By Thompson H.B. No. 1883 77R1866 MTB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to limitations on certain powers exercised by an attorney 1-3 in fact or agent with respect to an elderly principal under a 1-4 durable power of attorney. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter XII, Texas Probate Code, is amended by 1-7 adding Sections 483A, 483B, and 483C to read as follows: 1-8 Sec. 483A. BOND OR COURT APPROVAL REQUIRED TO PERFORM 1-9 CERTAIN PROPERTY-RELATED TRANSACTIONS FOR ELDERLY PRINCIPALS. (a) 1-10 Unless otherwise authorized by the durable power of attorney as 1-11 prescribed by Section 483B of this code, an attorney in fact or 1-12 agent acting under a durable power of attorney for a principal who 1-13 is 55 years of age or older on the date of the transaction may not 1-14 sell, lease, or otherwise transfer the principal's interest in 1-15 property with a reasonable market value of $15,000 or more but less 1-16 than $50,000, unless: 1-17 (1) the attorney in fact or agent files with the clerk 1-18 of a court in which the principal resides a surety bond in the 1-19 amount of $50,000 payable to the court; or 1-20 (2) a court in the county in which the principal 1-21 resides approves the transaction. 1-22 (b) Unless otherwise authorized by the durable power of 1-23 attorney as prescribed by Section 483B of this code, an attorney in 1-24 fact or agent acting under a durable power of attorney for a 2-1 principal who is 55 years of age or older on the date of the 2-2 transaction may not sell, lease, or otherwise transfer the 2-3 principal's interest in property with a reasonable market value of 2-4 $50,000 or more unless a court in the county in which the principal 2-5 resides approves the transaction. 2-6 (c) Before approving a transaction under this section, a 2-7 court may require an independent appraisal of the property to 2-8 establish the property's value. 2-9 (d) On the court's own motion or on the motion of a person 2-10 interested in the principal's welfare, a court in the county in 2-11 which the principal resides, after notice and hearing, may revoke a 2-12 durable power of attorney if the court determines by a 2-13 preponderance of the evidence that: 2-14 (1) the attorney in fact or agent designated by the 2-15 principal under the instrument violated this section; and 2-16 (2) revocation of the instrument would be in the best 2-17 interests of the principal. 2-18 Sec. 483B. AUTHORIZATION TO PERFORM CERTAIN TRANSACTIONS OF 2-19 ELDERLY PRINCIPAL WITHOUT BOND REQUIREMENT OR PRIOR COURT APPROVAL. 2-20 A person who executes a durable power of attorney that confers 2-21 authority with respect to the person's property may empower the 2-22 attorney in fact or agent designated under the instrument to act 2-23 with respect to all or part of the property without the requirement 2-24 of a bond or court approval under Section 483A of this code if the 2-25 durable power of attorney contains a clear statement to that 2-26 effect. 2-27 Sec. 483C. EFFECTIVE DATE OF CERTAIN TRANSACTIONS. (a) This 3-1 section applies only to an agreement entered into by an attorney in 3-2 fact or agent acting under a durable power of attorney for a 3-3 principal who is 55 years of age or older on the date of the 3-4 agreement. 3-5 (b) An agreement to sell, lease, or otherwise transfer the 3-6 principal's interest in property with a reasonable market value of 3-7 more than $15,000 does not take effect until midnight of the third 3-8 business day after the date on which the attorney in fact or agent 3-9 signs the agreement. 3-10 SECTION 2. This Act takes effect September 1, 2001, and 3-11 applies only to a durable power of attorney, including a statutory 3-12 durable power of attorney, executed on or after that date. A 3-13 durable power of attorney executed before that date is governed by 3-14 the law in effect on the date the durable power of attorney was 3-15 executed, and the former law is continued in effect for that 3-16 purpose.