Bill Text: OR HB2059 | 2011 | Regular Session | Enrolled
Bill Title: Relating to receipt of moneys on behalf of ward in custody of Department of Human Services.
Spectrum: Unknown
Status: (Passed) 2011-06-01 - Chapter 188, (2011 Laws): Effective date January 1, 2012. [HB2059 Detail]
Download: Oregon-2011-HB2059-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2059
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor John A. Kitzhaber
for Department of Human Services)
CHAPTER ................
AN ACT
Relating to receipt of moneys on behalf of ward in custody of
Department of Human Services; creating new provisions; and
amending ORS 126.725 and 126.730.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 126.725 is amended to read:
126.725. (1) A person having legal custody of a minor may enter
into a settlement agreement with a person against whom the minor
has a claim if:
(a) A conservator has not been appointed for a minor;
(b) The total amount of the claim, not including reimbursement
of medical expenses, liens, reasonable attorney fees and costs of
suit, is $25,000 or less if paid in cash or if paid by the
purchase of a premium for an annuity;
(c) The moneys paid under the settlement agreement will be paid
as set forth in subsections (3) and (4) of this section; and
(d) The person entering into the settlement agreement on behalf
of the minor completes an affidavit or verified statement that
attests that the person has made a reasonable inquiry and that:
(A) To the best of the person's knowledge, the minor will be
fully compensated by the settlement; or
(B) There is no practical way to obtain additional amounts from
the party entering into the settlement agreement with the minor.
(2) The attorney representing the person entering into the
settlement agreement on behalf of the minor, if any, shall
maintain the affidavit or verified statement completed under
subsection (1)(d) of this section in the attorney's file for two
years after the minor attains the age of 21 years.
(3) The moneys payable under the settlement agreement must be
paid as follows:
(a) If the minor or person entering into the settlement
agreement on behalf of the minor is represented by an attorney
and the settlement is paid in cash, by direct deposit into the
attorney's trust account maintained pursuant to rules of
professional conduct adopted under ORS 9.490 to be held for the
benefit of the minor. The attorney shall deposit the moneys
received on behalf of the minor directly into a federally insured
savings account that earns interest in the sole name of the
minor, and provide notice of the deposit to the minor and the
person entering into the settlement agreement on behalf of the
Enrolled House Bill 2059 (HB 2059-INTRO) Page 1
minor. Notice shall be delivered by personal service or first
class mail.
(b) If the minor or person entering into the settlement
agreement on behalf of the minor is not represented by an
attorney and the settlement is paid in cash, directly into a
federally insured savings account that earns interest in the sole
name of the minor. Notice of the deposit to the minor shall be
delivered by personal service or first class mail.
(c) If paid by purchase of an annuity, by direct payment to the
provider of the annuity with the minor designated as the sole
beneficiary of the annuity.
{ + (d) If the minor is a ward in the custody of the
Department of Human Services under ORS 419B.337 and the
settlement is paid in cash, directly into a trust account, or
subaccount of a trust account, established by the department or
the Oregon Health Authority under ORS 430.195 for the purpose of
receiving moneys payable to the ward under the settlement
agreement and that earns interest for the benefit of the
ward. + }
(4) The moneys in the minor's savings account { + , trust
account or trust subaccount + } established under subsection (3)
of this section may not be withdrawn, removed, paid out or
transferred to any person, including the minor, except as
follows:
(a) Pursuant to court order;
(b) Upon the minor's attainment of 18 years of age; or
(c) Upon the minor's death.
(5) If a settlement agreement is entered into in compliance
with subsection (1) of this section, the signature of the person
entering into the settlement agreement on behalf of the minor is
binding on the minor without the need for further court approval
or review and has the same force and effect as if the minor were
a competent adult entering into the settlement agreement.
(6) A person acting in good faith on behalf of a minor under
this section is not liable to the minor for the moneys paid in
settlement or for any other claim arising out of the settlement.
SECTION 2. ORS 126.730 is amended to read:
126.730. (1) Except as provided in subsection (4) of this
section, a person under a duty to pay moneys to a minor pursuant
to a judgment of the court in an amount not exceeding $25,000 may
pay the moneys to a person having legal custody of the minor
{ - with whom the minor resides - } or to a guardian of the
minor. { + Unless the minor is a ward in the custody of the
Department of Human Services under ORS 419B.337, the minor must
reside with the person having legal custody of the minor. + }
(2) The moneys paid under subsection (1) of this section must
be paid as follows:
(a) If the minor or person to whom payment is made is
represented by an attorney and the judgment is paid in cash, by
direct deposit into the attorney's trust account maintained
pursuant to rules of professional conduct adopted under ORS 9.490
to be held for the benefit of the minor. The attorney shall
deposit the moneys received on behalf of the minor directly into
a federally insured savings account that earns interest in the
sole name of the minor, and provide notice of the deposit to the
minor and the person to whom payment is made. Notice shall be
delivered by personal service or first class mail.
(b) If the minor or person to whom payment is made is not
represented by an attorney and the judgment is paid in cash,
directly into a federally insured savings account that earns
Enrolled House Bill 2059 (HB 2059-INTRO) Page 2
interest in the sole name of the minor. Notice of the deposit
shall be delivered to the minor by personal service or first
class mail.
(c) If the judgment is paid by purchase of an annuity, by
direct payment to the provider of the annuity with the minor
designated as the sole beneficiary of the annuity.
{ + (d) If the minor is a ward in the custody of the
Department of Human Services under ORS 419B.337 and the judgment
is paid in cash, directly into a trust account, or subaccount of
a trust account, established by the department or the Oregon
Health Authority under ORS 430.195 for the purpose of receiving
moneys payable to the ward pursuant to the judgment and that
earns interest for the benefit of the ward. + }
(3) The moneys in the minor's savings account { + , trust
account or trust subaccount + } established under subsection (2)
of this section may not be withdrawn, removed, paid out or
transferred to any person, including the minor, except as
follows:
(a) Pursuant to court order;
(b) Upon the minor's attainment of 18 years of age; or
(c) Upon the minor's death.
(4) This section does not apply if the person making payment
has actual knowledge that a conservator has been appointed or
proceedings for appointment of a conservator of the estate of the
minor are pending.
SECTION 3. { + The amendments to ORS 126.725 and 126.730 by
sections 1 and 2 of this 2011 Act apply to settlements made and
judgments entered on or after the effective date of this 2011
Act. + }
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Passed by House April 20, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate May 17, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2059 (HB 2059-INTRO) Page 3
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2059 (HB 2059-INTRO) Page 4
