By: Wentworth, Nelson S.B. No. 1625
A BILL TO BE ENTITLED
AN ACT
relating to the acceptance of durable powers of attorney by third
parties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter XII, Texas Probate Code, is amended by
adding Section 489C to read as follows:
Sec. 489C. ACCEPTANCE OF DURABLE POWER OF ATTORNEY BY THIRD
PARTIES REQUIRED. (a) A third party located in this state may not
refuse, without reasonable cause, to honor a durable power of
attorney properly executed in accordance with this chapter,
including a statutory durable power of attorney.
(b) Reasonable cause for a third party's refusal to honor a
durable power of attorney under Subsection (a) of this section
includes:
(1) the third party's:
(A) actual knowledge of the principal's death;
(B) actual notice of the termination or
revocation of the power of attorney;
(C) actual knowledge of the appointment of a
guardian of the estate for the principal;
(D) actual knowledge of the principal's divorce
or annulment of the principal's marriage, if the principal's
attorney in fact or agent was the principal's spouse; and
(E) actual knowledge that a report has been made
to the Department of Family and Protective Services stating a good
faith belief that the principal may have been or is subject to
physical or financial abuse, neglect, exploitation, or abandonment
by the principal's attorney in fact or agent or a person acting for
or with the attorney in fact or agent; and
(2) that it is apparent on the face of the durable
power of attorney that the instrument is fraudulent or has been
forged or altered.
(c) A third party may not refuse to honor a durable power of
attorney under this section if the sole reason for the refusal is:
(1) the power of attorney is not on a form prescribed
by the third party to whom the power of attorney is presented; or
(2) there has been a lapse of time since the execution
of the power of attorney.
(d) A third party that violates this section is liable to
the principal, the principal's heirs, and other successors in
interest of the principal to the same extent as if the third party
had refused to allow the principal to act on the principal's own
behalf.
(e) A third party that honors a durable power of attorney as
required by this section may not be held liable for damages
resulting from use of the durable power of attorney to the
principal, the principal's heirs, other successors in interest of
the principal, or any other person.
SECTION 2. This Act takes effect September 1, 2009.