00                      CS FOR HOUSE BILL NO. 101(JUD)                                                                    
01 "An Act exempting the full value of life insurance and annuity contracts from levy to                                   
02 satisfy a debt, and amending the description of earnings, income, cash, and other assets                                
03 relating to garnishment of life insurance proceeds payable upon the death of an                                         
04 insured."                                                                                                               
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1. AS 09.38.015(a) is amended to read:                                                                   
07            (a)  An individual is entitled to exemption of the following property:                                       
08                 (1)  a burial plot for the individual and the individual's family;                                      
09                 (2)  health aids reasonably necessary to enable the individual or a                                     
10       dependent to work or to sustain health;                                                                           
11                 (3)  benefits paid or payable for medical, surgical, or hospital care to                                
12       the extent they are or will be used to pay for the care;                                                          
13                 (4)  an award under AS 18.67 (Violent Crimes Compensation Board) or                                     
14       a crime victim's reparations act of another jurisdiction;                                                         

01                 (5)  benefits paid or payable as a longevity bonus under AS 47.45;                                      
02                 (6)  compensation or benefits paid or payable and exempt under federal                                  
03       law;                                                                                                              
04                 (7)  liquor licenses granted under AS 04;                                                               
05                 (8)  tuition credit or savings accounts under a higher education savings                                
06       account established under AS 14.40.802 or an advance college tuition savings contract                             
07       authorized under AS 14.40.809(a);                                                                                 
08                 (9)  a permanent fund dividend to the extent allowed under                                              
09       AS 43.23.065;                                                                                                     
10                 (10)  [REPEALED                                                                                         
11                 (11)]  benefits paid or payable under AS 47.45.301 - 47.45.309;                                     
12                 (11)  unmatured life insurance and annuity contracts owned by the                                   
13       individual.                                                                                                   
14    * Sec. 2. AS 09.38.030(e) is amended to read:                                                                      
15            (e)  The following property, unless exempt without limitation under                                          
16       AS 09.38.015 or 09.38.017, upon receipt by and while it is in the possession of the                               
17       individual, shall be treated as earnings, income, cash, or other liquid assets under this                         
18       section:                                                                                                          
19                 (1)  benefits paid by reason of disability, illness, or unemployment;                                   
20                 (2)  money or property received for alimony or separate maintenance;                                    
21                 (3)  proceeds of insurance, a judgment, or a settlement, or other rights                                
22       accruing as a result of bodily injury of the individual or of the wrongful death or                               
23       bodily injury of another individual of whom the individual was or is a dependent;                                 
24                 (4)  proceeds or benefits paid [OR PAYABLE] on the death of an                                          
25       insured, if the individual was the spouse or a dependent of the insured; and                                      
26                 (5)  amounts paid under a stock bonus, pension, profit-sharing, annuity,                                
27       or similar plan or contract, providing benefits by reason of age, illness, disability, or                         
28       length of service.                                                                                                
29    * Sec. 3. AS 09.38.025(a) is repealed.                                                                             
30    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
31 read:                                                                                                                   

01       APPLICABILITY. AS 09.38.015(a), as amended by sec. 1 of this Act, and the repeal                                  
02 of AS 09.38.025(a) by sec. 3 of this Act apply to a debt that is created on or after the effective                      
03 date of this Act from which an exemption is sought.