PMWJ H.B. 1126 75(R)BILL ANALYSIS


JUDICIAL AFFAIRS
H.B. 1126
By: Thompson
3-26-97
Committee Report (Amended)



BACKGROUND 

 Similarly, the Probate Code provides that the parents of a minor 
with an estate that has 
property valued less than $25,000 can apply to the court for the 
sale of the property without 
instituting a legal guardianship of the estate.  This provision 
applies only to minors; there currently 
is no similar provision whereby a guardian of the person of an 
incapacitated person, other than a 
minor, can apply to the court for the sale of property when a 
guardianship of the estate is unnecessary 
or when a sale by a guardian of the person would be more timely 
than waiting for a guardianship of 
the estate to be established.
 Over the years, the Legislature has raised the maximum amount 
that can be paid into the 
court before a guardianship will be necessary.  With the rising 
expense associated with both the 
general cost of living and legal fees, it now appears that 
$50,000 will be a more suitable maximum 
limit.  This will enable a minor or otherwise incapacitated 
person to more fully utilize his or her 
assets without the expense of the creation and continuing 
administration of a guardian of the estate 
for the ward. 


PURPOSE

 The purpose of this bill is to raise from $25,000 to $50,000 the 
maximum amount that can 
be paid into a county court's registry on behalf of an 
incapacitated person, minor or otherwise, before 
a legal guardianship of the estate will be required prior to a 
debtor tendering funds to the county 
clerk on behalf of an incapacitated creditor (the ward).  As an 
additional safeguard in tracking the 
amounts of money paid into different court registries for the 
same individual, this bill requires the 
debtor (the person paying funds into the registry) to provide the 
creditor's social security number. 
This bill also provides for a procedure, similar to the procedure 
already existing that governs the sale 
of property of a minor without a guardianship, detailing the 
procedure for the sale of property of a 
ward who is under a guardianship of the person but not a 
guardianship of the estate. 


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 amends Section 887(a) and (e) of the Probate Code by 
raising the maximum 
dollar amount to $50,000 that can be paid into a county court 
registry on behalf of an incapacitated 
person's without the necessity of a legal guardian of the 
person's estate.  SECTION 1 also adds the 
creditor's (the incapacitated person's) social security 
identification number to the list of information 
the debtor must provide when paying into the court registry.

 SECTION 2 amends Section 889 of the Probate Code, concerning 
sales by a parent of 
property by a minor without a guardianship, to conform with the 
changes made in SECTION 1, that 
the upper limit that a minor can have in a court registry without 
a guardianship of the estate is 
$50,000.
 
 SECTION 3 adds a new Sec. 890 to Subpart F, Part 5, Chapter XIII 
of the Probate Code.  The 
title is changed to include the sale of property of "certain 
wards" as well as minors.
 New Sec. 890(a) provides that this section applies only to a ward 
who has a guardian 
of the person, but not a guardian of the estate.
 New Sec. 890(b) authorizes guardians of a person to apply to the 
court to sell a ward's 
interest in property without being appointed guardian of the 
estate.
 New Sec. 890(c) provides for venue and information that must be 
included in the 
application to sell a ward's property.
 New Sec. 890(d) requires the court to schedule a hearing no 
sooner than five days 
after the filing of the application.
 New Sec. 890(e) provides for procedures and evidentiary 
requirements.
 New Sec. 890(f) requires the purchaser of the property to pay 
proceeds of the sale into 
the court registry.
 New Sec. 890(g) provides for the withdrawal of proceeds deposited 
in the registry 
from the sale of ward's property.

 SECTION 5.  Effective date.

 SECTION 6.  Emergency clause. 


EXPLANATION OF AMENDMENTS

 Committee Amendment No. 1 changed "value" to "net value" on page 
3, line 11, in reference 
to a minor's interest in real or personal property, and changed 
"that" on page 4, line 1, to "and the net 
value of the interest," again referring to a minor's interest in 
real or personal property.
 Committee Amendment No. 2 changes Section 2 of the bill to add a 
requirement in Section 
889(b) of the Probate Code that an application for an order to 
sell a minor's property must include