Bill Summary – FastDemocracy

S-4229.1
                           SUBSTITUTE SENATE BILL 5947
     State of Washington         67th Legislature        2022 Regular Session
     By Senate Law & Justice (originally sponsored by Senators Stanford,
     Das, Dhingra, Keiser, Kuderer, Liias, Lovelett, Saldaña, Trudeau,
     Wellman, and C. Wilson)
     READ FIRST TIME 02/03/22.
     AN ACT Relating to property exempt from execution; amending RCW
 6.15.010, 6.15.010, and 51.32.040; providing an effective date; and
 providing an expiration date.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     Sec. 1. RCW 6.15.010 and 2021 c 50 s 2 are each amended to read
 as follows:
     (1) Except as provided in RCW 6.15.050, the following personal
 property is exempt from execution, attachment, and garnishment:
     (a) All wearing apparel of every individual and family, but not
 to exceed ((three thousand five hundred dollars)) $3,500 in value in
 furs, jewelry, and personal ornaments for any individual.
     (b) All private libraries including electronic media, which
 includes audiovisual, entertainment, or reference media in digital or
 analogue format, of every individual, but not to exceed ((three
 thousand five hundred dollars)) $3,500 in value, and all family
 pictures and keepsakes.
     (c) A cell phone, personal computer, and printer.
     (d) To each individual or, as to community property of spouses
 maintaining a single household as against a creditor of the
 community, to the community, provided that each spouse is entitled to
 his or her own exemptions in this subsection (1)(d):
                                       p. 1                          SSB 5947
     (i) ((The individual's or community's)) All household goods,
 appliances, furniture, and home and yard equipment, not to exceed
 ((six thousand five hundred dollars)) $6,500 in value for the
 individual ((or thirteen thousand dollars for the community, no
 single item to exceed seven hundred fifty dollars)), said amount to
 include provisions and fuel for ((the)) comfortable maintenance ((of
 the individual or community));
     (ii) In a bankruptcy case, any other personal property, except
 personal earnings as provided under RCW 6.15.050(1), not to exceed
 $10,000 in value. The value shall be determined as of the date the
 bankruptcy petition is filed;
     (iii) Other than in a bankruptcy case as described in (d)(ii) of
 this subsection, other personal property, except personal earnings as
 provided under RCW 6.15.050(1), not to exceed ((three thousand
 dollars)) $3,000 in value, ((of which not more than one thousand five
 hundred dollars in value may consist of cash, and)) of which not more
 than:
     (A) For all debts except private student loan debt and consumer
 debt, ((five hundred dollars)) $500 in value may consist of bank
 accounts, savings and loan accounts, stocks, bonds, or other
 securities. The maximum exemption under this subsection (1)(d)
 (((ii))) (iii)(A) shall be automatically protected and may not exceed
 ((five hundred dollars)) $500, regardless of the number of existing
 separate bank accounts, savings and loan accounts, stocks, bonds, or
 other securities.
     (B) For all private student loan debt, ((two thousand five
 hundred dollars)) $2,500 in value may consist of bank accounts,
 savings and loan accounts, stocks, bonds, or other securities. $1,000
 in value shall be automatically protected. The maximum exemption
 under this subsection (1)(d)(((ii))) (iii)(B) may not exceed ((two
 thousand five hundred dollars)) $2,500, regardless of the number of
 existing separate bank accounts, savings and loan accounts, stocks,
 bonds, or other securities.
     (C) For all consumer debt, ((two thousand dollars)) $2,000 in
 value may consist of bank accounts, savings and loan accounts,
 stocks, bonds, or other securities. $1,000 in value shall be
 automatically protected. The maximum exemption under this subsection
 (1)(d)(((ii))) (iii)(C) may not exceed ((two thousand dollars))
 $2,000, regardless of the number of existing separate bank accounts,
 savings and loan accounts, stocks, bonds, or other securities;
                                     p. 2                         SSB 5947
     (((iii) For an individual, a)) (iv) A motor vehicle ((used for
 personal transportation,)) not to exceed ((three thousand two hundred
 fifty dollars or for a community two motor vehicles used for personal
 transportation, not to exceed six thousand five hundred dollars))
 $15,000 in aggregate value;
     (((iv))) (v) Any past due, current, or future child support paid
 or owed to the debtor, which can be traced;
     (((v))) (vi) All professionally prescribed health aids for the
 debtor or a dependent of the debtor; ((and
     (vi))) (vii) To any individual, the right to or proceeds of a
 payment not to exceed twenty thousand dollars on account of personal
 bodily injury, not including pain and suffering or compensation for
 actual pecuniary loss, of the debtor or an individual of whom the
 debtor is a dependent; or the right to or proceeds of a payment in
 compensation of loss of future earnings of the debtor or an
 individual of whom the debtor is or was a dependent, to the extent
 reasonably necessary for the support of the debtor and any dependent
 of the debtor; and
     (viii) In a bankruptcy case, the right to or proceeds of personal
 injury of the debtor or an individual of whom the debtor is a
 dependent; or the right to or proceeds of a payment in compensation
 of loss of future earnings of the debtor or an individual of whom the
 debtor is or was a dependent are free of the enforcement of the
 claims of creditors, except to the extent such claims are for the
 satisfaction of any liens or subrogation claims arising out of the
 claims for personal injury or death. The exemption under this
 subsection (1)(d)(((vi))) (viii) does not apply to the right of the
 state of Washington, or any agent or assignee of the state, as a
 lienholder or subrogee under RCW 43.20B.060.
     (e) ((To each qualified individual, one of the following
 exemptions:
     (i) To a farmer, farm trucks, farm stock, farm tools, farm
 equipment, supplies and seed, not to exceed ten thousand dollars in
 value;
     (ii) To a physician, surgeon, attorney, member of the clergy, or
 other   professional   person,   the   individual's   library,   office
 furniture, office equipment and supplies, not to exceed ten thousand
 dollars in value;
     (iii)))   To  any   ((other))   individual,   the  tools   ((and)),
 instruments ((and)), materials, and supplies used to carry on his or
                                      p. 3                         SSB 5947
 her trade ((for the support of himself or herself or family,)) not to
 exceed ((ten thousand dollars)) $15,000 in value.
     (f) Tuition units, under chapter 28B.95 RCW, purchased more than
 two years prior to the date of a bankruptcy filing or court judgment,
 and contributions to any other qualified tuition program under 26
 U.S.C. Sec. 529 of the internal revenue code of 1986, as amended, and
 to a Coverdell education savings account, also known as an education
 individual retirement account, under 26 U.S.C. Sec. 530 of the
 internal revenue code of 1986, as amended, contributed more than two
 years prior to the date of a bankruptcy filing or court judgment.
     (2) For purposes of this section, "value" means the reasonable
 market value of the debtor's interest in an article or item at the
 time it is selected for exemption, exclusive of all liens and
 encumbrances thereon.
     (3) In the case of married persons, each spouse is entitled to
 the exemptions provided in this section, which may be combined with
 the other spouse's exemption in the same property or taken in
 different exempt property.
     (4) Every three-year interval, beginning on April 1, 2025, each
 dollar amount in effect under this section shall be adjusted by the
 department of revenue to: (a) Reflect the change in the consumer
 price index for all urban consumers, published by the department of
 labor, for the most recent three-year period ending immediately
 before the January 1st preceding such April 1st; and (b) round to the
 nearest $25 the dollar amount that represents such change.
     Sec. 2. RCW 6.15.010 and 2019 c 371 s 3 are each amended to read
 as follows:
     (1) Except as provided in RCW 6.15.050, the following personal
 property is exempt from execution, attachment, and garnishment:
     (a) All wearing apparel of every individual and family, but not
 to exceed ((three thousand five hundred dollars)) $3,500 in value in
 furs, jewelry, and personal ornaments for any individual.
     (b) All private libraries including electronic media, which
 includes audiovisual, entertainment, or reference media in digital or
 analogue format, of every individual, but not to exceed ((three
 thousand five hundred dollars)) $3,500 in value, and all family
 pictures and keepsakes.
     (c) A cell phone, personal computer, and printer.
                                     p. 4                         SSB 5947
     (d) To each individual or, as to community property of spouses
 maintaining a single household as against a creditor of the
 community, to the community, provided that each spouse is entitled to
 his or her own exemptions in this subsection (1)(d):
     (i) ((The individual's or community's)) All household goods,
 appliances, furniture, and home and yard equipment, not to exceed
 ((six thousand five hundred dollars)) $6,500 in value for the
 individual ((or thirteen thousand dollars for the community, no
 single item to exceed seven hundred fifty dollars)), said amount to
 include provisions and fuel for ((the)) comfortable maintenance ((of
 the individual or community));
     (ii) In a bankruptcy case, any other personal property, except
 personal earnings as provided under RCW 6.15.050(1), not to exceed
 $10,000 in value. The value shall be determined as of the date the
 bankruptcy petition is filed;
     (iii) Other than in a bankruptcy case as described in (d)(ii) of
 this subsection, other personal property, except personal earnings as
 provided under RCW 6.15.050(1), not to exceed ((three thousand
 dollars)) $3,000 in value, ((of which not more than one thousand five
 hundred dollars in value may consist of cash, and)) of which not more
 than:
     (A) For all debts except private student loan debt and consumer
 debt, ((five hundred dollars)) $500 in value may consist of bank
 accounts, savings and loan accounts, stocks, bonds, or other
 securities. The maximum exemption under this subsection (1)(d)
 (((ii))) (iii)(A) may not exceed ((five hundred dollars)) $500,
 regardless of the number of existing separate bank accounts, savings
 and loan accounts, stocks, bonds, or other securities.
     (B) For all private student loan debt, ((two thousand five
 hundred dollars)) $2,500 in value may consist of bank accounts,
 savings and loan accounts, stocks, bonds, or other securities. The
 maximum exemption under this subsection (1)(d)(((ii))) (iii)(B) may
 not exceed ((two thousand five hundred dollars)) $2,500, regardless
 of the number of existing separate bank accounts, savings and loan
 accounts, stocks, bonds, or other securities.
     (C) For all consumer debt, ((two thousand dollars)) $2,000 in
 value may consist of bank accounts, savings and loan accounts,
 stocks, bonds, or other securities. The maximum exemption under this
 subsection (1)(d)(((ii))) (iii)(C) may not exceed ((two thousand
 dollars)) $2,000, regardless of the number of existing separate bank
                                     p. 5                         SSB 5947
 accounts, savings and loan accounts, stocks, bonds, or other
 securities;
     (((iii) For an individual, a)) (iv) A motor vehicle ((used for
 personal transportation,)) not to exceed ((three thousand two hundred
 fifty dollars or for a community two motor vehicles used for personal
 transportation, not to exceed six thousand five hundred dollars))
 $15,000 in aggregate value;
     (((iv))) (v) Any past due, current, or future child support paid
 or owed to the debtor, which can be traced;
     (((v))) (vi) All professionally prescribed health aids for the
 debtor or a dependent of the debtor; ((and
     (vi))) (vii) To any individual, the right to or proceeds of a
 payment not to exceed twenty thousand dollars on account of personal
 bodily injury, not including pain and suffering or compensation for
 actual pecuniary loss, of the debtor or an individual of whom the
 debtor is a dependent; or the right to or proceeds of a payment in
 compensation of loss of future earnings of the debtor or an
 individual of whom the debtor is or was a dependent, to the extent
 reasonably necessary for the support of the debtor and any dependent
 of the debtor; and
     (viii) In a bankruptcy case, the right to or proceeds of personal
 injury of the debtor or an individual of whom the debtor is a
 dependent; or the right to or proceeds of a payment in compensation
 of loss of future earnings of the debtor or an individual of whom the
 debtor is or was a dependent are free of the enforcement of the
 claims of creditors, except to the extent such claims are for the
 satisfaction of any liens or subrogation claims arising out of the
 claims for personal injury or death. The exemption under this
 subsection (1)(d)(((vi))) (viii) does not apply to the right of the
 state of Washington, or any agent or assignee of the state, as a
 lienholder or subrogee under RCW 43.20B.060.
     (e) ((To each qualified individual, one of the following
 exemptions:
     (i) To a farmer, farm trucks, farm stock, farm tools, farm
 equipment, supplies and seed, not to exceed ten thousand dollars in
 value;
     (ii) To a physician, surgeon, attorney, member of the clergy, or
 other   professional   person,  the   individual's  library,   office
 furniture, office equipment and supplies, not to exceed ten thousand
 dollars in value;
                                     p. 6                         SSB 5947
     (iii)))   To  any   ((other))  individual,   the  tools   ((and)),
 instruments ((and)), materials, and supplies used to carry on his or
 her trade ((for the support of himself or herself or family,)) not to
 exceed ((ten thousand dollars)) $15,000 in value.
     (f) Tuition units, under chapter 28B.95 RCW, purchased more than
 two years prior to the date of a bankruptcy filing or court judgment,
 and contributions to any other qualified tuition program under 26
 U.S.C. Sec. 529 of the internal revenue code of 1986, as amended, and
 to a Coverdell education savings account, also known as an education
 individual retirement account, under 26 U.S.C. Sec. 530 of the
 internal revenue code of 1986, as amended, contributed more than two
 years prior to the date of a bankruptcy filing or court judgment.
     (2) For purposes of this section, "value" means the reasonable
 market value of the debtor's interest in an article or item at the
 time it is selected for exemption, exclusive of all liens and
 encumbrances thereon.
     (3) In the case of married persons, each spouse is entitled to
 the exemptions provided in this section, which may be combined with
 the other spouse's exemption in the same property or taken in
 different exempt property.
     (4) Every three-year interval, beginning on April 1, 2025, each
 dollar amount in effect under this section shall be adjusted by the
 department of revenue to: (a) Reflect the change in the consumer
 price index for all urban consumers, published by the department of
 labor, for the most recent three-year period ending immediately
 before the January 1st preceding such April 1st; and (b) round to the
 nearest $25 the dollar amount that represents such change.
     Sec. 3.   RCW 51.32.040 and 2013 c 125 s 6 are each amended to
 read as follows:
     (1) Except as provided in RCW 43.20B.720, 72.09.111, 74.20A.260,
 and 51.32.380, no money paid or payable under this title shall,
 ((before the issuance and delivery of the payment,)) be assigned,
 charged, or taken in execution, attached, garnished, or pass or be
 paid to any other person by operation of law, any form of voluntary
 assignment, or power of attorney. Any such assignment or charge is
 void unless the transfer is to a financial institution at the request
 of a worker or other beneficiary and made in accordance with RCW
 51.32.045. Payments retain their exempt status even after issuance.
                                     p. 7                         SSB 5947
     (2)(a) If any worker suffers (i) a permanent partial injury and
 dies from some other cause than the accident which produced the
 injury before he or she receives payment of the award for the
 permanent partial injury or (ii) any other injury before he or she
 receives payment of any monthly installment covering any period of
 time before his or her death, the amount of the permanent partial
 disability award or the monthly payment, or both, shall be paid to
 the surviving spouse or the child or children if there is no
 surviving spouse. If there is no surviving spouse and no child or
 children, the awa