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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation of a farm, ranch, factory, or other |
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business by the personal representative of a decedent's estate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 238, Texas Probate Code, is amended to |
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read as follows: |
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Sec. 238. OPERATION OF FARM, RANCH, FACTORY, OR OTHER |
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BUSINESS. (a) In this section, "business" includes a farm, ranch, |
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or factory. |
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(b) A court, after notice to interested persons and a |
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hearing, may render an order authorizing the personal |
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representative of an estate to operate a farm, ranch, factory, or |
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other business that is part of the estate assets. The order may |
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specify that the personal representative is authorized to operate |
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the business for: |
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(1) the period during which the estate is pending; or |
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(2) a shorter period, as provided by the court in the |
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order. |
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(c) The court may order the personal representative to |
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report to the court regarding the condition of the estate and the |
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business being operated by the personal representative, as the |
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court determines is necessary to preserve the estate. |
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(d) In addition to the powers granted to the personal |
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representative under Section 234(b) of this code, the personal |
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representative has, on entry of an order under this section and |
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notwithstanding any other law, all powers necessary to operate the |
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business, including: |
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(1) all powers listed in Section 234(a) of this code |
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with respect to the business, without any additional court order; |
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(2) the power to hire and terminate the employment of |
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employees of the business; |
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(3) the power to incur debt on behalf of the business; |
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and |
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(4) all powers granted to a trustee under the Texas |
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Trust Code (Subtitle B, Title 9, Property Code). |
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(e) On entry of an order under Subsection (b) of this |
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section, the court clerk shall forward the order to the county clerk |
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of each county in which real property owned by the business is |
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located. The county clerk shall record the order in the real |
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property records of the county. The order constitutes notice of the |
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personal representative's powers under this section and may be |
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relied on by third parties dealing in good faith with the personal |
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representative with respect to the business. [If the estate owns a
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farm, ranch, factory, or other business, the disposition of which
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has not been specifically directed by will, and if the same be not
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required to be sold at once for the payment of debts or other lawful
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purposes, the representative, upon order of the court, shall carry
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on the operation of such farm, ranch, factory, or other business, or
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cause the same to be done, or rent the same, as shall appear to be
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for the best interest of the estate. In deciding, the court shall
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consider the condition of the estate, and the necessity that may
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exist for future sale of such property or business for the payment
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of debts, claims, or other lawful expenditures, and shall not
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extend the time of renting any of the property beyond what appears
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consistent with the speedy settlement of the estate of a deceased
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person or the settlement of his estate.] |
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SECTION 2. The change in law made by this Act applies to the |
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estate of a decedent that is pending on or after the effective date |
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of this Act, regardless of the decedent's date of death. |
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SECTION 3. This Act takes effect September 1, 2007. |