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S.B. 89

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Fri, Jan 28, 2005 at 11:40 AM by rday. -->              1     

MUTUAL DEPENDENCE BENEFITS CONTRACT

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Gregory S. Bell

             5     

             6      LONG TITLE
             7      General Description:
             8          This bill provides for the creation of mutual dependence benefits contracts, which allow
             9      two adults, not eligible for marriage, to share certain rights and responsibilities
             10      regarding property ownership or health-related matters.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    provides for the creation of mutual dependence benefits contracts;
             15          .    establishes eligibility requirements for mutual dependence benefits contracts;
             16          .    allows parties to a mutual dependence benefits contract to select the following
             17      groups of rights and responsibilities to be shared:
             18              .    health-related rights and responsibilities; and
             19              .    property-related rights and responsibilities;
             20          .    makes amendments related to the exercise of rights and responsibilities selected by
             21      the parties;
             22          .    requires the Department of Health to administer the creation of mutual dependence
             23      benefits contracts;
             24          .    requires the Department of Health to maintain a database of mutual dependence
             25      benefits contracts;
             26          .    allows the Department of Health to collect fees for the recording and copying of
             27      related forms;



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         .    allows the Department of Health to retain, as a dedicated credit to offset its costs,
             29      fees collected for the recording and copying of mutual dependence benefits contract
             30      forms;
             31          .    provides for the termination of mutual dependence benefits contracts;
             32          .    requires notification to a party to a mutual dependence benefits contract of certain
             33      guardianship proceedings instituted in the interest of the other party to a mutual
             34      dependence benefits contract; and
             35          .    makes technical changes.
             36      Monies Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          None
             40      Utah Code Sections Affected:
             41      AMENDS:
             42          26-28-4, as last amended by Chapter 343, Laws of Utah 1995
             43          57-1-5, as last amended by Chapter 89, Laws of Utah 2002
             44          58-9-602, as enacted by Chapter 49, Laws of Utah 2003
             45          75-5-309, as last amended by Chapter 104, Laws of Utah 1988
             46          78-14-5, as last amended by Chapter 9, Laws of Utah 2001
             47      ENACTS:
             48          26-48-101, Utah Code Annotated 1953
             49          26-48-102, Utah Code Annotated 1953
             50          26-48-201, Utah Code Annotated 1953
             51          26-48-202, Utah Code Annotated 1953
             52          26-48-203, Utah Code Annotated 1953
             53          26-48-204, Utah Code Annotated 1953
             54     

             55      Be it enacted by the Legislature of the state of Utah:
             56          Section 1. Section 26-28-4 is amended to read:
             57           26-28-4. Anatomical gifts by others -- Donations or revocations.
             58          (1) Unless a person made an unrevoked refusal to make an anatomical gift, in



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     accordance with Subsection 26-28-3 (12), any of the following persons, in order of priority
             60      listed, may make an anatomical gift of all or a part of a decedent's body in accordance with this
             61      chapter:
             62          (a) the decedent's spouse;
             63          (b) a person who is a party to a mutual dependence benefits contract with the decedent
             64      in which the parties have elected to share health-related rights and responsibilities under
             65      Subsection 26-48-202 (2);
             66          [(b)] (c) the decedent's adult son or daughter;
             67          [(c)] (d) either of the decedent's parents;
             68          [(d)] (e) the decedent's brother or sister who is 18 years of age or older;
             69          [(e)] (f) the decedent's grandparent; or
             70          [(f)] (g) the decedent's court appointed guardian at the time of the decedent's death.
             71          (2) A person listed in Subsection (1) may not make an anatomical gift if:
             72          (a) a person in a prior class is available at the time of death to determine whether to
             73      make an anatomical gift;
             74          (b) [he] the person knows of a refusal or contrary indications made by the decedent; or
             75          (c) [he] the person knows of an objection to making an anatomical gift by a member of
             76      the person's class or a prior class.
             77          (3) A person authorized in accordance with this section may make an anatomical gift
             78      only by:
             79          (a) signing a document of gift;
             80          (b) making a telegraphic, facsimile, recorded telephonic, or other recorded message; or
             81          (c) making any other form of communication directed to and received simultaneously
             82      by two individuals[,] if:
             83          (i) one of [whom] the individuals immediately reduces the communication to
             84      writing[,]; and
             85          (ii) both individuals sign [it] the written communication.
             86          (4) A person of the same or prior class may revoke an anatomical gift made by a person
             87      authorized in accordance with Subsection (1) if the procurement entity knows of the revocation
             88      before a designee or employee of the entity has begun to physically remove the part.
             89          (5) A failure to make an anatomical gift under this section is not an objection to or



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             90
     refusal to the making of an anatomical gift.
             91          Section 2. Section 26-48-101 is enacted to read:
             92     
CHAPTER 48. MUTUAL DEPENDENCE BENEFITS CONTRACT ACT

             93     
Part 1. General Provisions

             94          26-48-101. Title.
             95          This chapter is known as the "Mutual Dependence Benefits Contract Act."
             96          Section 3. Section 26-48-102 is enacted to read:
             97          26-48-102. Definitions.
             98          As used in this chapter:
             99          (1) "Contract" means a mutual dependence benefits contract made pursuant to this
             100      chapter.
             101          (2) "Health care facility" means:
             102          (a) a general acute hospital;
             103          (b) a specialty hospital;
             104          (c) a home health agency;
             105          (d) a hospice;
             106          (e) a nursing care facility;
             107          (f) a residential-assisted living facility;
             108          (g) a birthing center;
             109          (h) an ambulatory surgical facility;
             110          (i) a small health care facility;
             111          (j) an abortion clinic;
             112          (k) a facility owned or operated by a health maintenance organization; and
             113          (l) an end stage renal disease facility.
             114          (3) "Incapacity" means impairment to the extent of lacking sufficient understanding or
             115      capacity to make or communicate responsible decisions by reason of:
             116          (a) mental illness;
             117          (b) mental deficiency;
             118          (c) physical illness or disability;
             119          (d) chronic use of drugs;
             120          (e) chronic intoxication; or



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         (f) other cause.
             122          (4) "Party" means a person who has entered into a mutual dependence benefits contract
             123      pursuant to this chapter.
             124          Section 4. Section 26-48-201 is enacted to read:
             125          26-48-201. Formation of a mutual dependence benefits contract.
             126          (1) Two individuals may create a mutual dependence benefits contract by satisfying the
             127      requirements of this section.
             128          (2) To form a mutual dependence benefits contract under this chapter:
             129          (a) both individuals must be at least 18 years of age;
             130          (b) neither individual may be married;
             131          (c) neither individual may be a party to any other mutual dependence benefits contract;
             132          (d) the individuals must not be eligible for marriage to one another under the laws of
             133      Utah;
             134          (e) each individual shall sign a mutual dependence benefits contract form provided by
             135      the department;
             136          (f) each individual's signature required by Subsection (2)(e) shall be acknowledged by
             137      a notary pursuant to Title 46, Chapter 1, Notaries Public Reform Act;
             138          (g) the mutual dependence benefits contract form shall be filed with the department
             139      pursuant to Section 26-48-203 ; and
             140          (h) on the mutual dependence benefits contract form the individuals shall make the
             141      election provided for by Subsection 26-48-202 (1).
             142          Section 5. Section 26-48-202 is enacted to read:
             143          26-48-202. Mutual dependence benefits contract.
             144          (1) A mutual dependence benefits contract, at the election of the parties, may provide
             145      for:
             146          (a) health-related rights and responsibilities, pursuant to Subsection (2);
             147          (b) property-related rights and responsibilities, pursuant to Subsection (3); or
             148          (c) both health-related and property-related rights and responsibilities.
             149          (2) Health-related rights and responsibilities provided by a mutual dependence benefits
             150      contract are limited to:
             151          (a) the right to make decisions concerning the medical care of the other party to the



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     contract under Subsection 78-14-5 (4) in the event of incapacity;
             153          (b) the right to visit the other party to the contract in a health care facility under the
             154      same terms as an immediate family member would be allowed visitation by the health care
             155      facility;
             156          (c) in the event of the death of the other party to the contract, the right to make an
             157      anatomical gift on behalf of the other party to the contract under Subsection 26-28-4 (1); and
             158          (d) the right and responsibility, upon the death of the other party to the contract, to
             159      control the disposition of remains of the deceased under Section 58-9-602 .
             160          (3) Property-related rights and responsibilities provided by a mutual dependence
             161      benefits contract are limited to a presumption that real property acquired by the parties during
             162      the pendency of the contract is held in joint tenancy with rights of survivorship under
             163      Subsection 57-1-5 (1)(b).
             163a      S (4) A party to a mutual dependence benefits contract may elect for different health-related rights
             163b      and responsibilities than the other party to the mutual dependence benefits contract.
             163c          (5) A mutual dependence benefits contract does not create an insurable interest as defined in
             163d      Subsections 31A-21-104(2)(a) and (b). s
             164          Section 6. Section 26-48-203 is enacted to read:
             165          26-48-203. Administration of mutual dependence benefits contract.
             166          (1) The department shall:
             167          (a) create a mutual dependence benefits contract form that complies with the
             168      provisions of this chapter;
             169          (b) distribute copies of the mutual dependence benefits contract form:
             170          (i) online;
             171          (ii) at the department's offices; and
             172          (iii) to county clerks;
             173          (c) record completed mutual dependence benefits contracts in the department's records;
             174          (d) record documents terminating mutual dependence benefits contracts in the
             175      department's records;
             176          (e) provide a certified copy of a mutual dependence benefits contract to each of the
             177      parties to the contract:
             178          (i) at time of recording; and
             179          (ii) upon request by either of the parties to the mutual dependence benefits contract;
             180      S [ and ] s
             181          (f) maintain a database of mutual dependence benefits contracts and terminations S [ . ] ;


             181a          (g) provide for the issuance of a certificate verifying the existence of a mutual s


            
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181b
     S dependence benefits contract to a party to a mutual dependence contract; and
             181c          (h) notify a party to a mutual dependence benefits contract of the other party's termination of
             181d      the mutual dependence benefits contract by mailing notice to the party at the address on file with the
             181e      department. s
             182          (2) The department is not required to verify that the parties to a mutual dependence



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             183
     benefits contract:
             184          (a) are at least 18 years of age;
             185          (b) are not married; or
             186          (c) are not eligible for marriage to one another under the laws of Utah.
             187          (3) (a) The department may establish and collect reasonable fees for the recording or
             188      copying of a mutual dependence benefits contract or termination of a contract.
             189          (b) Funds generated under Subsection (3)(a) may be used by the department as a
             190      dedicated credit to cover the reasonable costs of administering this chapter, including the cost
             191      of:
             192          (i) providing contract forms;
             193          (ii) recording contracts and terminations;
             194          (iii) providing certified copies of contracts; and
             195          (iv) maintaining a database of contracts and terminations.
             196          Section 7. Section 26-48-204 is enacted to read:
             197          26-48-204. Termination of mutual dependence benefits contract.
             198          (1) Any party to a mutual dependence benefits contract may unilaterally terminate the
             199      contract by recording a writing with the department that:
             200          (a) is signed by the party seeking termination;
             201          (b) immediately rescinds all rights and responsibilities under the contract; and
             202          (c) is acknowledged by a notary pursuant to Title 46, Chapter 1, Notaries Public
             203      Reform Act.
             204          (2) A mutual dependence benefits contract is automatically terminated on the day on
             205      which a party to the contract marries.
             206          (3) The termination of a mutual dependence benefits contract has no impact on:
             207          (a) existing property rights, including ownership rights in property acquired during the
             208      existence of the mutual dependence benefits contract; or
             209          (b) rights and responsibilities existing independent of the mutual dependence benefits
             210      contract.
             211          Section 8. Section 57-1-5 is amended to read:
             212           57-1-5. Creation of joint tenancy presumed -- Tenancy in common -- Severance of
             213      joint tenancy.



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         (1) (a) Beginning on May 5, 1997, every ownership interest in real estate granted to
             215      two persons in their own right who are designated as husband and wife in the granting
             216      documents is presumed to be a joint tenancy interest with rights of survivorship, unless
             217      severed, converted, or expressly declared in the grant to be otherwise.
             218          (b) Every ownership interest in real estate granted to two persons in their own right
             219      who are designated in the granting documents as parties to a mutual dependence benefits
             220      contract who have elected to share property-related rights and responsibilities under Subsection
             221      26-48-202 (3), is presumed to be a joint tenancy interest with rights of survivorship, unless
             222      severed, converted, or expressly declared in the grant to be otherwise.
             223          [(b)] (c) Every ownership interest in real estate [which] that does not qualify for the
             224      joint tenancy presumption as provided in this Subsection (1)[(a)] is presumed to be a tenancy in
             225      common interest unless expressly declared in the grant to be otherwise.
             226          (2) (a) Use of words "joint tenancy" or "with rights of survivorship" or "and to the
             227      survivor of them" or words of similar import means a joint tenancy.
             228          (b) Use of words "tenancy in common" or "with no rights of survivorship" or
             229      "undivided interest" or words of similar import shall declare a tenancy in common.
             230          (3) A sole owner of real property shall create a joint tenancy in himself and another or
             231      others:
             232          (a) by making a transfer to himself and another or others as joint tenants by use of the
             233      words as provided in Subsection (2)(a); or
             234          (b) by conveying to another person or persons an interest in land in which an interest is
             235      retained by the grantor and by declaring the creation of a joint tenancy by use of the words as
             236      provided in Subsection (2)(a).
             237          (4) In all cases, the interest of joint tenants shall be equal and undivided.
             238          (5) A "joint tenancy" is severed and is converted into a "tenancy in common" by a joint
             239      tenant by making a bona fide conveyance of the joint tenant's interest in the property to himself
             240      or to another.
             241          (6) The amendments to this section in Chapter 124, Laws of Utah 1997 have no
             242      retrospective operation and shall govern instruments executed and recorded on or after May 5,
             243      1997.
             244          Section 9. Section 58-9-602 is amended to read:



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          58-9-602. Determination of control of disposition.
             246          The right and duty to control the disposition of a deceased person, including the
             247      location and conditions of the disposition, vest in the following degrees of relationship in the
             248      order named:
             249          (1) a person designated in a written instrument, excluding a power of attorney that
             250      terminates at death under Sections 75-5-501 and 75-5-502 , if the written instrument contains:
             251          (a) the name and address of the decedent;
             252          (b) the name and address of the person designated under this Subsection (1);
             253          (c) the signature of the decedent;
             254          (d) the signatures of at least two unrelated individuals who are not the person
             255      designated under this Subsection (1), each of whom signed within a reasonable time after
             256      witnessing the signing of the form by the decedent; and
             257          (e) the date or dates the written instrument was prepared and signed;
             258          (2) the surviving, legally recognized spouse of the decedent;
             259          (3) a person who is a party to a mutual dependence benefits contract with the decedent
             260      in which the parties have elected to share health-related rights and responsibilities under
             261      Subsection 26-48-202 (2);
             262          [(3)] (4) the surviving child or the majority of the surviving children of the decedent
             263      over the age of 18;
             264          [(4)] (5) the unanimous consent of the surviving parent, parents, or lawful custodian of
             265      the decedent;
             266          [(5)] (6) the person or persons in the next degree of succession under Title 75, Chapter
             267      2, Intestate Succession and Wills;
             268          [(6)] (7) any public official charged with arranging the disposition of deceased persons;
             269          [(7)] (8) a person or persons whom the funeral service director reasonably believes is
             270      entitled to control the disposition; and
             271          [(8)] (9) in the absence of any person under Subsections (1) through [(7)] (8), any
             272      person willing to assume the right and duty to control the disposition.
             273          Section 10. Section 75-5-309 is amended to read:
             274           75-5-309. Notices in guardianship proceedings.
             275          (1) In a proceeding for the appointment or removal of a guardian of an incapacitated



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     person other than the appointment of a temporary guardian or temporary suspension of a
             277      guardian, notice of hearing shall be given to each of the following:
             278          (a) the ward or the person alleged to be incapacitated and spouse, parents, and adult
             279      children of the ward or person;
             280          (b) a person who is a party to a mutual dependence benefits contract with the ward or
             281      person alleged to be incapacitated in which the parties have elected to share health-related
             282      rights and responsibilities under Subsection 26-48-202 (2);
             283          [(b)] (c) any person who is serving as guardian or conservator or who has care and
             284      custody of the ward or person;
             285          [(c)] (d) in case no other person is notified under Subsection (1)(a), at least one of the
             286      closest adult relatives, if any can be found; and
             287          [(d)] (e) any guardian appointed by the will of the:
             288          (i) parent who died later; or
             289          (ii) spouse of the incapacitated person.
             290          (2) (a) The notice shall be in plain language and large type and the form shall have the
             291      final approval of the Judicial Council.
             292          (b) The notice shall indicate the time and place of the hearing, the possible adverse
             293      consequences to the person receiving notice of rights, a list of rights, including the person's
             294      own or a court appointed counsel, and a copy of the petition.
             295          (3) (a) Notice shall be served personally on the alleged incapacitated person and the
             296      person's spouse and parents if they can be found within the state.
             297          (b) Notice to the spouse and parents, if they cannot be found within the state, and to all
             298      other persons except the alleged incapacitated person shall be given as provided in Section
             299      75-1-401 .
             300          (c) Waiver of notice by the person alleged to be incapacitated is not effective unless:
             301          (i) the person attends the hearing; or
             302          (ii) the person's waiver of notice is confirmed in an interview with the visitor appointed
             303      pursuant to Section 75-5-303 .
             304          Section 11. Section 78-14-5 is amended to read:
             305           78-14-5. Failure to obtain informed consent -- Proof required of patient --
             306      Defenses -- Consent to health care.



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             307
         (1) (a) When a person submits to health care rendered by a health care provider, it shall
             308      be presumed that what the health care provider did was either expressly or impliedly authorized
             309      to be done. For a patient to recover damages from a health care provider in an action based
             310      upon the provider's failure to obtain informed consent, the patient must prove the following:
             311          [(a)] (i) that a provider-patient relationship existed between the patient and health care
             312      provider;
             313          [(b)] (ii) the health care provider rendered health care to the patient;
             314          [(c)] (iii) the patient suffered personal injuries arising out of the health care rendered;
             315          [(d)] (iv) the health care rendered carried with it a substantial and significant risk of
             316      causing the patient serious harm;
             317          [(e)] (v) the patient was not informed of the substantial and significant risk;
             318          [(f)] (vi) a reasonable, prudent person in the patient's position would not have
             319      consented to the health care rendered after having been fully informed as to all facts relevant to
             320      the decision to give consent[. In determining what a reasonable, prudent person in the patient's
             321      position would do under the circumstances, the finder of fact shall use the viewpoint of the
             322      patient before health care was provided and before the occurrence of any personal injuries
             323      alleged to have arisen from said health care]; and
             324          [(g)] (vii) the unauthorized part of the health care rendered was the proximate cause of
             325      personal injuries suffered by the patient.
             326          (b) For purposes of Subsection (1)(a)(vi), in determining what a reasonable, prudent
             327      person in the patient's position would do under the circumstances, the finder of fact shall use
             328      the viewpoint of the patient before health care was provided and before the occurrence of any
             329      personal injuries alleged to have arisen from the health care.
             330          (2) (a) It shall be a defense to any malpractice action against a health care provider
             331      based upon alleged failure to obtain informed consent if:
             332          [(a)] (i) the risk of the serious harm [which] that the patient actually suffered was
             333      relatively minor;
             334          [(b)] (ii) the risk of serious harm to the patient from the health care provider was
             335      commonly known to the public;
             336          [(c)] (iii) the patient stated, prior to receiving the health care complained of, that [he]
             337      the patient:



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             338
         (A) would accept the health care involved regardless of the risk; or [that he]
             339          (B) did not want to be informed of the matters to which [he] the patient would be
             340      entitled to be informed;
             341          [(d)] (iv) the health care provider, after considering all of the attendant facts and
             342      circumstances, used reasonable discretion as to the manner and extent to which risks were
             343      disclosed, if the health care provider reasonably believed that additional disclosures could be
             344      expected to have a substantial and adverse effect on the patient's condition; or
             345          [(e)] (v) the patient or [his] the patient's representative executed a written consent
             346      which sets forth the nature and purpose of the intended health care and which contains a
             347      declaration that the patient accepts the risk of substantial and serious harm, if any, in hopes of
             348      obtaining desired beneficial results of health care and which acknowledges that health care
             349      providers involved have explained [his] the patient's condition and the proposed health care in
             350      a satisfactory manner and that all questions asked about the health care and its attendant risks
             351      have been answered in a manner satisfactory to the patient or [his] the patient's representative[;
             352      such].
             353          (b) The written consent described in Subsection (2)(a)(v) shall be a defense to an action
             354      against a health care provider based upon failure to obtain informed consent unless the patient
             355      proves that the person giving the consent lacked capacity to consent or shows by clear and
             356      convincing proof that the execution of the written consent was induced by the defendant's
             357      affirmative acts of fraudulent misrepresentation or fraudulent omission to state material facts.
             358          (3) Nothing contained in this [act] chapter shall be construed to prevent any person 18
             359      years of age or over from refusing to consent to health care for [his] the person's own person
             360      upon personal or religious grounds.
             361          (4) The following persons are authorized and empowered to consent to any health care
             362      not prohibited by law:
             363          (a) any parent, whether an adult or a minor, for [his] the parent's minor child;
             364          (b) any married person, for a spouse;
             365          (c) any person who is a party to a mutual dependence benefits contract in which the
             366      parties have elected to share health-related rights and responsibilities under Subsection
             367      26-48-202 (2), for the other party to the contract;
             368          [(c)] (d) any person temporarily standing in loco parentis, whether formally serving or



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             369
     not, for the minor under [his] the person's care and any guardian for [his] the person's ward;
             370          [(d)] (e) any person 18 years of age or over for [his or her] the person's parent who is
             371      unable by reason of age, physical or mental condition, to provide such consent;
             372          [(e)] (f) any patient 18 years of age or over;
             373          [(f)] (g) any female regardless of age or marital status, when given in connection with
             374      her pregnancy or childbirth;
             375          [(g)] (h) in the absence of a parent, any adult for [his] the adult's minor brother or
             376      sister; and
             377          [(h)] (i) in the absence of a parent, any grandparent for [his] the grandparent's minor
             378      grandchild.
             379          (5) [No] A person who in good faith consents or authorizes health care treatment or
             380      procedures for another as provided by this [act shall be] chapter may not be subject to civil
             381      liability.





Legislative Review Note
    as of 11-27-04 2:29 PM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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