1-1 AN ACT
1-2 relating to durable powers of attorney and statutory durable powers
1-3 of attorney.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter XII, Texas Probate Code, is amended by
1-6 adding Section 489B to read as follows:
1-7 Sec. 489B. DUTY TO INFORM AND ACCOUNT. (a) The attorney in
1-8 fact or agent is a fiduciary and has a duty to inform and to
1-9 account for actions taken pursuant to the power of attorney.
1-10 (b) The attorney in fact or agent shall timely inform the
1-11 principal of all actions taken pursuant to the power of attorney.
1-12 Failure of the attorney in fact or agent to inform timely, as to
1-13 third parties, shall not invalidate any action of the attorney in
1-14 fact or agent.
1-15 (c) The attorney in fact or agent shall maintain records of
1-16 each action taken or decision made by the attorney in fact or
1-17 agent.
1-18 (d) The principal may demand an accounting by the attorney
1-19 in fact or agent. Unless otherwise directed by the principal, the
1-20 accounting shall include:
1-21 (1) the property belonging to the principal that has
1-22 come to the attorney in fact's or agent's knowledge or into the
1-23 attorney in fact's or agent's possession;
1-24 (2) all actions taken or decisions made by the
2-1 attorney in fact or agent;
2-2 (3) a complete account of receipts, disbursements, and
2-3 other actions of the attorney in fact or agent, including their
2-4 source and nature, with receipts of principal and income shown
2-5 separately;
2-6 (4) a listing of all property over which the attorney
2-7 in fact or agent has exercised control, with an adequate
2-8 description of each asset and its current value if known to the
2-9 attorney in fact or agent;
2-10 (5) the cash balance on hand and the name and location
2-11 of the depository where the balance is kept;
2-12 (6) all known liabilities; and
2-13 (7) such other information and facts known to the
2-14 attorney in fact or agent as may be necessary to a full and
2-15 definite understanding of the exact condition of the property
2-16 belonging to the principal.
2-17 (e) Unless directed otherwise by the principal, the attorney
2-18 in fact or agent shall also provide to the principal all
2-19 documentation regarding the principal's property.
2-20 (f) The attorney in fact or agent shall maintain all records
2-21 until delivered to the principal, released by the principal, or
2-22 discharged by a court.
2-23 (g) If the attorney in fact or agent fails or refuses to
2-24 inform the principal, provide documentation, or deliver the
2-25 accounting within 60 days (or such longer or shorter time that the
2-26 principal demands or a court may order), the principal may file
2-27 suit to compel the attorney in fact or agent to deliver the
3-1 accounting, to deliver the assets, or to terminate the power of
3-2 attorney.
3-3 (h) This section shall not limit the right of the principal
3-4 to terminate the power of attorney or to make additional
3-5 requirements of or to give additional instructions to the attorney
3-6 in fact or agent.
3-7 (i) Wherever in this chapter a principal is given an
3-8 authority to act, that shall include not only the principal but
3-9 also any person designated by the principal, a guardian of the
3-10 estate of the principal, or other personal representative of the
3-11 principal.
3-12 (j) The rights set out in this section and chapter are
3-13 cumulative of any other rights or remedies the principal may have
3-14 at common law or other applicable statutes and not in derogation of
3-15 those rights.
3-16 SECTION 2. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1883 was passed by the House on May
11, 2001, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1883 on May 25, 2001, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1883 was passed by the Senate, with
amendments, on May 23, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor