SB 353: "An Act relating to property exemptions; and providing for an effective date."
00SENATE BILL NO. 353 01 "An Act relating to property exemptions; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 09.38.010(a) is amended to read: 04 (a) An individual is entitled to an exemption as a homestead of the individual's 05 interest in property in this state used as the principal residence of the individual or the 06 dependents of the individual, but the value of the homestead exemption may not 07 exceed $250,000 for an individual, except that, if the individual is married and the 08 residence is the principal residence of the individual and the individual's spouse, 09 the exemption may not exceed $500,000 [$54,000]. 10 * Sec. 2. AS 09.38.015 is amended by adding a new subsection to read: 11 (e) An association of apartment owners under AS 34.07 and a common interest 12 community under AS 34.08, including a condominium under AS 34.08 and a 13 cooperative under AS 34.08, are entitled to an exemption of all amounts that are kept 14 on deposit in the name of the association or community with a banking institution
01 authorized to do business in the state and that have been paid to the association or 02 community in the form of dues or special assessments from the owners of the units 03 constituting the association or community. The exemption in this subsection may be 04 waived by an association or community in writing on behalf of a creditor. 05 * Sec. 3. AS 09.38.017(e)(3) is amended to read: 06 (3) "retirement plan" means a retirement plan that is qualified under 26 07 U.S.C. 401(a), 26 U.S.C. 403(a), 26 U.S.C. 403(b), 26 U.S.C. 408, 26 U.S.C. 408A, 08 or 26 U.S.C. 409 (Internal Revenue Code). 09 * Sec. 4. AS 09.38.025(a) is amended to read: 10 (a) Except as provided in this section or AS 09.38.017, an individual is entitled 11 to exemption of [UNMATURED LIFE INSURANCE AND] annuity contracts owned 12 by the individual unless the annuity contract was acquired for the benefit of a 13 creditor . If the accrued cash surrender value of all of an individual's annuity 14 [THE] contracts aggregates [HAVE ACCRUED DIVIDENDS AND LOAN VALUES 15 AVAILABLE TO THE INDIVIDUAL AGGREGATING] more than $100,000 16 [$10,000], a creditor may obtain a court order requiring the individual debtor to pay 17 the creditor, and authorizing the creditor on the debtor's behalf to obtain payment of, 18 the amount of the cash surrender value [ACCRUED DIVIDENDS AND LOAN 19 VALUES] in excess of $100,000 [$10,000] or the amount of the creditor's claim, 20 whichever is less. 21 * Sec. 5. AS 09.38.025 is amended by adding a new subsection to read: 22 (c) Except as provided in this section or AS 09.38.017, an individual is entitled 23 to an exemption for the cash surrender value of a life insurance policy that is owned 24 by the individual and that insures the life of the individual who owns the policy, unless 25 the policy was acquired for the benefit of a creditor. 26 * Sec. 6. AS 09.38.055 is amended to read: 27 Sec. 09.38.055. Bankruptcy proceedings. In a proceeding under 11 U.S.C. 28 (Bankruptcy) only the exemptions under AS 09.38.010, 09.38.015(a) and (e) , 29 09.38.017, 09.38.020, 09.38.025 , and 09.38.030 apply. 30 * Sec. 7. AS 09.38.060(a) is amended to read: 31 (a) If property, or a part of it, that could have been claimed as [AN EXEMPT
01 HOMESTEAD UNDER AS 09.38.010,] a burial plot under AS 09.38.015(a)(1), a 02 health aid under AS 09.38.015(a)(2), or personal property subject to a value limitation 03 under AS 09.38.020(a)(1) [,] or (2) or 09.38.020(c) [,] has been taken or sold by 04 condemnation, or has been lost, damaged, or destroyed and the owner has been 05 indemnified for it, the individual is entitled to an exemption of proceeds that are 06 traceable for 12 months after the proceeds are received. [AN INDIVIDUAL IS 07 ENTITLED TO AN EXEMPTION OF PROCEEDS FROM THE VOLUNTARY 08 SALE OF AN EXEMPT HOMESTEAD UNDER AS 09.38.010 THAT ARE 09 TRACEABLE FOR SIX MONTHS AFTER THE PROCEEDS ARE RECEIVED.] 10 The exemption of proceeds under this subsection does not entitle the individual to 11 claim an aggregate exemption in excess of the value limitation otherwise allowable 12 under AS 09.38.020 [AS 09.38.010 OR 09.38.020]. 13 * Sec. 8. AS 09.38.060 is amended by adding a new subsection to read: 14 (c) If property, or part of it, could have been claimed as an exempt homestead 15 under AS 09.38.010, the individual is entitled to an exemption of the sales, 16 condemnation, damage, or other proceeds of the property for 24 months after the 17 proceeds are received. The exemption of proceeds under this subsection does not 18 entitle the individual to claim an exemption in excess of the value limitation otherwise 19 allowable under AS 09.38.010. 20 * Sec. 9. AS 09.38.115(a) is amended to read: 21 (a) The dollar amounts in this chapter change, as provided in this section, 22 according to and to the extent of changes in the Consumer Price Index for all Urban 23 Consumers for the Anchorage Metropolitan Area compiled by the Bureau of Labor 24 Statistics, United States Department of Labor (the index). The index for January of 25 1998 is the reference base index for the dollar amounts in AS 09.38.010(a) and 26 09.38.025(a), and the index for January of 1982 is the reference base index for the 27 other dollar amounts in this chapter . 28 * Sec. 10. AS 09.38.115(b) is amended to read: 29 (b) The dollar amounts change on October 1 of each even-numbered year if 30 the percentage of change, calculated to the nearest whole percentage point, between 31 the index for January of that year and the most recent index used to change the
01 exemption amount, is 10 percent or more, but 02 (1) the portion of the percentage change in the index in excess of a 03 multiple of 10 percent is disregarded and the dollar amounts change only in multiples 04 of 10 percent of the amounts appearing in this chapter on the effective date of this 05 Act for the dollar amounts in AS 09.38.010(a) and 09.38.025(a), and on August 26, 06 1982 , for the other dollar amounts in this chapter ; and 07 (2) the dollar amounts do not change if the amounts required by this 08 section are those currently in effect as a result of earlier application of this section. 09 * Sec. 11. AS 09.38 is amended by adding a new section to read: 10 Sec. 09.38.130. Treatment of certain trusts. A trust is treated as an 11 individual when applying the provisions of this chapter if the trust is created by an 12 individual, the trust is revocable by the individual creating the trust, or the income of 13 the trust is taxable to the individual under the grantor trust rules of 26 U.S.C. 671 - 14 678. 15 * Sec. 12. AS 09.38.010(b) is repealed. 16 * Sec. 13. APPLICABILITY. In AS 09.38.017(e)(3), as amended by sec. 3 of this Act, 17 the reference to a retirement plan that qualifies under 26 U.S.C. 408A means a retirement plan 18 that is established under 26 U.S.C. 408A on or after January 1, 1998. 19 * Sec. 14. TRANSITION. Notwithstanding AS 09.38.115(b), as amended by sec. 10 of 20 this Act, the dollar amounts in AS 09.38.010(a) and 09.38.025(a), as amended by this Act, do 21 not change in 1998. 22 * Sec. 15. This Act takes effect immediately under AS 01.10.070(c).