REPORT TITLE:
Public assistance


DESCRIPTION:
Clarifies the law with respect to the interests of the department
when it asserts claims pursuant to sections 346-15 and 346-37,
HRS, to the estates of recipients who passed away.  (HB2514 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2514
HOUSE OF REPRESENTATIVES                H.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                C.D. 1
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 section
 
20           346-15;
 

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

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

 
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                                     H.B. NO.           S.D. 2
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 1 The affidavit of the department of human services shall have
 
 2 priority over any other claim presented pursuant to this
 
 3 section."
 
 4      SECTION 4.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 5.  This Act shall take effect upon its approval.