1-1     By:  Naishtat (Senate Sponsor - Wentworth)            H.B. No. 1317

 1-2           (In the Senate - Received from the House May 12, 1997;

 1-3     May 13, 1997, read first time and referred to Committee on

 1-4     Jurisprudence; May 17, 1997, reported favorably by the following

 1-5     vote:  Yeas 7, Nays 0; May 17, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the guardianship of missing persons and receiverships

 1-9     for the estate of certain missing persons.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 601(17), Texas Probate Code, is amended

1-12     to read as follows:

1-13                 (17)  "Missing person" has the meaning assigned by

1-14     Section 79.001, Human Resources Code [means:]

1-15                       [(A)  a person reported by an executive

1-16     department of the United States to be a prisoner of war or missing

1-17     in the course of public service to the United States; or]

1-18                       [(B)  a person reported missing and there is good

1-19     cause, as shown by a police or other law enforcement agency report

1-20     or a peace officer's testimony in court, to believe that the person

1-21     is missing].

1-22           SECTION 2.  Section 682, Texas Probate Code, is amended to

1-23     read as follows:

1-24           Sec. 682.  APPLICATION; CONTENTS.  Any person may commence a

1-25     proceeding for the appointment of a guardian by filing a written

1-26     application in a court having jurisdiction and venue.  The

1-27     application must be sworn to by the applicant and state:

1-28                 (1)  the name, sex, date of birth, and address of the

1-29     proposed ward;

1-30                 (2)  the name, relationship, and address of the person

1-31     the applicant desires to have appointed as guardian;

1-32                 (3)  the social security number of the proposed ward

1-33     and of the person the applicant desires to have appointed as

1-34     guardian;

1-35                 (4)  whether guardianship of the person or estate, or

1-36     both, is sought;

1-37                 (5)  the nature and degree of the alleged incapacity,

1-38     the specific areas of protection and assistance requested, and the

1-39     limitation of rights requested to be included in the court's order

1-40     of appointment;

1-41                 (6)  the facts requiring that a guardian be appointed

1-42     and the interest of the applicant in the appointment;

1-43                 (7)  the nature and description of any guardianship of

1-44     any kind existing for the proposed ward in this or any other state;

1-45                 (8)  the name and address of any person or institution

1-46     having the care and custody of the proposed ward;

1-47                 (9)  the approximate value and description of the

1-48     proposed ward's property, including any compensation, pension,

1-49     insurance, or allowance to which the proposed ward may be entitled;

1-50                 (10)  the requested term, if known, of the

1-51     guardianship;

1-52                 (11)  the name and address of any person whom the

1-53     applicant knows to hold a power of attorney signed by the proposed

1-54     ward and a description of the type of power of attorney;

1-55                 (12)  if the proposed ward is a minor, the names of the

1-56     parents and next of kin of the proposed ward and whether either or

1-57     both of the parents are deceased;

1-58                 (13)  if the proposed ward is a minor, whether the

1-59     minor was the subject of a legal or conservatorship proceeding

1-60     within the preceding two-year period and, if so, the court

1-61     involved, the nature of the proceeding, and the final disposition,

1-62     if any, of the proceeding;

1-63                 (14)  if the proposed ward is 60 years of age or older,

1-64     the names and addresses, to the best of the applicant's knowledge,

 2-1     of the proposed ward's spouse, siblings, and children, or, if there

 2-2     is no spouse, sibling, or child, the names and addresses of the

 2-3     proposed ward's next of kin;

 2-4                 (15)  [if the proposed ward is a missing person:]

 2-5                       [(A)  the last known residence of the missing

 2-6     person;]

 2-7                       [(B)  the name of the executive department of the

 2-8     United States reporting the proposed ward as a missing person, the

 2-9     date of the report, and the last known whereabouts of the missing

2-10     person; and]

2-11                       [(C)  the names and addresses of the missing

2-12     person's spouse, children, and parents, or, if there is no spouse,

2-13     child, or parent, the names and addresses of the missing person's

2-14     next of kin;]

2-15                 [(16)]  facts showing that the court has venue over the

2-16     proceeding; and

2-17                 (16) [(17)]  if applicable, that the person whom the

2-18     applicant desires to have appointed as a guardian is a private

2-19     professional guardian who has complied with the requirements of

2-20     Section 697 of this code.

2-21           SECTION 3.  Section 684(b), Texas Probate Code, is amended to

2-22     read as follows:

2-23           (b)  Before appointing a guardian, the court must find by a

2-24     preponderance of the evidence that:

2-25                 (1)  the court has venue of the case;

2-26                 (2)  the person to be appointed guardian is eligible to

2-27     act as guardian and is entitled to appointment, or, if no eligible

2-28     person entitled to appointment applies, the person appointed is a

2-29     proper person to act as guardian;

2-30                 (3)  if a guardian is appointed for a minor, the

2-31     guardianship is not created for the primary purpose of enabling the

2-32     minor to establish residency for enrollment in a school or school

2-33     district for which the minor is not otherwise eligible for

2-34     enrollment; and

2-35                 (4)  [if the guardian is appointed for a missing

2-36     person, the person was reported missing by an executive department

2-37     of the United States at least six months earlier than the date of

2-38     the filing of the application and currently is missing; and]

2-39                 [(5)]  the proposed ward is totally without capacity as

2-40     provided by this code to care for himself or herself and to manage

2-41     the individual's property, or the proposed ward lacks the capacity

2-42     to do some, but not all, of the tasks necessary to care for himself

2-43     or herself or to manage the individual's property.

2-44           SECTION 4.  Section 64.001(a), Civil Practice and Remedies

2-45     Code, is amended to read as follows:

2-46           (a)  A court of competent jurisdiction may appoint a

2-47     receiver:

2-48                 (1)  in an action by a vendor to vacate a fraudulent

2-49     purchase of property;

2-50                 (2)  in an action by a creditor to subject any property

2-51     or fund to his claim;

2-52                 (3)  in an action between partners or others jointly

2-53     owning or interested in any property or fund;

2-54                 (4)  in an action by a mortgagee for the foreclosure of

2-55     the mortgage and sale of the mortgaged property;

2-56                 (5)  for a corporation that is insolvent, is in

2-57     imminent danger of insolvency, has been dissolved, or has forfeited

2-58     its corporate rights;  [or]

2-59                 (6)  for a missing person as prescribed by Chapter 79,

2-60     Human Resources Code; or

2-61                 (7)  in any other case in which a receiver may be

2-62     appointed under the rules of equity.

2-63           SECTION 5.  Chapter 79, Human Resources Code, is amended by

2-64     adding Sections 79.017 and 79.018 to read as follows:

2-65           Sec. 79.017.  RECEIVERSHIP FOR CERTAIN MISSING PERSONS.  (a)

2-66     Pursuant to Chapter 64, Civil Practice and Remedies Code, and on

2-67     application filed with the court, a court of competent

2-68     jurisdiction, after notice and hearing, may appoint a receiver for

2-69     a missing person if the court determines the missing person's

 3-1     estate is in danger of being lost, removed, or materially harmed.

 3-2           (b)  A proceeding instituted under this section must be

 3-3     brought in the county in which the missing person resides, or, if

 3-4     the missing person is not a resident of this state, the county in

 3-5     which the majority of the property of the missing person's estate

 3-6     is located.

 3-7           (c)  Notice of a proceeding shall be issued and served as

 3-8     provided by Section 79.018.

 3-9           (d)  The court shall appoint an attorney ad litem to

3-10     represent the interests of the missing person.  To be eligible for

3-11     appointment as an attorney ad litem under this section, a person

3-12     must be certified in the same manner and to the same extent as a

3-13     person who is appointed as an attorney ad litem for a proposed ward

3-14     under Section 646, Texas Probate Code.

3-15           (e)  The court may appoint a guardian ad litem for the

3-16     missing person if the court determines that the appointment would

3-17     be in the best interests of the missing person.  A guardian ad

3-18     litem appointed under this section is an officer of the court.  The

3-19     guardian ad litem shall protect the missing person in a manner that

3-20     will enable the court to determine the appropriate action to take

3-21     in relation to the best interests of the missing person.

3-22           (f)  An attorney ad litem or a guardian ad litem appointed

3-23     under this section is entitled to reasonable compensation for

3-24     services in an amount set by the court to be charged as costs in

3-25     the proceeding.

3-26           (g)  The cost of a proceeding instituted under this section

3-27     shall be paid from the receivership, if a receivership is created.

3-28     If the court denies an application for appointment of a receiver,

3-29     the applicant shall pay the costs of the proceeding.

3-30           (h)  The term of a receivership granted under this section

3-31     may not exceed six months, unless, before the expiration of the

3-32     term and for good cause shown, the court extends the receivership

3-33     for another term not to exceed six months.

3-34           Sec. 79.018.  NOTICE AND CITATION FOR RECEIVERSHIP FOR

3-35     CERTAIN MISSING PERSONS.  (a)  On the filing of an application

3-36     under Section 79.017, the court clerk shall issue a citation that

3-37     states that the application for receivership was filed and

3-38     includes:

3-39                 (1)  the name of the missing person; and

3-40                 (2)  the name of the applicant.

3-41           (b)  The citation must cite all persons interested in the

3-42     welfare of the missing person to appear at the time and place

3-43     stated in the notice for purposes of contesting the application.

3-44     The citation shall be posted.

3-45           (c)  The citation shall be published in a newspaper of

3-46     general circulation:

3-47                 (1)  once in the county in which the missing person

3-48     resides; and

3-49                 (2)  once in each county in which property of the

3-50     missing person's estate is located.

3-51           SECTION 6.  This Act takes effect September 1, 1997, and

3-52     applies only to a proceeding for receivership of the estate of a

3-53     missing person that is instituted on or after that date.  A

3-54     proceeding for receivership of the estate of a  missing person that

3-55     is instituted before the effective date of this Act is governed by

3-56     the law in effect on the date on which the proceeding was

3-57     instituted, and the former law is continued in effect for that

3-58     purpose.

3-59           SECTION 7.  The importance of this legislation and the

3-60     crowded condition of the calendars in both houses create an

3-61     emergency and an imperative public necessity that the

3-62     constitutional rule requiring bills to be read on three several

3-63     days in each house be suspended, and this rule is hereby suspended.

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