82R30511 KLA-D By: Harris S.B. No. 286 (Hartnett) Substitute the following for S.B. No. 286: No. A BILL TO BE ENTITLED AN ACT relating to attorney's fees and other costs in guardianship proceedings. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 665B, Texas Probate Code, as amended by Chapters 314 (H.B. 587) and 930 (H.B. 3080), Acts of the 81st Legislature, Regular Session, 2009, is reenacted and amended to read as follows: Sec. 665B. PAYMENT OF ATTORNEY'S FEES TO CERTAIN ATTORNEYS. (a) A court that creates a guardianship or creates a management trust under Section 867 of this code for a ward under this chapter, on request of a person who filed an application to be appointed guardian of the proposed ward, an application for the appointment of another suitable person as guardian of the proposed ward, or an application for the creation of the management trust, may authorize the payment of reasonable and necessary attorney's fees, as determined by the court, in amounts the court considers fair and just, to an attorney who represents the person who filed the application at the application hearing, regardless of whether the person is appointed the ward's guardian or whether a management trust is created, from[: [(1)] available funds of the ward's estate or management trust, if created, subject to Subsection (a-1) of this section and Section 669 of this code, if applicable. (a-1) The court may authorize amounts that otherwise would be paid from the ward's estate or the management trust as provided by Subsection (a) of this section to instead be paid from the county treasury,[; or [(2)] subject to Subsection (c) of this section, [the county treasury] if: (1) [(A)] the ward's estate or[, if created,] management trust[,] is insufficient to pay [for] the amounts [services provided by the attorney]; and (2) [(B)] funds in the county treasury are budgeted for that purpose. (b) The court may not authorize attorney's fees under this section unless the court finds that the applicant acted in good faith and for just cause in the filing and prosecution of the application. (c) The court may authorize the payment of attorney's fees from the county treasury under Subsection (a-1) [(a)] of this section only if the court is satisfied that the attorney to whom the fees will be paid has not received, and is not seeking, payment for the services described by that subsection from any other source. SECTION 2. Section 665D(c), Texas Probate Code, is amended to read as follows: (c) The court shall set the compensation of an attorney described by Subsection (a) of this section for the performance of guardianship services in accordance with Section 665 of this code. The court shall set attorney's fees for an attorney described by Subsection (a) of this section for legal services provided in accordance with Sections [665A,] 665B, [and] 666, and 669 of this code. SECTION 3. Section 669, Texas Probate Code, is amended to read as follows: Sec. 669. COSTS IN [AGAINST] GUARDIANSHIP PROCEEDING GENERALLY. (a) Except as provided by Subsection (b) of this section, in a guardianship matter, the cost of the proceeding, including the cost of the guardian ad litem, attorney ad litem, court investigator, [or] court visitor, mental health professionals, interpreters, and other attorneys, shall be set in an amount the court considers fair and just and shall be paid out of the guardianship estate, or, if the estate is insufficient to pay for the cost of the proceeding, the cost of the proceeding shall be paid out of the county treasury, except as provided by Subsection (c) of this section, and the judgment of the court shall be issued accordingly. (b) If a court finds that a party in a guardianship proceeding acted in bad faith or without just cause in prosecuting or objecting to an application in the proceeding, the court may require that party to pay all or part of the costs [denies an application for the appointment of a guardian under this chapter based on the recommendation of a court investigator, the applicant shall pay the cost] of the proceeding. (c) The court may order the applicant in a guardianship proceeding to pay the cost of the guardian ad litem or court visitor appointed in the proceeding if: (1) the guardianship estate is insufficient to pay that cost; and (2) the applicant's gross annual family income exceeds 200 percent of the federal poverty level. SECTION 4. Section 875(i), Texas Probate Code, is amended to read as follows: (i) If the court appoints a temporary guardian after the hearing required by Subsection (f)(1) of this section, all court costs, including attorney's fees, may be assessed as provided in Section [665A,] 665B[,] or 669 of this code. SECTION 5. Section 665A, Texas Probate Code, is repealed. SECTION 6. The changes in law made by this Act apply to a guardianship created before, on, or after the effective date of this Act. SECTION 7. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.