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).