87R16894 EAS-F
 
  By: Moody H.B. No. 2183
 
  Substitute the following for H.B. No. 2183:
 
  By:  Schofield C.S.H.B. No. 2183
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to durable powers of attorney and the construction of
  certain powers conferred in those powers of attorney.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 751.002(5), Estates Code, is amended to
  read as follows:
               (5)  "Principal" means an adult individual [person] who
  signs or directs the signing of the individual's [person's] name on
  a power of attorney that designates an agent to act on the
  individual's [person's] behalf.
         SECTION 2.  Section 751.00201, Estates Code, is amended to
  read as follows:
         Sec. 751.00201.  MEANING OF DISABLED OR INCAPACITATED FOR
  PURPOSES OF DURABLE POWER OF ATTORNEY. Unless otherwise defined by
  a durable power of attorney, an individual [a person] is considered
  disabled or incapacitated for purposes of the durable power of
  attorney if a physician certifies in writing at a date later than
  the date the durable power of attorney is executed that, based on
  the physician's medical examination of the individual [person], the
  individual [person] is determined to be mentally incapable of
  managing the individual's [person's] financial affairs.
         SECTION 3.  Section 752.001(a), Estates Code, is amended to
  read as follows:
         (a)  An individual [A person] may use a statutory durable
  power of attorney to grant an [attorney in fact or] agent powers
  with respect to an individual's [a person's] property and financial
  matters.
         SECTION 4.  Section 752.107, Estates Code, is amended to
  read as follows:
         Sec. 752.107.  BUSINESS OPERATION TRANSACTIONS. Subject to
  the terms of an agreement or other document governing or relating to
  an entity or entity ownership interest, to the extent the agent is
  permitted by law to act for the principal and unless the power of
  attorney provides otherwise, the [The] language conferring
  authority with respect to business operating transactions in a
  statutory durable power of attorney empowers the [attorney in fact
  or] agent to:
               (1)  operate, buy, sell, enlarge, reduce, or terminate
  an ownership [a business] interest;
               (2)  [do the following, to the extent that an attorney
  in fact or agent is permitted by law to act for a principal and
  subject to the terms of a partnership agreement:
                     [(A)] perform a duty or[,] discharge a liability,
  or exercise in person or by proxy a right, power, privilege, or
  option that the principal has, may have, or claims to have [under
  the partnership agreement, whether or not the principal is a
  general or limited partner];
               (3) [(B)]  enforce the terms of an agreement or other
  document governing or relating to an entity or entity ownership
  interest [the partnership agreement by litigation, action, or
  otherwise]; [and]
               (4) [(C)]  defend, submit to arbitration, settle, or
  compromise litigation or an action to which the principal is a party
  because of an entity ownership interest [membership in the
  partnership];
               (5) [(3)]  exercise in person or by proxy, or enforce
  by litigation, action, or otherwise, a right, power, privilege, or
  option the principal has or claims to have as the holder of a
  certificated or uncertificated ownership interest;
               (6)  [bond, share, or other similar instrument and]
  defend, submit to alternative dispute resolution [arbitration],
  settle, or compromise litigation [a legal proceeding] to which the
  principal is a party concerning a certificated or uncertificated
  ownership interest [because of a bond, share, or similar
  instrument];
               (7) [(4)]  with respect to a business or entity owned
  solely by the principal:
                     (A)  continue, modify, renegotiate, extend, and
  terminate a contract made by or on behalf of the principal with
  respect to the business or entity [before execution of the power of
  attorney with an individual, legal entity, firm, association, or
  corporation by or on behalf of the principal with respect to the
  business];
                     (B)  determine:
                           (i)  the location of the business's or
  entity's operation;
                           (ii)  the nature and extent of the business;
                           (iii)  the methods of manufacturing,
  selling, merchandising, financing, accounting, and advertising
  employed in the business's or entity's operation;
                           (iv)  the amount and types of insurance
  carried; and
                           (v)  the method of engaging, compensating,
  and dealing with the business's or entity's accountants, attorneys,
  or [and] other agents [and employees];
                     (C)  change the name or form of organization under
  which the business or entity is operated and enter into an [a
  partnership] agreement with other persons [or organize a
  corporation] to take over all or part of the operation of the
  business or entity; and
                     (D)  demand and receive money due or claimed by
  the principal or on the principal's behalf in the operation of the
  business or entity and control and disburse the money in the
  operation of the business or entity;
               (8) [(5)]  put additional capital into a business or
  entity in which the principal has an interest;
               (9) [(6)]  join in a plan of reorganization,
  consolidation, interest exchange, conversion, or merger of the
  business or entity;
               (10) [(7)]  sell or liquidate a business or entity or
  all or part of the assets of the business or entity [at the time and
  on the terms that the attorney in fact or agent considers
  desirable];
               (11) [(8)]  establish the value of a business or entity
  under a buy-out agreement to which the principal is a party;
               (12)  [(9)  do the following:
                     [(A)]  prepare, sign, file, and deliver reports,
  compilations of information, returns, or other papers with respect
  to a business or entity and[:
                           [(i)  that are required by a governmental
  agency, department, or instrumentality; or
                           [(ii) that the attorney in fact or agent
  considers desirable; and
                     [(B)]  make related payments; and
               (13) [(10)]  pay, compromise, or contest taxes or
  assessments and perform any other act [that the attorney in fact or
  agent considers desirable] to protect the principal from illegal or
  unnecessary taxation, fines, penalties, or assessments with
  respect to a business or entity, including attempts to recover, in
  any manner permitted by law, money paid before or after the
  execution of the power of attorney.
         SECTION 5.  Section 752.107, Estates Code, as amended by
  this Act, applies only 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 in effect on the date the
  durable power of attorney was executed, and the former law is
  continued in effect for that purpose.
         SECTION 6.  This Act takes effect September 1, 2021.