SRC-JBJ C.S.S.B. 1417 77(R)   
BILL ANALYSIS


Senate Research Center   C.S.S.B. 1417
77R14074 CLG-FBy: Lindsay
Jurisprudence
5/1/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

Under current Texas law, a guardian or temporary guardian of an estate can
be paid a fee of five percent of the gross income of the ward's estate and
five percent of all money paid out of the estate.  If a court finds this
amount to be unreasonably low, it can authorize reasonable compensation for
the guardian, but there are no statutory guidelines to determine if that
amount is unreasonably low or who to determine a subsequent reasonable
compensation.  C.S.S.B. 1417 amends provisions regarding such
determinations to authorize a court, on application of an interested person
or on its own motion, to review and modify the amount of compensation if
the court finds that the amount is unreasonably low when considering
services rendered as guardian or temporary guardian. 

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 Section 665, Texas Probate Code, to provide that the
guardian or temporary guardian of an estate is entitled to reasonable
compensation on application to the court at the time the court approves any
annual accounting or final accounting filed by the guardian or temporary
guardian under this chapter.  Provides that a fee of five percent of the
gross income of the ward's estate and five percent of all money paid out of
the estate is considered reasonable under this subsection if certain
conditions are met.  Authorizes the court, on application of an interested
person or on its own motion, to review and modify the amount of
compensation authorized under Subsection (b) of this section if the court
makes certain findings under certain conditions.  Prohibits a finding of
unseasonably low compensation from being established under Subsection (c)
of this section solely because the amount of compensation is less than the
usual and customary charges of the person or entity serving as guardian or
temporary guardian.  Deletes existing text regarding the term "money paid
out" and the court's authorization of reasonable compensation under certain
conditions.  Defines "money paid out."  Makes conforming and nonsubstantive
changes. 

SECTION 2.  Amends Section 666, Texas Probate Code, to provide that a
guardian is entitled to be reimbursed from the guardianship estate for all
necessary and reasonable expenses incurred in performing any duty as a
guardian, including reimbursement for the payment of reasonable attorney's
fees necessarily incurred by the guardian in connection with the management
of the estate or any other guardianship matter. 

SECTION 3.  Amends Section 667, Texas Probate Code, to set forth
requirements for all expense charges. 

SECTION 4.  Makes application of this Act prospective.

SECTION 5.  Makes application of this Act prospective.
 
SECTION 6.  Effective date: September 1, 2001.

SUMMARY OF COMMITTEE CHANGES

Differs from the original by amending the relating clause.

SECTION 1.  Differs from the original by amending previously proposed
changes to provisions regarding compensation of guardians and temporary
guardians. 

Inserts new SECTIONS 2 and 3 and renumbers previously proposed SECTION 2 as
SECTION 4 with no change.  

Inserts a new SECTION 5 and renumbers previously proposed SECTION 3 as
SECTION 6 with no change.