71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2175
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Representative Vicki
Walker)
CHAPTER ................
AN ACT
Relating to exemptions from execution; creating new provisions;
and amending ORS 23.160 and 29.225 and section 64, chapter 249,
Oregon Laws 2001 (Enrolled House Bill 2386).
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 23.160 is amended to read:
23.160. (1) All property, including franchises, or rights or
interest therein, of the judgment debtor, shall be liable to an
execution, except as provided in this section and in other
statutes granting exemptions from execution. If selected and
reserved by the judgment debtor or the agent of the judgment
debtor at the time of the levy, or as soon thereafter before sale
thereof as the same shall be known to the judgment debtor, the
following property, or rights or interest therein of the judgment
debtor, except as provided in ORS 23.220, shall be exempt from
execution:
(a) Books, pictures and musical instruments to the value of
$600.
(b) Wearing apparel, jewelry and other personal items to the
value of $1,800.
(c) The tools, implements, apparatus, team, harness or library,
necessary to enable the judgment debtor to carry on the trade,
occupation or profession by which the judgment debtor habitually
earns a living, to the value of $3,000.
(d) A vehicle to the value of $1,700. As used in this paragraph
'vehicle' includes an automobile, truck, trailer, truck and
trailer or other motor vehicle.
(e) Domestic animals and poultry kept for family use, to the
total value of $1,000 and food sufficient to support such animals
and poultry for 60 days.
(f) Household goods, furniture, radios, a television set and
utensils all to the total value of $3,000, if the judgment debtor
holds the property primarily for the personal, family or
household use of the judgment debtor; provisions actually
provided for family use and necessary for the support of a
householder and family for 60 days and also 60 days' supply of
fuel.
(g) All property of the state or any county or incorporated
city therein, or of any other public or municipal corporation of
like character.
Enrolled House Bill 2175 (HB 2175-B) Page 1
(h) All professionally prescribed health aids for the debtor or
a dependent of the debtor.
(i) Spousal support, child support, or separate maintenance to
the extent reasonably necessary for the support of the debtor and
any dependent of the debtor.
(j) The debtor's right to receive, or property that is
traceable to, an award under any crime victim reparation law.
(k) The debtor's right to receive, or property that is
traceable to, a payment or payments, not to exceed a total of
$10,000, on account of personal bodily injury of the debtor or an
individual of whom the debtor is a dependent. If the execution
arises out of a support obligation or an order or notice entered
or issued under ORS chapter 25, 107, 108, 109, 110, 416, 419B or
419C, the amount exempt from execution is 75 percent of the
payment or payments, not to exceed a total of $7,500.
(L) The debtor's right to receive, or property that is
traceable to, 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. If the
execution arises out of a support obligation or an order or
notice entered or issued under ORS chapter 25, 107, 108, 109,
110, 416, 419B or 419C, the amount exempt from execution is 75
percent of the payment or payments.
(m) Veterans' benefits and loans. If the execution arises out
of a support obligation or an order or notice entered or issued
under ORS chapter 25, 107, 108, 109, 110, 416, 419B or 419C, the
amount of veterans' benefits other than loans that are exempt
from execution is 75 percent of the benefits.
{ + (n) The debtor's right to receive an earned income tax
credit under the federal tax laws and any moneys that are
traceable to a payment of an earned income tax credit under the
federal tax laws. + }
{ - (n) - } { + (o) + } The debtor's interest, not to
exceed $400 in value, in any personal property. However, this
exemption may not be used to increase the amount of any other
exemption.
(2) If the property selected or reserved by the judgment debtor
as exempt is adjudicated by the court out of which the execution
issued to be of a value in excess of that allowed by the
appropriate paragraph of subsection (1) of this section, the
officer making the levy shall proceed to sell such property. Out
of the proceeds of such sale, the officer shall deduct costs of
sale and shall pay to the judgment debtor an amount equivalent to
the value declared to be exempt by any of the paragraphs of
subsection (1) of this section and shall apply the balance of the
proceeds of sale on the execution. No sale shall be made under
such execution unless the highest bid made exceeds the
appropriate exemption claimed and allowed plus costs of sale. If
no bid is received in excess of the value allowed by the
appropriate paragraph of subsection (1) of this section, the
costs of sale shall be borne by the judgment creditor.
(3) If two or more members of a household are judgment debtors,
each judgment debtor shall be entitled to claim the exemptions in
subsection (1)(a), (b), (c), (d), (j), (k) and (L) of this
section in the same or different properties. The exemptions when
claimed for the same property shall be combined at the option of
the debtors.
SECTION 2. ORS 29.225 is amended to read:
Enrolled House Bill 2175 (HB 2175-B) Page 2
29.225. (1) The notice of exemptions referred to in ORS 29.215
shall be in substantially the form set forth in this subsection.
Nothing in the notice form described under this subsection is
intended either to expand or restrict the law relating to exempt
property. Whether property is exempt from execution, attachment
and garnishment shall be determined by reference to other law.
The form may be modified either to provide more complete
information or to update the notice based on subsequent changes
in exemption laws. However, any such modification shall not be
required. The following form is for notice of exemption:
_________________________________________________________________
NOTICE OF EXEMPT PROPERTY
Property belonging to you may have been taken or held in order to
satisfy a claim or judgment which has been asserted or entered
against you. Important legal papers are enclosed.
YOU MAY BE ABLE TO GET YOUR PROPERTY BACK, SO READ THIS NOTICE
CAREFULLY.
State and federal law say certain property may not be taken.
Some of the property which may not be taken is listed below.
(1) Wages or a salary as described in ORS 23.175 and 23.185
(whichever of the following amounts is more: (a) 75 percent of
your take-home wages; (b) For wages payable before June 30, 1992,
$150; (c) For wages payable before June 30, 1993, $160; or (d)
For wages payable on or after July 1, 1993, $170).
(2) Social Security (including SSI).
(3) Public assistance (welfare).
(4) Unemployment benefits.
(5) Disability benefits (other than SSI), unless the benefits
are lump sum payments on a settlement or judgment and the debt
owed is for past due support. When the debt is for past due
support, 75 percent of the lump sum payment.
(6) Workers' compensation benefits, unless the benefits are
lump sum payments on a settlement or judgment and the debt owed
is for past due support. When the debt is for past due support,
75 percent of the lump sum payment.
(7) Exempt wages, Social Security (other than SSI), welfare,
unemployment benefits and disability benefits when placed in a
checking or savings account (up to $7,500), unless the benefits
are disability benefits that are lump sum payments on a
settlement or judgment and the debt owed is for past due support.
When the debt is for past due support, 75 percent of the lump sum
payment.
(8) Spousal support, child support, or separate maintenance to
the extent reasonably necessary for your support or the support
of any of your dependents.
(9) A homestead (home, farm, manufactured dwelling, houseboat)
if you live in it, to the value of $20,000 ($23,000 for a
manufactured dwelling with land included; $25,000 for any other
homestead with land included) or proceeds from its sale for one
(1) year.
(10) Household goods, furniture, radios, a television set and
utensils to $3,000.
*(11) Automobile, truck, trailer or other vehicle to $1,700.
*(12) Tools, implements, apparatus, team, harness or library
necessary to carry on your occupation to $3,000.
*(13) Books, pictures and musical instruments to $600.
*(14) Wearing apparel, jewelry and other personal items to
$1,800.
(15) Domestic animals and poultry for family use to $1,000 and
their food for 60 days.
Enrolled House Bill 2175 (HB 2175-B) Page 3
(16) Provisions (food) and fuel for your family for 60 days.
(17) One rifle or shotgun and one pistol. The combined value of
all firearms claimed as exempt may not exceed $1,000.
(18) Public or private pensions, unless the benefits are lump
sum payments and the debt owed is for past due support. When the
debt is for past due support, 75 percent of the lump sum payment.
(19) Veterans benefits and loans, unless the benefits are lump
sum payments on a settlement or judgment and the debt owed is for
past due support. When the debt is for past due support, 75
percent of the lump sum payment.
(20) Medical assistance benefits.
(21) Health insurance proceeds and disability proceeds of life
insurance policies, unless the benefits are lump sum payments on
a settlement or judgment and the debt owed is for past due
support. When the debt is for past due support, 75 percent of the
lump sum payment.
(22) Cash surrender value of life insurance policies not
payable to your estate.
(23) Federal annuities.
(24) Other annuities to $250 per month, excess over $250 per
month subject to same exemption as wage.
(25) Professionally prescribed health aids for you or any of
your dependents.
*(26) Elderly rental assistance allowed pursuant to ORS
310.635.
*(27) Your right to receive, or property traceable to:
*(a) An award under any crime victim reparation law.
*(b) A payment or payments, not exceeding a total of $10,000,
on account of personal bodily injury suffered by you or an
individual of whom you are a dependent, unless it is a lump sum
payment on a settlement or judgment and the debt owed is for past
due support. When the debt is for past due support, 75 percent of
the lump sum payment.
*(c) A payment in compensation of loss of future earnings of
you or an individual of whom you are or were a dependent, to the
extent reasonably necessary for your support and the support of
any of your dependents, unless it is a lump sum payment on a
settlement or judgment and the debt owed is for past due support.
When the debt is for past due support, 75 percent of the lump sum
payment.
{ + (28) Amounts paid to you as an earned income tax credit
under federal tax law. + }
{ - (28) - } { + (29) + } Interest in personal property to
the value of $400, but this cannot be used to increase the amount
of any other exemption.
{ - (29) - } { + (30) + } The difference between what you
actually owe the creditor and the total amount due listed in the
writ of garnishment, if the amount listed in the writ is larger.
_________________________________________________________________
Note: If two or more people in your household owe the claim or
judgment, each of them may claim the exemptions marked by *.
_________________________________________________________________
You must act promptly if you want to get your money or property
back. You may seek to reclaim your exempt property by doing the
following:
(1) Fill out the form for claim of exemption that you received
with this notice.
(2) Mail or deliver the form for claim of exemption to the
clerk of the court at the address shown on the writ of
garnishment. If the writ of garnishment is a writ of continuing
Enrolled House Bill 2175 (HB 2175-B) Page 4
garnishment, you must mail or deliver the form within 120 days
after you receive this notice. If the writ of garnishment is not
a writ of continuing garnishment, you must mail or deliver the
form within 30 days after you receive this notice.
(3) Although (2) above allows you to claim an exemption, the
law only requires the creditor to hold the money or property for
10 days before applying it to the creditor's use. You may be able
to keep the property from being used by the creditor before being
allowed a hearing by promptly following (1) and (2) above.
______
You should be prepared to explain your exemption in court. If
you have any questions, you should see an attorney.
IF YOU CLAIM AN EXEMPTION IN BAD FAITH, YOU MAY BE SUBJECT TO
PENALTIES IMPOSED BY THE COURT THAT COULD INCLUDE A FINE.
Penalties you could be subject to are listed in ORS 29.142.
When you file this claim of exemption, the garnishee and
Creditor will be required to pay any debt or obligation they hold
into court. They are subject to penalties if they do not. For a
more complete explanation of their responsibilities, see ORS
29.142.
_________________________________________________________________
(2) The claim of exemption form referred to in subsection (1)
of this section, ORS 29.142 and 29.215 shall be in substantially
the following form:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
______
)CLAIM OF EXEMPTION
Plaintiff )Case No. _____
vs. )
______
)
______
)
Defendant )
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
I/We claim the following described property or money as exempt
from execution:
_________________________________________________________________
_________________________________________________________________
I/We believe this property is exempt because:
_________________________________________________________________
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Name _____
Name _____
Signature ___
Signature ___
Enrolled House Bill 2175 (HB 2175-B) Page 5
Address _____
Address _____
________
________
Telephone Telephone
Number ____
Number ____
(Required) (Required)
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
SECTION 2a. { + If House Bill 2386 becomes law, section 2 of
this 2001 Act (amending ORS 29.225) is repealed and section 64,
chapter 249, Oregon Laws 2001 (Enrolled House Bill 2386), is
amended to read: + }
{ + Sec. 64. + } A notice of exemptions form must be in
substantially the form set forth in this section. Nothing in the
notice form described in this section is intended to expand or
restrict the law relating to exempt property. A determination as
to whether property is exempt from execution, attachment and
garnishment must be made by reference to other law. The form
provided in this section may be modified to provide more
information or to update the notice based on subsequent changes
in exemption laws.
_________________________________________________________________
NOTICE OF EXEMPT PROPERTY
Property belonging to you may have been taken or held in order to
satisfy a debt. The debt may be reflected in a judgment or in a
warrant or order issued by a state agency. Important legal papers
are enclosed.
YOU MAY BE ABLE TO GET YOUR PROPERTY BACK, SO READ THIS NOTICE
CAREFULLY.
State and federal law specify that certain property may not be
taken. Some of the property that you may be able to get back is
listed below.
(1) Wages or a salary as described in ORS 23.175 and section
69b { + , chapter 249, Oregon Laws 2001 (Enrolled House Bill
2386) + } { - of this 2001 Act - } . Whichever of the following
amounts is greater:
(a) 75 percent of your take-home wages; or
(b) $170 per workweek.
(2) Social Security benefits.
(3) Supplemental Security Income (SSI).
(4) Public assistance (welfare).
(5) Unemployment benefits.
(6) Disability benefits (other than SSI benefits).
(7) Workers' compensation benefits.
(8) Exempt wages, Social Security benefits (other than SSI),
welfare, unemployment benefits and disability benefits when
placed in a checking or savings account (up to $7,500).
(9) Spousal support, child support or separate maintenance to
the extent reasonably necessary for your support or the support
of any of your dependents.
(10) A homestead (home, farm, manufactured dwelling or
houseboat) if you live in it, to the value of $20,000 ($23,000
for a manufactured dwelling with land included; $25,000 for any
Enrolled House Bill 2175 (HB 2175-B) Page 6
other homestead with land included) or proceeds from its sale for
one year.
(11) Household goods, furniture, radios, a television set and
utensils with a combined value not to exceed $3,000.
*(12) An automobile, truck, trailer or other vehicle with a
value not to exceed $1,700.
*(13) Tools, implements, apparatus, team, harness or library
that are necessary to carry on your occupation, with a combined
value not to exceed $3,000.
*(14) Books, pictures and musical instruments with a combined
value not to exceed $600.
*(15) Wearing apparel, jewelry and other personal items with a
combined value not to exceed $1,800.
(16) Domestic animals and poultry for family use with a
combined value not to exceed $1,000 and their food for 60 days.
(17) Provisions (food) and fuel for your family for 60 days.
(18) One rifle or shotgun and one pistol. The combined value of
all firearms claimed as exempt may not exceed $1,000.
(19) Public or private pensions.
(20) Veterans' benefits and loans.
(21) Medical assistance benefits.
(22) Health insurance proceeds and disability proceeds of life
insurance policies.
(23) Cash surrender value of life insurance policies not
payable to your estate.
(24) Federal annuities.
(25) Other annuities to $250 per month (excess over $250 per
month is subject to the same exemption as wages).
(26) Professionally prescribed health aids for you or any of
your dependents.
*(27) Elderly rental assistance allowed pursuant to ORS
310.635.
*(28) Your right to receive, or property traceable to:
*(a) An award under any crime victim reparation law.
*(b) A payment or payments, not exceeding a total of $10,000,
on account of personal bodily injury suffered by you or an
individual of whom you are a dependent.
*(c) A payment in compensation of loss of future earnings of
you or an individual of whom you are or were a dependent, to the
extent reasonably necessary for your support and the support of
any of your dependents.
{ + (29) Amounts paid to you as an earned income tax credit
under federal tax law. + }
{ - (29) - } { + (30) + } Interest in personal property to
the value of $400, but this cannot be used to increase the amount
of any other exemption.
{ - (30) - } { + (31) + } Equitable interests in property.
{ - (31) - } { + (32) + } If the amount shown as owing on
the Debt Calculation form exceeds the amount you actually owe to
the creditor, the difference between the amount owed and the
amount shown on the Debt Calculation form.
Note: If two or more people in your household owe the claim or
judgment, each of them may claim the exemptions marked by an
asterisk (*).
_________________________________________________________________
SPECIAL RULES APPLY FOR DEBTS THAT ARE OWED FOR CHILD SUPPORT
AND SPOUSAL SUPPORT. Some property that may not otherwise be
taken for payment against the debt may be taken to pay for
overdue support. For instance, Social Security benefits, workers'
Enrolled House Bill 2175 (HB 2175-B) Page 7
compensation benefits, unemployment benefits, veterans' benefits
and pensions are normally exempt, but only 75 percent of a lump
sum payment of these benefits is exempt if the debt is owed for a
support obligation.
YOU MUST ACT PROMPTLY IF YOU WANT TO GET YOUR MONEY OR PROPERTY
BACK. You may seek to reclaim your exempt property by doing the
following:
(1) Fill out the Challenge to Garnishment form that you
received with this notice.
(2) Mail or deliver the Challenge to Garnishment form to the
clerk of the court at the address shown on the writ of
garnishment. If you wish to claim wages or salary as exempt, you
must mail or deliver the form within 120 days after you receive
this notice. If you wish to claim that any other money or
property is exempt, or claim that the property is not subject to
garnishment, you must mail or deliver the form within 30 days
after you receive this notice. You have the burden of showing
that your challenge is made on time, so you should keep records
showing when the challenge was mailed or delivered.
(3) The law only requires that the Garnishor hold the garnished
money or property for 10 days before applying it to the
Creditor's use. You may be able to keep the property from being
used by the Creditor by promptly following (1) and (2) above.
You should be prepared to explain your exemption in court. If
you have any questions about the garnishment or the debt, you
should see an attorney.
IF YOU CLAIM AN EXEMPTION IN BAD FAITH, YOU MAY BE SUBJECT TO
PENALTIES IMPOSED BY THE COURT THAT COULD INCLUDE A FINE.
Penalties that you could be subject to are listed in section
36 { + , chapter 249, Oregon Laws 2001 (Enrolled House Bill
2386) + } { - of this 2001 Act - } .
When you file a Challenge to Garnishment form, the Garnishee
may be required to make all payments under the garnishment to the
court, and the Garnishor may be required to pay to the court all
amounts received by the Garnishor that are subject to the
challenge to the garnishment. The Garnishee and Garnishor are
subject to penalties if they do not. For a complete explanation
of their responsibilities, see sections 32 and 33 { + , chapter
249, Oregon Laws 2001 (Enrolled House Bill 2386) + } { - of
this 2001 Act - } .
_________________________________________________________________
SECTION 3. { + (1) Except as provided in subsection (2) of
this section, the amendments to ORS 23.160 by section 1 of this
2001 Act apply to all debts, whether incurred before, on or after
the effective date of this 2001 Act.
(2) The amendments to ORS 23.160 by section 1 of this 2001 Act
do not apply to any garnishment or other execution issued before
the effective date of this 2001 Act.
(3) The amendments to ORS 29.225 by section 2 of this 2001 Act
apply only to notices of exempt property mailed or delivered on
or after the effective date of this 2001 Act. + }
SECTION 3a. If House Bill 2386 becomes law, section 3 of this
2001 Act is amended to read:
{ + Sec. 3. + } (1) Except as provided in subsection (2) of
this section, the amendments to ORS 23.160 by section 1 of this
2001 Act apply to all debts, whether incurred before, on or after
the effective date of this 2001 Act.
Enrolled House Bill 2175 (HB 2175-B) Page 8
(2) The amendments to ORS 23.160 by section 1 of this 2001 Act
do not apply to any garnishment or other execution issued before
the effective date of this 2001 Act.
(3) The amendments to { - ORS 29.225 by section 2 - }
{ + section 64, chapter 249, Oregon Laws 2001 (Enrolled House
Bill 2386), by section 2a + } of this 2001 Act apply only to
notices of exempt property mailed or delivered on or after the
effective date of this 2001 Act.
----------
Passed by House May 8, 2001
Repassed by House June 5, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 1, 2001
...........................................................
President of Senate
Enrolled House Bill 2175 (HB 2175-B) Page 9
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 2175 (HB 2175-B) Page 10