REPORT TITLE:
Public Assistance


DESCRIPTION:
Clarifies classification of claims by the DHS in the probate
code.  (SD2)

 
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                                                        2514
HOUSE OF REPRESENTATIVES                H.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC ASSISTANCE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds there is a need to clarify
 
 2 the law with respect to the interests of the department of human
 
 3 services when it asserts its claims pursuant to sections 346-15
 
 4 and 346-37(a), Hawaii Revised Statutes.
 
 5      The purpose of this Act is to clarify the priority of the
 
 6 department's claims to the estates of recipients pursuant to
 
 7 sections 346-15 and 346-37, Hawaii Revised Statutes, through the
 
 8 collection of personal property by affidavit in part 12 of
 
 9 article III of the Uniform Probate Code, chapter 560, Hawaii
 
10 Revised Statutes.
 
11      SECTION 2.  Section 560:3-805, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§560:3-805  Classification of claims.  (a)  If the
 
14 applicable assets of the estate are insufficient to pay all
 
15 claims in full, the personal representative shall make payment in
 
16 the following order:
 
17      (1)  Costs and expenses of administration;
 
18      (2)  Reasonable funeral expenses[;], including any claim by
 
19           the department of human services pursuant to
 

 
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 1           section 346-15;
 
 2      (3)  Debts and taxes with preference under federal law;
 
 3      (4)  Reasonable and necessary medical and hospital expenses
 
 4           of the last illness of the decedent, including
 
 5           compensation of persons attending the decedent[;] and
 
 6           any claim by the department of human services pursuant
 
 7           to section 346-37 for expenses of the last illness of
 
 8           the decedent;
 
 9      (5)  Debts and taxes with preference under other laws of
 
10           this State; [and]
 
11      (6)  Any other claim against the estate pursuant to
 
12           section 346-37; and
 
13     [(6)] (7)  All other claims.
 
14      (b)  No preference shall be given in the payment of any
 
15 claim over any other claim of the same class, and a claim due and
 
16 payable shall not be entitled to a preference over claims not
 
17 due."
 
18      SECTION 3.  Section 560:3-1201, Hawaii Revised Statutes, is
 
19 amended by amending subsection (a) to read as follows:
 
20      "(a)  Any person indebted to the decedent or having
 
21 possession of tangible personal property or an instrument
 
22 evidencing a debt, obligation, stock, chose in action, or other
 
23 intangible personal property belonging to the decedent shall make
 

 
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 1 payment of the indebtedness or deliver the tangible personal
 
 2 property or an instrument evidencing the debt, obligation, stock,
 
 3 chose in action, or other intangible personal property to a
 
 4 person or persons claimed to be the successor or successors of
 
 5 the decedent or to the department of human services where the
 
 6 department has [paid for the decedent's burial pursuant to
 
 7 section 346-15,] a claim against the estate pursuant to
 
 8 section 346-37, upon being presented a death certificate for the
 
 9 decedent and an affidavit made by or on behalf of the claimed
 
10 successor or successors or the department of human services
 
11 stating that:
 
12      (1)  The gross value of the decedent's estate in this State
 
13           does not exceed $60,000; except that any motor vehicles
 
14           registered in the decedent's name may be transferred
 
15           regardless of value pursuant to this section;
 
16      (2)  No application or petition for the appointment of a
 
17           personal representative is pending or has been granted
 
18           in this State; and
 
19      (3)  (A)  The claimed successor or successors are entitled
 
20                to the property and explaining the relationship of
 
21                the claimed successor or successors to the
 
22                decedent; or
 
23           (B)  The department of human services has [paid for the
 

 
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 1                decedent's burial.] a claim against the estate
 
 2                pursuant to section 346-37.
 
 3 The affidavit of the department of human services shall have
 
 4 priority over any other claim presented pursuant to this
 
 5 section."
 
 6      SECTION 4.  Statutory material to be repealed is bracketed.
 
 7 New statutory material is underscored.
 
 8      SECTION 5.  This Act shall take effect upon its approval.
 

 
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