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