Texas House Bill HB3777

Texas 2019 - 86th Regular

Caption

Relating to priority of payment for certain electrical service claims against the estates of certain decedents.

Impact

The passage of HB 3777 would alter the handling of decedent estates by prioritizing outstanding claims for electrical service, especially for those who were critical care residents. By including these claims as part of the funeral and last illness expenses, the bill can help ensure that essential services are maintained timely while processing estate claims, potentially influencing payment dynamics among creditors of the estate.

Summary

House Bill 3777 relates to the priority of payment for certain claims regarding electrical services against the estates of decedents. The bill amends existing sections of the Estates Code to ensure that claims for electrical services are given a higher priority during the settlement of a decedent's estate. Specifically, if the decedent had been designated as a critical care residential customer, the claim for the cost of electrical service would be classified under the funeral expenses and expenses of the decedent's last illness, allowing for reimbursement up to $15,000.

Contention

While there may be support for the bill among those advocating for the protection of critical care patients, there could also be contention from other creditors of the estate who may feel disadvantaged by the prioritization of these specific claims. The amendment that allows for the first $15,000 in electrical service claims to be considered before other unsecured debts may raise concerns about fairness in the distribution of the decedent's assets. The provision ensures that estates maintain service to critical care customers but could leave less for other creditors.