident family;

59          (x) proceeds of insurance, a judgment, or a settlement, or other rights accruing as a
60     result of bodily injury of the individual or of the wrongful death or bodily injury of another
61     individual of whom the individual was or is a dependent to the extent that those proceeds are
62     compensatory;
63          (xi) the proceeds or benefits of any life insurance contracts or policies paid or payable
64     to the debtor or any trust of which the debtor is a beneficiary upon the death of the spouse or
65     children of the debtor, provided that the contract or policy has been owned by the debtor for a
66     continuous unexpired period of one year;
67          (xii) the proceeds or benefits of any life insurance contracts or policies paid or payable
68     to the spouse or children of the debtor or any trust of which the spouse or children are
69     beneficiaries upon the death of the debtor, provided that the contract or policy has been in
70     existence for a continuous unexpired period of one year;
71          (xiii) proceeds and avails of any unmatured life insurance contracts owned by the
72     debtor or any revocable grantor trust created by the debtor, excluding any payments made on
73     the contract during the one year immediately preceding a creditor's levy or execution;
74          (xiv) except as provided in Subsection (1)(b), any money or other assets held for or
75     payable to the individual as a participant or beneficiary from or an interest of the individual as
76     a participant or beneficiary in a retirement plan or arrangement that is described in Section
77     401(a), 401(h), 401(k), 403(a), 403(b), 408, 408A, 409, 414(d), 414(e), or 457, Internal
78     Revenue Code;
79          (xv) the interest of or any money or other assets payable to an alternate payee under a
80     qualified domestic relations order as those terms are defined in Section 414(p), Internal
81     Revenue Code;
82          (xvi) unpaid earnings of the household of the filing individual due as of the date of the
83     filing of a bankruptcy petition in the amount of 1/24 of the Utah State annual median family
84     income for the household size of the filing individual as determined by the Utah State Annual
85     Median Family Income reported by the United States Census Bureau and as adjusted based
86     upon the Consumer Price Index for All Urban Consumers for an individual whose unpaid
87     earnings are paid more often than once a month or, if unpaid earnings are not paid more often
88     than once a month, then in the amount of 1/12 of the Utah State annual median family income
89     for the household size of the individual as determined by the Utah State Annual Median Family

90     Income reported by the United States Census Bureau and as adjusted based upon the Consumer
91     Price Index for All Urban Consumers; and
92          (xvii) except for curio or relic firearms, as defined in Section 76-10-501, any three of
93     the following:
94          (A) one handgun and ammunition for the handgun not exceeding 1,000 rounds;
95          (B) one shotgun and ammunition for the shotgun not exceeding 1,000 rounds; and
96          (C) one shoulder arm and ammunition for the shoulder arm not exceeding 1,000
97     rounds.
98          (b) The exemption granted by Subsection (1)(a)(xiv) does not apply to:
99          (i) an alternate payee under a qualified domestic relations order, as those terms are
100     defined in Section 414(p), Internal Revenue Code; or
101          (ii) amounts contributed or benefits accrued by or on behalf of a debtor within one year
102     before the debtor files for bankruptcy. This may not include amounts directly rolled over from
103     other funds which are exempt from attachment under this section.
104          (2) The exemptions in Subsections (1)(a)(xi), (xii), and (xiii) do not apply to proceeds
105     and avails of any matured or unmatured life insurance contract assigned or pledged as collateral
106     for repayment of a loan or other legal obligation.
107          (3) Disability benefits, as described in Subsection (1)(a)(iii)(A), and veterans benefits,
108     as described in Subsection (1)(a)(v), may be garnished on behalf of a child victim if the person
109     receiving the benefits has been convicted of a felony sex offense against a child and ordered by
110     the convicting court to pay restitution to the victim. The exemption from execution under this
111     section shall be reinstated upon payment of the restitution in full.
112          [(3)] (4) Exemptions under this section do not limit items that may be claimed as
113     exempt under Section 78B-5-506.






Legislative Review Note
Office of Legislative Research and General Counsel