| 1 | 1 | | By: Wentworth, Nelson S.B. No. 1625 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the acceptance of durable powers of attorney by third |
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| 7 | 7 | | parties. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter XII, Texas Probate Code, is amended by |
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| 10 | 10 | | adding Section 489C to read as follows: |
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| 11 | 11 | | Sec. 489C. ACCEPTANCE OF DURABLE POWER OF ATTORNEY BY THIRD |
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| 12 | 12 | | PARTIES REQUIRED. (a) A third party located in this state may not |
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| 13 | 13 | | refuse, without reasonable cause, to honor a durable power of |
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| 14 | 14 | | attorney properly executed in accordance with this chapter, |
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| 15 | 15 | | including a statutory durable power of attorney. |
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| 16 | 16 | | (b) Reasonable cause for a third party's refusal to honor a |
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| 17 | 17 | | durable power of attorney under Subsection (a) of this section |
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| 18 | 18 | | includes: |
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| 19 | 19 | | (1) the third party's: |
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| 20 | 20 | | (A) actual knowledge of the principal's death; |
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| 21 | 21 | | (B) actual notice of the termination or |
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| 22 | 22 | | revocation of the power of attorney; |
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| 23 | 23 | | (C) actual knowledge of the appointment of a |
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| 24 | 24 | | guardian of the estate for the principal; |
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| 25 | 25 | | (D) actual knowledge of the principal's divorce |
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| 26 | 26 | | or annulment of the principal's marriage, if the principal's |
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| 27 | 27 | | attorney in fact or agent was the principal's spouse; and |
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| 28 | 28 | | (E) actual knowledge that a report has been made |
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| 29 | 29 | | to the Department of Family and Protective Services stating a good |
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| 30 | 30 | | faith belief that the principal may have been or is subject to |
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| 31 | 31 | | physical or financial abuse, neglect, exploitation, or abandonment |
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| 32 | 32 | | by the principal's attorney in fact or agent or a person acting for |
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| 33 | 33 | | or with the attorney in fact or agent; and |
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| 34 | 34 | | (2) that it is apparent on the face of the durable |
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| 35 | 35 | | power of attorney that the instrument is fraudulent or has been |
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| 36 | 36 | | forged or altered. |
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| 37 | 37 | | (c) A third party may not refuse to honor a durable power of |
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| 38 | 38 | | attorney under this section if the sole reason for the refusal is: |
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| 39 | 39 | | (1) the power of attorney is not on a form prescribed |
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| 40 | 40 | | by the third party to whom the power of attorney is presented; or |
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| 41 | 41 | | (2) there has been a lapse of time since the execution |
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| 42 | 42 | | of the power of attorney. |
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| 43 | 43 | | (d) A third party that violates this section is liable to |
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| 44 | 44 | | the principal, the principal's heirs, and other successors in |
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| 45 | 45 | | interest of the principal to the same extent as if the third party |
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| 46 | 46 | | had refused to allow the principal to act on the principal's own |
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| 47 | 47 | | behalf. |
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| 48 | 48 | | (e) A third party that honors a durable power of attorney as |
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| 49 | 49 | | required by this section may not be held liable for damages |
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| 50 | 50 | | resulting from use of the durable power of attorney to the |
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| 51 | 51 | | principal, the principal's heirs, other successors in interest of |
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| 52 | 52 | | the principal, or any other person. |
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| 53 | 53 | | SECTION 2. This Act takes effect September 1, 2009. |
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