By Naishtat                                           H.B. No. 2029
       74R3568 CLG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to guardianships and incapacitated persons.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 594.036(b), Health and Safety Code, is
    1-5  amended to read as follows:
    1-6        (b)  Notice shall also be served on the parents if the
    1-7  resident is a minor and on the guardian for the resident's person
    1-8  if the resident has been declared to be incapacitated <incompetent>
    1-9  as provided by the Texas Probate Code and a guardian has been
   1-10  appointed.
   1-11        SECTION 2.  Section 48.021(e), Human Resources Code, is
   1-12  amended to read as follows:
   1-13        (e)  The department shall file an application under Section
   1-14  682 <110A> or 875 <131(b)> of the Texas Probate Code to be
   1-15  appointed guardian of the person and estate of an individual who is
   1-16  a minor, is a conservatee of the department, and, because of a
   1-17  physical or mental condition, will be substantially unable to
   1-18  provide food, clothing, or shelter for himself or herself, to care
   1-19  for the individual's own physical health, or to manage the
   1-20  individual's own financial affairs when the individual becomes an
   1-21  adult.
   1-22        SECTION 3.  Section 30, Chapter 173, Acts of the 47th
   1-23  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
   1-24  Civil Statutes), is amended to read as follows:
    2-1        Sec. 30.  Revocation of License for Medical Reasons.  It
    2-2  shall be unlawful for any person to act as a driver of a motor
    2-3  vehicle who is chemically dependent <addicted to the use of alcohol
    2-4  or a controlled substance>, or who has been adjudged totally
    2-5  incapacitated or incapacitated to act as a driver of a  motor
    2-6  vehicle <mentally incompetent> and has not been restored to
    2-7  capacity <competency> by judicial decree or released from a
    2-8  hospital for the mentally incapacitated <incompetent> upon a
    2-9  certificate of the superintendent that such person has regained
   2-10  capacity <is competent>.  A finding that a person is chemically
   2-11  dependent <addicted to the use of alcohol or a controlled
   2-12  substance> must be based on a determination by the court that the
   2-13  person is psychologically or physiologically dependent on alcohol
   2-14  or a controlled substance.  Any finding by any court of competent
   2-15  jurisdiction that any person holding a driver's license is totally
   2-16  incapacitated or incapacitated to act as a driver of a motor
   2-17  vehicle <mentally incompetent> or chemically dependent <addicted to
   2-18  the use of alcohol or a controlled substance> shall carry with it a
   2-19  revocation of the driver's license.  It shall be the duty of the
   2-20  clerk of any court in which such findings are made, to certify same
   2-21  to the Department within ten (10) days.
   2-22        SECTION 4.  Section 3, Texas Probate Code, is amended by
   2-23  amending Subsection (p) and adding Subsection (mm) to read as
   2-24  follows:
   2-25              (p)  "Incapacitated" or "Incapacitated person" means:
   2-26                    (1)  a minor;
   2-27                    (2)  an adult individual who, because of a
    3-1  physical or mental condition, is substantially unable to provide
    3-2  food, clothing, or shelter for himself or herself, to care for the
    3-3  individual's own physical health, or to manage the individual's own
    3-4  financial affairs;
    3-5                    (3)  a missing person; or
    3-6                    (4)  a person who must have a guardian appointed
    3-7  to receive funds due the person from any governmental source
    3-8  <"Incompetents" or "Incompetent persons" are persons non compos
    3-9  mentis, mentally disabled persons, insane persons, common or
   3-10  habitual drunkards, and other persons who are mentally incompetent
   3-11  to care for themselves or to manage their property and financial
   3-12  affairs>.
   3-13              (mm)  "Ward" is a person for whom a guardian has been
   3-14  appointed.
   3-15        SECTION 5.  Section 37A, Texas Probate Code, is amended to
   3-16  read as follows:
   3-17        Sec. 37A.  Means of Evidencing Disclaimer or Renunciation of
   3-18  Property or Interest Receivable From a Decedent.  Any person, or
   3-19  the guardian <personal representative> of an incapacitated person
   3-20  <incompetent>, the personal representative of a deceased person, or
   3-21  the guardian ad litem of an unborn or unascertained<, or minor>
   3-22  person, with prior court approval of the court having, or which
   3-23  would have, jurisdiction over such guardian, personal
   3-24  representative, or guardian ad litem, or any independent executor
   3-25  of a deceased person, without prior court approval, who may be
   3-26  entitled to receive any property as a beneficiary and who intends
   3-27  to effect disclaimer irrevocably on or after September 1, 1977, of
    4-1  the whole or any part of such property shall evidence same as
    4-2  herein provided.  A disclaimer evidenced as provided herein shall
    4-3  be effective as of the death of decedent and shall relate back for
    4-4  all purposes to the death of the decedent and is not subject to the
    4-5  claims of any creditor of the disclaimant.  Unless the decedent's
    4-6  will provides otherwise, the property subject to the disclaimer
    4-7  shall pass as if the person disclaiming or on whose behalf a
    4-8  disclaimer is made had predeceased the decedent and a future
    4-9  interest that would otherwise take effect in possession or
   4-10  enjoyment after the termination of the estate or interest that is
   4-11  disclaimed takes effect as if the disclaiming beneficiary had
   4-12  predeceased the decedent.  Failure to comply with the provisions
   4-13  hereof shall render such disclaimer ineffective except as an
   4-14  assignment of such property to those who would have received same
   4-15  had the person attempting the disclaimer died prior to the
   4-16  decedent.  The term "property" as used in this section shall
   4-17  include all legal and equitable interests, powers, and property,
   4-18  whether present or  future, whether vested or contingent, and
   4-19  whether beneficial or burdensome, in whole or in part.   The term
   4-20  "disclaimer" as used in this section shall include "renunciation."
   4-21  In this section "beneficiary" includes a person who would have been
   4-22  entitled, if the person had not made a disclaimer, to receive
   4-23  property as a result of the death of another person by inheritance,
   4-24  under a will, by an agreement between spouses for community
   4-25  property with a right of survivorship, by a joint tenancy with a
   4-26  right of survivorship, or by any other survivorship agreement,
   4-27  account, or interest in which the interest of the decedent passes
    5-1  to a surviving beneficiary, by an insurance, annuity, endowment,
    5-2  employment, deferred compensation, or other contract or
    5-3  arrangement, or under a pension, profit sharing, thrift, stock
    5-4  bonus, life insurance, survivor income, incentive, or other plan or
    5-5  program providing retirement, welfare, or fringe benefits with
    5-6  respect to an employee or a self-employed individual.  Nothing in
    5-7  this section shall be construed to preclude a subsequent disclaimer
    5-8  by any person who shall be entitled to property as a result of a
    5-9  disclaimer.  The following shall apply to such disclaimers:
   5-10              (a)  Written Memorandum of Disclaimer and Filing
   5-11  Thereof.  In the case of property receivable by a beneficiary, the
   5-12  disclaimer shall be evidenced by a written memorandum, acknowledged
   5-13  before a notary public or other person authorized to take
   5-14  acknowledgements of conveyances of real estate.   Unless the
   5-15  beneficiary is a charitable organization or governmental agency of
   5-16  the state, a written memorandum of disclaimer disclaiming a present
   5-17  interest shall be filed not later than nine months after the death
   5-18  of the decedent and a written memorandum of disclaimer disclaiming
   5-19  a future interest may be filed not later than nine months after the
   5-20  event determining that the taker of the property or interest is
   5-21  finally ascertained and his interest is indefeasibly vested.  If
   5-22  the beneficiary is a charitable organization or a governmental
   5-23  agency of the state, a written memorandum of disclaimer disclaiming
   5-24  a present or future interest shall be filed not later than nine
   5-25  months after the beneficiary receives the notice required by
   5-26  Section 128A of this code.  The written memorandum of disclaimer
   5-27  shall be filed in the probate court in which the decedent's will
    6-1  has been probated or in which proceedings have been commenced for
    6-2  the administration of the decedent's estate or which has before it
    6-3  an application for either of the same; provided, however, if the
    6-4  administration of the decedent's estate is closed, or after the
    6-5  expiration of one year following the date of the issuance of
    6-6  letters testamentary in an independent administration, or if there
    6-7  has been no will of the decedent probated or filed for probate, or
    6-8  if no administration of the decedent's estate has been commenced,
    6-9  or if no application for administration of the decedent's estate
   6-10  has been filed, the written memorandum of disclaimer shall be filed
   6-11  with the county clerk of the county of the decedent's residence,
   6-12  or, if the decedent is not a resident of this state but real
   6-13  property or an interest therein located in this state is
   6-14  disclaimed, a written memorandum of disclaimer shall be filed with
   6-15  the county clerk of the county in which such real property or
   6-16  interest therein is located, and recorded by such county clerk in
   6-17  the deed records of that county.
   6-18              (b)  Notice of Disclaimer.  Unless the beneficiary is a
   6-19  charitable organization or governmental agency of the state, copies
   6-20  of any written memorandum of disclaimer shall be delivered in
   6-21  person to, or shall be mailed by registered or certified mail to
   6-22  and received by, the legal representative of the transferor of the
   6-23  interest or the holder of legal title to the property to which the
   6-24  disclaimer relates not later than nine months after the death of
   6-25  the decedent or, if the interest is a future interest, not later
   6-26  than nine months after the date the person who will receive the
   6-27  property or interest is finally ascertained and the person's
    7-1  interest is indefeasibly vested.  If the beneficiary is a
    7-2  charitable organization or government agency of the state, the
    7-3  notices required by this section shall be filed not later than nine
    7-4  months after the beneficiary receives the notice required by
    7-5  Section 128A of this code.
    7-6              (c)  Power to Provide for Disclaimer.  Nothing herein
    7-7  shall prevent a person from providing in a will, insurance policy,
    7-8  employee benefit agreement, or other instrument for the making of
    7-9  disclaimers by a beneficiary of an interest receivable under that
   7-10  instrument and for the disposition of disclaimed property in a
   7-11  manner different from the provisions hereof.
   7-12              (d)  Irrevocability of Disclaimer.  Any disclaimer
   7-13  filed and served under this section shall be irrevocable.
   7-14              (e)  Partial Disclaimer.  Any person who may be
   7-15  entitled to receive any property as a beneficiary may disclaim such
   7-16  property in whole or in part, including but not limited to specific
   7-17  powers of invasion, powers of appointment, and fee estate in favor
   7-18  of life estates; and a partial disclaimer or renunciation, in
   7-19  accordance with the provisions of this section, shall be effective
   7-20  whether the property so renounced or disclaimed constitutes a
   7-21  portion of a single, aggregate gift or constitutes part or all of a
   7-22  separate, independent gift; provided, however, that a partial
   7-23  disclaimer shall be effective only with respect to property
   7-24  expressly described or referred to by category in such disclaimer;
   7-25  and provided further, that a partial disclaimer of property which
   7-26  is subject to a burdensome interest created by the decedent's will
   7-27  shall not be effective unless such property constitutes a gift
    8-1  which is separate and distinct from undisclaimed gifts.
    8-2              (f)  Partial Disclaimer by Spouse.  Without limiting
    8-3  Subsection (e) of this section, a disclaimer by the decedent's
    8-4  surviving spouse of a transfer by the decedent is not a disclaimer
    8-5  by the surviving spouse of all or any part of any other transfer
    8-6  from the decedent to or for the benefit of the surviving spouse,
    8-7  regardless of whether the property or interest that would have
    8-8  passed under the disclaimed transfer passes because of the
    8-9  disclaimer to or for the benefit of the surviving spouse by the
   8-10  other transfer.
   8-11              (g)  Disclaimer After Acceptance.  No disclaimer shall
   8-12  be effective after the acceptance of the property by the
   8-13  beneficiary.  For the purpose of this section, acceptance shall
   8-14  occur only if the person making such disclaimer has previously
   8-15  taken possession or exercised dominion and control of such property
   8-16  in the capacity of beneficiary.
   8-17              (h)  Interest in Trust Property.  A beneficiary who
   8-18  accepts an interest in a trust is not considered to have a direct
   8-19  or indirect interest in trust property that relates to a licensed
   8-20  or permitted business and over which the beneficiary exercises no
   8-21  control.  Direct or indirect beneficial ownership of not more than
   8-22  five percent of any class of equity securities that is registered
   8-23  under the Securities Exchange Act of 1934 shall not be deemed to be
   8-24  an ownership interest in the business of the issuer of such
   8-25  securities within the meaning of any statute, pursuant thereto.
   8-26        SECTION 6.  Section 53(b), Texas Probate Code, is amended to
   8-27  read as follows:
    9-1        (b)  If it appears to the court that there are or may be
    9-2  living heirs whose names or whereabouts are unknown, or that any
    9-3  defendant is <a minor or> an incapacitated person <incompetent>,
    9-4  the court may, in its discretion, appoint an attorney ad litem or
    9-5  guardian ad litem to represent the interests of any such persons.
    9-6  The court may not appoint an attorney ad litem or guardian ad litem
    9-7  unless<, but no attorney shall be appointed except when> the court
    9-8  finds that the <such> appointment is necessary to protect the
    9-9  interests of the living heir or incapacitated person <persons for
   9-10  whom the attorney is appointed>.
   9-11        SECTION 7.  Section 78, Texas Probate Code, is amended to
   9-12  read as follows:
   9-13        Sec. 78.  Persons Disqualified to Serve as Executor or
   9-14  Administrator.  No person is qualified to serve as an executor or
   9-15  administrator who is:
   9-16              (a)  <A minor; or>
   9-17              <(b)>  An incapacitated person <incompetent>; <or>
   9-18              (b) <(c)>  A convicted felon, under the laws either of
   9-19  the United States or of any state or territory of the United
   9-20  States, or of the District of Columbia, unless such person has been
   9-21  duly pardoned, or his civil rights restored, in accordance with
   9-22  law; <or>
   9-23              (c) <(d)>  A non-resident (natural person or
   9-24  corporation) of this State who has not appointed a resident agent
   9-25  to accept service of process in all actions or proceedings with
   9-26  respect to the estate, and caused such appointment to be filed with
   9-27  the court; <or>
   10-1              (d) <(e)>  A corporation not authorized to act as a
   10-2  fiduciary in this State; or
   10-3              (e) <(f)>  A person whom the court finds unsuitable.
   10-4        SECTION 8.  Section 137(a), Texas Probate Code, is amended to
   10-5  read as follows:
   10-6        (a)  The distributees of an estate shall be entitled thereto,
   10-7  to the extent that the assets, exclusive of homestead and exempt
   10-8  property, exceed the known liabilities of said estate, without
   10-9  awaiting the appointment of a personal representative when:
  10-10              (1)  No petition for the appointment of a personal
  10-11  representative is pending or has been granted; and
  10-12              (2)  Thirty days have elapsed since the death of the
  10-13  decedent; and
  10-14              (3)  The value of the entire assets of the estate, not
  10-15  including homestead and exempt property, does not exceed $50,000;
  10-16  and
  10-17              (4)  There is filed with the clerk of the court having
  10-18  jurisdiction and venue an affidavit sworn to by two disinterested
  10-19  witnesses and by such distributees as have legal capacity, and, if
  10-20  the facts warrant, by the natural guardian or next of kin of any
  10-21  minor or the guardian of any other incapacitated person
  10-22  <incompetent> who is also a distributee, which affidavit shall be
  10-23  examined by the judge of the court having jurisdiction and venue;
  10-24  the judge may find, in his discretion, that the affidavit conforms
  10-25  to the terms of this section; if the judge approves the affidavit,
  10-26  the affidavit is to be recorded as an official public record under
  10-27  Chapter 194, Local Government Code, or if the county has not
   11-1  adopted a microfilm or microphotographic process under Chapter 194,
   11-2  Local Government Code, the affidavit must be recorded in "Small
   11-3  Estates" records by the clerk, showing the existence of the
   11-4  foregoing conditions, including a list of the assets and
   11-5  liabilities of the estate, the names and addresses of the
   11-6  distributees, and their right to receive the money or property of
   11-7  the estate, or to have such evidences of money, property or other
   11-8  rights of the estate as found to exist transferred to them, being
   11-9  heirs, devisees, or assignees, and listing all assets and known
  11-10  liabilities of the estates; and
  11-11              (5)  A copy of such affidavit, certified to by said
  11-12  clerk, is furnished by the distributees of the estate to the person
  11-13  or persons owing money to the estate, having custody or possession
  11-14  of property of the estate, or acting as registrar, fiduciary or
  11-15  transfer agent of or for evidences of interest, indebtedness,
  11-16  property or other right belonging to said estate.
  11-17        SECTION 9.  Section 145(i), Texas Probate Code, is amended to
  11-18  read as follows:
  11-19        (i)  If a distributee described in Subsections (c) through
  11-20  (e) of this section is <a minor or> an incapacitated person
  11-21  <incompetent>, the guardian of the person of the distributee may
  11-22  sign the application on behalf of the distributee.  If the county
  11-23  court finds that either the granting of independent administration
  11-24  or the appointment of the person, firm, or corporation designated
  11-25  in the application as independent executor would not be in the best
  11-26  interests of the incapacitated person <minor or incompetent>, then,
  11-27  notwithstanding anything to the contrary in Subsections (c) through
   12-1  (e) of this section, the county court shall not enter an order
   12-2  granting independent administration of the estate.  If such
   12-3  distributee who is an incapacitated person <a minor or incompetent>
   12-4  has no guardian of the person, the county court may appoint a
   12-5  guardian ad litem to make application on behalf of the
   12-6  incapacitated person <minor or incompetent> if the county court
   12-7  considers such an appointment necessary to protect the interest of
   12-8  the distributees.
   12-9        SECTION 10.  Section 149C(a), Texas Probate Code, is amended
  12-10  to read as follows:
  12-11        (a)  The county court, a statutory probate court, a county
  12-12  court at law with probate jurisdiction, or a district court of the
  12-13  county, on its own motion or on motion of any interested person,
  12-14  after the independent executor has been cited by personal service
  12-15  to answer at a time and place fixed in the notice, may remove an
  12-16  independent executor when:
  12-17              (1)  the independent executor fails to return within
  12-18  ninety days after qualification, unless such time is extended by
  12-19  order of the court, an inventory of the property of the estate and
  12-20  list of claims that have come to his knowledge;
  12-21              (2)  sufficient grounds appear to support belief that
  12-22  he has misapplied or embezzled, or that he is about to misapply or
  12-23  embezzle, all or any part of the property committed to his care;
  12-24              (3)  he fails to make an accounting which is required
  12-25  by law to be made;
  12-26              (4)  he fails to timely file the notice required by
  12-27  Section 128A of this code;
   13-1              (5)  he is proved to have been guilty of gross
   13-2  misconduct or gross mismanagement in the performance of his duties;
   13-3  or
   13-4              (6)  he becomes an incapacitated person <incompetent>,
   13-5  or is sentenced to the penitentiary, or from any other cause
   13-6  becomes legally incapacitated from properly performing his
   13-7  fiduciary duties.
   13-8        SECTION 11.  Section 154A(b), Texas Probate Code, is amended
   13-9  to read as follows:
  13-10        (b)  If a distributee described in this section is <a minor
  13-11  or> an incapacitated person <incompetent>, the guardian of the
  13-12  person of the distributee may sign the application on behalf of the
  13-13  distributee.  If the county court finds that either the continuing
  13-14  of independent administration or the appointment of the person,
  13-15  firm, or corporation designated in the application as successor
  13-16  independent executor would not be in the best interest of the
  13-17  incapacitated person <minor or incompetent>, then, notwithstanding
  13-18  anything to the contrary in Subsection (a) of this section, the
  13-19  county court shall not enter an order continuing independent
  13-20  administration of the estate.  If the distributee <who> is an
  13-21  incapacitated person and <a minor or incompetent> has no guardian
  13-22  of the person, the court may appoint a guardian ad litem to make
  13-23  application on behalf of the incapacitated person <minor or
  13-24  incompetent> if the county court considers such an appointment
  13-25  necessary to protect the interest of such distributee.
  13-26        SECTION 12.  Section 195(a), Texas Probate Code, is amended
  13-27  to read as follows:
   14-1        (a)  By Will.  Whenever any will probated in a Texas court
   14-2  directs that no bond or security be required of the person or
   14-3  persons named as executors, <or when such a will is made by a
   14-4  surviving parent and directs that the guardian or guardians therein
   14-5  appointed serve without bond,> the court finding that such person
   14-6  or persons are qualified, letters testamentary <or of guardianship,
   14-7  as is proper,> shall be issued to the persons so named, without
   14-8  requirement of bond.
   14-9        SECTION 13.  Sections 222(a) and (b), Texas Probate Code, are
  14-10  amended to read as follows:
  14-11        (a)  Without Notice.  (1)  The court, on its own motion or on
  14-12  motion of any interested person, and without notice, may remove any
  14-13  personal representative, appointed under provisions of this Code,
  14-14  who:
  14-15                    (A)  Neglects to qualify in the manner and time
  14-16  required by law;
  14-17                    (B)  Fails to return within ninety days after
  14-18  qualification, unless such time is extended by order of the court,
  14-19  an inventory of the property of the estate and list of claims that
  14-20  have come to his knowledge;
  14-21                    (C)  Having been required to give a new bond,
  14-22  fails to do so within the time prescribed;
  14-23                    (D)  Absents himself from the State for a period
  14-24  of three months at one time without permission of the court, or
  14-25  removes from the State;
  14-26                    (E)  Cannot be served with notices or other
  14-27  processes by reason of the fact that his whereabouts are unknown,
   15-1  or by reason of the fact that he is eluding service; or
   15-2                    (F)  Has misapplied, embezzled, or removed from
   15-3  the State, or is about to misapply, embezzle, or remove from the
   15-4  State, all or any part of the property committed to the personal
   15-5  representative's <guardian's> care<; or>
   15-6                    <(G)  Has cruelly treated a ward or has neglected
   15-7  to educate or maintain the ward as liberally as the means of the
   15-8  ward and the condition of the ward's estate permit>.
   15-9              (2)  The court may remove a personal representative
  15-10  under Paragraph (F) <or (G)>, Subdivision (1), of this subsection
  15-11  only on the presentation of clear and convincing evidence given
  15-12  under oath.
  15-13        (b)  With Notice.  The court may remove a personal
  15-14  representative on its own motion, or on the complaint of any
  15-15  interested person, after the personal representative has been cited
  15-16  by personal service to answer at a time and place fixed in the
  15-17  notice, when:
  15-18              (1)  Sufficient grounds appear to support belief that
  15-19  he has misapplied, embezzled, or removed from the state, or that he
  15-20  is about to misapply, embezzle, or remove from the state, all or
  15-21  any part of the property committed to his care;
  15-22              (2)  He fails to return any account which is required
  15-23  by law to be made;
  15-24              (3)  He fails to obey any proper order of the court
  15-25  having jurisdiction with respect to the performance of his duties;
  15-26              (4)  He is proved to have been guilty of gross
  15-27  misconduct, or mismanagement in the performance of his duties;
   16-1              (5)  He becomes an incapacitated person <incompetent>,
   16-2  or is sentenced to the penitentiary, or from any other cause
   16-3  becomes incapable of properly performing the duties of his trust;
   16-4              (6)  As executor or administrator, he fails to make a
   16-5  final settlement within three years after the grant of letters,
   16-6  unless the time be extended by the court upon a showing of
   16-7  sufficient cause supported by oath; or
   16-8              (7)  As executor or administrator, he fails to timely
   16-9  file the notice required by Section 128A of this code<; or>
  16-10              <(9)  He fails to comply with the requirements of
  16-11  Section 126 of this code>.
  16-12        SECTION 14.  Part 12, Chapter VIII, Texas Probate Code, is
  16-13  amended by adding Section 405A to read as follows:
  16-14        Sec. 405A.  DELIVERY OF PROPERTY.  The court may permit a
  16-15  resident executor or administrator who has any of the estate of a
  16-16  ward to deliver the estate to a duly qualified and acting guardian
  16-17  of the ward.
  16-18        SECTION 15.  Section 601, Texas Probate Code, is amended to
  16-19  read as follows:
  16-20        Sec. 601.  DEFINITIONS.  In this chapter:
  16-21              (1)  "Attorney ad litem" means an attorney who is
  16-22  appointed by a court to represent and advocate on behalf of a
  16-23  proposed ward, an incapacitated person, or an unborn person in a
  16-24  guardianship proceeding.
  16-25              (2)  "Authorized corporate surety" means a domestic or
  16-26  foreign corporation authorized to do business in this state to
  16-27  issue surety, guaranty, or indemnity bonds guaranteeing the
   17-1  fidelity of guardians.
   17-2              (3)  "Child" includes a biological or adopted child,
   17-3  whether adopted by a parent under a statutory procedure or by acts
   17-4  of estoppel.
   17-5              (4)  "Claims" includes a liability against the estate
   17-6  of a minor or an incapacitated person and debts due to the estate
   17-7  of a minor or an incapacitated person.
   17-8              (5)  "Corporate fiduciary" means a trust company or
   17-9  bank having trust powers, existing or doing business under the laws
  17-10  of this state or of the United States, that is authorized by law to
  17-11  act under the order or appointment of any court of record, without
  17-12  giving bond, as a guardian, receiver, trustee, executor, or
  17-13  administrator, or, although without general depository powers, as a
  17-14  depository for any money paid into court, or to become sole
  17-15  guarantor or surety in or on any bond required to be given under
  17-16  the laws of this state.
  17-17              (6)  "Court investigator" means a person appointed by a
  17-18  statutory probate court under Section 25.0025, Government Code.
  17-19              (7)  "Court" or "probate court" means a county court in
  17-20  the exercise of its probate jurisdiction, a court created by
  17-21  statute and authorized to exercise original probate jurisdiction,
  17-22  or a district court exercising original probate jurisdiction in
  17-23  contested matters.
  17-24              (8) <(7)>  "Estate" or "guardianship estate" means the
  17-25  real and personal property of a ward or deceased ward, both as the
  17-26  property originally existed and as has from time to time changed in
  17-27  form by sale, reinvestment, or otherwise, and as augmented by any
   18-1  accretions and additions to (including any property to be
   18-2  distributed to the representative of the deceased ward by the
   18-3  trustee of a trust that terminates on the ward's death) or
   18-4  substitutions for the property, and as diminished by any decreases
   18-5  to or distributions from the property.
   18-6              (9) <(8)>  "Exempt property" refers to that property of
   18-7  a deceased ward's estate that is exempt from execution or forced
   18-8  sale by the constitution or laws of this state, and to the
   18-9  allowance in lieu of the property.
  18-10              (10)  "Guardian" means a person who is appointed
  18-11  guardian under Section 693 of this code, or a temporary or
  18-12  successor guardian.  Except as expressly provided otherwise,
  18-13  "guardian" includes the guardian of the estate and the guardian of
  18-14  the person of an incapacitated person.
  18-15              (11) <(9)>  "Guardian ad litem" means a person who is
  18-16  appointed by a court to represent the best interests of an
  18-17  incapacitated person in a guardianship proceeding.
  18-18              (12) <(10)>  "Guardianship program" means a local,
  18-19  county, or regional program that provides guardianship and related
  18-20  services to an incapacitated person or other person who needs
  18-21  assistance in making decisions concerning the person's own welfare
  18-22  or financial affairs.
  18-23              (13) <(11)>  "Incapacitated person" means:
  18-24                    (A)  a minor;
  18-25                    (B)  an adult individual who, because of a
  18-26  physical or mental condition, is substantially unable to provide
  18-27  food, clothing, or shelter for himself or herself, to care for the
   19-1  individual's own physical health, or to manage the individual's own
   19-2  financial affairs;
   19-3                    (C)  a missing person; or
   19-4                    (D)  a person who must have a guardian appointed
   19-5  to receive funds due the person from any governmental source.
   19-6              (14) <(12)>  "Interested persons" or "persons
   19-7  interested" means an heir, devisee, spouse, creditor, or any other
   19-8  person having a property right in, or claim against, the estate
   19-9  being administered or a person interested in the welfare of an
  19-10  incapacitated person, including a minor.
  19-11              (15) <(13)>  "Minor" means a person who is younger than
  19-12  18 years of age and who has never been married or who has not had
  19-13  the person's disabilities of minority removed for general purposes.
  19-14              (16) <(14)>  "Minutes" means the guardianship minutes.
  19-15              (17) <(15)>  "Missing person" means:
  19-16                    (A)  a person reported by an executive department
  19-17  of the United States to be a prisoner of war or missing in the
  19-18  course of public service to the United States; or
  19-19                    (B)  a person reported missing and there is good
  19-20  cause, as shown by a police or other law enforcement agency report
  19-21  or a peace officer's testimony in court, to believe that the person
  19-22  is missing.
  19-23              (18) <(16)>  "Mortgage" or "lien" includes a deed of
  19-24  trust; vendor's lien; chattel mortgage; mechanic's, materialman's,
  19-25  or laborer's lien; judgment, attachment, or garnishment lien;
  19-26  pledge by hypothecation; and a federal or state tax lien.
  19-27              (19) <(17)>  "Next of kin" includes an adopted child,
   20-1  the descendants of an adopted child, and the adoptive parent of an
   20-2  adopted child.
   20-3              (20) <(18)>  "Parent" means the mother of a child, a
   20-4  man presumed to be the biological father of a child, a man who has
   20-5  been adjudicated to be the biological father of a child by a court
   20-6  of competent jurisdiction, or an adoptive mother or father of a
   20-7  child, but does not include a parent as to whom the parent-child
   20-8  relationship has been terminated.
   20-9              (21) <(19)>  "Person" includes natural persons,
  20-10  corporations, and guardianship programs.
  20-11              (22) <(20)>  "Personal property" includes an interest
  20-12  in goods, money, choses in action, evidence of debts, and chattels
  20-13  real.
  20-14              (23) <(21)>  "Personal representative" or
  20-15  "representative" includes a guardian, and a successor guardian.
  20-16              (24) <(22)>  "Private professional guardian" means a
  20-17  person, other than an attorney or a corporate fiduciary, who is
  20-18  engaged in the business of providing guardianship services.
  20-19              (25) <(23)>  "Proceedings in guardianship,"
  20-20  "guardianship matter," "guardianship matters," "guardianship
  20-21  proceeding," and "proceedings for guardianship" are synonymous and
  20-22  include a matter or proceeding relating to a guardianship or any
  20-23  other matter addressed by this chapter.
  20-24              (26) <(24)>  "Property" includes both real and personal
  20-25  property.
  20-26              (27) <(25)>  "Proposed ward" means a person alleged to
  20-27  be incapacitated in a guardianship proceeding.
   21-1              (28) <(26)>  "Real property" includes estates and
   21-2  interests in lands, corporeal or incorporeal, legal or equitable,
   21-3  other than chattels real.
   21-4              (29) <(27)>  "Statutory probate court" means a
   21-5  statutory court whose jurisdiction is limited by statute to the
   21-6  general jurisdiction of a probate court and a court whose
   21-7  statutorily designated name contains the word "probate."  County
   21-8  courts at law exercising probate jurisdiction are not statutory
   21-9  probate courts under this chapter unless the statutorily designated
  21-10  name of the county courts at law includes the word "probate."
  21-11              (30) <(28)>  "Surety" includes a personal and a
  21-12  corporate surety.
  21-13              (31) <(29)>  "Ward" is a person for whom a guardian has
  21-14  been appointed.
  21-15              (32) <(30)>  The singular number includes the plural;
  21-16  the plural number includes the singular.
  21-17              (33) <(31)>  The masculine gender includes the feminine
  21-18  and neuter.
  21-19        SECTION 16.  Section 606(b), Texas Probate Code, is amended
  21-20  to read as follows:
  21-21        (b)  In those counties in which there is no statutory probate
  21-22  court, county court at law, or other statutory court exercising the
  21-23  jurisdiction of a probate court, all applications, petitions and
  21-24  motions regarding guardianships, mental health <illness> matters,
  21-25  and other matters covered by this chapter shall be filed and heard
  21-26  in the county court, except that in contested guardianship matters,
  21-27  the judge of the county court may on the judge's own motion, or
   22-1  shall on the motion of any party to the proceeding, according to
   22-2  the motion, request as provided by Section 25.0022, Government
   22-3  Code, <and its subsequent amendments> the assignment of a statutory
   22-4  probate judge to hear the contested portion of the proceeding, or
   22-5  transfer the contested portion of the proceeding to the district
   22-6  court, which may hear the transferred contested matters as if
   22-7  originally filed in the district court.  The county court continues
   22-8  to exercise jurisdiction over the management of the guardianship
   22-9  with the exception of the contested matter until final disposition
  22-10  of the contested matter is made by the assigned judge or the
  22-11  district court.  In contested matters transferred to the district
  22-12  court as provided by this subsection, the district court,
  22-13  concurrently with the county court, has the general jurisdiction of
  22-14  a probate court.  On resolution of all pending contested matters,
  22-15  the district court shall transfer the contested portion of the
  22-16  guardianship proceeding to the county court for further proceedings
  22-17  not inconsistent with the orders of the district court.  If a
  22-18  contested portion of the proceeding is transferred to a district
  22-19  court under this subsection, the clerk of the district court may
  22-20  perform in relation to the transferred portion of the proceeding
  22-21  any function a county clerk may perform in that type of contested
  22-22  proceeding.
  22-23        SECTION 17.  Section 606(e), Texas Probate Code, is amended
  22-24  to read as follows:
  22-25        (e)  A court that exercises original probate jurisdiction has
  22-26  the power to hear all matters incident to an estate.  When a surety
  22-27  is called on to perform in place of a guardian or former guardian,
   23-1  a court exercising original probate jurisdiction may award judgment
   23-2  against the guardian  or former guardian in favor of the
   23-3  <guardian's> surety of the guardian or former guardian in the same
   23-4  suit, even if the ward has died, regained capacity, or the ward's
   23-5  disabilities of minority have been removed.
   23-6        SECTION 18.  Subpart D, Part 2, Chapter XIII, Texas Probate
   23-7  Code, is amended by adding Section 633 to read as follows:
   23-8        Sec. 633.  NOTICE AND CITATION.  (a)  On the filing of an
   23-9  application for guardianship, notice shall be issued and served as
  23-10  provided by this section.
  23-11        (b)  The court clerk shall issue a citation stating that the
  23-12  application for guardianship was filed, the name of the proposed
  23-13  ward, and the name of the applicant.  The citation must cite all
  23-14  persons interested in the welfare of the proposed ward to appear at
  23-15  the time and place stated in the notice if they wish to contest the
  23-16  application.  The citation shall be posted.
  23-17        (c)  The sheriff or other officer shall personally serve
  23-18  citation to appear and answer the application for guardianship on:
  23-19              (1)  a proposed ward who is 12 years of age or older;
  23-20              (2)  the parents of a proposed ward who is 12 years of
  23-21  age or older;
  23-22              (3)  any court-appointed conservator or person having
  23-23  control of the care and welfare of the proposed ward;
  23-24              (4)  the parents with whom a proposed ward who is
  23-25  younger than 12 years of age resides;
  23-26              (5)  a proposed ward's spouse; and
  23-27              (6)  an attorney ad litem or guardian ad litem
   24-1  appointed to represent the interests of a missing person.
   24-2        (d)  The court clerk, at the applicant's request, or the
   24-3  applicant shall mail a copy of the notice by registered or
   24-4  certified mail, return receipt requested, to the following persons
   24-5  if their whereabouts are known or can be reasonably ascertained:
   24-6              (1)  all adult siblings and all adult children of a
   24-7  proposed ward;
   24-8              (2)  the administrator of a nursing home facility or
   24-9  similar facility in which the proposed ward resides;
  24-10              (3)  the operator of a residential facility in which
  24-11  the proposed ward resides; and
  24-12              (4)  a person whom the applicant knows to hold a power
  24-13  of attorney signed by the proposed ward.
  24-14        (e)  A person other than the proposed ward who is entitled to
  24-15  receive notice or personal service of citation under Subsections
  24-16  (c) and (d) of this section may choose, in person or by attorney ad
  24-17  litem, by writing filed with the clerk, to waive the receipt of
  24-18  notice or the issuance and personal service of citation.
  24-19        (f)  The court may not act on an application for the creation
  24-20  of a guardianship until the Monday following the expiration of the
  24-21  10-day period beginning the date service of notice and citation has
  24-22  been made as provided by Subsections (b), (c), and (d)(1) of this
  24-23  section.  The validity of a guardianship created under this chapter
  24-24  is not affected by the failure of the clerk or applicant to comply
  24-25  with the requirements of Subsections (d)(2)-(4) of this section.
  24-26        (g)  It is not necessary for a person who files an
  24-27  application for the creation of a guardianship under this chapter
   25-1  to be served with citation or waive the issuance and personal
   25-2  service of citation under this section.
   25-3        SECTION 19.  Section 636, Texas Probate Code, is amended to
   25-4  read as follows:
   25-5        Sec. 636.  NOTICES TO DEPARTMENT OF VETERANS AFFAIRS
   25-6  <VETERANS ADMINISTRATION> BY GUARDIANS.  When an annual or other
   25-7  account of funds, or an application for the expenditure of or
   25-8  investment of funds is filed by a guardian whose ward is a
   25-9  beneficiary of the Department of Veterans Affairs <Veterans
  25-10  Administration>, or when a claim against the estate of a ward who
  25-11  is a beneficiary of the Department of Veterans Affairs <Veterans
  25-12  Administration> is filed, the court shall set a date for the
  25-13  hearing of the account, application, petition, or claim to be held
  25-14  not less than 20 days from the date of the filing of the account,
  25-15  application, petition, or claim.  The person who files <clerk of
  25-16  the court in which> the account, application, petition, or claim
  25-17  <is filed> shall give notice of the date of the filing <hearing> to
  25-18  the office of the Department of Veterans Affairs <Veterans
  25-19  Administration> in whose territory the court is located <of the
  25-20  hearing> by mailing to the office a certified copy of the account,
  25-21  application, petition, or claim not less than five <15> days after
  25-22  <before> the <hearing> date of the filing.  An office of the
  25-23  Department of Veterans Affairs <Veterans Administration>, through
  25-24  its attorney, may waive the service of notice and the time within
  25-25  which a hearing may be had in those cases.  The account,
  25-26  application, petition, or claim shall be filed in duplicate, and
  25-27  the clerk of the court is entitled to a reasonable fee in an amount
   26-1  determined by the court <of 25 cents>, taxable against the estate,
   26-2  for certifying the copy of the account, application, petition, or
   26-3  claim.  The clerk shall mail to the office of the Department of
   26-4  Veterans Affairs <Veterans Administration> the certified copy.  If
   26-5  not filed in duplicate, the clerk shall be entitled to a reasonable
   26-6  <an additional> fee in an amount determined by the court <of 15
   26-7  cents per 100 words> for making a copy of the account, application,
   26-8  petition, or claim.  The additional copying costs shall be taxed
   26-9  and collected from the guardian and may not be charged to the
  26-10  ward's estate.
  26-11        SECTION 20.  Section 642, Texas Probate Code, is amended by
  26-12  adding Subsection (c) to read as follows:
  26-13        (c)  The court shall determine by motion in limine the
  26-14  standing of a person who has an interest that is adverse to a
  26-15  proposed ward or incapacitated person.
  26-16        SECTION 21.  Section 644, Texas Probate Code, is amended to
  26-17  read as follows:
  26-18        Sec. 644.  Hearing by Submission.  (a)  A court may consider
  26-19  by submission a motion or application filed under this chapter
  26-20  unless<:>
  26-21              <(1)>  the proceeding is:
  26-22              (1)  contested; or
  26-23              (2)  <the motion or application is superseded by local
  26-24  rules; or>
  26-25              <(3)  the proceeding is> an application for the
  26-26  appointment of a guardian.
  26-27        (b)  <A motion or application that a court may consider under
   27-1  submission must be accompanied by a notice of the filing of the
   27-2  motion or application that contains the date the motion or
   27-3  application is to be submitted to the court.  The time for notice
   27-4  provided under this subsection may not be less than the time
   27-5  otherwise prescribed by law for notice of other motions or
   27-6  applications filed with the court.>
   27-7        <(c)  Without court approval, a motion or application that a
   27-8  court may consider under submission may not be submitted to the
   27-9  court before the 10th day after the date the motion or application
  27-10  was filed.>
  27-11        <(d)  A motion or application must be submitted to the court
  27-12  for a ruling on the date of submission that is contained in the
  27-13  notice of submission under Subsection (b) of this section or on a
  27-14  later date that is approved by the court.>
  27-15        <(e)  Without court approval, a response to a motion or
  27-16  application that a court may consider under submission must be in
  27-17  writing and must be filed before the second business day before the
  27-18  date of submission.>
  27-19        <(f)  On the date of submission or another date that is
  27-20  approved by the court, the court shall schedule a hearing for a
  27-21  motion or application that a court may consider under submission
  27-22  only if a response to the motion or application is filed by a
  27-23  person interested in the guardianship who:>
  27-24              <(1)  contests the relief sought in the motion or
  27-25  application;>
  27-26              <(2)  requests to be present at the hearing; or>
  27-27              <(3)  requests oral argument on the person's exceptions
   28-1  to the motion or application.>
   28-2        <(g)>  The burden of proof at a hearing on a motion or
   28-3  application that is being considered by the court on submission is
   28-4  on the party who is seeking relief under the motion or application.
   28-5        (c) <(h)>  The court may consider a person's failure to file
   28-6  a response to a motion or application that may be considered on
   28-7  submission as a representation that the person does not oppose the
   28-8  motion or application.
   28-9        (d) <(i)>  A person's request for oral argument is not a
  28-10  response to a motion or application under this section.
  28-11        (e) <(j)>  The court, on its own motion, may order oral
  28-12  argument on a motion or application that may be considered by
  28-13  submission.
  28-14        SECTION 22.  Sections 646(b), (c), and (d), Texas Probate
  28-15  Code, are amended to read as follows:
  28-16        (b)  To be eligible for appointment as an attorney ad litem,
  28-17  a person must be certified by the State Bar of Texas or a person or
  28-18  other entity designated by the state bar as having successfully
  28-19  completed a course of study in guardianship law and procedure
  28-20  sponsored by the state bar or its designee.
  28-21        (c)  For certification under Subsection (b) of this section,
  28-22  the state bar shall <may not> require <more than> four hours of
  28-23  credit.
  28-24        (d)  A certificate issued under Subsection (b) of this
  28-25  section expires on the second anniversary of the date the
  28-26  certificate was issued.  A person whose certificate has expired
  28-27  must obtain a new certificate to be eligible for appointment as an
   29-1  attorney ad litem.  <The applicant is not required to again
   29-2  complete the course of study required by Subsection (b) of this
   29-3  section unless the state bar determines that the course has changed
   29-4  substantially since the person last completed the course.>
   29-5        SECTION 23.  Section 648, Texas Probate Code, is amended by
   29-6  adding Subsection (f) to read as follows:
   29-7        (f)  This section does not apply to a guardianship that is
   29-8  created only because it is necessary for a person to have a
   29-9  guardian appointed to receive funds from a governmental source.
  29-10        SECTION 24.  Subpart E, Part 2, Chapter XIII, Texas Probate
  29-11  Code, is amended by adding Section 648A to read as follows:
  29-12        Sec. 648A.  DUTIES OF COURT INVESTIGATOR.  (a)  On the filing
  29-13  of an application for guardianship under Section 682 of this code
  29-14  and before the appointment of an attorney ad litem, a court
  29-15  investigator shall investigate the circumstances alleged in the
  29-16  application to determine whether a less restrictive alternative
  29-17  than guardianship is appropriate.
  29-18        (b)  A court investigator shall:
  29-19              (1)  supervise the court visitor program established
  29-20  under Section 648 of this code;
  29-21              (2)  investigate a complaint received from any person
  29-22  about a guardianship and report to the judge, if necessary; and
  29-23              (3)  perform other duties as assigned by the judge.
  29-24        (c)  After making an investigation under Subsection (a) or
  29-25  (b) of this section, a court investigator shall file with the court
  29-26  a report of the court investigator's findings and conclusions.
  29-27  Disclosure to a jury of the contents of a court investigator's
   30-1  report is subject to the Texas Rules of Civil Evidence.  In a
   30-2  contested case, the court investigator shall provide copies of the
   30-3  report to the attorneys for the parties before the earlier of:
   30-4              (1)  the seventh day after the day the report is
   30-5  completed; or
   30-6              (2)  the sixth day before the day the trial is
   30-7  scheduled to begin.
   30-8        (d)  Nothing in this section supersedes any duty or
   30-9  obligation of another to report or investigate abuse or neglect
  30-10  under any statute of this state.
  30-11        SECTION 25.  Section 659, Texas Probate Code, is amended to
  30-12  read as follows:
  30-13        Sec. 659.  Issuance of Letters of Guardianship.  (a)  When a
  30-14  person who is appointed guardian has qualified under Section 699 of
  30-15  this code <by taking the oath and giving any bond required by law>,
  30-16  the clerk shall issue to the guardian a certificate under seal,
  30-17  stating the fact of the appointment, of the qualification, <and>
  30-18  the date of the appointment and qualification, and the date the
  30-19  letters of guardianship expire.  The certificate issued by the
  30-20  clerk constitutes letters of guardianship.  <The order of the court
  30-21  appointing the guardian is effective on the issuance of letters of
  30-22  guardianship.  The order is evidence of the authority of the
  30-23  guardian to act within the scope of the powers and duties set forth
  30-24  in the order.>
  30-25        (b)  All letters <Letters> of guardianship expire one year
  30-26  and four months <120 days> after the date of issuance unless
  30-27  renewed.
   31-1        (c)  The clerk may not <shall> renew letters of guardianship
   31-2  relating to the appointment of a guardian of the estate until <on
   31-3  the receipt and approval by> the court receives and approves <of>
   31-4  the guardian's annual accounting.  The clerk may not renew letters
   31-5  of guardianship relating to the appointment of a guardian of the
   31-6  person until the court receives and approves the annual report.  If
   31-7  the guardian's annual accounting or annual report is disapproved or
   31-8  not timely filed, the clerk may not issue further letters of
   31-9  guardianship to the delinquent <that> guardian <relating to the
  31-10  ward or the ward's estate> unless ordered by the court.
  31-11        (d)  Regardless of the date the court approves an annual
  31-12  accounting or annual report for purposes of this section, a renewal
  31-13  is for the same term as the original letters of guardianship.  The
  31-14  term for a renewal begins on the day after the date the most recent
  31-15  letters of guardianship expire.
  31-16        SECTION 26.  Section 660, Texas Probate Code, is amended to
  31-17  read as follows:
  31-18        Sec. 660.  Letters or Certificate Made Evidence.  The court
  31-19  order that appoints the guardian is evidence of the authority
  31-20  granted to the guardian and of the scope of the powers and duties
  31-21  that the guardian may exercise only after the date letters of
  31-22  guardianship or a certificate has been issued under Section 659 of
  31-23  this code  <Letters of guardianship or a certificate under seal of
  31-24  the clerk of the court that granted the letters issued under
  31-25  Section 659 of this code is sufficient evidence of the appointment
  31-26  and qualification of the guardian and of the date of
  31-27  qualification>.
   32-1        SECTION 27.  Section 665, Texas Probate Code, is amended to
   32-2  read as follows:
   32-3        Sec. 665.  COMPENSATION OF GUARDIANS AND TEMPORARY GUARDIANS
   32-4  <GUARDIAN>.  (a)  The court may authorize compensation for a
   32-5  guardian or a temporary guardian serving as a guardian of the
   32-6  person alone from available funds of the ward's estate.  The court
   32-7  shall set the compensation in an amount not exceeding five percent
   32-8  of the ward's gross income.  In determining whether to authorize
   32-9  compensation for a guardian under this section, the court shall
  32-10  consider the ward's monthly income from all sources and whether the
  32-11  ward receives medical assistance under the state Medicaid program
  32-12  <Chapter 32, Human Resources Code>.
  32-13        (b)  The guardian or temporary guardian of an <the> estate is
  32-14  entitled to a fee of five percent of the gross income of the ward's
  32-15  estate and five percent of all money paid out of the estate on a
  32-16  court finding that the guardian or temporary guardian has taken
  32-17  care of and managed the estate in compliance with the standards of
  32-18  this chapter.  In this section, the term "money paid out" does not
  32-19  include any money loaned, invested, or paid over on the settlement
  32-20  of the guardianship or a tax-motivated gift made by the ward.  If
  32-21  the fee is an unreasonably low amount, the court may authorize
  32-22  reasonable compensation to a guardian or temporary guardian for
  32-23  services as guardian or temporary guardian of the estate.  The
  32-24  court, on application of an interested person or on its own motion,
  32-25  may deny a fee authorized under this section in whole, or in part,
  32-26  if:
  32-27              (1)  the court finds that the guardian or temporary
   33-1  guardian has not adequately performed the duties required of a
   33-2  <the> guardian or temporary guardian under this chapter; or
   33-3              (2)  the guardian or temporary guardian has been
   33-4  removed for cause.
   33-5        (c)  Except as provided by Subsection (b) of this section for
   33-6  a fee that is determined by the court to be unreasonably low, the
   33-7  aggregate fee of the guardian of the person and guardian of the
   33-8  estate may not exceed an amount equal to five percent of the gross
   33-9  income of the ward's estate plus five percent of all money paid out
  33-10  of the estate.
  33-11        (d)  In this section "gross income" does not include
  33-12  Department of Veterans Affairs or Social Security benefits received
  33-13  by a ward.
  33-14        SECTION 28.  Subpart H, Part 2, Chapter XIII, Texas Probate
  33-15  Code, is amended by adding Sections 665A, 665B, and 665C to read as
  33-16  follows:
  33-17        Sec. 665A.  PAYMENT FOR PROFESSIONAL SERVICES.  The court
  33-18  shall order the payment of a fee set by the court as compensation
  33-19  to the attorneys, mental health professionals, and interpreters
  33-20  appointed under Section 646 or 687 of this code, as applicable, to
  33-21  be taxed as costs in the case.  If after examining the proposed
  33-22  ward's assets the court determines the proposed ward is unable to
  33-23  pay for services provided by an attorney, a mental health
  33-24  professional, or an interpreter appointed under Section 646 or 687
  33-25  of this code, as applicable, the county is responsible for the cost
  33-26  of those services.
  33-27        Sec. 665B.  COMPENSATION OF CERTAIN ATTORNEYS.  (a)  A court
   34-1  that creates a guardianship for a ward under this chapter, on
   34-2  request of a person who filed an application to be appointed
   34-3  guardian of the proposed ward, may authorize compensation of an
   34-4  attorney who represents the person at the application hearing from
   34-5  available funds of the ward's estate regardless of whether that
   34-6  person is appointed the ward's guardian.
   34-7        (b)  The court may not authorize compensation under this
   34-8  section unless the court finds that the attorney acted in good
   34-9  faith and for just cause in the attorney's representation of the
  34-10  person who filed the application.
  34-11        Sec. 665C.  COMPENSATION FOR COLLECTION OF CLAIMS AND
  34-12  RECOVERY OF PROPERTY.  (a)  Except as provided by Subsection (b) of
  34-13  this section, a guardian of an estate may enter into a contract to
  34-14  convey, or may convey, a contingent interest in any property sought
  34-15  to be recovered, not exceeding one-third thereof for services of
  34-16  attorneys, subject only to the approval of the court in which the
  34-17  estate is being administered.
  34-18        (b)  A guardian of an estate may convey or contract to convey
  34-19  for services of attorneys a contingent interest that exceeds
  34-20  one-third of the property sought to be recovered under this section
  34-21  only on the approval of the court in which the estate is being
  34-22  administered.  The court must approve a contract entered into or
  34-23  conveyance made under this section before an attorney performs any
  34-24  legal services.  A contract entered into or conveyance made in
  34-25  violation of this section is void, unless the court ratifies or
  34-26  reforms the contract or documents relating to the conveyance to the
  34-27  extent necessary to cause the contract or conveyance to meet the
   35-1  requirements of this section.
   35-2        (c)  In approving a contract or conveyance under Subsection
   35-3  (a) or (b) of this section for services of an attorney, the court
   35-4  shall consider:
   35-5              (1)  the time and labor that will be required, the
   35-6  novelty and difficulty of the questions to be involved, and the
   35-7  skill that will be required to perform the legal services properly;
   35-8              (2)  the fee customarily charged in the locality for
   35-9  similar legal services;
  35-10              (3)  the value of property recovered or sought to be
  35-11  recovered by the personal representative under this section;
  35-12              (4)  the benefits to the estate that the attorney will
  35-13  be responsible for securing; and
  35-14              (5)  the experience and ability of the attorney who
  35-15  will be performing the services.
  35-16        (d)  On satisfactory proof to the court, a guardian of an
  35-17  estate is entitled to all necessary and reasonable expenses
  35-18  incurred by the guardian in collecting or attempting to collect a
  35-19  claim or debt owed to the estate or in recovering or attempting to
  35-20  recover property to which the estate has a title or claim.
  35-21        SECTION 29.  Section 669, Texas Probate Code, is amended to
  35-22  read as follows:
  35-23        Sec. 669.  Costs Against Guardianship.  (a)  Except as
  35-24  provided by Subsection (b), in <In> a guardianship matter, the cost
  35-25  of the proceeding, including the cost of the guardian ad litem or
  35-26  court visitor, shall be paid out of the guardianship estate, or, if
  35-27  the estate is insufficient to pay for the cost of the proceeding,
   36-1  the cost of the proceeding shall be paid out of the county
   36-2  treasury, and the judgment of the court shall be issued
   36-3  accordingly.
   36-4        (b)  If a court denies an application for the appointment of
   36-5  a guardian under this chapter based on the recommendation of a
   36-6  court investigator, the applicant shall pay the cost of the
   36-7  proceeding.
   36-8        SECTION 30.  Subpart I, Part 2, Chapter XIII, Texas Probate
   36-9  Code, is amended by adding Section 672 to read as follows:
  36-10        Sec. 672.  ANNUAL DETERMINATION WHETHER GUARDIANSHIP SHOULD
  36-11  BE CONTINUED, MODIFIED, OR TERMINATED.  (a)  A court in which a
  36-12  guardianship proceeding is pending shall review annually each
  36-13  guardianship in which the application to create the guardianship
  36-14  was filed after September 1, 1993, and may review annually any
  36-15  other guardianship to determine whether the guardianship should be
  36-16  continued, modified, or terminated.
  36-17        (b)  In reviewing a guardianship as provided by Subsection
  36-18  (a) of this section, a statutory probate court may:
  36-19              (1)  review any report prepared by a court investigator
  36-20  under Section 648A of this code;
  36-21              (2)  review any report prepared by a court visitor
  36-22  under Section 648 of this code;
  36-23              (3)  conduct a hearing; or
  36-24              (4)  review an annual account prepared under Section
  36-25  741 of this code or a report prepared under Section 743 of this
  36-26  code.
  36-27        (c)  In reviewing a guardianship as provided by Subsection
   37-1  (a) of this section, a court that is not a statutory probate court
   37-2  may use any appropriate method determined by the court according to
   37-3  the court's caseload and the resources available to the court.
   37-4        (d)  A determination under this section must be in writing
   37-5  and filed with the clerk.
   37-6        (e)  This section does not apply to a guardianship that is
   37-7  created only because it is necessary for a person to have a
   37-8  guardian appointed to receive funds from a governmental source.
   37-9        SECTION 31.  Section 680, Texas Probate Code, is amended to
  37-10  read as follows:
  37-11        Sec. 680.  SELECTION OF GUARDIAN BY MINOR.  (a)  When an
  37-12  application is filed for the guardianship of the person or estate,
  37-13  or both, of a minor at least 12 <14> years of age, the minor, by
  37-14  writing filed with the clerk, may choose the guardian if the court
  37-15  approves the choice and finds that the choice is in the best
  37-16  interest of the minor.
  37-17        (b)  A minor at least 12 <14> years of age may select another
  37-18  guardian of either the minor's person or estate, or both, if the
  37-19  minor has a guardian appointed by the court or the minor has a
  37-20  guardian appointed by will or written declaration of the parent of
  37-21  the minor and that guardian dies, resigns, or is removed from
  37-22  guardianship.  If the court is satisfied that the person selected
  37-23  is suitable and competent and that the appointment of the person is
  37-24  in the best interest of the minor, it shall make the appointment
  37-25  and revoke the letters of guardianship of the former guardian.  The
  37-26  minor shall make the selection by filing an application in open
  37-27  court in person or by attorney.
   38-1        SECTION 32.  Section 681, Texas Probate Code, is amended to
   38-2  read as follows:
   38-3        Sec. 681.  PERSONS DISQUALIFIED TO SERVE AS <INELIGIBLE TO
   38-4  BE> GUARDIANS.  A person may not be appointed guardian if the
   38-5  person is:
   38-6              (1)  a minor;
   38-7              (2)  a person whose conduct is notoriously bad;
   38-8              (3)  an incapacitated person;
   38-9              (4)  a person who is a party or whose parent is a party
  38-10  to a lawsuit concerning or affecting the welfare of the proposed
  38-11  ward, unless the court:
  38-12                    (A)  determines that the lawsuit claim of the
  38-13  person who has applied to be appointed guardian is not in conflict
  38-14  with the lawsuit claim of the proposed ward; or
  38-15                    (B)  appoints a guardian ad litem to represent
  38-16  the interests of the proposed ward throughout the litigation of the
  38-17  ward's lawsuit claim;
  38-18              (5)  a person indebted to the proposed ward unless the
  38-19  person pays the debt before appointment;
  38-20              (6)  a person asserting a claim adverse to the proposed
  38-21  ward or the proposed ward's property, real or personal;
  38-22              (7)  a person who, because of inexperience, lack of
  38-23  education, or other good reason, is incapable of properly and
  38-24  prudently managing and controlling the ward or the ward's estate;
  38-25              (8)  a person, institution, or corporation found
  38-26  unsuitable by the court;
  38-27              (9)  a person disqualified in a declaration made under
   39-1  Section 679 of this code; or
   39-2              (10)  a nonresident person who has not filed with the
   39-3  court the name of a resident agent to accept service of process in
   39-4  all actions or proceedings relating to the guardianship.
   39-5        SECTION 33.  Section 684, Texas Probate Code, is amended to
   39-6  read as follows:
   39-7        Sec. 684.  FINDINGS REQUIRED.  (a)  Before appointing a
   39-8  guardian, the court must find by clear and convincing evidence
   39-9  that:
  39-10              (1)  the proposed ward is an incapacitated person;
  39-11              (2)  it is in the best interest of the proposed ward to
  39-12  have the court appoint a person as guardian of the proposed ward
  39-13  <the court has venue of the case>; and
  39-14              (3)  <the person to be appointed guardian is eligible
  39-15  to act as guardian and is entitled to appointment, or, if no
  39-16  eligible person entitled to appointment applies, the person
  39-17  appointed is a proper person to act as guardian;>
  39-18              <(4)>  the rights of the proposed ward or the proposed
  39-19  ward's <persons or> property will be protected by the appointment
  39-20  of a guardian.<;>
  39-21        (b)  Before appointing a guardian, the court must find by a
  39-22  preponderance of the evidence that:
  39-23              (1)  the court has venue of the case;
  39-24              (2)  the person to be appointed guardian is eligible to
  39-25  act as guardian and is entitled to appointment, or, if no eligible
  39-26  person entitled to appointment applies, the person appointed is a
  39-27  proper person to act as guardian;
   40-1              (3) <(5)>  if a guardian is appointed for a minor, the
   40-2  guardianship is not created for the primary purpose of enabling the
   40-3  minor to establish residency for enrollment in a school or school
   40-4  district for which the minor is not otherwise eligible for
   40-5  enrollment; <and>
   40-6              (4) <(6)>  if the guardian is appointed for a missing
   40-7  person, the person was reported missing by an executive department
   40-8  of the United States at least six months earlier than the date of
   40-9  the filing of the application and currently is missing; and
  40-10              (5)  the proposed ward is totally without capacity as
  40-11  provided by this code to care for himself or herself and to manage
  40-12  the individual's property, or the proposed ward lacks the capacity
  40-13  to do some, but not all, of the tasks necessary to care for himself
  40-14  or herself or to manage the individual's property.
  40-15        (c) <(b)>  The court may not grant an application to create a
  40-16  guardianship unless the applicant proves each element required by
  40-17  this code.  A determination of incapacity of an adult proposed
  40-18  ward, other than a missing person or a person who must have a
  40-19  guardian appointed to receive funds due the person from any
  40-20  governmental source, must be evidenced by recurring acts or
  40-21  occurrences within the preceding six-month period and not by
  40-22  isolated instances of negligence or bad judgment.
  40-23        (d) <(c)>  A court may not appoint a guardian of the estate
  40-24  of a minor when a payment of claims is made under Section 887 of
  40-25  this code.
  40-26        (e) <(d)>  A certificate of the executive head or a
  40-27  representative of the bureau, department, or agency of the
   41-1  government, to the effect that the appointment of a guardian is a
   41-2  condition precedent to the payment of any funds due the proposed
   41-3  ward from that governmental entity, is prima facie evidence of the
   41-4  necessity for the appointment of a guardian.
   41-5        SECTION 34.  Section 685(a), Texas Probate Code, is amended
   41-6  to read as follows:
   41-7        (a)  A proposed ward other than a missing person must be
   41-8  present at a hearing to appoint a guardian unless the court, on the
   41-9  record or in the order, determines that a personal appearance is
  41-10  not necessary.  The court may close the hearing if the proposed
  41-11  ward or the proposed ward's counsel requests a closed hearing.
  41-12        SECTION 35.  Subpart A, Part 3, Chapter XIII, Texas Probate
  41-13  Code, is amended by adding Section 687 to read as follows:
  41-14        Sec. 687.  EXAMINATIONS AND REPORTS.  (a)  The court may not
  41-15  grant an application to create a guardianship for an incapacitated
  41-16  person, other than a minor, missing person, person whose alleged
  41-17  incapacity is mental retardation, or person for whom it is
  41-18  necessary to have a guardian appointed only to receive funds from a
  41-19  governmental source, unless the applicant presents to the court a
  41-20  written letter or certificate from a physician licensed in this
  41-21  state that is dated not later than the 120th day before the date of
  41-22  the filing of the application and based on an examination the
  41-23  physician performed not later than the 120th day before the date of
  41-24  the filing of the application.  The letter or certificate must:
  41-25              (1)  describe the nature and degree of incapacity,
  41-26  including the medical history if reasonably available;
  41-27              (2)  provide a medical prognosis specifying the
   42-1  estimated severity of the incapacity;
   42-2              (3)  state how or in what manner the proposed ward's
   42-3  ability to make or communicate responsible decisions concerning
   42-4  himself or herself is affected by the person's physical or mental
   42-5  health;
   42-6              (4)  state whether any current medication affects the
   42-7  demeanor of the proposed ward or the proposed ward's ability to
   42-8  participate fully in a court proceeding;
   42-9              (5)  describe the precise physical and mental
  42-10  conditions underlying a diagnosis of senility, if applicable; and
  42-11              (6)  include any other information required by the
  42-12  court.
  42-13        (b)  Except as provided by Subsection (c) of this section, if
  42-14  the court determines it is necessary, the court may appoint the
  42-15  necessary physicians to examine the proposed ward.  A physician who
  42-16  examines the proposed ward, other than a physician or psychologist
  42-17  who examines the proposed ward under Subsection (c) of this
  42-18  section, shall make available to an attorney ad litem appointed to
  42-19  represent the proposed ward, for inspection, a written letter or
  42-20  certificate from the physician that complies with the requirements
  42-21  of Subsection (a) of this section.
  42-22        (c)  If the basis of the proposed ward's alleged incapacity
  42-23  is mental retardation, the proposed ward shall be examined by a
  42-24  physician or psychologist licensed in this state or certified by
  42-25  the Texas Department of Mental Health and Mental Retardation to
  42-26  perform the examination, unless there is written documentation
  42-27  filed with the court that shows that the proposed ward has been
   43-1  examined according to the rules adopted by the Texas Department of
   43-2  Mental Health and Mental Retardation not earlier than six months
   43-3  before the date of a hearing to appoint a guardian for the proposed
   43-4  ward.  The physician or psychologist shall conduct the examination
   43-5  according to the rules adopted by the Texas Department of Mental
   43-6  Health and Mental Retardation and shall submit written findings and
   43-7  recommendations to the court.
   43-8        SECTION 36.  Section 690, Texas Probate Code, is amended to
   43-9  read as follows:
  43-10        Sec. 690.  PERSONS <ONLY ONE PERSON> APPOINTED GUARDIAN.
  43-11  Only one person may be appointed as guardian of the person or
  43-12  estate, but one person may be appointed guardian of the person and
  43-13  another of the estate, if it is in the best interest <to the
  43-14  advantage> of the ward.  Nothing in this section prohibits the
  43-15  joint appointment of a husband and wife, of joint managing
  43-16  conservators, or of coguardians appointed under the laws of a
  43-17  jurisdiction other than this state.
  43-18        SECTION 37.  Section 691, Texas Probate Code, is amended to
  43-19  read as follows:
  43-20        Sec. 691.  Agency as Last Resort.  Except as a last resort,
  43-21  the court may not appoint as guardian the Texas Department of
  43-22  Mental Health and Mental Retardation, the <Texas> Department of
  43-23  Protective and Regulatory <Human> Services, a community mental
  43-24  health and mental retardation center, or any other agency, public
  43-25  or private, that is directly providing services to the
  43-26  incapacitated person.
  43-27        SECTION 38.  Section 692, Texas Probate Code, is amended to
   44-1  read as follows:
   44-2        Sec. 692.  DISMISSAL OF APPLICATION.  If it is found that an
   44-3  adult person possesses the capacity to care for himself or herself
   44-4  and to manage the individual's property as would a reasonably
   44-5  prudent person, the court shall dismiss the application for
   44-6  guardianship  <ORDER APPOINTING GUARDIAN.  The order of the court
   44-7  appointing a guardian must specify:>
   44-8              <(1)  the name of the person appointed;>
   44-9              <(2)  the name of the ward;>
  44-10              <(3)  whether the guardian is of the person or the
  44-11  estate, or of both, of the ward;>
  44-12              <(4)  the amount of any bond required;>
  44-13              <(5)  if it is a guardianship of the estate and the
  44-14  court deems an appraisal is necessary, one or more but not more
  44-15  than three disinterested persons to appraise the estate and to
  44-16  return the appraisement to the court; and>
  44-17              <(6)  that the clerk will issue letters of guardianship
  44-18  to the person appointed when the person has qualified according to
  44-19  law>.
  44-20        SECTION 39.  Section 693, Texas Probate Code, is amended to
  44-21  read as follows:
  44-22        Sec. 693.  ORDER OF COURT.  (a)  <If it is found that an
  44-23  adult person possesses the capacity to care for himself or herself
  44-24  and to manage the individual's property as would a reasonably
  44-25  prudent person, the court shall dismiss the application for
  44-26  guardianship.>
  44-27        <(b)>  If it is found that the proposed ward is totally
   45-1  without capacity as provided by this code to care for himself or
   45-2  herself and to manage the individual's property, the court <shall
   45-3  include that determination as a finding of fact in its final order
   45-4  in the proceeding, and the court> may appoint a guardian of the
   45-5  individual's person or estate, or both, with full authority over
   45-6  the incapacitated person except as provided by law.  An order
   45-7  appointing a guardian under this subsection must contain findings
   45-8  of fact and specify:
   45-9              (1)  the information required by Subsection (c) of this
  45-10  section;
  45-11              (2)  that the guardian has full authority over the
  45-12  incapacitated person; and
  45-13              (3)  if necessary, the amount of funds from the corpus
  45-14  of the person's estate the court will allow the guardian to expend
  45-15  for the education and maintenance of the person under Section 776
  45-16  of this code.
  45-17        (b) <(c)>  If it is found that the person lacks the capacity
  45-18  to do some, but not all, of the tasks necessary to care for himself
  45-19  or herself or to manage the individual's property, the court may
  45-20  appoint a guardian with limited powers and permit the individual to
  45-21  care for himself or herself or to manage the individual's property
  45-22  commensurate with the individual's ability.
  45-23        <(d)>  An order appointing a guardian under this subsection
  45-24  must contain findings of fact and specify:
  45-25              (1)  the information required by Subsection (c)
  45-26  <Section 692> of this section <code>;
  45-27              (2)  the specific powers, limitations, or duties of the
   46-1  guardian with respect to the care of the person or the management
   46-2  of the person's property by the guardian; and
   46-3              (3)  if necessary, the amount of funds from the corpus
   46-4  of the person's estate the court will allow the guardian to expend
   46-5  for the education and maintenance of the person under Section 776
   46-6  of this code.
   46-7        (c)  The order of the court appointing a guardian must
   46-8  specify:
   46-9              (1)  the name of the person appointed;
  46-10              (2)  the name of the ward;
  46-11              (3)  whether the guardian is of the person or the
  46-12  estate, or of both, of the ward;
  46-13              (4)  the amount of any bond required;
  46-14              (5)  if it is a guardianship of the estate and the
  46-15  court deems an appraisal is necessary, one or more but not more
  46-16  than three disinterested persons to appraise the estate and to
  46-17  return the appraisement to the court; and
  46-18              (6)  that the clerk will issue letters of guardianship
  46-19  to the person appointed when the person has qualified according to
  46-20  law.
  46-21        (d) <(e)>  An order appointing a guardian may not duplicate
  46-22  or conflict with the powers and duties of any other guardian.
  46-23        (e)  An order appointing a guardian or a successor guardian
  46-24  may specify a period of not more than one year during which a
  46-25  petition for adjudication that the incapacitated person no longer
  46-26  requires the guardianship may not be filed without special leave.
  46-27        SECTION 40.  Section 694, Texas Probate Code, is amended to
   47-1  read as follows:
   47-2        Sec. 694.  TERM OF APPOINTMENT OF GUARDIAN.  (a)  Unless
   47-3  otherwise discharged as provided by law, a guardian remains in
   47-4  office until the estate is closed.
   47-5        (b)  Subject to Subsection (f) of this section, the <The>
   47-6  guardianship shall be settled and closed when the incapacitated
   47-7  person:
   47-8              (1)  dies and, if the person was married, the person's
   47-9  spouse qualifies as survivor in community;
  47-10              (2)  is found by the court to have full capacity to
  47-11  care for himself or herself and to manage the person's property;
  47-12              (3)  is no longer a minor;
  47-13              (4)  <returns to the United States,> if the person was
  47-14  a missing person and:
  47-15                    (A)  has been confirmed dead;
  47-16                    (B)  is legally declared dead under applicable
  47-17  statutes;
  47-18                    (C)  returns;
  47-19                    (D)  has had the person's whereabouts determined;
  47-20  or
  47-21                    (E)  no longer needs a guardianship <and the
  47-22  court grants the motion of any interested person to vacate the
  47-23  original order of guardianship>; or
  47-24              (5)  no longer must have a guardian appointed to
  47-25  receive funds due the person from any governmental source.
  47-26        (c)  An order appointing a guardian or a successor guardian
  47-27  may specify a period of not more than one year during which a
   48-1  petition for adjudication that the incapacitated person no longer
   48-2  requires the guardianship may not be filed without special leave.
   48-3        (d)  <Except as provided by Subsection (c) of this section, a
   48-4  ward or any person interested in the ward's welfare may petition
   48-5  the court for an order:>
   48-6              <(1)  finding that the ward no longer needs the
   48-7  guardianship and ordering that the guardian resign or be removed;>
   48-8              <(2)  finding that the ward lacks the capacity to do
   48-9  some or all of the tasks necessary to care for himself or herself
  48-10  or to manage the ward's property and granting additional powers or
  48-11  duties to the guardian with respect to the care of the ward or the
  48-12  management of the ward's property by the guardian; or>
  48-13              <(3)  finding that the ward has regained the capacity
  48-14  to do some, but not all, of the tasks necessary to care for himself
  48-15  or herself or to manage the ward's property and:>
  48-16                    <(A)  limiting the powers or duties of the
  48-17  guardian with respect to the care of the ward or the management of
  48-18  the ward's property by the guardian; and>
  48-19                    <(B)  permitting the ward to care for himself or
  48-20  herself or to manage the ward's property commensurate with the
  48-21  ward's ability.>
  48-22        <(e)>  A request for an order under this section may be made
  48-23  by informal letter to the court.  A person who knowingly interferes
  48-24  with the transmission of the request to the court may be adjudged
  48-25  guilty of contempt of court.
  48-26        (e) <(f)>  If a nonresident guardian of a nonresident ward
  48-27  qualifies as guardian under this chapter, the guardianship of any
   49-1  resident guardian may be terminated.
   49-2        (f)  The guardianship of a missing person is not settled and
   49-3  closed until the court grants the motion of any interested person
   49-4  to vacate the original order of guardianship.
   49-5        SECTION 41.  Subpart A, Part 3, Chapter XIII, Texas Probate
   49-6  Code, is amended by adding Section 694A to read as follows:
   49-7        Sec. 694A.  RESTORATION OF WARD.  (a)  A ward or any person
   49-8  interested in the ward's welfare may petition the court for an
   49-9  order:
  49-10              (1)  finding that the ward no longer needs the
  49-11  guardianship and ordering the settlement and closing of the
  49-12  guardianship;
  49-13              (2)  finding that the ward lacks the capacity to do
  49-14  some or all of the tasks necessary to care for himself or herself
  49-15  or to manage the ward's property and granting additional powers or
  49-16  duties to the guardian with respect to the care of the ward or the
  49-17  management of the ward's property by the guardian; or
  49-18              (3)  finding that the ward has regained the capacity to
  49-19  do some, but not all, of the tasks necessary to care for himself or
  49-20  herself or to manage the ward's property and:
  49-21                    (A)  limiting the powers or duties of the
  49-22  guardian with respect to the care of the ward or the management of
  49-23  the ward's property by the guardian; and
  49-24                    (B)  permitting the ward to care for himself or
  49-25  herself or to manage the ward's property commensurate with the
  49-26  ward's ability.
  49-27        (b)  A request for an order under this section may be made by
   50-1  informal letter to the court.  A person who knowingly interferes
   50-2  with the transmission of the request to the court may be adjudged
   50-3  guilty of contempt of court.
   50-4        SECTION 42.  Section 702, Texas Probate Code, is amended to
   50-5  read as follows:
   50-6        Sec. 702.  Bond Required of Guardian of the Person Or Estate.
   50-7  (a)  Except as provided by Subsections (b) and (c) of this section,
   50-8  a guardian of the person or of the estate of a ward is required to
   50-9  give bond.
  50-10        (b)  A bond is not required to be given by a guardian that is
  50-11  a corporate fiduciary, as defined by Section 601(5) of this code.
  50-12        (c)  When a will that is made by a surviving parent and is
  50-13  probated in a court in this state directs that the guardian
  50-14  appointed in the will serve without bond, the court finding that
  50-15  the person is qualified shall issue letters of guardianship of the
  50-16  person to the person named to be appointed guardian in the will
  50-17  without requirement of bond.  The court may not waive the
  50-18  requirement of a bond for the guardian of the estate of a ward,
  50-19  regardless of whether a surviving parent's will directs the court
  50-20  to waive the bond.
  50-21        SECTION 43.  Section 741, Texas Probate Code, is amended by
  50-22  amending Subsections (a) and (g) and adding Subsections (h), (i),
  50-23  and (j) to read as follows:
  50-24        (a)  The <Not later than the 60th day after the expiration of
  50-25  12 months from the date of qualification, unless the court extends
  50-26  that time period, the> guardian of the estate of a ward shall
  50-27  return to the court a sworn, written account <an exhibit in writing
   51-1  under oath> setting forth a list of all claims against the estate
   51-2  that were presented to the guardian within the period covered by
   51-3  the account and specifying which claims have been allowed, paid, or
   51-4  rejected by the guardian and the date when any claim was rejected
   51-5  and which claims have been the subject of a lawsuit and the status
   51-6  of the lawsuit, and showing:
   51-7              (1)  all property that has come to the guardian's
   51-8  knowledge or into the guardian's possession that has not been
   51-9  previously listed or inventoried as property of the ward;
  51-10              (2)  any changes in the property of the ward that have
  51-11  not been previously reported;
  51-12              (3)  a complete account of receipts and disbursements
  51-13  for the period covered by the account, and the source and nature of
  51-14  the receipts and disbursements, with receipts of principal and
  51-15  income shown separately;
  51-16              (4)  a complete, accurate, and detailed description of
  51-17  the property being administered, the condition of the property, and
  51-18  the use being made of the property and, if rented, the terms of the
  51-19  rental and the price for which the property is being rented;
  51-20              (5)  the cash balance on hand and the name and location
  51-21  of the depository where the cash balance is kept and any other sums
  51-22  of cash in savings accounts or other form, deposited subject to
  51-23  court order, and the name and location of the depository of the
  51-24  cash; and
  51-25              (6)  a detailed description of personal property of the
  51-26  estate, that, with respect to bonds, notes, and other securities,
  51-27  includes the names of obligor and obligee, or if payable to bearer,
   52-1  so state; the date of issue and maturity; the rate of interest;
   52-2  serial or other identifying numbers; in what manner the property is
   52-3  secured; and other data necessary to identify the same fully, and
   52-4  how and where held for safekeeping.
   52-5        (g)  If the estate produces negligible, <or> fixed income,
   52-6  the court has the power to waive the filing of annual accounts, and
   52-7  the court may permit the guardian to receive all income and apply
   52-8  it to the support, maintenance, and education of the ward and
   52-9  account to the court for income and corpus of the estate when the
  52-10  estate must be closed.
  52-11        (h)  Once each year for the duration of the guardianship, a
  52-12  guardian of the estate shall file an account that complies with the
  52-13  requirements of this section.  Except as provided by Subsection (i)
  52-14  of this section, the account must cover a 12-month accounting
  52-15  period that begins on the date the guardian qualifies to serve.
  52-16        (i)  The court may change an accounting period for purposes
  52-17  of this section but may not extend an accounting period so that it
  52-18  covers more than 12 months.
  52-19        (j)  Each account is due not later than the 60th day after
  52-20  the date on which the accounting period ends.
  52-21        SECTION 44.  Section 742(f), Texas Probate Code, is amended
  52-22  to read as follows:
  52-23        (f)  If an account is found to be incorrect, it shall be
  52-24  corrected.  When corrected to the satisfaction of the court, the
  52-25  account shall be approved by a court order, and the court shall act
  52-26  with respect to unpaid claims, as follows:
  52-27              (1)  if it appears from the exhibit, or from other
   53-1  evidence, that the estate is wholly solvent, and that the guardian
   53-2  has sufficient funds for the payment of every claim against the
   53-3  estate, the court shall order immediate payment made of all claims
   53-4  allowed and approved or established by judgment; and
   53-5              (2)  if it appears from the account, or from other
   53-6  evidence, that the funds on hand are not sufficient for the payment
   53-7  of all the claims, or if the estate is insolvent and the guardian
   53-8  has any funds on hand, the court shall order the funds to be
   53-9  applied to the payment of all claims having a preference in the
  53-10  order of their priority if any claim is still unpaid, and then to
  53-11  the payment pro rata of the other claims allowed and approved or
  53-12  established by final judgment, taking into consideration also the
  53-13  claims that were presented not later than 12 months after the date
  53-14  of the granting of letters of guardianship <administration> and
  53-15  those claims that are in suit or on which suit may yet be
  53-16  instituted.
  53-17        SECTION 45.  Section 743(a), Texas Probate Code, is amended
  53-18  to read as follows:
  53-19        (a)  The guardian of the person of a ward shall<, when there
  53-20  is a separate guardian of the estate, shall at the expiration of 12
  53-21  months from the date of the guardian's qualification and receipt of
  53-22  letters, and annually thereafter,> return to the court a sworn,
  53-23  written report <the guardian's sworn account> showing each item of
  53-24  receipts and disbursements for the support and maintenance of the
  53-25  ward, the education of the ward when necessary, and support and
  53-26  maintenance of the ward's dependents, when authorized by order of
  53-27  court.
   54-1        SECTION 46.  Section 743, Texas Probate Code, is amended by
   54-2  adding Subsections (e)-(i) to read as follows:
   54-3        (e)  If the judge is satisfied that the facts stated in the
   54-4  report are true, the court shall approve the report.
   54-5        (f)  The court on the court's own motion may waive the costs
   54-6  and fees related to the filing of a report approved under
   54-7  Subsection (e) of this section.
   54-8        (g)  Once each year for the duration of the guardianship, a
   54-9  guardian of the person shall file the report that contains the
  54-10  information required by Subsections (a) and (b) of this section.
  54-11  Except as provided by Subsection (h) of this section, the report
  54-12  must cover a 12-month reporting period that begins on the date the
  54-13  guardian qualifies to serve.
  54-14        (h)  The court may change a reporting period for purposes of
  54-15  this section but may not extend a reporting period so that it
  54-16  covers more than 12 months.
  54-17        (i)  Each report is due not later than the 60th day after the
  54-18  date on which the reporting period ends.
  54-19        SECTION 47.  Section 744, Texas Probate Code, is amended to
  54-20  read as follows:
  54-21        Sec. 744.  Penalty for Failure to File Accountings, Exhibits,
  54-22  or Reports.  If a guardian fails to file, or is delinquent in
  54-23  filing an <any> accounting, exhibit, report of the guardian of the
  54-24  person, or other report required by this chapter, any person
  54-25  interested in the estate may, on written complaint filed with the
  54-26  clerk of the court, or the court on its own motion, may cause the
  54-27  guardian to be cited to appear and show cause why the guardian
   55-1  should not file the account, exhibit, or report; and, on hearing,
   55-2  the court may order the guardian to file the account, exhibit, or
   55-3  report, and, unless good cause is shown for the failure to file or
   55-4  the delinquency in filing the account, exhibit, or report, the
   55-5  court may fine the guardian an amount not to exceed $1,000, revoke
   55-6  the letters of the guardian, or fine the guardian an amount not to
   55-7  exceed $1,000 and revoke the letters of the guardian <and may fine
   55-8  the guardian an amount not to exceed $1,000>.
   55-9        SECTION 48.  Section 745(c), Texas Probate Code, is amended
  55-10  to read as follows:
  55-11        (c)  When the estate of a minor ward consists only of cash or
  55-12  cash equivalents in an amount of $25,000 or less, the guardianship
  55-13  of the estate may be terminated and the assets paid to the county
  55-14  clerk of the county in which the guardianship proceeding is
  55-15  pending, and the clerk shall manage the funds as provided by
  55-16  Section 887 <885> of this code.
  55-17        SECTION 49.  Section 759(a), Texas Probate Code, is amended
  55-18  to read as follows:
  55-19        (a)  In case of the death of the guardian of the person or of
  55-20  the estate of a ward, a personal representative of the deceased
  55-21  guardian <person> shall account for, pay, and deliver to a person
  55-22  legally entitled to receive the property, all the property
  55-23  belonging to the guardianship that is entrusted to the care of the
  55-24  representative, at the time and in the manner as the court orders.
  55-25  On a finding that a necessity for the immediate appointment of a
  55-26  successor guardian exists, the court may appoint a successor
  55-27  guardian without citation or notice.
   56-1        SECTION 50.  Section 760, Texas Probate Code, is amended by
   56-2  adding Subsection (g) to read as follows:
   56-3        (g)  The court at any time may order a resigning guardian who
   56-4  has all or part of the estate of a ward to deliver all or part of
   56-5  the ward's estate to a person who has been appointed and has
   56-6  qualified as successor guardian.
   56-7        SECTION 51.  Section 761, Texas Probate Code, is amended by
   56-8  adding Subsections (e) and (f) to read as follows:
   56-9        (e)  If the necessity exists, the court may immediately
  56-10  appoint a successor but may not discharge the person removed as
  56-11  guardian of the estate or release the person or the sureties on the
  56-12  person's bond until final order or judgment is rendered on the
  56-13  final account of the guardian.
  56-14        (f)  The court at any time may order a person removed as
  56-15  guardian under this section who has all or part of the estate of a
  56-16  ward to deliver all or part of the ward's estate to a person who
  56-17  has been appointed and has qualified as successor guardian.
  56-18        SECTION 52.  Section 772, Texas Probate Code, is amended to
  56-19  read as follows:
  56-20        Sec. 772.  Collection of Claims and Recovery of Property.
  56-21  <(a)>  Every guardian of an estate shall use ordinary diligence to
  56-22  collect all claims and debts due the ward and to recover possession
  56-23  of all property of the ward to which the ward has claim or title,
  56-24  if there is a reasonable prospect of collecting the claims or of
  56-25  recovering the property.  If the guardian wilfully neglects to use
  56-26  ordinary diligence, the guardian and the sureties on the guardian's
  56-27  bond shall be liable, at the suit of any person interested in the
   57-1  estate, for the use of the estate, for the amount of the claims or
   57-2  for the value of the property that has been lost due to the
   57-3  guardian's neglect.
   57-4        <(b)  Except as provided by Subsection (c) of this section, a
   57-5  guardian of an estate may enter into a contract to convey, or may
   57-6  convey, a contingent interest in any property sought to be
   57-7  recovered, not exceeding one-third thereof for services of
   57-8  attorneys, subject only to the approval of the court in which the
   57-9  estate is being administered.>
  57-10        <(c)  A guardian of an estate may convey or contract to
  57-11  convey for services of attorneys a contingent interest that exceeds
  57-12  one-third of the property sought to be recovered under this section
  57-13  only on the approval of the court in which the estate is being
  57-14  administered.  The court must approve a contract entered into or
  57-15  conveyance made under this section before an attorney performs any
  57-16  legal services.  A contract entered into or conveyance made in
  57-17  violation of this section is void, unless the court ratifies or
  57-18  reforms the contract or documents relating to the conveyance to the
  57-19  extent necessary to cause the contract or conveyance to meet the
  57-20  requirements of this section.>
  57-21        <(d)  In approving a contract or conveyance under Subsection
  57-22  (b) or (c) of this section for services of an attorney, the court
  57-23  shall consider:>
  57-24              <(1)  the time and labor that will be required, the
  57-25  novelty and difficulty of the questions to be involved, and the
  57-26  skill that will be required to perform the legal services properly;>
  57-27              <(2)  the fee customarily charged in the locality for
   58-1  similar legal services;>
   58-2              <(3)  the value of property recovered or sought to be
   58-3  recovered by the personal representative under this section;>
   58-4              <(4)  the benefits to the estate that the attorney will
   58-5  be responsible for securing; and>
   58-6              <(5)  the experience and ability of the attorney who
   58-7  will be performing the services.>
   58-8        <(e)  On satisfactory proof to the court, a guardian of an
   58-9  estate is entitled to all necessary and reasonable expenses
  58-10  incurred by the guardian in collecting or attempting to collect a
  58-11  claim or debt owed to the estate or in recovering or attempting to
  58-12  recover property to which the estate has a title or claim.>
  58-13        SECTION 53.  Section 773, Texas Probate Code, is amended to
  58-14  read as follows:
  58-15        Sec. 773.  SUIT BY GUARDIAN OF ESTATE.  A guardian of a
  58-16  ward's estate appointed in this state may institute suits for the
  58-17  recovery of personal property, debts, or damages and suits for
  58-18  title to or possession of land or for any right attached to or
  58-19  growing out of the same or for injury or damage done.  Judgment in
  58-20  those cases shall be conclusive but may be set aside by any person
  58-21  interested for fraud or collusion on the part of the guardian.
  58-22        SECTION 54.  Section 776(b), Texas Probate Code, is amended
  58-23  to read as follows:
  58-24        (b)  When a guardian has in good faith expended funds from
  58-25  the corpus of the estate of the ward of the guardian for support
  58-26  and maintenance for the ward under this section or Section 777 of
  58-27  this code, and when it is not convenient or possible for the
   59-1  guardian to first secure court approval, if the proof is clear and
   59-2  convincing that the expenditures were reasonable and proper, and
   59-3  are expenditures that the court would have granted authority to
   59-4  make the expenditures out of the corpus, and the ward received the
   59-5  benefits of the expenditures, the court may approve the
   59-6  expenditures in the same manner as if the expenditures were made by
   59-7  the guardian out of the income from the ward's estate.  An
   59-8  expenditure under this subsection may not exceed $5,000 per ward
   59-9  during an annual accounting period, unless the expenditure is made
  59-10  to a nursing home in which case the court may ratify any amount.
  59-11        SECTION 55.  Section 782, Texas Probate Code, is amended to
  59-12  read as follows:
  59-13        Sec. 782.  Powers, Duties, and Obligations of Guardian of
  59-14  Person Entitled to Government Funds.  (a)  A guardian of the person
  59-15  for whom it is necessary to have a guardian appointed to receive
  59-16  funds from a governmental source <agency> has the power to
  59-17  administer only the funds received from the governmental source
  59-18  <agency>, all earnings, interest, or profits derived from the
  59-19  funds, and all property acquired with the funds.  The guardian has
  59-20  the power to receive the funds and pay out the expenses of
  59-21  administering the guardianship and the expenses for the support,
  59-22  maintenance, or education of the ward or the ward's dependents.
  59-23  Expenditures for the support, maintenance, or education of the ward
  59-24  or the ward's dependents may not exceed $12,000 during any 12-month
  59-25  period without the court's approval.
  59-26        (b)  All acts performed before September 1, 1993, by
  59-27  guardians of the estate of a person for whom it is necessary to
   60-1  have a guardian appointed to receive and disburse funds that are
   60-2  due the person from a governmental source <or agency> are validated
   60-3  if the acts are performed in conformance with orders of a court
   60-4  that has venue with respect to the support, maintenance, and
   60-5  education of the ward or the ward's dependents and the investment
   60-6  of surplus funds of the ward under this chapter and if the validity
   60-7  of the act is not an issue in a probate proceeding or civil lawsuit
   60-8  that is pending on September 1, 1993.
   60-9        SECTION 56.  Section 861, Texas Probate Code, is amended to
  60-10  read as follows:
  60-11        Sec. 861.  OPINION OF ATTORNEY WITH RESPECT TO LOANS <AND
  60-12  INVESTMENTS>.  When the guardian of the estate of a ward lends <or
  60-13  invests> the money of the ward, the guardian may not pay over or
  60-14  transfer any money in consummation of the loan <or investment>
  60-15  until the guardian  has submitted to a reputable attorney for
  60-16  examination all bonds, notes, mortgages, documents, abstracts, and
  60-17  other papers pertaining to the loan <or investment> and the
  60-18  guardian has received a written opinion from the attorney that all
  60-19  papers pertaining to the loan <or investment> are regular and that
  60-20  the title to the bonds, notes, or real estate is good.  The
  60-21  <attorney making the examination shall be paid a reasonable fee,
  60-22  not to exceed one percent of the amount invested, unless one
  60-23  percent of  the amount invested is less than $25, in which event
  60-24  the fee shall be $25.  The  guardian shall pay the fee out of the
  60-25  funds of the ward's estate.  On a loan, the> attorney's fee shall
  60-26  be paid by the borrower.  The guardian may obtain a mortgagee's
  60-27  title insurance policy on any real estate loan instead of an
   61-1  abstract and attorney's opinion.
   61-2        SECTION 57.  Section 862, Texas Probate Code, is amended to
   61-3  read as follows:
   61-4        Sec. 862.  REPORT OF <INVESTMENT AND> LOANS.  Not later than
   61-5  the 30th day after the date money belonging to a ward's estate is
   61-6  lent <or invested>, the guardian of the ward's estate shall report
   61-7  to the court in writing, verified by affidavit, stating fully the
   61-8  facts of the <investment or> loan, unless the <investment or> loan
   61-9  was made pursuant to a court order.
  61-10        SECTION 58.  Section 867, Texas Probate Code, is amended to
  61-11  read as follows:
  61-12        Sec. 867.  Creation of Management Trust.  On application by
  61-13  the guardian of a ward, the court in which the guardianship
  61-14  proceeding is pending may enter an order that creates for the
  61-15  ward's benefit a trust for the management of guardianship funds if
  61-16  the court finds that the creation of the trust is in the ward's
  61-17  best interests.  The order shall direct the guardian to deliver all
  61-18  or part of the assets of the guardianship to a trust company or a
  61-19  state or national bank that has trust powers in this state.  The
  61-20  order shall include terms, conditions, and limitations placed on
  61-21  the trust.  The court shall maintain the trust under the same cause
  61-22  number as the guardianship proceeding.
  61-23        SECTION 59.  Section 868(b), Texas Probate Code, is amended
  61-24  to read as follows:
  61-25        (b)  The trust may provide that a trustee make a
  61-26  distribution, payment, use, or application of trust funds, as
  61-27  necessary and without the intervention of a guardian or other
   62-1  representative of the ward, to the ward's guardian or to a person
   62-2  who has physical custody of the ward for<:>
   62-3              <(1)>  the health, education <benefit>, support, or
   62-4  maintenance of the ward or of another person whom the ward is
   62-5  legally obligated to support <if the ward is a minor; or>
   62-6              <(2)  the support of the ward, and the support,
   62-7  maintenance, and education of the ward's children if the ward is an
   62-8  incapacitated person other than a minor>.
   62-9        SECTION 60.  Section 868, Texas Probate Code, is amended by
  62-10  adding Subsection (c) to read as follows:
  62-11        (c)  The trust may provide that a trustee has the powers of a
  62-12  trustee under Subtitle B, Title 9, Property Code.
  62-13        SECTION 61.  Section 870(b), Texas Probate Code, is amended
  62-14  to read as follows:
  62-15        (b)  If the ward is an incapacitated person other than a
  62-16  minor, the trust terminates on the date the court determines that a
  62-17  guardianship is no longer necessary for the ward or on the death of
  62-18  the ward <before the court's determination that a guardianship is
  62-19  no longer necessary>.
  62-20        SECTION 62.  Section 872, Texas Probate Code, is amended to
  62-21  read as follows:
  62-22        Sec. 872.  Liability.  The guardian of the person or of the
  62-23  estate of the ward or the surety on the bond of the guardian is not
  62-24  liable for an act or omission of the trustee.
  62-25        SECTION 63.  Section 873, Texas Probate Code, is amended to
  62-26  read as follows:
  62-27        Sec. 873.  Distribution of Trust Property.  Unless otherwise
   63-1  provided by the court, the trustee shall:
   63-2              (1)  prepare a final account in the same form and
   63-3  manner that is required of a guardian under Section 749 of this
   63-4  code; and
   63-5              (2)  on court approval, distribute the principal or any
   63-6  undistributed income of the trust to the ward or to the
   63-7  representative of the deceased ward's estate when the trust
   63-8  terminates on its own terms or on the ward's death.
   63-9        SECTION 64.  Sections 875(c), (i), (j), and (k), Texas
  63-10  Probate Code, are amended to read as follows:
  63-11        (c)  A sworn, written application for the appointment of a
  63-12  temporary guardian may be filed before the court appoints a
  63-13  temporary guardian.  The application must be filed not later than
  63-14  the end of the next business day of the court after the date of
  63-15  appointment of the temporary guardian.  The application must state:
  63-16              (1)  the name and address of the person who is the
  63-17  subject of the guardianship proceeding;
  63-18              (2)  the danger to the person or property alleged to be
  63-19  imminent;
  63-20              (3)  the type of appointment and the particular
  63-21  protection and assistance being requested;
  63-22              (4)  the facts and reasons supporting the allegations
  63-23  and requests;
  63-24              (5)  the name, address, and qualification of the
  63-25  proposed temporary guardian;
  63-26              (6)  the name, address, and interest of the applicant;
  63-27              (7)  the social security numbers of the applicant and
   64-1  proposed ward; and
   64-2              (8)  if applicable, that the proposed temporary
   64-3  guardian is a private professional guardian who has complied with
   64-4  the requirements of Section 697 of this code.
   64-5        (i)  If the court appoints a temporary guardian after the
   64-6  hearing required by Subsection (f)(1) of this section, all court
   64-7  costs, including attorney's fees, may be assessed as provided in
   64-8  Section 665A, 665B, or 669 of this code.
   64-9        (j)  The court may not customarily or ordinarily appoint the
  64-10  <Texas> Department of Protective and Regulatory <Human> Services as
  64-11  a temporary guardian under this section.  The appointment of the
  64-12  department as a temporary guardian under this section should be
  64-13  made only as a last resort.
  64-14        (k)  If an application for a temporary guardianship, for the
  64-15  conversion of <or an application to convert> a temporary
  64-16  guardianship to a permanent guardianship, or for a permanent
  64-17  guardianship is challenged or contested, the court, on the court's
  64-18  own motion or on the motion of any interested party, may appoint a
  64-19  new temporary guardian without issuing additional citation if the
  64-20  court finds that the appointment is necessary to protect the
  64-21  proposed ward or the proposed ward's estate.  A temporary guardian
  64-22  appointed under this subsection must qualify in the same form and
  64-23  manner required of a guardian under this code.  The term of the
  64-24  temporary guardian expires at the conclusion of the hearing
  64-25  challenging or contesting the application or on the date a
  64-26  permanent guardian the court appoints for the proposed ward
  64-27  qualifies to serve as the ward's guardian <shall appoint a
   65-1  temporary guardian whose term expires at the conclusion of the
   65-2  hearing or the period provided by Subsection (h) of this section,
   65-3  whichever is later>.
   65-4        SECTION 65.  Section 881, Texas Probate Code, is amended by
   65-5  adding Subsection (e) to read as follows:
   65-6        (e)  A resident guardian who has any of the estate of a ward
   65-7  may be ordered by the court to deliver the estate to a duly
   65-8  qualified and acting guardian of the ward.
   65-9        SECTION 66.  Subpart B, Part 5, Chapter XIII, Texas Probate
  65-10  Code, is amended by adding Section 881A to read as follows:
  65-11        Sec. 881A.  NONRESIDENT GUARDIAN'S REMOVAL OF WARD'S PROPERTY
  65-12  FROM STATE.  A nonresident guardian, regardless of whether the
  65-13  nonresident guardian is qualified under this code, may remove
  65-14  personal property of the ward out of the state if:
  65-15              (1)  the removal does not conflict with the tenure of
  65-16  the property or the terms and limitations of the guardianship under
  65-17  which the property is held; and
  65-18              (2)  all debts known to exist against the estate in
  65-19  this state are paid or secured by bond payable to and approved by
  65-20  the judge of the court in which guardianship proceedings are
  65-21  pending in this state.
  65-22        SECTION 67.  Subpart C, Part 5, Chapter XIII, Texas Probate
  65-23  Code, is amended by adding Section 883A to read as follows:
  65-24        Sec. 883A.  RECOVERY OF CAPACITY.  The special powers of
  65-25  management, control, and disposition vested in the same spouse by
  65-26  this code shall terminate when the decree of a court of competent
  65-27  jurisdiction finds that the mental capacity of the other spouse has
   66-1  been recovered.
   66-2        SECTION 68.  Section 889(a), Texas Probate Code, is amended
   66-3  to read as follows:
   66-4        (a)  When the value of the minor's interest in real or
   66-5  personal property in an estate does not exceed $25,000, a natural
   66-6  or adoptive parent, or the managing conservator, of a minor who is
   66-7  not a ward may apply to the court for an order to sell the real or
   66-8  personal property of a minor in an estate without being appointed
   66-9  guardian.  A minor may not disaffirm a sale of property pursuant to
  66-10  a court order under this section.
  66-11        SECTION 69.  Section 889(f), Texas Probate Code, is amended
  66-12  to read as follows:
  66-13        (f)  Nothing in this section prevents the proceeds deposited
  66-14  in the registry from being withdrawn from the court registry under
  66-15  Section 887 <885> of this code.
  66-16        SECTION 70.  Section 19, Polygraph Examiners Act (Article
  66-17  4413(29cc), Vernon's Texas Civil Statutes), is amended to read as
  66-18  follows:
  66-19        Sec. 19.  Refusal, Probation, Reprimand, Suspension,
  66-20  Revocation--Grounds.  The board shall refuse to issue a license,
  66-21  shall revoke or suspend a license, shall reprimand a licensee, or
  66-22  may probate a license suspension on any one or more of the
  66-23  following grounds:
  66-24              (1)  for failing to inform a subject to be examined as
  66-25  to the nature of the examination;
  66-26              (2)  for failing to inform a subject to be examined
  66-27  that his participation in the examination is voluntary;
   67-1              (3)  material misstatement in the application for
   67-2  original license or in the application for any renewal license
   67-3  under this Act;
   67-4              (4)  wilful disregard or violation of this Act or of
   67-5  any regulation or rule issued pursuant thereto, including, but not
   67-6  limited to, wilfully making a false report concerning an
   67-7  examination for polygraph examination purposes;
   67-8              (5)  if the holder of any license has been adjudged
   67-9  guilty of the commission of a felony or a misdemeanor involving
  67-10  moral turpitude;
  67-11              (6)  making any wilful misrepresentation or false
  67-12  promises or causing to be printed any false or misleading
  67-13  advertisement for the purpose of directly or indirectly obtaining
  67-14  business or trainees;
  67-15              (7)  having demonstrated unworthiness or incompetency
  67-16  to act as a polygraph examiner as defined by this Act;
  67-17              (8)  allowing one's license under this Act to be used
  67-18  by any unlicensed person in violation of the provisions of this
  67-19  Act;
  67-20              (9)  wilfully aiding or abetting another in the
  67-21  violation of this Act or any regulation or rule issued pursuant
  67-22  thereto;
  67-23              (10)  where the license holder has been adjudged
  67-24  incapacitated <as a habitual drunkard or mentally incompetent> as
  67-25  provided in the Probate Code;
  67-26              (11)  failing, within a reasonable time, to provide
  67-27  information requested by the secretary as the result of a formal
   68-1  complaint to the board which would indicate a violation of this
   68-2  Act;
   68-3              (12)  failing to inform the subject of the results of
   68-4  the examination if so requested;
   68-5              (13)  violating Subsection (a) of Section 19A of this
   68-6  Act relating to the confidentiality of information acquired from an
   68-7  examination; or
   68-8              (14)  violating Section 51.151, Family Code, relating
   68-9  to the examination of a child taken into custody.
  68-10        SECTION 71.  Section 5.08(j)(1), Medical Practice Act
  68-11  (Article 4495b, Vernon's Texas Civil Statutes), is amended to read
  68-12  as follows:
  68-13              (j)(1)  Consent for the release of confidential
  68-14  information must be in writing and signed by the patient, or a
  68-15  parent or legal guardian if the patient is a minor, or a legal
  68-16  guardian if the patient has been adjudicated incapacitated
  68-17  <incompetent> to manage his personal affairs, or an attorney ad
  68-18  litem appointed for the patient, as authorized by Subtitle C, Title
  68-19  7, Health and Safety Code <the Texas Mental Health Code (Article
  68-20  5547-1 et seq., Vernon's Texas Civil Statutes)>; Subtitle D, Title
  68-21  7, Health and Safety Code <the Mentally Retarded Persons Act of
  68-22  1977 (Article 5547-300, Vernon's Texas Civil Statutes)>; <Section
  68-23  9, Chapter 411, Acts of the 53rd Legislature, Regular Session, 1953
  68-24  (Article 5561c, Vernon's Texas Civil Statutes); Section 2, Chapter
  68-25  543, Acts of the 61st Legislature, Regular Session, 1969 (Article
  68-26  5561c-1, Vernon's Texas Civil Statutes);> Chapter XIII <5>, Texas
  68-27  Probate Code; and Chapter 11, Family Code; or a personal
   69-1  representative if the patient is deceased, provided that the
   69-2  written consent specifies the following:
   69-3                    (A)  the information or medical records to be
   69-4  covered by the release;
   69-5                    (B)  the reasons or purposes for the release; and
   69-6                    (C)  the person to whom the information is to be
   69-7  released.
   69-8        SECTION 72.  Sections 25.0025(c), (d), and (e), Government
   69-9  Code, are repealed.
  69-10        SECTION 73.  The following provisions of the Texas Probate
  69-11  Code are repealed:
  69-12              (1)  Sections 3(n), 3(y), 110, 111, 112A, 118, 123A,
  69-13  127A, 157, 159, 236, 236A, 688, and 688A; and
  69-14              (2)  Subpart G, Part 5, Chapter XIII.
  69-15        SECTION 74.  Section 646(e), Texas Probate Code, is repealed.
  69-16        SECTION 75.  Not later than September 1, 1996, a court that
  69-17  has jurisdiction and venue over a guardianship proceeding in which
  69-18  the application to create the guardianship was filed before
  69-19  September 1, 1993, shall review the guardianship to determine
  69-20  whether the guardianship should be continued, modified, or
  69-21  terminated to conform with the requirements of Chapter XIII, Texas
  69-22  Probate Code.
  69-23        SECTION 76.  This Act takes effect September 1, 1995, except
  69-24  that Section 74 of this Act takes effect September 1, 1996.
  69-25        SECTION 77.  The changes in law made by this Act to Sections
  69-26  636 and 665, Texas Probate Code, apply only to an application for
  69-27  the appointment of a guardian that is filed on or after the
   70-1  effective date of this Act.  An application filed before the
   70-2  effective date of this Act is governed by the law in effect on the
   70-3  date the application was filed, and that law is continued in effect
   70-4  for that purpose.
   70-5        SECTION 78.  The change in law made by this Act to Section
   70-6  702, Texas Probate Code, applies only to a person appointed by a
   70-7  court to serve as guardian on or after the effective date of this
   70-8  Act.  A person who is appointed by a court to serve as guardian
   70-9  before the effective date of this Act is governed by the law in
  70-10  effect immediately before the effective date of this Act, and that
  70-11  law is continued in effect for that purpose.
  70-12        SECTION 79.  The importance of this legislation and the
  70-13  crowded condition of the calendars in both houses create an
  70-14  emergency and an imperative public necessity that the
  70-15  constitutional rule requiring bills to be read on three several
  70-16  days in each house be suspended, and this rule is hereby suspended.