ENGROSSED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 62
(By Senators Whitlow, Scott, Yoder, Bowman, Chafin, Wagner,
Blatnik, Boley, Minear, Ross, Love, Tomblin, Mr. President,
Sharpe, Craigo, Jackson, Plymale, Bailey, Dittmar, Manchin,
Buckalew, Deem, Kimble, Anderson, Oliverio, Dugan and Walker)
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[Originating in the Committee on the Judiciary;
reported February 2, 1996.]
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A BILL to amend and reenact section three, article nine, chapter
thirty-eight of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to homestead
exemptions; providing that homesteads are exempt from
attachment for debts for hospital or medical expenses
incurred from a catastrophic illness or injury; providing
for exceptions; defining the term "catastrophic illness or
injury" for purposes of section; and requiring auditor to
promulgate legislative rules to establish procedures to
effectuate such exemption.
Be it enacted by the Legislature of West Virginia:
That section three, article nine, chapter thirty-eight of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 9. HOMESTEAD EXEMPTIONS.
§38-9-3. Debts enforceable against homestead.
As of the effective date of this article, a homestead shall
be exempt up to the value of five thousand dollars from all debts
and liabilities, except debts incurred for the purchase money
thereof, or for the erection of permanent improvements thereon,
and claims for taxes or county or district or municipal levies
due thereon: Provided, That the exemption herein granted by
operation of law shall not render the homestead exempt from liens
and all other debts and liabilities contracted and incurred prior
to the effective date of this article: Provided, further
however, That with respect to a homestead exemption up to one
thousand dollars perfected by execution and recordation of a
written instrument as required under the former provisions of
this article, such exemption shall for all purposes continue to
be governed by such former provisions of this article: Provided
further, That, except as otherwise provided in section eleven-c,
article five, chapter nine of this code, effective the first day
of July, one thousand nine hundred ninety-six, a homestead shall
be exempt from all debts and liabilities for hospital or medical
expenses incurred from a catastrophic illness or injury.
For purposes of this section, "catastrophic illness or
injury" means a medically verified illness or injury which
incapacitates and creates a financial hardship upon the debtor,
his or her spouse or dependent, who uses the homestead as a
principal home, and for which any insurance or other applicable
benefits have been exhausted.
The auditor shall promulgate legislative rules, in
accordance with the provisions of chapter twenty-nine-a of this
code, to establish the procedures for exempting homesteads from
debts and liabilities incurred from a catastrophic illness or
injury.