SF 2144 (LSB 6034XS (1) 83)

SENATE FILE 2144

BY  BEALL and BLACK

A BILL FOR

An Act relating to the exclusion of veterans’ disability compensation from the claims of creditors and in calculating property disposition and support obligations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 252B.7A, Code 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  Disability compensation received by a party from the United States department of veterans’ affairs for service-related injuries shall not be considered income for the purposes of determining a parent’s income under this section.
    Sec. 2.  Section 598.11, Code 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  The court shall not consider disability compensation received by a party from the United States department of veterans’ affairs for service-related injuries in determining the amount of temporary support awarded under this section.
    Sec. 3.  Section 598.13, Code 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  Disability compensation received by a party from the United States department of veterans’ affairs for service-related injuries shall not be considered income or property for the purposes of disclosing the financial status of such party.
    Sec. 4.  Section 598.21, Code Supplement 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  Veterans’ disability compensation.  Disability compensation received by a party from the United States department of veterans’ affairs for service-related injuries shall not be considered property for the purposes of this section.
    Sec. 5.  Section 598.21A, Code 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  Veterans’ disability compensation.  Disability compensation received by a party from the United States department of veterans’ affairs for service-related injuries shall not be considered income for the purposes of this section.
    Sec. 6.  Section 598.21B, subsection 2, paragraph b, Code Supplement 2009, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (4)  For purposes of calculating a support obligation under this section, disability compensation received by a party from the United States department of veterans’ affairs for service-related injuries shall not be considered income.
    Sec. 7.  Section 598.21C, Code Supplement 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  Veterans’ disability compensation.  Changes in the amount of disability compensation received by a party from the United States department of veterans’ affairs for service-related injuries shall not be considered a substantial change in circumstances for the purposes of this section.
    Sec. 8.  Section 627.6, subsection 8, paragraph b, Code 2009, is amended to read as follows:
   b.  A veteran’s benefit including disability compensation received by the debtor from the United States department of veterans’ affairs for service-related injuries.
    Sec. 9.  NEW SECTION.  627.14  Veterans’ disability compensation.

   Any disability compensation received by a person from the United States department of veterans’ affairs for service-related injuries is exempt from garnishment, attachment, execution, and assignment of income, except for the purposes of enforcing child, spousal, or medical support obligations.
EXPLANATION
   This bill excludes from the claims of creditors and the calculation of property disposition and support obligations under dissolution of marriage and child support determinations, disability compensation received by a party from the United States department of veterans’ affairs for service-related injuries. United States department of veterans’ affairs disability compensation, in general, is a benefit paid to a veteran due to injuries or diseases that were incurred in or aggravated by military service.
   The bill also excludes such disability compensation from garnishment, attachment, execution, and assignment of income, except for the purposes of enforcing child, spousal, or medical support obligations.