PMWJ H.B. 881 75(R)BILL ANALYSIS JUDICIAL AFFAIRS H.B. 881 By: Reyna of Bexar 4-30-97 Committee Report (Amended) BACKGROUND Currently, the Texas Probate Code requires that a total of $5000 for funeral and last illness expenses combined be paid as the first priority in payment of debts upon death. PURPOSE HB 881 proposes to amend Sections 320 and 322 of the Probate Code to increase the secured amount which is to be paid by a personal representative of an estate for funeral expenses and expenses related to the last illness. The increase would provide that funeral expenses receive first priority for up to $5000 and that up to $25,000 for last illness expenses be given second priority. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Section 320(a)(1) is amended by separating the amounts payable for "funeral expenses" and "expenses of last sickness." Funeral expenses would receive first priority up to $5,000; final illness expenses would be given second priority and increased to an amount not exceeding $25,000. SECTION 2 amends Section 322, Classification of Claims Against Estates of Decedents, Class 1, by replacing the original $5,000 total with $30,000. Class 4 is amended by adding Section 451.404, Transportation Code and Subchapter I, Chapter 452, Transportation Code, to the list of claims for taxes, penalties, and interest due to make conform the language to modern citation to statutes in code. SECTION 3. Effective date. Application of act. SECTION 4. Emergency clause. EXPLANATION OF AMENDMENTS Committee Amendment No. 1 lowers the proposed new total for funeral expenses and expenses of last sickness from $30,000 to $15,000 in both Sections 1 and 2 of the bill and removes the change in priorities proposed in the bill that would have separated funeral expenses (as a first priority) and expenses of last sickness (as a second priority).