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AN  ACT  CONCERNING  PROPERTY  THAT  IS  EXEMPT  FROM  A JUDGMENT CREDITOR.

House Bill No. 6466

 

Public Act No. 21-161

 

 

AN  ACT  CONCERNING  PROPERTY  THAT  IS  EXEMPT  FROM  A

JUDGMENT CREDITOR.

Be  it  enacted  by  the  Senate  and  House  of  Representatives  in  General

Assembly convened:

 

Section 1. Section 52-352b of the general statutes is repealed and the

following is substituted in lieu thereof (Effective October 1, 2021):

The following property of any natural person shall be exempt:

[(a)] (1) Necessary apparel, bedding, foodstuffs, household furniture

and appliances;

[(b)] (2) Tools, books, instruments, farm animals and livestock feed,

which  are  necessary  to  the  exemptioner  in  the  course  of  his  or  her

occupation, profession or farming operation;

[(c)]  (3)  Burial  plot  for  the  exemptioner  and  his  or  her  immediate

family;

[(d)] (4) Public assistance payments and any wages earned by a public

assistance recipient under an incentive earnings or similar program;

[(e)] (5) Health and disability insurance payments;

[(f)] (6) Health aids necessary to enable the exemptioner to work or to

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sustain health;

[(g)] (7) Workers’ compensation, Social Security, veterans and

unemployment benefits;

[(h)] (8) Court-approved payments for child support;

[(i)] (9) Arms and military equipment, uniforms or musical

instruments owned by any member of the militia or armed forces of the

United States;

[(j) One motor vehicle] (10) Up to two motor vehicles to the value of

[three thousand five hundred] seven thousand dollars in the aggregate,

provided value shall be determined as the fair market value of the motor

[vehicle]  vehicles  less  the  amount  of  all  liens  and  security  interests

which encumber [it] them;

[(k)] (11) Wedding and engagement rings;

[(l)]  (12)  Residential  utility  deposits  for  one  residence,  and  one

residential security deposit;

[(m)] (13) Any assets or interests of an exemptioner in, or payments

received by the exemptioner from, a plan or arrangement described in

section 52-321a, as amended by this act;

[(n)] (14) Alimony and support, other than child support, but only to

the extent that wages are exempt from execution under section 52-361a;

[(o)] (15) An award under a crime reparations act;

[(p)]  (16)  All  benefits  allowed  by  any  association  of  persons  in  this

state  towards  the  support  of  any  of  its  members  incapacitated  by

sickness or infirmity from attending to his usual business;

[(q)]  (17)  All  moneys  due  the  exemptioner  from  any  insurance

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company  on  any  insurance  policy  issued  on  exempt  property,  to  the

same extent that the property was exempt;

[(r)]  (18)  Any  interest  of  the  exemptioner  in  any  property  not  to

exceed in value one thousand dollars;

[(s)] (19) Any interest of the exemptioner not to exceed in value four

thousand  dollars  in  any  accrued  dividend  or  interest  under,  or  loan

value of, any unmatured life insurance contract owned by the

exemptioner under which the insured is the exemptioner or an

individual of whom the exemptioner is a dependent;

(20) The cash surrender value of any life insurance policy issued upon

the  life  of  a  citizen  or  resident  of  this  state,  unless  the  life  insurance

policy was assigned to or was effected for the benefit of the creditor or

unless the purchase, sale, or transfer of the life insurance policy is made

with the intent to defraud the creditor;

[(t)] (21) The homestead of the exemptioner to the value of [seventy-

five thousand dollars, or, in the case of a money judgment arising out of

services provided at a hospital, to the value of one hundred twenty-five

thousand dollars] two hundred fifty thousand dollars, provided value

shall be determined as the fair market value of the real property less the

amount of any statutory or consensual lien which encumbers it, except

that,  in  the  case  of  a  money  judgment  arising  out  of  a  claim  of  sexual

abuse or exploitation of a minor, sexual assault or other wilful, wanton,

or reckless misconduct committed by a natural person, to the value of

seventy-five thousand dollars; and

[(u)] (22) Irrevocable transfers of money to an account held by a debt

adjuster licensed pursuant to sections 36a-655 to 36a-665, inclusive, for

the benefit of creditors of the exemptioner.

Sec. 2. Subdivision (1) of subsection (b) of section 12-162 of the general

statutes  is  repealed  and  the  following  is  substituted  in  lieu  thereof

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(Effective October 1, 2021):

(b) (1) Except as provided in subdivision (2) of this subsection, upon

the nonpayment of any property tax or any water or sanitation charges

when due, demand having been made therefor as prescribed by law for

the collection of such tax or such water or sanitation charges, an alias tax

warrant  may  be  issued  by  the  tax  collector,  which  may  be  in  the

following form:

“To a state marshal of the County of …., or any constable of the Town

of …. G ing: By authority of the state of Connecticut you are hereby

commanded to collect forthwith from …. of …. the sum of …. dollars, the

same  being  the  amount  of  a  tax  or  water  or  sanitation  charges,  with

interest or penalty and charges which have accumulated thereon, which

tax  was  levied  or  which  water  or  sanitation  charges  were  imposed  by

(insert name of town, city or municipality laying the tax or imposing the

water  or  sanitation  charges)  upon  (insert  the  real  estate,  personal

property, or both, as the case may be,) of said …. as of the …. day of …..

(In  like  manner  insert  the  amount  of  any  other  property  tax  or  other

water or sanitation charges which may have been levied or imposed in

any  other  year,  including  interest  or  penalty  and  charges  which  have

accumulated  thereon).  In  default  of  payment  of  said  amount  you  are

hereby  commanded  to  levy  for  said  tax  or  taxes  or  such  water  or

sanitation charges, including interest, penalty and charges, hereinafter

referred to as the amount due on such execution, upon any goods and

chattels  of  such  person  and  dispose  of  the  same  as  the  law  directs,

notwithstanding  the  provisions  of  [subsection  (j)]  subdivision  (10)  of

section  52-352b,  and,  after  having  satisfied  the  amount  due  on  such

execution,  return  the  surplus,  if  any,  to  him;  or,  except  as  otherwise

provided in section 12-162, you are to levy upon the real estate of such

person and sell such real property pursuant to section 12-157, to pay the

amount  due  on  such  execution;  or  you  shall,  in  accordance  with  the

provisions of section 12-162, make demand upon the main office of any

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financial institution indebted to such person, subject to the provisions of

section 52-367a or 52-367b, as if judgment for the amount due on such

execution  had  been  entered,  for  that  portion  of  any  type  of  deposit  to

the  credit  of  or  property  held  for  such  person,  not  exceeding  in  total

value  the  amount  due  on  such  execution;  or  you  are  to  garnishee  the

wages due such person from any employer, in the same manner as if a

wage  execution  therefor  had  been  entered,  in  accordance  with  section

52-361a.

Dated at …. this …. day of …. A.D. 20.., Tax Collector.”

Sec.  3.  Subsection  (b)  of  section  52-321a  of  the  general  statutes  is

repealed and the following is substituted in lieu thereof (Effective October

1, 2021):

(b) Nothing in this section shall impair the rights of an alternate payee

under a qualified domestic relations order, as defined in Section 414(p)

of the Internal Revenue Code of 1986, or any subsequent corresponding

internal  revenue  code  of  the  United States,  as  from  time  to time

amended. Nothing in this section or in [subsection (m)] subdivision (13)

of section 52-352b, as amended by this act, shall impair the rights of the

state to proceed under section 52-361a to recover the costs of

incarceration under section 18-85a and regulations adopted in

accordance  with  section  18-85a  from  any  federal,  state  or  municipal

pension, annuity or insurance contract or similar arrangement described

in subdivision (5) of subsection (a) of this section, provided the rights of

an alternate payee under a qualified domestic relations order, as defined

in Section 414(p) of the Internal Revenue Code of 1986, or any

subsequent  corresponding  internal  revenue  code  of  the  United  States,

as  from  time  to  time  amended,  shall  take  precedence  over  any  such

recovery. Nothing in this section or in [subsection (m)] subdivision (13)

of section 52-352b, as  amended by this act, shall impair the rights of a

victim  of  crime  to  proceed  under  section  52-361a  to  recover  damages

awarded by a court of competent jurisdiction from any federal, state or

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municipal pension, annuity or insurance contract or similar

arrangement described in subdivision (5) of subsection (a) of this section

when such damages are the result of a crime committed by a participant

or beneficiary of such pension, annuity or insurance contract or similar

arrangement, provided the rights of an alternate payee under a qualified

domestic  relations  order,  as  defined  in  Section  414(p)  of  the  Internal

Revenue Code of 1986, or any subsequent corresponding internal

revenue code of the United States, as from time to time amended, shall

take precedence over any such recovery.

Sec.  4.  Section  52-352a  of  the  general  statutes  is  repealed  and  the

following is substituted in lieu thereof (Effective October 1, 2021):

[For the purposes of this section and sections 52-352b and 52-353, the

following  terms  shall  have  the  following  meanings]  As  used  in  this

section and sections 52-352b, as amended by this act, and 52-353:

[(a)] (1) “Value” means fair market value of the exemptioner’s equity

or unencumbered interest in the property;

[(b)] (2) “Necessary” means reasonably required to meet the needs of

the exemptioner and his or her dependents including any special needs

by reason of health or physical infirmity;

[(c)]  (3)  “Exempt”  means,  unless  otherwise  specified,  not  subject  to

any form of process or court order for the purpose of debt collection;

[(d)]  (4)  “Exemptioner”  means  the  natural  person  entitled  to  an

exemption under this section or section 52-352b, as amended by this act;

[(e)] (5) “Homestead” means owner-occupied real property, co-op or

mobile manufactured home, as defined in subdivision (1) of section 21-

64, used as a primary residence.

Sec.  5.  Subsection  (r)  of  section  52-367b  of  the  general  statutes  is

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repealed and the following is substituted in lieu thereof (Effective October

1, 2021):

(r)  For  the  purposes  of  this  subsection,  “exempt”  has  the  same

meaning  as  provided  in  [subsection  (c)]  subdivision  (3)  of  section  52-

352a,  as  amended  by  this  act.  Funds  deposited  in  an  account  that  has

been  established  for  the  express  purpose  of  receiving  electronic  direct

deposits  of  public  assistance  or  of  Title  IV-D  child  support  payments

from the Department of Social Services shall be exempt.

 

Approved July 12, 2021