SRC-JEC H.B. 1083 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1083
77R4428 MTB-DBy: Thompson (J.E. Buster Brown)
Jurisprudence
4/11/2001
Engrossed


DIGEST AND PURPOSE 

Property owners will frequently grant a power of attorney to a spouse,
another family member, or a third party. If a property owner files for
bankruptcy the power of attorney is subsequently challenged. As proposed,
H.B. 1083 clarifies the statute to provide that a bankruptcy petition does
not void a durable power of attorney, but stays its use until the
bankruptcy is resolved.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter XII, Texas Probate Code, by adding Section 487A,
as follows: 

Sec. 487A.  EFFECT OF BANKRUPTCY PROCEEDING.  Provides that after execution
of a durable power of attorney, the filing of a voluntary or involuntary
petition in bankruptcy in connection with the principal's debts does not
revoke or terminate the agency as to the principal's attorney in fact or
agent.  Provides that any act the attorney in fact or agent may undertake
with respect to the principal's property is subject to the limitations and
requirements of the United States Bankruptcy Code until a final
determination is made in the bankruptcy proceeding. 

SECTION 2.  Effective date: September 1, 2001.