Chapter 06-211

2006 -- H 7035 SUBSTITUTE A

Enacted 07/03/06

A N A C T

RELATING TO COURTS AND CIVIL PROCEDURE - LEVY AND SALE ON EXECUTION

Introduced By: Representatives Jacquard, San Bento, and Schadone

Date Introduced: February 01, 2006

It is enacted by the General Assembly as follows:

SECTION 1. Section 9-26-4 and 9-26-4.1 of the General Laws in Chapter 9-26 entitled

"Levy and Sale on Execution" are hereby amended to read as follows:

9-26-4. Property exempt from attachment. -- The following goods and property shall

be exempt from attachment on any warrant of distress or on any other writ, original, mesne, or

judicial:

(1) The necessary wearing apparel of a debtor or of the debtor's family, if he or she has a

family.

(2) The working tools of a debtor necessary in the debtor's usual occupation, not

exceeding in value the sum of one thousand two hundred dollars ($1,200), and the professional

library of any professional person in actual practice.

(3) The household furniture, clothing, and family stores of a housekeeper in the whole,

including beds and bedding, not exceeding in value the sum of eight thousand six hundred dollars

($8,600).

(4) The bibles, school books, and other books in use in the family, not exceeding in value

the sum of three hundred dollars ($300).

(5) The debtor's interest in one lot or right of burial, as the case may be, in any cemetery.

(6) Wages due or accruing to any sailor.

(7) Debts secured by bills of exchange or negotiable promissory notes.

(8) (i) The entire salary or wages of any debtor due or payable from any charitable

corporation, or from any person or corporation engaged in the disbursement or administration of

any public charitable fund or money, whenever the salaries or wages are to be paid or supplied,

directly or indirectly, from any fund or money appropriated or contributed for the relief of the

poor or in aid of unemployment, and the debtor is the object of the relief or aid.

(ii) The entire wages or salary of any debtor due or payable from any employer, where

the debtor has been the object of relief from any state, federal, or municipal corporation or agency

for a period of one year from and after the time when the debtor ceases to be the object of such

relief.

(iii) The salary or wages due or payable to any other debtor, not exceeding the sum of

fifty dollars ($50.00).

(9) The salary and wages of the wife and the minor children of any debtor.

(10) Such other property, real, personal, or mixed, in possession or actions as is or shall

be exempted from attachment and execution, either permanently or temporarily, by general or

special acts, charters of incorporation, or by the policy of the law.

(11) An individual retirement account or individual retirement annuity as defined in

sections 408 and 408A of the Internal Revenue Code, 26 U.S.C. sections 408 and 408A, and the

payments or distributions from such an account or annuity, except that this exemption does not

apply to any of the following:

(i) An order of a court pursuant to a judgment of divorce or separate maintenance.

(ii) An order of a court concerning child support.

(iii) Contributions to an individual retirement account or premiums on an individual

retirement annuity, including the earnings or benefits from those contributions or premiums, that

constitute an excess contribution within the meaning of Section 4973 of the Internal Revenue

Code [26 U.S.C. section 4973].

(12) The right or interest of a person in an annuity, pension, profit sharing, or other

retirement plan protected by the Employee Retirement Income Security Act of 1974, Public Law

93-406, 29 U.S.C. section 1001 et seq. This exemption shall also apply to the operation of the

Federal Bankruptcy Code, as permitted by Section 522(d)(10)(E) of Title 11 of the United States

Code, 11 U.S.C. section 522(d)(10)(E). This exemption shall not apply to the right or interest of a

person in an annuity, pension, profit sharing, or other retirement plan to the extent that that right

or interest is subject to any of the following:

(i) An order of the court pursuant to a judgment of divorce or separated maintenance.

(ii) An order of a court concerning child support.

This exemption shall not apply to contributions to and the earnings of any of the

retirement plans enumerated in this subdivision that are not qualified retirement plans as defined

by Section 401 of the Internal Revenue Code, 26 U.S.C. section 401.

(13) Any and all motor vehicles owned by the debtor not to exceed an aggregate total of

ten thousand dollars ($10,000).

(14) Any and all jewelry owned by the debtor not to exceed an aggregate total of one

thousand dollars ($1,000).

(15) An account balance, right, or interest of a person in a "prepaid tuition program" or a

"tuition savings program" as defined in section 16-57-3(10) and (16), respectively. This

exemption shall not apply to a balance, right, or interest to the extent that the balance, right, or

interest is subject to any of the following:

(i) An order of a court pursuant to a judgment of divorce or separate maintenance;

(ii) An order of a court concerning child support.

9-26-4.1. Homestead estate exemption. -- (a) In addition to the property exempt from

attachment as set forth in section 9-26-4, an estate of homestead to the extent of ~~two hundred~~

~~thousand dollars ($200,000)~~ three hundred thousand dollars ($300,000) in the land and buildings

may be acquired pursuant to this section by an owner or owners of a home or one or all who

rightfully possess the premise by lease or otherwise, and who occupy or intend to occupy the

home as a principal residence. The estate of homestead provided pursuant to this section shall be

automatic by operation of law, and without any requirement or necessity for the filing of a

declaration, a statement in a deed, or any other documentation. The estate shall be exempt from

the laws of attachment, levy on execution and sale for payment of debts or legacies except in the

following cases:

(1) Sale for taxes, sewer liens, water liens, lighting district assessments and fire district

assessments;

(2) For a debt contracted prior to the acquisition of the estate of homestead;

(3) For a debt contracted for the purchase of the home;

(4) Upon an order issued by the family court to enforce its judgment that a spouse pay a

certain amount weekly or otherwise for the support of a spouse or minor children;

(5) Where a building or buildings are situated on land not owned by the owner of a

homestead estate are attached, levied upon or sold for the ground rent of the lot upon which the

building or buildings are situated;

(6) for a debt due to, or a lien in favor of, the department of human services and/or the

state of Rhode Island for reimbursement of medical assistance, as provided for in section 40-8-15;

(7) For a debt heretofore or hereafter owing to a federally insured deposit taking

institution or a person regulated or licensed under title 19.

(b) For the purposes of this section, "owner of a home" includes a sole owner, joint

tenant, tenant by the entirety or tenant in common; provided, that only one owner may acquire an

estate of homestead in the home for the benefit of his or her family; and provided further, that an

estate of homestead may be acquired on only one principal residence for the benefit of a family.

For the purposes of this section, "family" includes either a parent and child or children, a husband

and wife and their children, if any, or a sole owner. The provisions of this section shall not apply

to any debt owing to a financial institution, or private mortgages, or a mechanics' lien on the

property comprising the estate as provided for under chapter 28 of title 34. Notwithstanding any

other provisions of law, it shall not be necessary to record a declaration of homestead in order to

take advantage of the homestead estate exemption.

SECTION 2. This act shall take effect upon passage.

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LC01115/SUB A

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