Texas 2021 - 87th Regular

Texas House Bill HB2183 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Moody (Senate Sponsor - Hughes) H.B. No. 2183
2		-	(In the Senate - Received from the House May 17, 2021;
3		-	May 17, 2021, read first time and referred to Committee on State
4		-	Affairs; May 21, 2021, reported favorably by the following vote:
5		-	Yeas 9, Nays 0; May 21, 2021, sent to printer.)
6		-	Click here to see the committee vote
	1	+	87R16894 EAS-F
	2	+	By: Moody H.B. No. 2183
7	3
8	4
9	5		A BILL TO BE ENTITLED
10	6		AN ACT
11	7		relating to durable powers of attorney and the construction of
12	8		certain powers conferred in those powers of attorney.
13	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	10		SECTION 1. Section 751.002(5), Estates Code, is amended to
15	11		read as follows:
16	12		(5) "Principal" means an adult individual [person] who
17	13		signs or directs the signing of the individual's [person's] name on
18	14		a power of attorney that designates an agent to act on the
19	15		individual's [person's] behalf.
20	16		SECTION 2. Section 751.00201, Estates Code, is amended to
21	17		read as follows:
22	18		Sec. 751.00201. MEANING OF DISABLED OR INCAPACITATED FOR
23	19		PURPOSES OF DURABLE POWER OF ATTORNEY. Unless otherwise defined by
24	20		a durable power of attorney, an individual [a person] is considered
25	21		disabled or incapacitated for purposes of the durable power of
26	22		attorney if a physician certifies in writing at a date later than
27	23		the date the durable power of attorney is executed that, based on
28	24		the physician's medical examination of the individual [person], the
29	25		individual [person] is determined to be mentally incapable of
30	26		managing the individual's [person's] financial affairs.
31	27		SECTION 3. Section 752.001(a), Estates Code, is amended to
32	28		read as follows:
33	29		(a) An individual [A person] may use a statutory durable
34	30		power of attorney to grant an [attorney in fact or] agent powers
35	31		with respect to an individual's [a person's] property and financial
36	32		matters.
37	33		SECTION 4. Section 752.107, Estates Code, is amended to
38	34		read as follows:
39	35		Sec. 752.107. BUSINESS OPERATION TRANSACTIONS. Subject to
40	36		the terms of an agreement or other document governing or relating to
41	37		an entity or entity ownership interest, to the extent the agent is
42	38		permitted by law to act for the principal and unless the power of
43	39		attorney provides otherwise, the [The] language conferring
44	40		authority with respect to business operating transactions in a
45	41		statutory durable power of attorney empowers the [attorney in fact
46	42		or] agent to:
47	43		(1) operate, buy, sell, enlarge, reduce, or terminate
48	44		an ownership [a business] interest;
49	45		(2) [do the following, to the extent that an attorney
50	46		in fact or agent is permitted by law to act for a principal and
51	47		subject to the terms of a partnership agreement:
52	48		[(A)] perform a duty or[,] discharge a liability,
53	49		or exercise in person or by proxy a right, power, privilege, or
54	50		option that the principal has, may have, or claims to have [under
55	51		the partnership agreement, whether or not the principal is a
56	52		general or limited partner];
57	53		(3) [(B)] enforce the terms of an agreement or other
58	54		document governing or relating to an entity or entity ownership
59	55		interest [the partnership agreement by litigation, action, or
60	56		otherwise]; [and]
61	57		(4) [(C)] defend, submit to arbitration, settle, or
62	58		compromise litigation or an action to which the principal is a party
63	59		because of an entity ownership interest [membership in the
64	60		partnership];
65	61		(5) [(3)] exercise in person or by proxy, or enforce
66	62		by litigation, action, or otherwise, a right, power, privilege, or
67	63		option the principal has or claims to have as the holder of a
68	64		certificated or uncertificated ownership interest;
69	65		(6) [bond, share, or other similar instrument and]
70	66		defend, submit to alternative dispute resolution [arbitration],
71	67		settle, or compromise litigation [a legal proceeding] to which the
72	68		principal is a party concerning a certificated or uncertificated
73	69		ownership interest [because of a bond, share, or similar
74	70		instrument];
75	71		(7) [(4)] with respect to a business or entity owned
76	72		solely by the principal:
77	73		(A) continue, modify, renegotiate, extend, and
78	74		terminate a contract made by or on behalf of the principal with
79	75		respect to the business or entity [before execution of the power of
80	76		attorney with an individual, legal entity, firm, association, or
81	77		corporation by or on behalf of the principal with respect to the
82	78		business];
83	79		(B) determine:
84	80		(i) the location of the business's or
85	81		entity's operation;
86	82		(ii) the nature and extent of the business;
87	83		(iii) the methods of manufacturing,
88	84		selling, merchandising, financing, accounting, and advertising
89	85		employed in the business's or entity's operation;
90	86		(iv) the amount and types of insurance
91	87		carried; and
92	88		(v) the method of engaging, compensating,
93	89		and dealing with the business's or entity's accountants, attorneys,
94	90		or [and] other agents [and employees];
95	91		(C) change the name or form of organization under
96	92		which the business or entity is operated and enter into an [a
97	93		partnership] agreement with other persons [or organize a
98	94		corporation] to take over all or part of the operation of the
99	95		business or entity; and
100	96		(D) demand and receive money due or claimed by
101	97		the principal or on the principal's behalf in the operation of the
102	98		business or entity and control and disburse the money in the
103	99		operation of the business or entity;
104	100		(8) [(5)] put additional capital into a business or
105	101		entity in which the principal has an interest;
106	102		(9) [(6)] join in a plan of reorganization,
107	103		consolidation, interest exchange, conversion, or merger of the
108	104		business or entity;
109	105		(10) [(7)] sell or liquidate a business or entity or
110	106		all or part of the assets of the business or entity [at the time and
111	107		on the terms that the attorney in fact or agent considers
112	108		desirable];
113	109		(11) [(8)] establish the value of a business or entity
114	110		under a buy-out agreement to which the principal is a party;
115	111		(12) [(9) do the following:
116	112		[(A)] prepare, sign, file, and deliver reports,
117	113		compilations of information, returns, or other papers with respect
118	114		to a business or entity and[:
119	115		[(i) that are required by a governmental
120	116		agency, department, or instrumentality; or
121	117		[(ii) that the attorney in fact or agent
122	118		considers desirable; and
123	119		[(B)] make related payments; and
124	120		(13) [(10)] pay, compromise, or contest taxes or
125	121		assessments and perform any other act [that the attorney in fact or
126	122		agent considers desirable] to protect the principal from illegal or
127	123		unnecessary taxation, fines, penalties, or assessments with
128	124		respect to a business or entity, including attempts to recover, in
129	125		any manner permitted by law, money paid before or after the
130	126		execution of the power of attorney.
131	127		SECTION 5. Section 752.107, Estates Code, as amended by
132	128		this Act, applies only to a durable power of attorney, including a
133	129		statutory durable power of attorney, executed on or after the
134	130		effective date of this Act. A durable power of attorney, including a
135	131		statutory durable power of attorney, executed before the effective
136	132		date of this Act is governed by the law in effect on the date the
137	133		durable power of attorney was executed, and the former law is
138	134		continued in effect for that purpose.
139	135		SECTION 6. This Act takes effect September 1, 2021.
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