84R6538 CLG/SCL-F
 
  By: Thompson of Harris H.B. No. 3095
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to durable powers of attorney and advance directives;
  affecting laws subject to criminal penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. DURABLE POWERS OF ATTORNEY
         SECTION 1.01.  Section 751.002, Estates Code, is amended to
  read as follows:
         Sec. 751.002.  DEFINITIONS [DEFINITION] OF DURABLE POWER OF
  ATTORNEY AND AGENT.  (a) A "durable power of attorney" means a
  written instrument that:
               (1)  designates another person as [attorney in fact or]
  agent;
               (2)  is signed by an adult principal or in the adult
  principal's conscious presence by another individual directed by
  the principal to sign the principal's name on the durable power of
  attorney;
               (3)  contains:
                     (A)  the words:
                           (i)  "This power of attorney is not affected
  by subsequent disability or incapacity of the principal"; or
                           (ii)  "This power of attorney becomes
  effective on the disability or incapacity of the principal"; or
                     (B)  words similar to those of Paragraph (A) that
  show the principal's intent that the authority conferred on the
  attorney in fact or agent shall be exercised notwithstanding the
  principal's subsequent disability or incapacity; and
               (4)  is acknowledged by the principal before an officer
  authorized under the laws of this state or another state to:
                     (A)  take acknowledgments to deeds of conveyance;
  and
                     (B)  administer oaths.
         (b)  If the law of the jurisdiction that determines the
  meaning and effect of a power of attorney under Section 751.009
  provides that the authority conferred on the agent is exercisable
  notwithstanding the principal's subsequent disability or
  incapacity, the power of attorney is considered a durable power of
  attorney under this subtitle.
         (c)  In this subtitle, the term "agent" includes an "attorney
  in fact."
         SECTION 1.02.  Subchapter A, Chapter 751, Estates Code, is
  amended by adding Sections 751.007, 751.008, 751.009, 751.010,
  751.011, and 751.012 to read as follows:
         Sec. 751.007.  PRESUMPTION OF GENUINE SIGNATURE. A
  signature that purports to be the signature of the principal on a
  durable power of attorney is presumed to be genuine, and the durable
  power of attorney is presumed to have been executed under Section
  751.002 if the officer taking the acknowledgment has complied with
  the requirements of Section 121.004(b), Civil Practice and Remedies
  Code.
         Sec. 751.008.  VALIDITY OF POWER OF ATTORNEY. (a) A durable
  power of attorney executed in this state is valid if the execution
  of the instrument complies with Section 751.002.
         (b)  A durable power of attorney executed in a jurisdiction
  other than this state is valid in this state if, when executed, the
  execution of the durable power of attorney complied with:
               (1)  the law of the jurisdiction that determines the
  meaning and effect of the durable power of attorney as provided by
  Section 751.009; or
               (2)  the requirements for a military power of attorney
  as provided by 10 U.S.C. Section 1044b.
         (c)  Except as otherwise provided by statute other than this
  subtitle, a photocopy or electronically transmitted copy of an
  original durable power of attorney has the same effect as the
  original instrument.
         Sec. 751.009.  MEANING AND EFFECT OF DURABLE POWER OF
  ATTORNEY. The meaning and effect of a durable power of attorney is
  determined by the law of the jurisdiction indicated in the durable
  power of attorney and, in the absence of an indication of
  jurisdiction, by the law of the jurisdiction in which the durable
  power of attorney was executed.
         Sec. 751.010.  JUDICIAL RELIEF. (a) The following may bring
  an action in which a court is requested to construe a durable power
  of attorney or review the agent's conduct and grant appropriate
  relief:
               (1)  the principal or the agent;
               (2)  a guardian, conservator, or other fiduciary acting
  for the principal;
               (3)  a person named as a beneficiary to receive any
  property, benefit, or contractual right on the principal's death;
               (4)  a governmental agency having regulatory authority
  to protect the welfare of the principal; and 
               (5)  a person who demonstrates to the court sufficient
  interest in the principal's welfare or estate.
         (b)  A person who is requested to accept a durable power of
  attorney may bring an action in a court to construe the durable
  power of attorney.
         (c)  On motion by the principal, the court shall dismiss an
  action filed under this section unless the court finds that the
  principal lacks capacity to revoke the agent's authority or the
  durable power of attorney.
         Sec. 751.011.  CO-AGENTS AND SUCCESSOR AGENTS. (a) A
  principal may designate two or more persons to act as co-agents.
  Unless the durable power of attorney otherwise provides, each
  co-agent may exercise authority independently of the other
  co-agent.
         (b)  A principal may designate one or more successor agents
  to act if an agent resigns, dies, becomes incapacitated, is not
  qualified to serve, or declines to serve. A principal may grant
  authority to designate one or more successor agents to an agent or
  other person designated by name, office, or function. Unless the
  durable power of attorney otherwise provides, a successor agent:
               (1)  has the same authority as the authority granted to
  the predecessor agent; and
               (2)  is not considered an agent under this subtitle and
  may not act until all predecessor agents have resigned, died,
  become incapacitated, are no longer qualified to serve, or have
  declined to serve.
         (c)  Except as otherwise provided by Subsection (d) or the
  durable power of attorney, an agent who does not participate in or
  conceal a breach of fiduciary duty committed by another agent,
  including a predecessor agent, is not liable for the actions of the
  other agent.
         (d)  An agent who has actual knowledge of a breach or
  imminent breach of fiduciary duty by another agent shall notify the
  principal and, if the principal is incapacitated, shall take any
  action reasonably appropriate under the circumstances to safeguard
  the principal's best interest. An agent who fails to notify the
  principal or take action as required by this subsection is liable
  for the reasonably foreseeable damages that could have been avoided
  if the agent had notified the principal or taken the action.
         Sec. 751.012.  REIMBURSEMENT AND COMPENSATION OF AGENT.
  Unless the durable power of attorney otherwise provides, an agent
  is entitled to reimbursement of reasonable expenses incurred on the
  principal's behalf and to compensation that is reasonable under the
  circumstances.
         SECTION 1.03.  The heading to Subchapter B, Chapter 751,
  Estates Code, is amended to read as follows:
  SUBCHAPTER B.  EFFECT OF CERTAIN ACTS ON EXERCISE OF DURABLE POWER
  OF ATTORNEY; DURATION; ACCEPTANCE AND RELIANCE
         SECTION 1.04.  Section 751.051, Estates Code, is amended to
  read as follows:
         Sec. 751.051.  EFFECT OF ACTS PERFORMED BY [ATTORNEY IN FACT
  OR] AGENT [DURING PRINCIPAL'S DISABILITY OR INCAPACITY]. (a) An
  [Each] act performed by an [attorney in fact or] agent under a
  durable power of attorney [during a period of the principal's
  disability or incapacity] has the same effect[,] and inures to the
  benefit of and binds the principal and the principal's successors
  in interest[,] as if the principal had performed the act [were not
  disabled or incapacitated].
         (b)  If a durable power of attorney grants an agent
  appropriate authority with respect to a transaction, an agent may
  execute and deliver the documents necessary for the transaction,
  including documents creating a lien against the principal's
  homestead under Section 50, Article XVI, Texas Constitution,
  regardless of the fact that the durable power of attorney was signed
  before the transaction.
         SECTION 1.05.  Section 751.052, Estates Code, is amended to
  read as follows:
         Sec. 751.052.  RELATION OF [ATTORNEY IN FACT OR] AGENT TO
  COURT-APPOINTED GUARDIAN OF ESTATE. (a)  If, after execution of a
  durable power of attorney, a court of the principal's domicile
  appoints a permanent guardian of the estate of the principal, the
  powers of the [attorney in fact or] agent terminate on the
  qualification of the guardian of the estate.  The [attorney in fact
  or] agent shall:
               (1)  deliver to the guardian of the estate all assets of
  the ward's estate that are in the possession of the [attorney in
  fact or] agent; and
               (2)  account to the guardian of the estate as the
  [attorney in fact or] agent would account to the principal if the
  principal had terminated the powers of the [attorney in fact or]
  agent.
         (b)  If, after execution of a durable power of attorney, a
  court of the principal's domicile appoints a temporary guardian of
  the estate of the principal, the court may suspend the powers of the
  [attorney in fact or] agent on the qualification of the temporary
  guardian of the estate until the date the term of the temporary
  guardian expires.  This subsection may not be construed to prohibit
  the application for or issuance of a temporary restraining order
  under applicable law.
         SECTION 1.06.  Section 751.057, Estates Code, is amended to
  read as follows:
         Sec. 751.057.  EFFECT OF BANKRUPTCY PROCEEDING. (a)  The
  filing of a voluntary or involuntary petition in bankruptcy in
  connection with the debts of a principal who has executed a durable
  power of attorney does not revoke or terminate the agency as to the
  principal's [attorney in fact or] agent.
         (b)  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
  (11 U.S.C. Section 101 et seq.) until a final determination is made
  in the bankruptcy proceeding.
         SECTION 1.07.  Chapter 751, Estates Code, is amended by
  adding Subchapter B-1 to read as follows:
  SUBCHAPTER B-1. DURATION OF DURABLE POWER OF ATTORNEY; ACCEPTANCE
  OF AND RELIANCE ON DURABLE POWER OF ATTORNEY
         Sec. 751.061.  TERMINATION OF DURABLE POWER OF ATTORNEY. A
  durable power of attorney terminates when:
               (1)  the principal dies;
               (2)  the principal revokes the durable power of
  attorney;
               (3)  the durable power of attorney provides that it
  terminates;
               (4)  the purpose of the durable power of attorney is
  accomplished;
               (5)  the principal revokes the agent's authority or the
  agent dies, becomes incapacitated, or resigns, and the durable
  power of attorney does not provide for another agent to act under
  the durable power of attorney; or
               (6)  a permanent guardian of the estate of the
  principal has qualified to serve in that capacity as provided by
  Section 751.052.
         Sec. 751.062.  TERMINATION OF AGENT'S AUTHORITY. (a) An
  agent's authority under a durable power of attorney terminates
  when:
               (1)  the principal revokes the authority;
               (2)  the agent dies, becomes incapacitated, or resigns;
               (3)  an action is filed for the dissolution or
  annulment of the agent's marriage to the principal or to declare the
  marriage of the agent and principal void, unless the durable power
  of attorney otherwise provides; or
               (4)  the durable power of attorney terminates.
         (b)  Unless the durable power of attorney otherwise
  provides, an agent's authority may be exercised until the agency's
  authority terminates under Subsection (a), notwithstanding a lapse
  of time since the execution of the durable power of attorney.
         Sec. 751.063.  EFFECT OF TERMINATION OF DURABLE POWER OF
  ATTORNEY OR AGENT'S AUTHORITY ON CERTAIN PERSONS. Termination of an
  agent's authority or of a durable power of attorney is not effective
  as to the agent or another person who, without actual knowledge of
  the termination, acts in good faith under or in reliance on the
  durable power of attorney. An act performed as described by this
  section, unless otherwise invalid or unenforceable, binds the
  principal and the principal's successors in interest.
         Sec. 751.064.  EFFECT ON PREVIOUS DURABLE POWER OF ATTORNEY.
  The execution of a durable power of attorney does not revoke a
  durable power of attorney previously executed by the principal
  unless the subsequent durable power of attorney provides that the
  previous durable power of attorney is revoked or that all other
  durable powers of attorney are revoked.
         Sec. 751.065.  ACCEPTANCE OF AND RELIANCE ON POWER OF
  ATTORNEY. (a) A person who in good faith accepts a durable power of
  attorney without actual knowledge that the signature of the
  principal is not genuine may rely on the presumption under Section
  751.007 that the signature is genuine and that the durable power of
  attorney was properly executed.
         (b)  A person who in good faith accepts a durable power of
  attorney without actual knowledge that the durable power of
  attorney is void, invalid, or terminated, that the purported
  agent's authority is void, invalid, or terminated, or that the
  agent is exceeding or improperly exercising the agent's authority
  may rely on the power of attorney as if:
               (1)  the power of attorney were genuine, valid, and
  still in effect;
               (2)  the agent's authority were genuine, valid, and
  still in effect; and
               (3)  the agent had not exceeded and had properly
  exercised the authority.
         (c)  A person who is requested to accept a durable power of
  attorney may request, and rely on, without further investigation:
               (1)  an agent's certification under penalty of perjury
  of any factual matter concerning the principal, agent, or power of
  attorney;
               (2)  an English translation of the power of attorney if
  the power of attorney contains, wholly or partly, language other
  than English; and
               (3)  an opinion of counsel as to any matter of law
  concerning the power of attorney if the person making the request
  provides in a writing or other record the reason for the request.
         (d)  An English translation or an opinion of counsel
  requested under this section must be provided to the principal at
  the principal's own expense unless the request is made not earlier
  than the seventh business day after the date the power of attorney
  is presented for acceptance.
         (e)  For purposes of this section and Section 751.066, a
  person who conducts activities through employees is without actual
  knowledge of a fact relating to a durable power of attorney, a
  principal, or an agent if the employee conducting the transaction
  involving the power of attorney is without actual knowledge of the
  fact.
         Sec. 751.066.  LIABILITY FOR REFUSAL TO ACCEPT POWER OF
  ATTORNEY. (a) Except as otherwise provided by Subsection (d), a
  person shall either accept a durable power of attorney or request a
  certification, a translation, or an opinion of counsel under
  Section 751.065 not later than the seventh business day after the
  date the durable power of attorney is presented for acceptance.
         (b)  A person who requests a certification, a translation, or
  an opinion of counsel under Section 751.065 must accept the durable
  power of attorney not later than the fifth business day after the
  date on which the certification, translation, or opinion of counsel
  is received.
         (c)  Except as provided by Subsection (d), a person may not:
               (1)  require an additional or different form of durable
  power of attorney for authority granted in the durable power of
  attorney presented; or
               (2)  require that the durable power of attorney be
  recorded in the official public records of a county clerk unless the
  recordation is required by Section 751.151.
         (d)  A person is not required to accept a durable power of
  attorney if:
               (1)  the person is not otherwise required to engage in a
  transaction with the principal in the same circumstances;
               (2)  the person's engagement in a transaction with the
  agent or the principal in the same circumstances would be
  inconsistent with state or federal law other than this chapter;
               (3)  the person has actual knowledge of the termination
  of the agent's authority or of the power of attorney before exercise
  of the power;
               (4)  a request for a certification, a translation, or
  an opinion of counsel under Section 751.065 is refused;
               (5)  the person in good faith believes that the power is
  not valid or that the agent does not have the authority to perform
  the act requested, regardless of whether a certification, a
  translation, or an opinion of counsel under Section 751.065 has
  been requested or provided;
               (6)  the person makes, or has actual knowledge that
  another person has made, a report to a law enforcement agency or
  other federal or state agency, including the Department of Family
  and Protective Services, stating a good faith belief that the
  principal may be subject to physical or financial abuse, neglect,
  exploitation, or abandonment by the agent or a person acting on
  behalf of or with the agent; or
               (7)  the person has received conflicting instructions
  or communications from co-agents regarding a matter, or in good
  faith believes that co-agents do not agree regarding a matter, but
  the person may refuse to accept the durable power of attorney only
  with respect to that matter.
         (e)  A person who refuses to accept a durable power of
  attorney in violation of this section is subject to:
               (1)  a judgment for damages to the same extent as if the
  person had refused to allow the principal to act on the principal's
  own behalf;
               (2)  a court order mandating acceptance of the durable
  power of attorney; and
               (3)  liability for reasonable attorney's fees and costs
  incurred in any proceeding that:
                     (A)  confirms the validity of the durable power of
  attorney;
                     (B)  results in the award of damages against the
  person; or
                     (C)  mandates acceptance of the durable power of
  attorney.
         SECTION 1.08.  Sections 751.101, 751.102, 751.103, 751.104,
  751.105, and 751.106, Estates Code, are amended to read as follows:
         Sec. 751.101.  FIDUCIARY DUTIES.  An [attorney in fact or]
  agent is a fiduciary and has a duty to inform and to account for
  actions taken under the power of attorney.
         Sec. 751.102.  DUTY TO TIMELY INFORM PRINCIPAL. (a)  The
  [attorney in fact or] agent shall timely inform the principal of
  each action taken under the power of attorney.
         (b)  Failure of an [attorney in fact or] agent to timely
  inform, as to third parties, does not invalidate any action of the
  [attorney in fact or] agent.
         Sec. 751.103.  MAINTENANCE OF RECORDS. (a)  The [attorney
  in fact or] agent shall maintain records of each action taken or
  decision made by the [attorney in fact or] agent.
         (b)  The [attorney in fact or] agent shall maintain all
  records until delivered to the principal, released by the
  principal, or discharged by a court.
         Sec. 751.104.  ACCOUNTING. (a)  The principal may demand an
  accounting by the [attorney in fact or] agent.
         (b)  Unless otherwise directed by the principal, an
  accounting under Subsection (a) must include:
               (1)  the property belonging to the principal that has
  come to the [attorney in fact's or] agent's knowledge or into the
  [attorney in fact's or] agent's possession;
               (2)  each action taken or decision made by the
  [attorney in fact or] agent;
               (3)  a complete account of receipts, disbursements, and
  other actions of the [attorney in fact or] agent that includes
  the  source and nature of each receipt, disbursement, or action,
  with receipts of principal and income shown separately;
               (4)  a listing of all property over which the [attorney
  in fact or] agent has exercised control that includes:
                     (A)  an adequate description of each asset; and
                     (B)  the asset's current value, if the value is
  known to the [attorney in fact or] agent;
               (5)  the cash balance on hand and the name and location
  of the depository at which the cash balance is kept;
               (6)  each known liability; and
               (7)  any other information and facts known to the
  [attorney in fact or] agent as necessary for a full and definite
  understanding of the exact condition of the property belonging to
  the principal.
         (c)  Unless directed otherwise by the principal, the
  [attorney in fact or] agent shall also provide to the principal all
  documentation regarding the principal's property.
         Sec. 751.105.  EFFECT OF FAILURE TO COMPLY; SUIT.  If the
  [attorney in fact or] agent fails or refuses to inform the
  principal, provide documentation, or deliver an accounting under
  Section 751.104 within 60 days of a demand under that section, or a
  longer or shorter period as demanded by the principal or ordered by
  a court, the principal may file suit to:
               (1)  compel the [attorney in fact or] agent to deliver
  the accounting or the assets; or
               (2)  terminate the power of attorney.
         Sec. 751.106.  EFFECT OF SUBCHAPTER ON PRINCIPAL'S
  RIGHTS.  This subchapter does not limit the right of the principal
  to terminate the power of attorney or to make additional
  requirements of or to give additional instructions to the [attorney
  in fact or] agent.
         SECTION 1.09.  Section 751.151, Estates Code, is amended to
  read as follows:
         Sec. 751.151.  RECORDING FOR REAL PROPERTY TRANSACTIONS
  REQUIRING EXECUTION AND DELIVERY OF INSTRUMENTS.  A durable power
  of attorney for a real property transaction requiring the execution
  and delivery of an instrument that is to be recorded, including a
  release, assignment, satisfaction, mortgage, security agreement,
  home equity lien, reverse mortgage, deed of trust, encumbrance,
  deed of conveyance, oil, gas, or other mineral lease, memorandum of
  a lease, lien, or other claim or right to real property, must be
  recorded in the office of the county clerk of the county in which
  the property is located.
         SECTION 1.10.  Chapter 751, Estates Code, is amended by
  adding Subchapter E to read as follows:
  SUBCHAPTER E. AUTHORITY OF AGENT UNDER POWER OF ATTORNEY
         Sec. 751.201.  GRANT OF GENERAL AUTHORITY; AUTHORITY
  REQUIRING SPECIFIC GRANT. (a) Only if the power of attorney
  expressly grants the agent the authority and the exercise of the
  authority is not otherwise prohibited by another agreement or
  instrument to which the authority or property is subject, an agent
  under a durable power of attorney, on behalf of the principal or
  with respect to the principal's property, may:
               (1)  create, amend, revoke, or terminate an inter vivos
  trust;
               (2)  make a gift;
               (3)  create or change rights of survivorship;
               (4)  create or change a beneficiary designation;
               (5)  delegate authority granted under the power of
  attorney; or
               (6)  waive the principal's right to be a beneficiary of
  a joint and survivor annuity, including a survivor benefit under a
  retirement plan.
         (b)  Notwithstanding a grant of authority to perform an act
  described by Subsection (a), unless the durable power of attorney
  otherwise provides, an agent who is not an ancestor, spouse, or
  descendant of the principal may not exercise authority under the
  power of attorney to create in the agent, or in an individual to
  whom the agent owes a legal obligation of support, an interest in
  the principal's property, whether by gift, right of survivorship,
  beneficiary designation, disclaimer, or otherwise.
         (c)  Subject to Subsections (a), (b), (d), and (e), if a
  durable power of attorney grants to an agent the authority to
  perform all acts that a principal could perform, the agent has the
  general authority conferred by Subchapter C, Chapter 752.
         (d)  Unless the durable power of attorney otherwise
  provides, a grant of authority to make a gift is subject to Section
  751.202.
         (e)  Subject to Subsections (a), (b), and (d), if the
  subjects over which authority is granted in a durable power of
  attorney are similar or overlap, the broadest authority controls.
         (f)  Authority granted in a durable power of attorney is
  exercisable with respect to property that the principal has when
  the power of attorney is executed or acquires later, regardless of
  whether:
               (1)  the property is located in this state; and
               (2)  the authority is exercised in this state or the
  power of attorney is executed in this state.
         (g)  An agent who is expressly granted any of the authority
  under Subsection (a) shall attempt to preserve the principal's
  estate plan, to the extent actually known by the agent, if
  preserving the plan is consistent with the principal's best
  interest based on all relevant factors, including:
               (1)  the value and nature of the principal's property;
               (2)  the principal's foreseeable obligations and need
  for maintenance;
               (3)  minimization of taxes, including income, estate,
  inheritance, generation-skipping transfer, and gift taxes; and
               (4)  eligibility for a benefit, a program, or
  assistance under a statute or regulation.
         Sec. 751.202.  GIFTS. (a) In this section, a gift for the
  benefit of a person includes:
               (1)  a gift to a trust;
               (2)  an account under the Texas Uniform Transfers to
  Minors Act or a similar law of any other state; and
               (3)  a tuition savings account or prepaid tuition plan
  as described by Section 529, Internal Revenue Code of 1986.
         (b)  Unless the durable power of attorney otherwise
  provides, language in a power of attorney granting general
  authority with respect to gifts authorizes the agent to only:
               (1)  make outright to, or for the benefit of, a person a
  gift of any of the principal's property, including by the exercise
  of a presently exercisable general power of appointment held by the
  principal, in an amount per donee not to exceed:
                     (A)  the annual dollar limits of the federal gift
  tax exclusion under Section 2503(b), Internal Revenue Code of 1986,
  without regard to whether the federal gift tax exclusion applies to
  the gift; or
                     (B)  if the principal's spouse agrees to consent
  to a split gift as provided by Section 2513, Internal Revenue Code
  of 1986, twice the annual federal gift tax exclusion limit; and
               (2)  consent, as provided by Section 2513, Internal
  Revenue Code of 1986, to the splitting of a gift made by the
  principal's spouse in an amount per donee not to exceed the
  aggregate annual gift tax exclusions for both spouses.
         (c)  An agent may make a gift of the principal's property
  only as the agent determines is consistent with the principal's
  objectives if actually known by the agent and, if unknown, as the
  agent determines is consistent with the principal's best interest
  based on all relevant factors, including:
               (1)  the value and nature of the principal's property;
               (2)  the principal's foreseeable obligations and need
  for maintenance;
               (3)  minimization of taxes, including income, estate,
  inheritance, generation-skipping transfer, and gift taxes;
               (4)  eligibility for a benefit, a program, or
  assistance under a statute or regulation; and
               (5)  the principal's personal history of making or
  joining in making gifts.
         Sec. 751.203.  BENEFICIARY DESIGNATIONS. (a)  Unless the
  durable power of attorney otherwise provides, authority granted to
  an agent under Section 751.201(a)(4) includes the power to:
               (1)  create or change a beneficiary designation under
  an account, a contract, or another arrangement that authorizes the
  principal to designate a beneficiary, including insurance and
  annuity contracts, qualified and nonqualified retirement plans,
  including those retirement plans defined by Section 752.113,
  employment agreements, including deferred compensation agreements,
  and residency agreements;
               (2)  enter into or change a P.O.D. account or trust
  account under Chapter 113; or
               (3)  create or change a nontestamentary payment or
  transfer under Chapter 111.
         (b)  If an agent is granted authority under Section
  751.201(a)(4) and if the durable power of attorney grants the
  authority to the agent in Section 752.108 or 752.113, then, unless
  the durable power of attorney otherwise provides, the authority of
  the agent to designate the agent as a beneficiary is not subject to
  the limitations prescribed by Sections 752.108(b) and 752.113(c).
         (c)  If an agent is not granted authority under Section
  751.201(a)(4) and if the durable power of attorney grants the
  authority to the agent in Section 752.108 or 752.113, then, unless
  the durable power of attorney otherwise provides and
  notwithstanding Section 751.201, the agent's authority to
  designate the agent as a beneficiary is subject to the limitations
  prescribed by Sections 752.108(b) and 752.113(c).
         Sec. 751.204.  INCORPORATION OF AUTHORITY. (a) An agent has
  authority described in this chapter if the durable power of
  attorney refers to general authority with respect to the
  descriptive term for the subjects stated in Chapter 752 or cites the
  section in which the authority is described.
         (b)  A reference in a durable power of attorney to general
  authority with respect to the descriptive term for a subject in
  Chapter 752 or a citation to one of those sections incorporates the
  entire section as if the section were set out in its entirety in the
  durable power of attorney.
         (c)  A principal may modify authority incorporated by
  reference.
         SECTION 1.11.  Section 752.051, Estates Code, is amended to
  read as follows:
         Sec. 752.051.  FORM.  The following form is known as a
  "statutory durable power of attorney":
  STATUTORY DURABLE POWER OF ATTORNEY
  NOTICE:  THE POWERS GRANTED BY THIS DOCUMENT ARE BROAD AND
  SWEEPING. THEY ARE EXPLAINED IN THE DURABLE POWER OF ATTORNEY ACT,
  SUBTITLE P, TITLE 2, ESTATES CODE.  IF YOU HAVE ANY QUESTIONS ABOUT
  THESE POWERS, OBTAIN COMPETENT LEGAL ADVICE.  THIS DOCUMENT DOES
  NOT AUTHORIZE ANYONE TO MAKE MEDICAL AND OTHER HEALTH-CARE
  DECISIONS FOR YOU.  YOU MAY REVOKE THIS POWER OF ATTORNEY IF YOU
  LATER WISH TO DO SO.
         You should select someone you trust to serve as your agent
  (attorney in fact).  Unless you specify otherwise, generally the
  agent's (attorney in fact's) authority will continue until:
               (1)  you die or revoke the power of attorney;
               (2)  your agent (attorney in fact) resigns or is unable
  to act for you; or
               (3)  a guardian is appointed for your estate.
         I, __________ (insert your name and address), appoint
  __________ (insert the name and address of the person appointed) as
  my agent (attorney in fact) to act for me in any lawful way with
  respect to all of the following powers that I have initialed below.
  (YOU MAY APPOINT CO-AGENTS. UNLESS YOU PROVIDE OTHERWISE,
  CO-AGENTS MAY ACT INDEPENDENTLY.)
         TO GRANT ALL OF THE FOLLOWING POWERS, INITIAL THE LINE IN
  FRONT OF (N) AND IGNORE THE LINES IN FRONT OF THE OTHER POWERS
  LISTED IN (A) THROUGH (M).
         TO GRANT A POWER, YOU MUST INITIAL THE LINE IN FRONT OF THE
  POWER YOU ARE GRANTING.
         TO WITHHOLD A POWER, DO NOT INITIAL THE LINE IN FRONT OF THE
  POWER.  YOU MAY, BUT DO NOT NEED TO, CROSS OUT EACH POWER WITHHELD.
         ____ (A) Real property transactions;
         ____ (B) Tangible personal property transactions;
         ____ (C) Stock and bond transactions;
         ____ (D) Commodity and option transactions;
         ____ (E) Banking and other financial institution
  transactions;
         ____ (F) Business operating transactions;
         ____ (G) Insurance and annuity transactions;
         ____ (H) Estate, trust, and other beneficiary transactions;
         ____ (I) Claims and litigation;
         ____ (J) Personal and family maintenance;
         ____ (K) Benefits from social security, Medicare, Medicaid,
  or other governmental programs or civil or military service;
         ____ (L) Retirement plan transactions;
         ____ (M) Tax matters;
         ____ (N) ALL OF THE POWERS LISTED IN (A) THROUGH (M).  YOU DO
  NOT HAVE TO INITIAL THE LINE IN FRONT OF ANY OTHER POWER IF YOU
  INITIAL LINE (N).
  SPECIAL INSTRUCTIONS:
         Special instructions applicable to gifts (initial in front of
  the following sentence to have it apply):
  ____ I grant my agent (attorney in fact) the power to apply my
  property to make gifts outright to or for the benefit of a person,
  including by the exercise of a presently exercisable general power
  of appointment held by me, except that the amount of a gift to an
  individual may not exceed the amount of annual exclusions allowed
  from the federal gift tax for the calendar year of the gift.
         ON THE FOLLOWING LINES YOU MAY GIVE SPECIAL INSTRUCTIONS
  LIMITING OR EXTENDING THE POWERS GRANTED TO YOUR AGENT.
  ________________________________________________________________
  ________________________________________________________________
  ________________________________________________________________
  ________________________________________________________________
  ________________________________________________________________
  ________________________________________________________________
  ________________________________________________________________
  ________________________________________________________________
  ________________________________________________________________
         UNLESS YOU DIRECT OTHERWISE BELOW [ABOVE], THIS POWER OF
  ATTORNEY IS EFFECTIVE IMMEDIATELY AND WILL CONTINUE UNTIL IT
  TERMINATES [IS REVOKED].
         CHOOSE ONE OF THE FOLLOWING ALTERNATIVES BY CROSSING OUT THE
  ALTERNATIVE NOT CHOSEN:
         (A)  This power of attorney is not affected by my subsequent
  disability or incapacity.
         (B)  This power of attorney becomes effective upon my
  disability or incapacity.
         YOU SHOULD CHOOSE ALTERNATIVE (A) IF THIS POWER OF ATTORNEY
  IS TO BECOME EFFECTIVE ON THE DATE IT IS EXECUTED.
         IF NEITHER (A) NOR (B) IS CROSSED OUT, IT WILL BE ASSUMED THAT
  YOU CHOSE ALTERNATIVE (A).
         If Alternative (B) is chosen and a definition of my
  disability or incapacity is not contained in this power of
  attorney, I shall be considered disabled or incapacitated for
  purposes of this power of attorney if a physician certifies in
  writing at a date later than the date this power of attorney is
  executed that, based on the physician's medical examination of me,
  I am mentally incapable of managing my financial affairs.  I
  authorize the physician who examines me for this purpose to
  disclose my physical or mental condition to another person for
  purposes of this power of attorney.  A third party who accepts this
  power of attorney is fully protected from any action taken under
  this power of attorney that is based on the determination made by a
  physician of my disability or incapacity.
         I agree that any third party who receives a copy of this
  document may act under it.  Termination [Revocation] of the durable
  power of attorney is not effective as to a third party until the
  third party receives actual notice of the termination
  [revocation].  I agree to indemnify the third party for any claims
  that arise against the third party because of reliance on this power
  of attorney.
         If any agent named by me dies, becomes legally disabled,
  resigns, or refuses to act, I name the following (each to act alone
  and successively, in the order named) as successor(s) to that
  agent:  __________.
         Signed this ______ day of __________, _____________
                                             ___________________________
                                             (your signature)
  State of _______________________
  County of ______________________
  This document was acknowledged before me on ____________(date) by
  ________________________
  (name of principal)
                                             ___________________________
                                             (signature of notarial
  officer)
  (Seal, if any, of notary) ______________________________________
                                       (printed name)
  My commission expires: __________
  IMPORTANT INFORMATION FOR AGENT (ATTORNEY IN FACT)
  Agent's Duties
         When you accept the authority granted under this power of
  attorney, you establish a "fiduciary" relationship with the
  principal.  This is a special legal relationship that imposes on
  you legal duties that continue until you resign or the power of
  attorney is terminated or revoked by the principal or by operation
  of law.  A fiduciary duty generally includes the duty to:
               (1)  act in good faith;
               (2)  do nothing beyond the authority granted in this
  power of attorney;
               (3)  act loyally for the principal's benefit;
               (4)  avoid conflicts that would impair your ability to
  act in the principal's best interest; and
               (5)  disclose your identity as an agent or attorney in
  fact when you act for the principal by writing or printing the name
  of the principal and signing your own name as "agent" or "attorney
  in fact" in the following manner:
         (Principal's Name) by (Your Signature) as Agent (or as
  Attorney in Fact)
         In addition, the Durable Power of Attorney Act (Subtitle P,
  Title 2, Estates Code) requires you to:
               (1)  maintain records of each action taken or decision
  made on behalf of the principal;
               (2)  maintain all records until delivered to the
  principal, released by the principal, or discharged by a court; and
               (3)  if requested by the principal, provide an
  accounting to the principal that, unless otherwise directed by the
  principal or otherwise provided in the Special Instructions, must
  include:
                     (A)  the property belonging to the principal that
  has come to your knowledge or into your possession;
                     (B)  each action taken or decision made by you as
  agent or attorney in fact;
                     (C)  a complete account of receipts,
  disbursements, and other actions of you as agent or attorney in fact
  that includes the source and nature of each receipt, disbursement,
  or action, with receipts of principal and income shown separately;
                     (D)  a listing of all property over which you have
  exercised control that includes an adequate description of each
  asset and the asset's current value, if known to you;
                     (E)  the cash balance on hand and the name and
  location of the depository at which the cash balance is kept;
                     (F)  each known liability;
                     (G)  any other information and facts known to you
  as necessary for a full and definite understanding of the exact
  condition of the property belonging to the principal; and
                     (H)  all documentation regarding the principal's
  property.
  Termination of Agent's Authority
         You must stop acting on behalf of the principal if you learn
  of any event that terminates this power of attorney or your
  authority under this power of attorney.  An event that terminates
  this power of attorney or your authority to act under this power of
  attorney includes:
               (1)  the principal's death;
               (2)  the principal's revocation of this power of
  attorney or your authority;
               (3)  the occurrence of a termination event stated in
  this power of attorney;
               (4)  if you are married to the principal, the
  dissolution of your marriage by court decree of divorce or
  annulment;
               (5)  the appointment and qualification of a permanent
  guardian of the principal's estate; or
               (6)  if ordered by a court, the suspension of this power
  of attorney on the appointment and qualification of a temporary
  guardian until the date the term of the temporary guardian expires.
  Liability of Agent
         The authority granted to you under this power of attorney is
  specified in the Durable Power of Attorney Act (Subtitle P, Title 2,
  Estates Code).  If you violate the Durable Power of Attorney Act or
  act beyond the authority granted, you may be liable for any damages
  caused by the violation or subject to prosecution for
  misapplication of property by a fiduciary under Chapter 32 of the
  Texas Penal Code.
         THE ATTORNEY IN FACT OR AGENT, BY ACCEPTING OR ACTING UNDER
  THE APPOINTMENT, ASSUMES THE FIDUCIARY AND OTHER LEGAL
  RESPONSIBILITIES OF AN AGENT.
         SECTION 1.12.  Subchapter B, Chapter 752, Estates Code, is
  amended by adding Section 752.052 to read as follows:
         Sec. 752.052.  MODIFYING STATUTORY FORM TO GRANT SPECIFIC
  AUTHORITY. The statutory durable power of attorney may be modified
  to allow the principal to grant the agent the specific authority
  described by Section 751.201 by including the following language:
  "GRANT OF SPECIFIC AUTHORITY (OPTIONAL)
         My agent MAY NOT do any of the following specific acts for me
  UNLESS I have INITIALED the specific authority listed below:
  (CAUTION: Granting any of the following will give your agent the
  authority to take actions that could significantly reduce your
  property or change how your property is distributed at your death.
  INITIAL ONLY the specific authority you WANT to give your agent. If
  you DO NOT want to grant your agent one or more of the following
  powers, you may also CROSS OUT such power.)
         (  )  Create, amend, revoke, or terminate an inter vivos
  trust
         (  )  Make a gift, subject to the limitations of Section
  751.202, the Durable Power of Attorney Act, and any special
  instructions in this power of attorney
         (  )  Create or change rights of survivorship
         (  )  Create or change a beneficiary designation
         (  )  Authorize another person to exercise the authority
  granted under this power of attorney
         (  )  Waive the principal's right to be a beneficiary of a
  joint and survivor annuity, including a survivor benefit under a
  retirement plan".
         SECTION 1.13.  Section 752.102, Estates Code, is amended to
  read as follows:
         Sec. 752.102.  REAL PROPERTY TRANSACTIONS. (a) The language
  conferring authority with respect to real property transactions in
  a statutory durable power of attorney empowers the attorney in fact
  or agent, without further reference to a specific description of
  the real property, to:
               (1)  accept as a gift or as security for a loan or
  reject, demand, buy, lease, receive, or otherwise acquire an
  interest in real property or a right incident to real property;
               (2)  sell, exchange, convey with or without covenants,
  quitclaim, release, surrender, mortgage, encumber, partition or
  consent to partitioning, subdivide, apply for zoning, rezoning, or
  other governmental permits, plat or consent to platting, develop,
  grant options concerning, lease or sublet, or otherwise dispose of
  an estate or interest in real property or a right incident to real
  property;
               (3)  release, assign, satisfy, and enforce by
  litigation, action, or otherwise a mortgage, deed of trust,
  encumbrance, lien, or other claim to real property that exists or is
  claimed to exist;
               (4)  perform any act of management or of conservation
  with respect to an interest in real property, or a right incident to
  real property, owned or claimed to be owned by the principal,
  including the authority to:
                     (A)  insure against a casualty, liability, or
  loss;
                     (B)  obtain or regain possession or protect the
  interest or right by litigation, action, or otherwise;
                     (C)  pay, compromise, or contest taxes or
  assessments or apply for and receive refunds in connection with the
  taxes or assessments;
                     (D)  purchase supplies, hire assistance or labor,
  or make repairs or alterations to the real property; and
                     (E)  manage and supervise an interest in real
  property, including the mineral estate[, by, for example:
                           [(i)     entering into a lease for oil, gas, and
  mineral purposes;
                           [(ii)     making contracts for development of
  the mineral estate; or
                           [(iii)     making pooling and unitization
  agreements];
               (5)  use, develop, alter, replace, remove, erect, or
  install structures or other improvements on real property in which
  the principal has or claims to have an estate, interest, or right;
               (6)  participate in a reorganization with respect to
  real property or a legal entity that owns an interest in or right
  incident to real property, receive and hold shares of stock or
  obligations received in a plan or reorganization, and act with
  respect to the shares or obligations, including:
                     (A)  selling or otherwise disposing of the shares
  or obligations;
                     (B)  exercising or selling an option, conversion,
  or similar right with respect to the shares or obligations; and
                     (C)  voting the shares or obligations in person or
  by proxy;
               (7)  change the form of title of an interest in or right
  incident to real property; [and]
               (8)  dedicate easements or other real property in which
  the principal has or claims to have an interest to public use, with
  or without consideration;
               (9)  enter into mineral transactions, including:
                     (A)  negotiating and making oil, gas, and other
  mineral leases covering any land, mineral, or royalty interest in
  which the principal has or claims to have an interest;
                     (B)  pooling and unitizing all or part of the
  principal's land, mineral leasehold, mineral, royalty, or other
  interest with land, mineral leasehold, mineral, royalty, or other
  interest of one or more persons for the purpose of developing and
  producing oil, gas, or other minerals, and making leases or
  assignments granting the right to pool and unitize;
                     (C)  entering into contracts and agreements
  concerning the installation and operation of plants or other
  facilities for the cycling, repressuring, processing, or other
  treating or handling of oil, gas, or other minerals;
                     (D)  conducting or contracting for the conducting
  of seismic evaluation operations;
                     (E)  drilling or contracting for the drilling of
  wells for oil, gas, or other minerals;
                     (F)  contracting for and making "dry hole" and
  "bottom hole" contributions of cash, leasehold interests, or other
  interests towards the drilling of wells;
                     (G)  using or contracting for the use of any
  method of secondary or tertiary recovery of any mineral, including
  the injection of water, gas, air, or other substances;
                     (H)  purchasing oil, gas, or other mineral leases,
  leasehold interests, or other interests for any type of
  consideration, including farmout agreements requiring the drilling
  or reworking of wells or participation therein;
                     (I)  entering into farmout agreements committing
  the principal to assign oil, gas, or other mineral leases or
  interests in consideration for the drilling of wells or other oil,
  gas, or mineral operations;
                     (J)  negotiating the transfer of and transferring
  oil, gas, or other mineral leases or interests for any
  consideration, such as retained overriding royalty interests of any
  nature, drilling or reworking commitments, or production
  interests; and
                     (K)  executing and entering into contracts,
  conveyances, and other agreements or transfers considered
  necessary or desirable to carry out the powers granted in this
  section, regardless of whether the action is now or subsequently
  recognized or considered as a common or proper practice by those
  engaged in the business of prospecting for, developing, producing,
  processing, transporting, or marketing minerals, including
  entering into and executing division orders, oil, gas, or other
  mineral sales contracts, exploration agreements, processing
  agreements, and other contracts relating to the processing,
  handling, treating, transporting, and marketing of oil, gas, or
  other mineral production from or accruing to the principal and
  receiving and receipting for the proceeds thereof on behalf of the
  principal; and
               (10)  designate the property that constitutes the
  principal's homestead.
         (b)  The power to mortgage and encumber real property
  provided by this section includes the power to execute documents
  necessary to create a lien against the principal's homestead as
  provided by Section 50, Article XVI, Texas Constitution, and to
  consent to the creation of a lien against the principal's spouse's
  homestead.
         SECTION 1.14.  Section 752.108(b), Estates Code, is amended
  to read as follows:
         (b)  Unless the principal has expressly granted the
  authority to create or change a beneficiary designation under
  Section 751.201(a)(4), an [An] attorney in fact or agent may be
  named a beneficiary of an insurance contract or an extension,
  renewal, or substitute for the contract only to the extent the
  attorney in fact or agent was named as a beneficiary under a
  contract procured by the principal before executing the power of
  attorney.
         SECTION 1.15.  Sections 752.109 and 752.111, Estates Code,
  are amended to read as follows:
         Sec. 752.109.  ESTATE, TRUST, AND OTHER BENEFICIARY
  TRANSACTIONS.  The language conferring authority with respect to
  estate, trust, and other beneficiary transactions in a statutory
  durable power of attorney empowers the attorney in fact or agent to
  act for the principal in all matters that affect a trust, probate
  estate, guardianship, conservatorship, life estate, escrow,
  custodianship, or other fund from which the principal is, may
  become, or claims to be entitled, as a beneficiary, to a share or
  payment, including to:
               (1)  accept, reject, disclaim, receive, receipt for,
  sell, assign, release, pledge, exchange, or consent to a reduction
  in or modification of a share in or payment from the fund;
               (2)  demand or obtain by litigation, action, or
  otherwise money or any other thing of value to which the principal
  is, may become, or claims to be entitled because of the fund;
               (3)  initiate, participate in, or oppose a legal or
  judicial proceeding to:
                     (A)  ascertain the meaning, validity, or effect of
  a deed, will, declaration of trust, or other instrument or
  transaction affecting the interest of the principal; or
                     (B)  remove, substitute, or surcharge a
  fiduciary;
               (4)  conserve, invest, disburse, or use anything
  received for an authorized purpose; and
               (5)  transfer all or part of the principal's interest in
  real property, stocks, bonds, accounts with financial
  institutions, insurance, and other property to the trustee of a
  revocable trust created by the principal as settlor.
         Sec. 752.111.  PERSONAL AND FAMILY MAINTENANCE.  The
  language conferring authority with respect to personal and family
  maintenance in a statutory durable power of attorney empowers the
  attorney in fact or agent to:
               (1)  perform the acts necessary to maintain the
  customary standard of living of the principal, the principal's
  spouse and children, and other individuals customarily or legally
  entitled to be supported by the principal, including:
                     (A)  providing living quarters by purchase,
  lease, or other contract; or
                     (B)  paying the operating costs, including
  interest, amortization payments, repairs, and taxes on premises
  owned by the principal and occupied by those individuals;
               (2)  provide for the individuals described by
  Subdivision (1):
                     (A)  normal domestic help;
                     (B)  usual vacations and travel expenses; and
                     (C)  money for shelter, clothing, food,
  appropriate education, and other living costs;
               (3)  pay necessary medical, dental, and surgical care,
  hospitalization, and custodial care for the individuals described
  by Subdivision (1);
               (4)  continue any provision made by the principal for
  the individuals described by Subdivision (1) for automobiles or
  other means of transportation, including registering, licensing,
  insuring, and replacing the automobiles or other means of
  transportation;
               (5)  maintain or open charge accounts for the
  convenience of the individuals described by Subdivision (1) and
  open new accounts the attorney in fact or agent considers desirable
  to accomplish a lawful purpose; [and]
               (6)  continue:
                     (A)  payments incidental to the membership or
  affiliation of the principal in a church, club, society, order, or
  other organization; or
                     (B)  contributions to those organizations; and
               (7)  subject to the needs of the individuals described
  by Subdivision (1), provide for the reasonable care of the
  principal's pets.
         SECTION 1.16.  Section 752.113(c), Estates Code, is amended
  to read as follows:
         (c)  Unless the principal has expressly granted the
  authority to create or change a beneficiary designation under
  Section 751.201(a)(4), an [An] attorney in fact or agent may be
  named a beneficiary under a retirement plan only to the extent the
  attorney in fact or agent was a named beneficiary under the
  retirement plan before the durable power of attorney was executed.
         SECTION 1.17.  The changes in law made by this Act to
  Subchapters B, C, and D, Chapter 751, Estates Code, and by
  Subchapter E, Chapter 751, Estates Code, as added by this Act, apply
  to a durable power of attorney, including a statutory durable power
  of attorney, executed on or after the effective date of this Act. A
  durable power of attorney, including a statutory durable power of
  attorney executed before the effective date of this Act, is
  governed by the law as it existed on the date the durable power of
  attorney was executed, and the former law is continued in effect for
  that purpose.
         SECTION 1.18.  (a) Except as otherwise provided by this Act,
  this Act applies to:
               (1)  a durable power of attorney created before, on, or
  after the effective date of this Act;
               (2)  a judicial proceeding concerning a durable power
  of attorney commenced on or after the effective date of this Act;
  and
               (3)  a judicial proceeding concerning a durable power
  of attorney commenced before the effective date of this Act that is
  pending.
         (b)  If the court finds that application of a provision of
  this Act would substantially interfere with the effective conduct
  of a judicial proceeding concerning a durable power of attorney
  commenced before the effective date of this Act or would prejudice
  the rights of a party to the proceeding, the provision of this Act
  does not apply and the former law applies in those circumstances.
         (c)  An act performed before the effective date of this Act
  is not affected by this Act.
         (d)  Section 751.012, Estates Code, as added by this Act,
  applies to a durable power of attorney executed on or after the
  effective date of this Act.
         SECTION 1.19.  The following sections of Title 2, Estates
  Code, are repealed:
               (1)  Section 751.004;
               (2)  Section 751.053;
               (3)  Section 751.054;
               (4)  Section 751.055;
               (5)  Section 751.056; and
 
  ARTICLE 2. ADVANCE DIRECTIVES
         SECTION 2.01.  Sections 166.002(4) and (8), Health and
  Safety Code, are amended to read as follows:
               (4)  "Competent" means possessing the ability, based on
  the attending physician's opinion [reasonable medical judgment],
  to understand and appreciate the nature and consequences of a
  treatment decision, including the significant benefits and harms of
  and reasonable alternatives to a proposed treatment decision.
               (8)  "Incompetent" means lacking the ability, based on
  the attending physician's opinion [reasonable medical judgment],
  to understand and appreciate the nature and consequences of a
  treatment decision, including the significant benefits and harms of
  and reasonable alternatives to a proposed treatment decision.
         SECTION 2.02.  Section 166.003, Health and Safety Code, is
  amended to read as follows:
         Sec. 166.003.  WITNESSES. In any circumstance in which this
  chapter requires the execution of an advance directive or the
  issuance of a nonwritten advance directive to be witnessed:
               (1)  each witness must be a competent adult; and
               (2)  at least one of the witnesses must be a person who
  is not:
                     (A)  a person designated by the declarant to make
  a treatment decision;
                     (B)  a person related to the declarant by blood or
  marriage;
                     (C)  a person entitled to any part of the
  declarant's estate after the declarant's death under a will or
  codicil executed by the declarant or by operation of law;
                     (D)  the attending physician;
                     (E)  an employee of the attending physician;
                     (F)  an owner, operator, or employee of a health
  care facility in which the declarant is a patient [if the employee
  is providing direct patient care to the declarant or is an officer,
  director, partner, or business office employee of the health care
  facility or of any parent organization of the health care
  facility]; or
                     (G)  a person who, at the time the written advance
  directive is executed or, if the directive is a nonwritten
  directive issued under this chapter, at the time the nonwritten
  directive is issued, has a claim against any part of the declarant's
  estate after the declarant's death.
         SECTION 2.03.  Section 166.033, Health and Safety Code, is
  amended to read as follows:
         Sec. 166.033.  FORM OF WRITTEN DIRECTIVE. A written
  directive may be in the following form:
  DIRECTIVE TO PHYSICIANS AND FAMILY OR SURROGATES
         Instructions for completing this document:
         This is an important legal document known as an Advance
  Directive. It is designed to help you communicate your wishes about
  medical treatment at some time in the future when you are unable to
  make your wishes known because of illness or injury. These wishes
  are usually based on personal values. In particular, you may want
  to consider what burdens or hardships of treatment you would be
  willing to accept for a particular amount of benefit obtained if you
  were seriously ill.
         You are encouraged to discuss your values and wishes with
  your family or chosen spokesperson, as well as your physician. Your
  physician, other health care provider, or medical institution may
  provide you with various resources to assist you in completing your
  advance directive. Brief definitions are listed below and may aid
  you in your discussions and advance planning. Initial the
  treatment choices that best reflect your personal preferences.
  Provide a copy of your directive to your physician, usual hospital,
  and family or spokesperson. Consider a periodic review of this
  document. By periodic review, you can best assure that the
  directive reflects your preferences.
         In addition to this advance directive, Texas law provides for
  two other types of directives that can be important during a serious
  illness. These are the Medical Power of Attorney and the
  Out-of-Hospital Do-Not-Resuscitate Order. You may wish to discuss
  these with your physician, family, hospital representative, or
  other advisers. You may also wish to complete a directive related
  to the donation of organs and tissues.
  DIRECTIVE
         I, __________, recognize that the best health care is based
  upon a partnership of trust and communication with my physician. My
  physician and I will make health care decisions together as long as
  I am of sound mind and able to make my wishes known. If there comes
  a time that I am unable to make medical decisions about myself
  because of illness or injury, I direct that the following treatment
  preferences be honored:
         If, in the judgment of my physician, I am suffering with a
  terminal condition from which I am expected to die within six
  months, even with available life-sustaining treatment provided in
  accordance with prevailing standards of medical care:
 
__________ I request that all treatments other than those needed to keep me comfortable be discontinued or withheld and my physician allow me to die as gently as possible; OR
 
__________ I request that I be kept alive in this terminal condition using available life-sustaining treatment. (THIS SELECTION DOES NOT APPLY TO HOSPICE CARE.)
  If, in the judgment of my physician, I am suffering with an
  irreversible condition so that I cannot care for myself or make
  decisions for myself and am expected to die without life-sustaining
  treatment provided in accordance with prevailing standards of care:
 
__________ I request that all treatments other than those needed to keep me comfortable be discontinued or withheld and my physician allow me to die as gently as possible; OR
 
__________ I request that I be kept alive in this irreversible condition using available life-sustaining treatment. (THIS SELECTION DOES NOT APPLY TO HOSPICE CARE.)
         Additional requests: (After discussion with your physician,
  you may wish to consider listing particular treatments in this
  space that you do or do not want in specific circumstances, such as
  artificial nutrition and fluids, intravenous antibiotics, etc. Be
  sure to state whether you do or do not want the particular
  treatment.)
 
________________________________________________________________
 
________________________________________________________________
 
________________________________________________________________
         After signing this directive, if my representative or I elect
  hospice care, I understand and agree that only those treatments
  needed to keep me comfortable would be provided and I would not be
  given available life-sustaining treatments.
         If I do not have a Medical Power of Attorney, and I am unable
  to make my wishes known, I designate the following person(s) to make
  treatment decisions with my physician compatible with my personal
  values:
 
1. __________
 
2. __________
         (If a Medical Power of Attorney has been executed, then an
  agent already has been named and you should not list additional
  names in this document.)
         If the above persons are not available, or if I have not
  designated a spokesperson, I understand that a spokesperson will be
  chosen for me following standards specified in the laws of Texas.
  If, in the judgment of my physician, my death is imminent within
  minutes to hours, even with the use of all available medical
  treatment provided within the prevailing standard of care, I
  acknowledge that all treatments may be withheld or removed except
  those needed to maintain my comfort. I understand that under Texas
  law this directive has no effect if I have been diagnosed as
  pregnant. This directive will remain in effect until I revoke it.
  No other person may do so.
         Signed__________ Date__________ City, County, State of
  Residence __________
         Either a notary public or two [Two] competent adult witnesses
  must sign below, acknowledging the signature of the declarant. If
  this instrument is acknowledged before two witnesses, the [The]
  witness designated as Witness 1 may not be a person designated to
  make a treatment decision for the patient and may not be related to
  the patient by blood or marriage. This witness may not be entitled
  to any part of the estate and may not have a claim against the estate
  of the patient. This witness may not be the attending physician or
  an employee of the attending physician. [If this witness is an
  employee of a health care facility in which the patient is being
  cared for, this witness may not be involved in providing direct
  patient care to the patient.] This witness may not be an officer,
  director, partner, or business office employee of a health care
  facility in which the patient is being cared for or of any parent
  organization of the health care facility.
  SIGNATURE ACKNOWLEDGED BEFORE NOTARY
  State of Texas
  County of__________________
  This instrument was acknowledged before me on _________________
  (date) by _____________________ (name of person acknowledging).
                                                   ____________________
                                                   NOTARY PUBLIC, State of 
                                                   Texas 
                                                   Notary's printed name:
                                                   ____________________
                                                   My commission expires:
                                                   ____________________
                           OR
         SIGNATURE IN PRESENCE OF TWO COMPETENT ADULT WITNESSES
         Witness 1 __________ Witness 2 __________
         Definitions:
         "Artificial nutrition and hydration" means the provision of
  nutrients or fluids by a tube inserted in a vein, under the skin in
  the subcutaneous tissues, or in the stomach (gastrointestinal
  tract).
         "Irreversible condition" means a condition, injury, or
  illness:
               (1)  that may be treated, but is never cured or
  eliminated;
               (2)  that leaves a person unable to care for or make
  decisions for the person's own self; and
               (3)  that, without life-sustaining treatment provided
  in accordance with the prevailing standard of medical care, is
  fatal.
         Explanation: Many serious illnesses such as cancer, failure
  of major organs (kidney, heart, liver, or lung), and serious brain
  disease such as Alzheimer's dementia may be considered irreversible
  early on. There is no cure, but the patient may be kept alive for
  prolonged periods of time if the patient receives life-sustaining
  treatments. Late in the course of the same illness, the disease may
  be considered terminal when, even with treatment, the patient is
  expected to die. You may wish to consider which burdens of
  treatment you would be willing to accept in an effort to achieve a
  particular outcome. This is a very personal decision that you may
  wish to discuss with your physician, family, or other important
  persons in your life.
         "Life-sustaining treatment" means treatment that, based on
  reasonable medical judgment, sustains the life of a patient and
  without which the patient will die. The term includes both
  life-sustaining medications and artificial life support such as
  mechanical breathing machines, kidney dialysis treatment, and
  artificial hydration and nutrition. The term does not include the
  administration of pain management medication, the performance of a
  medical procedure necessary to provide comfort care, or any other
  medical care provided to alleviate a patient's pain.
         "Terminal condition" means an incurable condition caused by
  injury, disease, or illness that according to reasonable medical
  judgment will produce death within six months, even with available
  life-sustaining treatment provided in accordance with the
  prevailing standard of medical care.
         Explanation: Many serious illnesses may be considered
  irreversible early in the course of the illness, but they may not be
  considered terminal until the disease is fairly advanced. In
  thinking about terminal illness and its treatment, you again may
  wish to consider the relative benefits and burdens of treatment and
  discuss your wishes with your physician, family, or other important
  persons in your life.
         SECTION 2.04.  Sections 166.152(b) and (g), Health and
  Safety Code, are amended to read as follows:
         (b)  An agent may exercise authority only when, in the
  opinion of the principal's attending physician, the principal is
  incompetent or unable to make and communicate a choice about a
  specific health care decision [if the principal's attending
  physician certifies in writing and files the certification in the
  principal's medical record that, based on the attending physician's
  reasonable medical judgment, the principal is incompetent].
         (g)  The power of attorney is effective indefinitely on
  execution as provided by this subchapter and delivery of the
  document to the agent, unless it is revoked as provided by this
  subchapter [or the principal becomes competent]. If the medical
  power of attorney includes an expiration date and on that date the
  principal is incompetent or unable to make and communicate a health
  care decision, the power of attorney continues to be effective
  until the principal becomes competent and capable of making and
  communicating a health care decision, unless it is revoked as
  provided by this subchapter.
         SECTION 2.05.  Subchapter D, Chapter 166, Health and Safety
  Code, is amended by adding Section 166.1525 to read as follows:
         Sec. 166.1525.  DESIGNATION OF CO-AGENTS. A medical power
  of attorney may provide for co-agents. Unless the medical power of
  attorney provides otherwise, each co-agent is authorized by the
  principal to act independently, and third parties may rely on the
  decisions of any co-agent.
         SECTION 2.06.  Section 166.155, Health and Safety Code, is
  amended to read as follows:
         Sec. 166.155.  REVOCATION; EFFECT OF DIVORCE. (a) A medical
  power of attorney is revoked by:
               (1)  oral or written notification at any time by the
  principal to the agent or a licensed or certified health or
  residential care provider or by any other act evidencing a specific
  intent to revoke the power, without regard to whether the principal
  is competent or the principal's mental state; or
               (2)  execution by the principal of a subsequent medical
  power of attorney. [; or]
         (b)  Divorce [(3) the divorce] of the principal and spouse
  revokes any designation in a medical power of attorney of the
  divorced [, if the] spouse as an agent [is the principal's agent,]
  unless the medical power of attorney specifically provides
  otherwise.  Divorce does not revoke the designation of other agents
  listed in the medical power of attorney.
         (c) [(b)]  A principal's licensed or certified health or
  residential care provider who is informed of or provided with a
  revocation of a medical power of attorney or revocation of the
  designation of a divorced spouse as an agent shall immediately
  record the revocation in the principal's medical record and give
  notice of the revocation to the agent and any known health and
  residential care providers currently responsible for the
  principal's care.
         SECTION 2.07.  Subchapter D, Chapter 166, Health and Safety
  Code, is amended by adding Section 166.1625 to read as follows:
         Sec. 166.1625.  PERMISSIBLE FORMS OF MEDICAL POWER OF
  ATTORNEY. (a) A medical power of attorney may be in the form
  described by Section 166.164 or may be in another form that meets
  the requirements of this subchapter or that is authorized under
  Section 166.005. An example alternative form is the health care
  power of attorney form produced by the Commission on Law and Aging,
  American Bar Association, which may be accessible on the American
  Bar Association's Internet website.
         (b)  A durable power of attorney or similar document executed
  by a veteran of the United States armed forces that is in compliance
  with the advance directive requirements of the United States
  Department of Veterans Affairs is valid and enforceable in this
  state. This subsection does not authorize the administration,
  withholding, or withdrawal of health care otherwise prohibited by
  the laws of this state.
         SECTION 2.08.  Section 166.164, Health and Safety Code, is
  amended to read as follows:
         Sec. 166.164.  FORM OF MEDICAL POWER OF ATTORNEY.  The
  medical power of attorney may [must] be in [substantially] the
  following form:
  MEDICAL POWER OF ATTORNEY DESIGNATION OF HEALTH CARE AGENT.
  I, __________ (insert your name) appoint:
  Name:___________________________________________________________
  Address:________________________________________________________
  Phone___________________________________________________________
         as my agent to make any and all health care decisions for me,
  except to the extent I state otherwise in this document.  This
  medical power of attorney is effective only when, in the opinion of
  my attending physician, I am incompetent or I am unable to make and
  communicate a choice about a particular health care decision [takes
  effect if I become unable to make my own health care decisions and
  this fact is certified in writing by my physician].
         LIMITATIONS ON THE DECISION-MAKING AUTHORITY OF MY AGENT ARE
  AS FOLLOWS:_____________________________________________________
  ________________________________________________________________
         DESIGNATION OF ALTERNATE AGENT.
         (You are not required to designate an alternate agent but you
  may do so.  An alternate agent may make the same health care
  decisions as the designated agent if the designated agent is unable
  or unwilling to act as your agent.  If the agent designated is your
  spouse, the designation of that spouse is automatically revoked by
  law if your marriage is dissolved unless this document provides
  otherwise, but the remainder of this document is valid.)
         If the person designated as my agent is unable or unwilling to
  make health care decisions for me, I designate the following
  persons to serve as my agent to make health care decisions for me as
  authorized by this document, who serve in the following order:
         A.  First Alternate Agent
               Name:________________________________________________
               Address:_____________________________________________
                     Phone __________________________________________
         B.  Second Alternate Agent
               Name:________________________________________________
               Address:_____________________________________________
                     Phone __________________________________________
               I intend to keep the [The] original of this document [is
  kept] at:
               _____________________________________________________
               _____________________________________________________
               _____________________________________________________
               I intend for the [The] following individuals or
  institutions to have signed copies:
               Name:________________________________________________
               Address:_____________________________________________
               _____________________________________________________
               Name:________________________________________________
               Address:_____________________________________________
               _____________________________________________________
         DURATION.
         I understand that this power of attorney exists indefinitely
  from the date I execute this document unless I establish a shorter
  time or revoke the power of attorney.
         (IF A SPECIFIC TERMINATION DATE IS SELECTED) This power of
  attorney ends on the following date:          .
         If I am incompetent or unable to make and communicate health
  care decisions for myself when this power of attorney expires, the
  authority I have granted my agent continues to exist until the time
  I become able to make and communicate health care decisions for
  myself.
         [(IF APPLICABLE)     This power of attorney ends on the
  following date: __________]
         PRIOR DESIGNATIONS REVOKED.
         I revoke any prior medical power of attorney.
         INFORMATION CONCERNING THE MEDICAL POWER OF ATTORNEY
         The medical power of attorney is an important legal document.
  Before signing this document, you should know these important
  facts:
         Except to the extent you state otherwise or as provided by
  Texas law, this document gives the person you name as your agent the
  authority to make any and all health care decisions for you in
  accordance with your wishes, including your religious and moral
  beliefs, when you are no longer capable of making them yourself.
         Because "health care" means any treatment, service, or
  procedure to maintain, diagnose, or treat your physical or mental
  condition, your agent has the power to make a broad range of health
  care decisions for you. Your agent may consent, refuse to consent,
  or withdraw consent to medical treatment and may make decisions
  about withdrawing or withholding life-sustaining treatment. Your
  agent may not consent to voluntary inpatient mental health
  services, convulsive treatment, psychosurgery, or abortion.
         A physician must comply with your agent's instructions or
  allow you to be transferred to another physician.
         Your agent's authority is effective when, in your doctor's
  opinion, you are incompetent or you are unable to make and
  communicate a choice about a particular health care decision.
         Your agent is obligated to follow your instructions when
  making decisions on your behalf. Unless you state otherwise, your
  agent, when making decisions about your health care, has the same
  authority to make those decisions as you would have if you were
  competent or able to communicate.
         It is important that you discuss your medical power of
  attorney with your physician or other health care provider. Before
  you sign any medical power of attorney, make sure that you
  understand the nature and range of decisions that may be made on
  your behalf. If you do not have a physician, you should talk with
  someone else who is knowledgeable about these issues and can answer
  your questions. You do not need a lawyer's assistance to complete
  this document, but if there is anything in this document that you do
  not understand, you should ask a lawyer to explain it to you.
         The person you appoint as agent should be someone you know and
  trust. The person must be 18 years of age or older or a person under
  18 years of age who has had the disabilities of minority removed.
  If you appoint your health or residential care provider (e.g., your
  physician or an employee of a home health agency, hospital, nursing
  home, or residential care home, other than a relative), that person
  has to choose between acting as your agent or as your health or
  residential care provider; the law does not permit a person to do
  both at the same time.
         You should inform the person you appoint that you want the
  person to be your health care agent. You should discuss your
  medical power of attorney with your agent and your physician and
  give each a signed copy. You may indicate on the document itself
  the people and institutions that you intend to have signed copies.
  Your agent is not liable for health care decisions made in good
  faith on your behalf.
         After you have signed your medical power of attorney, you
  retain the right to make health care decisions for yourself as long
  as you are competent and can communicate your health care
  decisions, and treatment cannot be given to you or stopped over your
  objection. You have the right to revoke the authority granted to
  your agent by informing your agent or your health or residential
  care provider orally or in writing or by your execution of a
  subsequent medical power of attorney. Unless you state otherwise,
  your appointment of a spouse dissolves on divorce.
         A signed medical power of attorney may not be changed or
  modified. If you want to make changes in a medical power of
  attorney, you must execute a new medical power of attorney.
         You may wish to designate an alternate agent in the event that
  your agent is unwilling, unable, or ineligible to act as your agent.
  Any alternate agent you designate has the same authority as the
  agent to make health care decisions for you.
         You may wish to provide for co-agents to serve. Unless your
  medical power of attorney states differently, each co-agent is
  authorized to act independently and third parties may rely on the
  decisions of either co-agent.
         THE FOLLOWING PERSONS MAY NOT ACT AS ONE OF THE WITNESSES:
               (1)  the person you have designated as your agent;
               (2)  a person related to you by blood or marriage;
               (3)  a person entitled to any part of your estate after
  your death under a will or codicil executed by you or by operation
  of law;
               (4)  your attending physician;
               (5)  an employee of your attending physician;
               (6)  an owner, operator, or employee of a health care
  facility in which you are a patient; or
               (7)  a person who, at the time this medical power of
  attorney is executed, has a claim against any part of your estate
  after your death.
         [ACKNOWLEDGMENT OF DISCLOSURE STATEMENT.
         [I have been provided with a disclosure statement explaining
  the effect of this document.     I have read and understand that
  information contained in the disclosure statement.]
         (YOU MUST DATE AND SIGN THIS POWER OF ATTORNEY.  YOU MAY SIGN
  IT AND HAVE YOUR SIGNATURE ACKNOWLEDGED BEFORE A NOTARY PUBLIC OR
  YOU MAY SIGN IT IN THE PRESENCE OF TWO COMPETENT ADULT WITNESSES.)
         SIGNATURE ACKNOWLEDGED BEFORE NOTARY
         I sign my name to this medical power of attorney on __________
  day of __________ (month, year) at
  _____________________________________________
  (City and State)
  _____________________________________________
  (Signature)
  _____________________________________________
  (Print Name)
  State of Texas
  County of ________
  This instrument was acknowledged before me on __________ (date) by
  ________________ (name of person acknowledging).
                                       _____________________________
                                       NOTARY PUBLIC, State of Texas
                                       Notary's printed name:
                                       _____________________________
                                       My commission expires:
                                       _____________________________
  OR
         SIGNATURE IN PRESENCE OF TWO COMPETENT ADULT WITNESSES
         I sign my name to this medical power of attorney on __________
  day of __________ (month, year) at
  _____________________________________________
  (City and State)
  _____________________________________________
  (Signature)
  _____________________________________________
  (Print Name)
         STATEMENT OF FIRST WITNESS.
         I am not the person appointed as agent by this document.  I am
  not related to the principal by blood or marriage.  I would not be
  entitled to any portion of the principal's estate on the principal's
  death.  I am not the attending physician of the principal or an
  employee of the attending physician.  I have no claim against any
  portion of the principal's estate on the principal's
  death.  [Furthermore, if] I am not an owner, operator, or employee
  of a health care facility in which the principal is a patient[, I am
  not involved in providing direct patient care to the principal and
  am not an officer, director, partner, or business office employee
  of the health care facility or of any parent organization of the
  health care facility].
         Signature:________________________________________________
         Print Name:___________________________________ Date:______
         Address:__________________________________________________
         SIGNATURE OF SECOND WITNESS.
         Signature:________________________________________________
         Print Name:___________________________________ Date:______
         Address:__________________________________________________
         SECTION 2.09.  Sections 166.162 and 166.163, Health and
  Safety Code, are repealed.
         SECTION 2.10.  The changes in law made by this article apply
  only to the validity of a document executed on or after the
  effective date of this Act. The validity of a document executed
  before the effective date of this Act is governed by the law in
  effect on the date the document was executed, and that law continues
  in effect for that purpose.
         SECTION 2.11.  (a) Except as otherwise provided in this
  section, the changes in law made by this article to the Health and
  Safety Code apply to:
               (1)  a medical power of attorney created before, on, or
  after the effective date of this Act; and
               (2)  a judicial proceeding concerning a medical power
  of attorney that:
                     (A)  commences on or after the effective date of
  this Act; or
                     (B)  is pending on the effective date of this Act.
         (b)  If the court finds that application of a provision of
  this article would substantially interfere with the effective
  conduct of a judicial proceeding concerning a medical power of
  attorney that is pending on the effective date of this Act or
  prejudice the rights of a party to the proceeding, the provision of
  this article does not apply, and the law in effect immediately
  before the effective date of this Act applies in those
  circumstances.
  ARTICLE 3. EFFECTIVE DATE
         SECTION 3.01.  This Act takes effect September 1, 2015.