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H0151................................by JUDICIARY, RULES AND ADMINISTRATION GUARDIANS - Amends existing law to provide for fines and surcharges in the event of misfeasance or malfeasance by a conservator or guardian. 02/02 House intro - 1st rdg - to printing 02/03 Rpt prt - to Jud 02/18 Rpt out - rec d/p - to 2nd rdg 02/19 2nd rdg - to 3rd rdg 02/22 3rd rdg - PASSED - 66-2-2 AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kunz, Lake, Limbaugh, Loertscher, Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moyle, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor(Taylor), Tilman, Tippets, Trail, Wheeler, Williams, Wood, Zimmermann, Mr Speaker NAYS -- Barrett, Kendell Absent and excused -- Linford, Watson Floor Sponsor - Smith Title apvd - to Senate 02/23 Senate intro - 1st rdg - to Jud 03/04 Rpt out - rec d/p - to 2nd rdg 03/05 2nd rdg - to 3rd rdg 03/10 3rd rdg - PASSED - 34-0-1 AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron, Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Twiggs, Wheeler, Whitworth NAYS--None Absent and excused--Parry Floor Sponsor - Ingram Title apvd - to House 03/11 To enrol 03/12 Rpt enrol - Sp signed 03/15 Pres signed 03/16 To Governor 03/18 Governor signed Session Law Chapter 108 Effective: 07/01/99
H0151|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 151 BY JUDICIARY, RULES AND ADMINISTRATION COMMITTEE 1 AN ACT 2 RELATING TO ACCOUNTS AND REPORTS OF CONSERVATORS AND GUARDIANS; AMENDING SEC- 3 TION 15-5-419, IDAHO CODE, TO PROVIDE FOR FINES AND SURCHARGES IN THE 4 EVENT OF MISFEASANCE OR MALFEASANCE BY A CONSERVATOR OR GUARDIAN. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 15-5-419, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 15-5-419. ACCOUNTS AND REPORTS. (a) Every conservator or 9 guardian shall submit a written annual report to the court concerning the sta- 10 tus of the ward and of the ward's estate that has been under the guardian's or 11 conservator's control. The guardian or conservator shall also be required to 12 provide copies of the report to all persons listed by the court as having an 13 interest in receiving copies of the report. The court may order more frequent 14 reports by its own ruling or pursuant to a petition of any person interested 15 in the ward's welfare. Every conservator must account annually, or as other- 16 wise directed by the court, and upon his resignation or removal. On termina- 17 tion of the protected person's minority or disability, a conservator shall 18 account to the court and shall account to the former protected person or his 19 personal representative. Subject to appeal or vacation within the time permit- 20 ted, an order, made upon notice and hearing, allowing an intermediate account 21 of a conservator, adjudicates as to his liabilities concerning the matters 22 considered in connection therewith; and an order, made upon notice and hear- 23 ing, allowing a final account adjudicates as to all previously unsettled lia- 24 bilities of the conservator to the protected person or his successors relating 25 to the conservatorship. In connection with any account, the court may require 26 a conservator to submit to a physical check of the estate in his control, to 27 be made in any manner the court may specify. 28 (b) If a conservator or guardian: 29 (1) Makes a substantial misstatement on filings of any required annual 30 reports; or 31 (2) Is guilty of gross impropriety in handling the property of the ward; 32 or 33 (3) Willfully fails to file the report required by this section, after 34 receiving written notice of the failure to file and after a grace period 35 of two (2) months have elapsed; 36 then the court may impose a fine in an amount not to exceed five thousand dol- 37 lars ($5,000) on the conservator or guardian. The court may appoint a guardian 38 ad litem for the ward on its own motion or on the motion of any interested 39 party to represent the ward in any proceedings hereunder and may also appoint 40 appropriate persons or entities to make investigation of the actions of the 41 conservator or guardian. The court may also order restitution of funds misap- 42 propriated from the estate of a ward and may impose a surcharge upon the con- 43 servator or guardian responsible for such misappropriation for all damages, 2 1 costs and other appropriate sums determined by the court, in addition to any 2 fine imposed including, but not limited to, any fees and costs of the guardian 3 ad litem. The court may take any other actions which are in the best inter- 4 ests of the ward and the protection of the assets of the ward. Any sums 5 awarded hereunder shall be paid by the conservator or guardian and may not be 6 paid by the estate of the ward. The court may enter judgment against a con- 7 servator or guardian for any or all of the foregoing, and may impose judgment 8 against any bond of such conservator or guardian.
STATEMENT OF PURPOSE RS 08799 Many conservators and guardians do not file accountings as required by the Court or file inadequate accountings. Such failures may be deliberate, to cover misappropriation of the assets of the estate of the ward. Enforcement of the duty of accounting, and recovery of misappropriated funds, is difficult under the existing statute, since the ability of the Court to effectively investigate and, if appropriate, penalize the fiduciary for failure to comply with its duties, was unclear or non-existent. This bill would add teeth to the existing statute by giving the Court clear authority to investigate any possible wrong-doing, appoint a guardian ad litem and other appropriate persons or entities to investigate and represent the ward, and, if appropriate, impose fines, order recovery of misappropriated assets, and surcharge the fiduciary for damages and costs caused by the fiduciary. The bill also allows the Court to enter judgment against the fiduciary and the bond of the fiduciary for all such amounts. FISCAL NOTE This bill should have no effect on expenditures. The bill may cause some additional revenues to the Court through fines and should also make Court enforcement of fiduciary duties more efficient, and therefore less costly. CONTACT: Robert L. Aldridge - 1209 North Eighth Street Boise, Idaho 83702-4297 TELEPHONE: Office: (208) 336-9880 Home: (208)888-4668 FAX: (208) 336-9882 E-MAIL: robertadmicron.net STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. H 151