1-1                                   AN ACT
 1-2     relating to guardianships and other related matters concerning
 1-3     incapacitated persons.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 665(a), Texas Probate Code, is amended to
 1-6     read as follows:
 1-7           (a)  The court may authorize compensation for a guardian or a
 1-8     temporary guardian serving as a guardian of the person alone from
 1-9     available funds of the ward's estate or other funds available for
1-10     that purpose.  The court shall set the compensation in an amount
1-11     not exceeding five percent of the ward's gross income.  In
1-12     determining whether to authorize compensation for a guardian under
1-13     this section, the court shall consider the ward's monthly income
1-14     from all sources and whether the ward receives medical assistance
1-15     under the state Medicaid program.
1-16           SECTION 2.  Section 687(b), Texas Probate Code, is amended to
1-17     read as follows:
1-18           (b)  Except as provided by Subsection (c) of this section, if
1-19     the court determines it is necessary, the court may appoint the
1-20     necessary physicians to examine the proposed ward.  Unless the
1-21     court determines that an emergency examination is necessary, the
1-22     court must make its determination with respect to the necessity for
1-23     a physician's examination of the proposed ward at a hearing held
1-24     for that purpose.  Not later than the fourth day before the date of
 2-1     the hearing, the applicant shall give to the proposed ward and the
 2-2     proposed ward's attorney ad litem written notice specifying the
 2-3     purpose and the date and time of the hearing. A physician who
 2-4     examines the proposed ward, other than a physician or psychologist
 2-5     who examines the proposed ward under Subsection (c) of this
 2-6     section, shall make available to an attorney ad litem appointed to
 2-7     represent the proposed ward, for inspection, a written letter or
 2-8     certificate from the physician that complies with the requirements
 2-9     of Subsection (a) of this section.
2-10           SECTION 3.  Section 745(c), Texas Probate Code, is amended to
2-11     read as follows:
2-12           (c)  When the estate of a minor ward consists only of cash or
2-13     cash equivalents in an amount of $50,000 [$25,000] or less, the
2-14     guardianship of the estate may be terminated and the assets paid to
2-15     the county clerk of the county in  which the guardianship
2-16     proceeding is pending, and the clerk shall manage the funds as
2-17     provided by Section 887 of this code.
2-18           SECTION 4.  Subpart D, Part 4, Chapter XIII, Texas Probate
2-19     Code, is amended by adding Sections 760A and 760B to read as
2-20     follows:
2-21           Sec. 760A.  CHANGE OF RESIDENT AGENT.  (a)  A guardian may
2-22     change its resident agent to accept service of process in a
2-23     guardianship proceeding or other matter relating to the
2-24     guardianship by filing a statement of the change entitled
2-25     "Designation of Successor Resident Agent" with the court in which
2-26     the guardianship proceeding is pending.  The statement must contain
2-27     the names and addresses of the:
 3-1                 (1)  guardian;
 3-2                 (2)  resident agent; and
 3-3                 (3)  successor resident agent.
 3-4           (b)  The designation of a successor resident agent made in a
 3-5     statement filed under this section takes effect on the date on
 3-6     which the statement is filed with the court.
 3-7           Sec. 760B.  RESIGNATION OF RESIDENT AGENT.  (a)   A resident
 3-8     agent of a guardian may resign as the resident agent by giving
 3-9     notice to the guardian and filing with the court in which the
3-10     guardianship proceeding is pending a statement entitled
3-11     "Resignation of Resident Agent" that:
3-12                 (1)  contains the name of the guardian;
3-13                 (2)  contains the address of the guardian most recently
3-14     known by the resident agent;
3-15                 (3)  states that notice of the resignation has been
3-16     given to the guardian and that the guardian does not have a
3-17     resident agent; and
3-18                 (4)  contains the date on which the notice of the
3-19     resignation was given to the guardian.
3-20           (b)  The resident agent shall send, by certified mail, return
3-21     receipt requested, a copy of a resignation statement filed under
3-22     Subsection (a)  of this section to:
3-23                 (1)  the guardian at the address most recently known by
3-24     the agent; and
3-25                 (2)  each party in the case or the party's attorney or
3-26     other designated representative of record.
3-27           (c)  The resignation of a resident agent takes effect on the
 4-1     date on which the court enters an order accepting the agent's
 4-2     resignation.  A court may not enter an order accepting the agent's
 4-3     resignation unless the agent complies with the requirements of this
 4-4     section.
 4-5           SECTION 5.  Section 761, Texas Probate Code, is amended to
 4-6     read as follows:
 4-7           Sec. 761.  REMOVAL.  (a)  The court, on its own motion or on
 4-8     motion of any interested person, including the ward, and without
 4-9     notice, may remove any guardian, appointed under this chapter, who:
4-10                 (1)  neglects to qualify in the manner and time
4-11     required by law;
4-12                 (2)  fails to return within 90 days after
4-13     qualification, unless the time is extended by order of the court,
4-14     an inventory of the property of the guardianship estate and list of
4-15     claims that have come to the guardian's knowledge;
4-16                 (3)  having been required to give a new bond, fails to
4-17     do so within the time prescribed;
4-18                 (4)  absents himself from the state for a period of
4-19     three months at one time without permission of the court, or
4-20     removes from the state;
4-21                 (5)  cannot be served with notices or other processes
4-22     because of the fact that:
4-23                       (A)  the guardian's whereabouts are unknown;
4-24                       (B)  [, or because] the guardian is eluding
4-25     service; or
4-26                       (C)  the guardian is a nonresident of this state
4-27     who does not have a resident agent to accept service of process in
 5-1     any guardianship proceeding or other matter relating to the
 5-2     guardianship;
 5-3                 (6)  has misapplied, embezzled, or removed from the
 5-4     state, or is about to misapply, embezzle, or remove from the state,
 5-5     all or any part of the property committed to the guardian's care;
 5-6     or
 5-7                 (7)  has cruelly treated a ward, or has neglected to
 5-8     educate or maintain the ward as liberally as the means of the ward
 5-9     and the condition of the ward's estate permit.
5-10           (b)  The court may remove a personal representative under
5-11     Subsection (a)(6) or (7) of this section only on the presentation
5-12     of clear and convincing evidence given under oath.
5-13           (c)  The court may remove a guardian on its own motion, or on
5-14     the complaint of an interested person, after the guardian has been
5-15     cited by personal service to answer at a time and place set in the
5-16     notice, when:
5-17                 (1)  sufficient grounds appear to support belief that
5-18     the guardian has misapplied, embezzled, or removed from the state,
5-19     or that the guardian is about to misapply, embezzle, or remove from
5-20     the state, all or any part of the property committed to the care of
5-21     the guardian;
5-22                 (2)  the guardian fails to return any account or report
5-23     that is required by law to be made;
5-24                 (3)  the guardian fails to obey any proper order of the
5-25     court having jurisdiction with respect to the performance of the
5-26     guardian's duties;
5-27                 (4)  the guardian is proved to have been guilty of
 6-1     gross misconduct or mismanagement in the performance of the duties
 6-2     of the guardian;
 6-3                 (5)  the guardian becomes incapacitated, or is
 6-4     sentenced to the penitentiary, or from any other cause becomes
 6-5     incapable of properly performing the duties of the guardian's
 6-6     trust;
 6-7                 (6)  as guardian of the person, the guardian cruelly
 6-8     treats the ward, or neglects to educate or maintain the ward as
 6-9     liberally as the means of the ward's estate and the ward's ability
6-10     or condition permit;
6-11                 (7)  the guardian interferes with the ward's progress
6-12     or participation in programs in the community; [or]
6-13                 (8)  the guardian fails to comply with the requirements
6-14     of Section 697 of this code; or
6-15                 (9)  the court determines that there has been a
6-16     dissolution of the joint guardians' marriage and only one of the
6-17     joint guardians was named as managing conservator by a court with
6-18     jurisdiction to decide child custody matters.
6-19           (d)  The order of removal shall state the cause of the
6-20     removal.  It must require that any letters issued to the person who
6-21     is removed shall, if the removed person has been personally served
6-22     with citation, be surrendered and that all those letters be
6-23     cancelled of record, whether or not delivered.  It must further
6-24     require, as to all the estate remaining in the hands of a removed
6-25     person, delivery of the estate to the person or persons entitled to
6-26     the estate, or to one who has been appointed and has qualified as
6-27     successor guardian, and as to the person of a ward, that control be
 7-1     relinquished as required in the order.
 7-2           (e)  If a joint guardian is removed under Subsection (c)(9)
 7-3     of this section, the other joint guardian is entitled to continue
 7-4     to serve as the sole guardian unless removed for a reason other
 7-5     than the dissolution of the joint guardians' marriage.
 7-6           (f)  If the necessity exists, the court may immediately
 7-7     appoint a successor but may not discharge the person removed as
 7-8     guardian of the estate or release the person or the sureties on the
 7-9     person's bond until final order or judgment is rendered on the
7-10     final account of the guardian.
7-11           (g) [(f)]  The court at any time may order a person removed
7-12     as guardian under this section who has all or part of the estate of
7-13     a ward to deliver all or part of the ward's estate to a person who
7-14     has been appointed and has qualified as successor guardian.
7-15           SECTION 6.  Section 784, Texas Probate Code, is amended by
7-16     adding Subsection (e) to read as follows:
7-17           (e)  In the notice required by Subsection (b) of this
7-18     section, the guardian of the estate may expressly state in the
7-19     notice that the unsecured creditor must present a claim not later
7-20     than the 120th day after the date on which the unsecured creditor
7-21     receives the notice or the claim is barred, if the claim is not
7-22     barred by the general statutes of limitation.  The notice under
7-23     this subsection must include:
7-24                 (1)  the address to which claims may be presented; and
7-25                 (2)  an instruction that the claim be filed with the
7-26     clerk of the court issuing the letters of guardianship.
7-27           SECTION 7.  Section 786(a), Texas Probate Code, is amended to
 8-1     read as follows:
 8-2           (a)  A claim may be presented to the guardian of the estate
 8-3     at any time when the estate is not closed and when suit on the
 8-4     claim has not been barred by the general statutes of limitation.
 8-5     If a claim of an unsecured creditor for money is not presented
 8-6     within the time prescribed by the notice permitted by Section
 8-7     784(e) of this code, the claim is barred.
 8-8           SECTION 8.  Subpart M, Part 4, Chapter XIII, Texas Probate
 8-9     Code, is amended by adding Section 865A to read as follows:
8-10           Sec. 865A.  INSPECTION OF CERTAIN INSTRUMENT FOR ESTATE
8-11     PLANNING PURPOSES.  (a)  On the filing of an application under
8-12     Section 865 of this code, the guardian of the ward's estate may
8-13     apply to the court for an order to seek an in camera inspection of
8-14     a true copy of a will, codicil, trust, or other estate planning
8-15     instrument of the ward as a means of obtaining access to the
8-16     instrument for purposes of establishing an estate plan under
8-17     Section 865 of this code.
8-18           (b)  An application filed under this section must:
8-19                 (1)  be sworn to by the guardian;
8-20                 (2)  list all of the instruments requested for
8-21     inspection; and
8-22                 (3)  state one or more reasons supporting the necessity
8-23     to inspect each requested instrument for the purpose described by
8-24     Subsection (a) of this section.
8-25           (c)  A person who files an application under this section
8-26     shall send a copy of the application to:
8-27                 (1)  each person who has custody of an instrument
 9-1     listed in the application;
 9-2                 (2)  the ward's spouse;
 9-3                 (3)  the ward's dependents;
 9-4                 (4)  all devisees under a will, trust, or other
 9-5     beneficial instrument relating to the ward's estate; and
 9-6                 (5)  any other person as directed by the court.
 9-7           (d)  Notice required by Subsection (c) of this section must
 9-8     be delivered by certified mail to a person described by Subsection
 9-9     (c)(2), (3), (4), or (5) of this section and by registered or
9-10     certified mail to a person described by Subsection (c)(1) of this
9-11     section.   After the 10th day after the date on which the applicant
9-12     complies with the notice requirement, the applicant may request
9-13     that a hearing be held on the application.  Notice of the date,
9-14     time, and place of the hearing must be given by the applicant to
9-15     each person described by Subsection (c)(1) of this section when the
9-16     court sets a date for a hearing on the application.
9-17           (e)  After the conclusion of a hearing on the application and
9-18     on a finding that there is good cause for an in camera inspection
9-19     of a requested instrument, the court shall direct the person that
9-20     has custody of the requested will, codicil, trust, or other estate
9-21     planning instrument to deliver a true copy of the instrument to the
9-22     court for in camera inspection only.  After conducting an in camera
9-23     review of the instrument, the court, if good cause exists, shall
9-24     release all or part of the instrument to the applicant only for the
9-25     purpose described by Subsection (a) of this section.
9-26           (f)  The court may appoint a guardian ad litem for the ward
9-27     or an interested party at any stage of the proceedings if it is
 10-1    considered advisable for the protection of the ward or the
 10-2    interested party.
 10-3          (g)  An attorney does not violate the attorney-client
 10-4    privilege solely by complying with a court order to release an
 10-5    instrument subject to this section.  Notwithstanding Section
 10-6    22.004, Government Code, the supreme court may not amend or adopt
 10-7    rules in conflict with this subsection.
 10-8          SECTION 9.  Section 867, Texas Probate Code, is amended to
 10-9    read as follows:
10-10          Sec. 867.  CREATION OF MANAGEMENT TRUST.  (a)  On application
10-11    by the guardian of a ward or by a ward's attorney ad litem or an
10-12    incapacitated person's guardian ad litem at any time after the date
10-13    of the ad litem's [attorney's] appointment under Section 646 or
10-14    another provision of this code, the court in which the guardianship
10-15    proceeding is pending may enter an order that creates for the
10-16    ward's or incapacitated person's benefit a trust for the management
10-17    of guardianship funds or funds of the incapacitated person's estate
10-18    if the court finds that the creation of the trust is in the ward's
10-19    or incapacitated person's best interests.  Except as provided by
10-20    Subsection (b) of this section, the court shall appoint a trust
10-21    company or a state or national bank that has trust powers in this
10-22    state to serve as trustee of the trust.
10-23          (b)  The court may appoint a person other than a trust
10-24    company or bank described by Subsection (a)  of this section to
10-25    serve as trustee of the trust only if:
10-26                (1)  no trust company or bank described by Subsection
10-27    (a)  of this section is willing to serve as trustee;
 11-1                (2)  the value of the trust's principal is $50,000 or
 11-2    less; and
 11-3                (3)  the court determines the appointment to be in the
 11-4    ward's best interests.
 11-5          (c)  The order shall direct the guardian or another person to
 11-6    deliver all or part of the assets of the guardianship to a person
 11-7    or corporate fiduciary appointed by the court as trustee of the
 11-8    trust [company or a state or national bank that has trust powers in
 11-9    this state].  The order shall include terms, conditions, and
11-10    limitations placed on the trust.  The court shall maintain the
11-11    trust under the same cause number as the guardianship proceeding.
11-12          SECTION 10.  Section 868(a), Texas Probate Code, is amended
11-13    to read as follows:
11-14          (a)  Except as provided by Subsection (d) of this section, a
11-15    trust created under Section 867 of this code must provide that:
11-16                (1)  the ward is the sole beneficiary of the trust;
11-17                (2)  the trustee may disburse an amount of the trust's
11-18    principal or income as the trustee determines is necessary to
11-19    expend for the health, education, support, or maintenance of the
11-20    ward;
11-21                (3)  the income of the trust that the trustee does not
11-22    disburse under Subdivision (2) of this subsection must be added to
11-23    the principal of the trust;
11-24                (4)  if[] the trustee is a corporate fiduciary, the
11-25    trustee serves without giving a bond; and
11-26                (5)  the trustee, on annual application to the court
11-27    and subject to the court's approval, is entitled to receive
 12-1    reasonable compensation for services that the trustee provided to
 12-2    the ward as the ward's trustee that is:
 12-3                      (A)  to be paid from the trust's income,
 12-4    principal, or both; and
 12-5                      (B)  determined in the same manner as
 12-6    compensation of a guardian of an estate under Section 665 of this
 12-7    code.
 12-8          SECTION 11.  Subpart N, Part 4, Chapter XIII, Texas Probate
 12-9    Code, is amended by adding Section 868B to read as follows:
12-10          Sec. 868B.  BOND REQUIREMENT FOR CERTAIN TRUSTEES.  The court
12-11    shall require a person, other than a corporate fiduciary, serving
12-12    as trustee to file with the county clerk a bond in an amount equal
12-13    to the value of the trust's principal and projected annual income
12-14    and with the conditions the court determines are necessary.
12-15          SECTION 12.  Section 869A, Texas Probate Code, is amended to
12-16    read as follows:
12-17          Sec. 869A.  SUCCESSOR TRUSTEE.  The court may appoint a
12-18    [corporate fiduciary as] successor trustee if the trustee resigns,
12-19    becomes ineligible, or is removed.
12-20          SECTION 13.  Section 885(a), Texas Probate Code, is amended
12-21    to read as follows:
12-22          (a)  When the estate or any portion of the estate of a minor
12-23    or other incapacitated person [or any portion of the estate of the
12-24    minor or other incapacitated person] appears in danger of injury,
12-25    loss, or waste and in need of a [guardianship or other]
12-26    representative, but [and] there is no guardian of the estate who is
12-27    qualified in this state and the appointment of a guardian for the
 13-1    estate is not necessary to protect the estate [needed], the county
 13-2    judge of the county in which the minor or other incapacitated
 13-3    person resides or in which the endangered estate is located shall
 13-4    enter an order, with or without application, appointing a suitable
 13-5    person as receiver to take charge of the estate.  The court order
 13-6    shall require a receiver appointed under this section to give bond
 13-7    as in ordinary receiverships in an amount the judge deems necessary
 13-8    to protect the estate.  The court order shall specify the duties
 13-9    and powers of the receiver as the judge deems necessary for the
13-10    protection, conservation, and preservation of the estate.  The
13-11    clerk shall enter an order made under this section on the minutes
13-12    of the court.  The person who is appointed as receiver shall make
13-13    and submit a bond for the judge's approval and shall file the bond,
13-14    when approved, with the clerk.  The person who is appointed
13-15    receiver shall proceed to take charge of the endangered estate
13-16    pursuant to the powers and duties vested in the person by the order
13-17    of appointment and subsequent orders made by the judge.
13-18          SECTION 14.  Part 5, Chapter XIII, Texas Probate Code, is
13-19    amended by adding Subparts G and H to read as follows:
13-20                   SUBPART G.  INTERSTATE GUARDIANSHIPS
13-21          Sec. 891.  TRANSFER OF GUARDIANSHIP TO FOREIGN JURISDICTION.
13-22    (a)  A guardian of the person or estate of a ward may apply with
13-23    the court that has jurisdiction over the guardianship to transfer
13-24    the guardianship to a court in a foreign jurisdiction if the ward
13-25    has moved permanently to the foreign jurisdiction.
13-26          (b)  Notice of the application to transfer a guardianship
13-27    under this section shall be served personally on the ward and shall
 14-1    be given to the foreign court to which the guardianship is to be
 14-2    transferred.
 14-3          (c)  On the court's own motion or on the motion of the ward
 14-4    or any interested person, the court shall hold a hearing to
 14-5    consider the application to transfer the guardianship.
 14-6          (d)  The court shall transfer a guardianship to a foreign
 14-7    court if the court determines the transfer is in the best interests
 14-8    of the ward.  The transfer of the guardianship must be made
 14-9    contingent on the acceptance of the guardianship in the foreign
14-10    jurisdiction.  To facilitate the orderly transfer of the
14-11    guardianship, the court shall coordinate efforts with the
14-12    appropriate foreign court.
14-13          Sec. 892.  RECEIPT AND ACCEPTANCE OF FOREIGN GUARDIANSHIP.
14-14    (a)  A guardian appointed by a foreign court to represent an
14-15    incapacitated person who is residing in this state or intends to
14-16    move to this state may file an application with a court in which
14-17    the ward resides or intends to reside to have the guardianship
14-18    transferred to the court.
14-19          (b)  Notice of the application for receipt and acceptance of
14-20    a foreign guardianship under this section shall be served
14-21    personally on the ward and shall be given to the foreign court from
14-22    which the guardianship is to be transferred.
14-23          (c)  If an application for receipt and acceptance of a
14-24    foreign guardianship is filed in two or more courts with
14-25    jurisdiction, the proceeding shall be heard in the court with
14-26    jurisdiction over the application filed on the earliest date if
14-27    venue is otherwise proper in that court.   A court that does not
 15-1    have venue to hear the application shall transfer the proceeding to
 15-2    the proper court.
 15-3          (d)  In reviewing an application for receipt and acceptance
 15-4    of a foreign guardianship, the court should determine:
 15-5                (1)  that the proposed guardianship is not a collateral
 15-6    attack on an existing or proposed guardianship in another
 15-7    jurisdiction in this or another state; and
 15-8                (2)  for a guardianship in which a court in one or more
 15-9    states may have jurisdiction, that the application has been filed
15-10    in the court that is best suited to consider the matter.
15-11          (e)  On the court's own motion or on the motion of the ward
15-12    or any interested person, the court shall hold a hearing to
15-13    consider the application for receipt and acceptance of a foreign
15-14    guardianship.
15-15          (f)  The court shall grant an application for receipt and
15-16    acceptance of a foreign guardianship if the transfer of the
15-17    guardianship from the foreign jurisdiction is in the best interests
15-18    of the ward.  In granting an application under this subsection, the
15-19    court shall give full faith and credit to the provisions of the
15-20    foreign guardianship order concerning the determination of the
15-21    ward's incapacity and the rights, powers, and duties of the
15-22    guardian.
15-23          (g)  The court shall coordinate efforts with the appropriate
15-24    foreign court to facilitate the orderly transfer of the
15-25    guardianship.
15-26          (h)  The denial of an application for receipt and acceptance
15-27    of a guardianship under this section does not affect the right of a
 16-1    guardian appointed by a foreign court to file an application to be
 16-2    appointed guardian of the incapacitated person under Section 682 of
 16-3    this code.
 16-4          Sec. 893.  REVIEW OF TRANSFERRED GUARDIANSHIP.  Not later
 16-5    than the 90th day after the date a court grants an application for
 16-6    receipt and acceptance of a foreign guardianship under Section 892
 16-7    of this code, the court shall hold a hearing to consider modifying
 16-8    the administrative procedures or requirements of the transferred
 16-9    guardianship in accordance with local and state law.
16-10               SUBPART H.  CONTRACTS IN ARTS, ENTERTAINMENT,
16-11                         ADVERTISEMENT, AND SPORTS
16-12          Sec. 901.  DEFINITIONS.  In this subpart:
16-13                (1)  "Advertise" means to solicit or induce, through
16-14    print or electronic media, including radio, television, computer,
16-15    or direct mail, to purchase consumer goods or services.
16-16                (2)  "Advertisement contract" means a contract under
16-17    which a person is employed or agrees to advertise consumer goods or
16-18    services.
16-19                (3)  "Artist" means:
16-20                      (A)  an actor who performs in a motion picture,
16-21    theatrical, radio, television, or other entertainment production;
16-22                      (B)  a musician or musical director;
16-23                      (C)  a director or producer of a motion picture,
16-24    theatrical, radio, television, or other entertainment production;
16-25                      (D)  a writer;
16-26                      (E)  a cinematographer;
16-27                      (F)  a composer, lyricist, or arranger of musical
 17-1    compositions;
 17-2                      (G)  a dancer or choreographer of musical
 17-3    productions;
 17-4                      (H)  a model; or
 17-5                      (I)  any other individual who renders analogous
 17-6    professional services in a motion picture, theatrical, radio,
 17-7    television, or other entertainment production.
 17-8                (4)  "Arts and entertainment contract" means a contract
 17-9    under which:
17-10                      (A)  an artist is employed or agrees to render
17-11    services in a motion picture, theatrical, radio, television, or
17-12    other entertainment production; or
17-13                      (B)  a person agrees to purchase, secure, sell,
17-14    lease, license, or otherwise dispose of literary, musical, or
17-15    dramatic tangible or intangible property or any rights in that
17-16    property for use in the field of  entertainment, including a motion
17-17    picture, television, the production of phonograph records, or
17-18    theater.
17-19                (5)  "Consumer goods" means goods that are used or
17-20    bought for use primarily for personal, family, or household
17-21    purposes.
17-22                (6)  "Sports contract" means a contract under which an
17-23    athlete is employed or agrees to participate, compete, or engage in
17-24    a sports or athletic activity at a professional or amateur sports
17-25    event or athletic event.
17-26          Sec. 902.  APPROVAL OF CERTAIN CONTRACTS OF MINORS; NOT
17-27    VOIDABLE.  (a)  A court, on petition of a party to the contract,
 18-1    may enter an order approving for purposes of this subpart an arts
 18-2    and entertainment contract, advertisement contract, or sports
 18-3    contract that is entered into by a minor.  The court may approve
 18-4    the contract only after the party requesting the petition provides
 18-5    to the other party to the contract notice of the petition and an
 18-6    opportunity to request a hearing in the manner provided by the
 18-7    court.
 18-8          (b)  A proceeding under this section may be brought in the
 18-9    county in which:
18-10                (1)  the minor resides;
18-11                (2)  the minor is employed; or
18-12                (3)  a party to the contract has its principal office
18-13    in this state for the transaction of business if the minor does not
18-14    reside and is not employed in this state.
18-15          (c)  The approval of a contract under this section extends to
18-16    the contract as a whole and any of the terms and provisions of the
18-17    contract, including any optional or conditional provision in the
18-18    contract relating to the extension or termination of its term.
18-19          (d)  A court may withhold approval of a contract under which
18-20    part of the minor's net earnings under the contract will be set
18-21    aside as provided by Section 903 of this code until the guardian of
18-22    the minor executes and files with the court written consent to the
18-23    making of the order.
18-24          (e)  An otherwise valid contract approved under this section
18-25    may not be voidable solely on the ground that it was entered into
18-26    by a person during the age of minority.
18-27          Sec. 903.  NET EARNINGS OF MINOR; SET ASIDE AND PRESERVATION.
 19-1    (a)  In this section, "net earnings" means the total amount to be
 19-2    received for the services of the minor under the contract less:
 19-3                (1)  the sum required by law to be paid as taxes to any
 19-4    government or governmental agency;
 19-5                (2)  a reasonable sum to be expended for the support,
 19-6    care, maintenance, education, and training of the minor;
 19-7                (3)  fees and expenses paid in connection with
 19-8    procuring the contract or maintaining employment of the minor; and
 19-9                (4)  attorney's fees  for services rendered in
19-10    connection with the contract or any other business of the minor.
19-11          (b)  Notwithstanding any other law, the court may require in
19-12    an order approving a contract under Section 902 of this code that a
19-13    portion of the net earnings of the minor under the contract, not to
19-14    exceed one-half of the minor's net earnings, be set aside and
19-15    preserved for the benefit of the minor in a trust created under
19-16    Section 867 of this code or a similar trust created under the laws
19-17    of another state.  The amount to be set aside under this subsection
19-18    must be a reasonable amount as determined by the court.
19-19          Sec. 904.  GUARDIAN AD LITEM.  The court may appoint a
19-20    guardian ad litem for a minor who has entered into an arts and
19-21    entertainment contract, advertisement contract, or sports contract
19-22    if the court finds that appointment of the ad litem would be in the
19-23    best interest of the minor.
19-24          SECTION 15.  The change in law made by this Act to Section
19-25    745(c), Texas Probate Code, applies only to an application to close
19-26    a guardianship filed on or after the effective date of this Act.
19-27    An application to close a guardianship filed before the effective
 20-1    date of this Act is governed by the law in effect on the date on
 20-2    which the application was filed, and the former law is continued in
 20-3    effect for that purpose.
 20-4          SECTION 16.  Sections 760A and 760B, Texas Probate Code, as
 20-5    added by this Act, apply only to a change in designation of or a
 20-6    resignation of a resident agent made on or after the effective date
 20-7    of this Act.  A change in designation of or the resignation of a
 20-8    resident agent made before the effective date of this Act is
 20-9    governed by the law in effect when the change in designation of or
20-10    the resignation of the resident agent occurred, and the former law
20-11    is continued in effect for that purpose.
20-12          SECTION 17.  The changes in law made by this Act to Sections
20-13    687(b) and 786(a), Texas Probate Code, and by Section 784(e), Texas
20-14    Probate Code, as added by this Act, apply only to an application
20-15    for the appointment of a guardian that is filed on or after the
20-16    effective date of this Act.  An application for the appointment of
20-17    a guardian that is filed before the effective date of this Act is
20-18    governed by the law in effect on the date the application was
20-19    filed, and that law is continued in effect for that purpose.
20-20          SECTION 18.  (a)  The change in law made by this Act to
20-21    Section 761, Texas Probate Code, applies only to a motion or
20-22    complaint for the removal of a joint guardian made or filed after
20-23    the effective date of this Act.
20-24          (b)  A motion or complaint for the removal of a joint
20-25    guardian made or filed before the effective date of this Act is
20-26    covered by the law in effect when the motion or complaint was made
20-27    or filed, and the former law is continued in effect for that
 21-1    purpose.
 21-2          SECTION 19.  The changes in law made by this Act to Sections
 21-3    867, 868(a), and 869A, Texas Probate Code, and Section 868B, Texas
 21-4    Probate Code, as added by this Act, apply only to an application
 21-5    for the creation of a trust filed on or after that date.  An
 21-6    application for the creation of a trust filed before the effective
 21-7    date of this Act is governed by the law in effect when the
 21-8    application was filed, and the former law is continued in effect
 21-9    for that purpose.
21-10          SECTION 20.  This Act takes effect September 1, 1999.
21-11          SECTION 21.  The importance of this legislation and the
21-12    crowded condition of the calendars in both houses create an
21-13    emergency and an imperative public necessity that the
21-14    constitutional rule requiring bills to be read on three several
21-15    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1851 was passed by the House on May
         4, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1851 on May 27, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1851 was passed by the Senate, with
         amendments, on May 25, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor