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