REPORT TITLE:
Public Assistance


DESCRIPTION:
Clarifies the interests of the department in the estates of
deceased recipients and sets forth procedures for asserting
claims.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2855
THE SENATE                              S.B. NO.           S.D. 1
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.  The purpose of the
 
 5 proposed amendment is to clarify the priority of the department's
 
 6 claims to the estates of recipients pursuant to sections 346-15
 
 7 and 346-37, Hawaii Revised Statutes, through the collection of
 
 8 personal property by affidavit in part 12 of article III of the
 
 9 Uniform Probate Code, chapter 560, Hawaii Revised Statutes.
 
10      SECTION 2.  Section 560:3-805, Hawaii Revised Statutes, is
 
11 amended by amending subsection (a) to read as follows:
 
12      "(a)  If the applicable assets of the estate are
 
13 insufficient to pay all claims in full, the personal
 
14 representative shall make payment in the following order:
 
15      (1)  Costs and expenses of administration;
 
16      (2)  Reasonable funeral expenses[;] including any claim by
 
17           the department of human services pursuant to section
 
18           346-15;
 
19      (3)  Debts and taxes with preference under federal law;
 

 
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 1      (4)  Reasonable and necessary medical and hospital expenses
 
 2           of the last illness of the decedent, including
 
 3           compensation of persons attending the decedent[;] and
 
 4           any claim by the department of human services pursuant
 
 5           to section 346-37 for expenses of the last illness of
 
 6           the decedent;
 
 7      (5)  Debts and taxes with preference under other laws of
 
 8           this State; [and]
 
 9      (6)  Any other claim against the estate pursuant to section
 
10           346-37; and
 
11     [(6)] (7)  All other claims."
 
12      SECTION 3.  Section 560:3-1201, Hawaii Revised Statutes, is
 
13 amended by amending subsection (a) to read as follows:
 
14      "(a)  Any person indebted to the decedent or having
 
15 possession of tangible personal property or an instrument
 
16 evidencing a debt, obligation, stock, chose in action, or other
 
17 intangible personal property belonging to the decedent shall make
 
18 payment of the indebtedness or deliver the tangible personal
 
19 property or an instrument evidencing the debt, obligation, stock,
 
20 chose in action, or other intangible personal property to a
 
21 person or persons claimed to be the successor or successors of
 
22 the decedent or to the department of human services where the
 

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

 
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 1      SECTION 4.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 5.  This Act shall take effect upon its approval.