CSHB 369(JUD): "An Act relating to property exemptions under the Alaska Exemptions Act, including removal of the provisions for adjusting the dollar amounts by referring to the consumer price index; and providing for an effective date."
00CS FOR HOUSE BILL NO. 369(JUD) 01 "An Act relating to property exemptions under the Alaska Exemptions Act, 02 including removal of the provisions for adjusting the dollar amounts by referring 03 to the consumer price index; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 09.38.010(a) is amended to read: 06 (a) An individual is entitled to an exemption as a homestead of the individual's 07 interest in property in this state used as the principal residence of the individual or the 08 dependents of the individual, but the value of the homestead exemption for the 09 individual's interest may not exceed $250,000 [$54,000]. 10 * Sec. 2. AS 09.38.010(b) is amended to read: 11 (b) If property owned by the entirety or in common is used by one or more 12 individual owners or their dependents as their principal residence, each owner is 13 entitled to a homestead exemption of that owner's interest in the property as provided 14 in (a) of this section. [THE AGGREGATE VALUE OF MULTIPLE HOMESTEAD
01 EXEMPTIONS ALLOWABLE WITH RESPECT TO A SINGLE LIVING UNIT 02 MAY NOT EXCEED $54,000. IF THERE ARE MULTIPLE OWNERS OF 03 PROPERTY EXEMPT AS A HOMESTEAD, THE VALUE OF THE EXEMPTION 04 OF EACH INDIVIDUAL OWNER MAY NOT EXCEED THE INDIVIDUAL 05 OWNER'S PRO RATA PORTION OF $54,000.] 06 * Sec. 3. AS 09.38.010(c) is amended to read: 07 (c) If property that includes a homestead is sold under an execution, the sale 08 becomes effective upon confirmation by order of the court. The court shall enter the 09 order of confirmation unless the sales price under the execution is less than the 10 amount of exemption, or unless , within six months [60 DAYS] after the sale, the 11 individual repurchases the property under this section or the court extends the time for 12 confirmation upon the filing of a timely motion by a party in interest. The individual 13 may repurchase property, including that individual's homestead, at a sale on execution 14 before confirmation by paying into court the costs of the sale plus the lesser of either 15 (1) the difference between the highest bid and the amount of the exemption in the 16 property, or (2) the amount of the creditor's claim. If the individual does not exercise 17 the repurchase right under this subsection, the clerk of the court shall first remit an 18 amount determined to be exempt to the individual from the proceeds of sale and the 19 balance less the cost of the sale to the creditor. For the purpose of collecting an 20 amount remaining unpaid on a judgment after repurchase of property by an individual 21 under this subsection, the creditor or the creditor's assignee may not make another levy 22 on the property repurchased. 23 * Sec. 4. AS 09.38.015 is amended by adding a new subsection to read: 24 (e) An association of apartment owners under AS 34.07 and a unit owners' 25 association established under AS 34.08 are entitled to an exemption of all money that 26 is kept on deposit in the name of the association in a financial institution authorized 27 to do business in the state and that has been paid to the association as common 28 expenses under AS 34.07 or assessments for common expenses under AS 34.08. The 29 exemption in this subsection may be waived, but the waiver must be in writing. 30 * Sec. 5. AS 09.38.017(e)(3) is amended to read: 31 (3) "retirement plan" means
01 (A) a retirement plan that is qualified under 26 U.S.C. 401(a), 02 26 U.S.C. 403(a), 26 U.S.C. 403(b), 26 U.S.C. 408, 26 U.S.C. 408A, or 26 03 U.S.C. 409 (Internal Revenue Code) ; 04 (B) a medical savings account under 26 U.S.C. 220; or 05 (C) a deferred compensation plan under 26 U.S.C. 457 . 06 * Sec. 6. AS 09.38.020 is amended to read: 07 Sec. 09.38.020. Exemptions of personal property subject to value 08 limitations. (a) An individual is entitled to an exemption in property not to exceed 09 an aggregate value of $3,600 [$3,000] chosen by the individual from the following 10 categories of property: 11 (1) household goods and wearing apparel reasonably necessary for one 12 household; 13 (2) if reasonably held for the personal use of the individual or a 14 dependent, books and musical instruments; and 15 (3) family portraits and heirlooms of particular sentimental value to the 16 individual. 17 (b) An individual is entitled to exemption of jewelry, not exceeding $1,200 18 [$1,000] in aggregate value, if held for the personal use of the individual or a 19 dependent. 20 (c) An individual is entitled to exemption, not exceeding $3,360 [$2,800] in 21 aggregate value, of implements, professional books, and tools of the trade. 22 (d) An individual is entitled to the exemption of pets to the extent of a value 23 not exceeding $1,200 [$1,000]. 24 (e) An individual is entitled to an exemption of one motor vehicle to the extent 25 of a value not exceeding $3,600 [$3,000] if the full value of the motor vehicle does 26 not exceed $24,000 [$20,000]. 27 * Sec. 7. AS 09.38.020 is amended by adding a new subsection to read: 28 (f) In addition to the exemptions allowed under AS 09.38.015(a) and the 29 exemption for liquid assets under AS 09.38.030, an individual is entitled to an 30 exemption of cash and other liquid assets up to $8,075. In this subsection, "liquid 31 assets" includes deposits, securities, notes, drafts, accrued vacation pay, refunds,
01 prepayments, and receivables, but does not include property identified under (a) of this 02 section. 03 * Sec. 8. AS 09.38.025(a) is repealed and reenacted to read: 04 (a) Except as provided in this section or AS 09.38.017, an individual is entitled 05 to an exemption of $250,000 in the total combined value of the cash surrender value 06 of all life insurance policies and annuity contracts owned by the individual, unless the 07 life insurance policies or annuity contracts were entered into for the benefit of a 08 creditor. 09 * Sec. 9. AS 09.38.025 is amended by adding new subsections to read: 10 (c) A beneficiary of a life insurance policy or annuity contract is entitled to 11 an unlimited exemption of all proceeds of life insurance policies and annuity contracts 12 that are payable on the death of an insured to the beneficiary, other than those 13 proceeds that are paid to the insured's estate. 14 (d) If the life insurance policies and annuity contracts of an individual have 15 accrued dividends and loan values available to the individual that aggregate more than 16 $250,000, a creditor of the individual may obtain a court order that requires the 17 individual or the beneficiary of the policy to pay the creditor and that authorizes the 18 creditor on the debtor's behalf to obtain payment of the amount of the accrued 19 dividends and loan values that exceed $250,000 or the amount of the creditor's claim, 20 whichever amount is less. 21 * Sec. 10. AS 09.38.030(a) is amended to read: 22 (a) Except as provided in (b), (c), (f), and (h) of this section and 23 AS 09.38.050, an individual debtor is entitled to an exemption of the individual 24 debtor's weekly net earnings not to exceed $420 [$350]. The weekly net earnings of 25 an individual are determined by subtracting from the weekly gross earnings all sums 26 required by law or court order to be withheld. The weekly net earnings of an 27 individual paid on a monthly basis are determined by subtracting from the monthly 28 gross earnings of the individual all sums required by law or court order to be withheld 29 and dividing the remainder by 4.3. The weekly net earnings of an individual paid on 30 a semi-monthly basis are determined by subtracting from the semi-monthly gross 31 earnings all sums required by law or court order to be withheld and dividing the
01 remainder by 2.17. 02 * Sec. 11. AS 09.38.030(b) is amended to read: 03 (b) An individual who does not receive earnings either weekly, semi-monthly, 04 or monthly is entitled to a maximum exemption for the aggregate value of cash and 05 other liquid assets available in any month of $1,680 [$1,400], except as provided in 06 (f) and (h) of this section and in AS 09.38.050. In this subsection, [THE TERM] 07 "liquid assets" includes deposits, securities, notes, drafts, accrued vacation pay, refunds, 08 prepayments, and receivables, but does not include permanent fund dividends before 09 or after receipt by the individual. 10 * Sec. 12. AS 09.38.050(b) is amended to read: 11 (b) The exemption amounts under AS 09.38.030 may be increased when the 12 individual submits an affidavit, under penalty of perjury, stating that the individual's 13 earnings alone support the individual's household; by so doing, the maximum part of 14 the individual's aggregate disposable earnings for any week subject to execution may 15 not exceed the amount by which the individual's disposable earnings for that week 16 exceed $660 [$550], or, if the individual is claiming an exemption for cash or other 17 liquid assets under AS 09.38.030(b), a maximum amount of $2,640 [$2,200] available 18 in a month is exempt. 19 * Sec. 13. AS 09.38.055 is amended to read: 20 Sec. 09.38.055. Bankruptcy proceedings. In a proceeding under 11 U.S.C. 21 (Bankruptcy) only the exemptions under AS 09.38.010, 09.38.015(a) and (e) , 22 09.38.017, 09.38.020, 09.38.025 and 09.38.030 apply. 23 * Sec. 14. AS 09.38.060(a) is amended to read: 24 (a) If property, or a part of it, that could have been claimed as [AN EXEMPT 25 HOMESTEAD UNDER AS 09.38.010,] a burial plot under AS 09.38.015(a)(1), a 26 health aid under AS 09.38.015(a)(2), or personal property subject to a value limitation 27 under AS 09.38.020(a)(1) [,] or (2) or (c) [09.38.020(c)], has been taken or sold by 28 condemnation, or has been lost, damaged, or destroyed and the owner has been 29 indemnified for it, the individual is entitled to an exemption of proceeds that are 30 traceable for 12 months after the proceeds are received. If property, or a part of it, 31 that could have been claimed as an exempt homestead under AS 09.38.010 has
01 been voluntarily sold, has been taken or sold by condemnation, or has been 02 damaged or destroyed and the owner indemnified for the damage or destruction, 03 the [AN] individual is entitled to an exemption of proceeds of the property, [FROM 04 THE VOLUNTARY SALE OF AN EXEMPT HOMESTEAD UNDER AS 09.38.010] 05 that are traceable for 24 [SIX] months after the proceeds are received. The exemption 06 of proceeds under this subsection does not entitle the individual to claim an aggregate 07 exemption in excess of the value limitation otherwise allowable under AS 09.38.010 08 or 09.38.020. 09 * Sec. 15. AS 09.38.065(a) is amended to read: 10 (a) Notwithstanding other provisions of this chapter, 11 (1) a creditor may make a levy against exempt property of any kind to 12 enforce a claim for 13 (A) child support; 14 (B) unpaid earnings of up to one month's compensation or the 15 full-time equivalent of one month's compensation for personal services of an 16 employee; or 17 (C) state or local taxes; 18 (2) a creditor may make a levy against exempt property to enforce a 19 claim for 20 (A) the purchase price of the property or a loan made for the 21 express purpose of enabling an individual to purchase the property and used for 22 that purpose; 23 (B) labor or materials furnished to make, repair, improve, 24 preserve, store, or transport the property; and 25 (C) a special assessment imposed to defray costs of a public 26 improvement benefiting the property; and 27 (3) a creditor may make a levy against exempt property of any kind to 28 enforce the claim of a crime victim if the claim arises from criminal conduct of the 29 debtor that results in a felony conviction, except that the debtor is entitled to an 30 exemption in property 31 (A) not to exceed an aggregate value of $3,600 [$3,000] chosen
01 by the debtor from the following categories of property: 02 (i) household goods and wearing apparel reasonably 03 necessary for one household; 04 (ii) books and musical instruments, if reasonably held 05 for the personal use of the debtor or a dependent of the debtor; and 06 (iii) family portraits and heirlooms of particular 07 sentimental value to the debtor; and 08 (B) not to exceed an aggregate value of $3,360 [$2,800] of the 09 debtor's implements, professional books, and tools of the trade. 10 * Sec. 16. AS 09.38 is amended by adding a new section to read: 11 Sec. 09.38.130. Treatment of certain trusts. A trust is treated as an 12 individual when applying the provisions of this chapter if the trust is revocable by the 13 person creating the trust or if the income of the trust is taxable to the individual 14 creating the trust under the grantor trust rules of 26 U.S.C. 671 - 678. 15 * Sec. 17. AS 09.38.030(e)(4) and 09.38.115 are repealed. 16 * Sec. 18. This Act takes effect immediately under AS 01.10.070(c).