Bill Text: TX SB1932 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to durable powers of attorney and the construction of certain powers conferred in those powers of attorney.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-04-01 - Referred to State Affairs [SB1932 Detail]
Download: Texas-2021-SB1932-Introduced.html
87R3041 EAS-F | ||
By: Hughes | S.B. No. 1932 |
|
||
|
||
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 [ |
||
signs or directs the signing of the individual's [ |
||
a power of attorney that designates an agent to act on the | ||
individual's [ |
||
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 [ |
||
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 [ |
||
individual [ |
||
managing the individual's [ |
||
SECTION 3. Section 752.001(a), Estates Code, is amended to | ||
read as follows: | ||
(a) An individual [ |
||
power of attorney to grant an [ |
||
with respect to an individual's [ |
||
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 [ |
||
authority with respect to business operating transactions in a | ||
statutory durable power of attorney empowers the [ |
||
(1) operate, buy, sell, enlarge, reduce, or terminate | ||
an ownership [ |
||
(2) [ |
||
[ |
||
or exercise in person or by proxy a right, power, privilege, or | ||
option that the principal has, may have, or claims to have [ |
||
(3) [ |
||
document governing or relating to an entity or entity ownership | ||
interest [ |
||
(4) [ |
||
compromise litigation or an action to which the principal is a party | ||
because of an entity ownership interest [ |
||
(5) [ |
||
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) [ |
||
defend, submit to alternative dispute resolution [ |
||
settle, or compromise litigation [ |
||
principal is a party concerning a certificated or uncertificated | ||
ownership interest [ |
||
(7) [ |
||
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 other entity [ |
||
(B) determine: | ||
(i) the location of the business's or other | ||
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 other 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 other entity's accountants, | ||
attorneys, or [ |
||
(C) change the name or form of organization under | ||
which the business or other entity is operated and enter into an [ |
||
business or other 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 other entity and control and disburse the money in the | ||
operation of the business or other entity; | ||
(8) [ |
||
other entity in which the principal has an interest; | ||
(9) [ |
||
consolidation, interest exchange, conversion, or merger of the | ||
business or other entity; | ||
(10) [ |
||
entity or all or part of the assets of the business or other entity | ||
[ |
||
(11) [ |
||
entity under a buy-out agreement to which the principal is a party; | ||
(12) [ |
||
[ |
||
compilations of information, returns, or other papers with respect | ||
to a business or other entity and[ |
||
[ |
||
[ |
||
[ |
||
(13) [ |
||
assessments and perform any other act [ |
||
unnecessary taxation, fines, penalties, or assessments with | ||
respect to a business or other 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. |