Texas 2021 - 87th Regular

Texas Senate Bill SB1932 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R3041 EAS-F
2	2	By: Hughes S.B. No. 1932
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to durable powers of attorney and the construction of
8	8	certain powers conferred in those powers of attorney.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 751.002(5), Estates Code, is amended to
11	11	read as follows:
12	12	(5) "Principal" means an adult individual [person] who
13	13	signs or directs the signing of the individual's [person's] name on
14	14	a power of attorney that designates an agent to act on the
15	15	individual's [person's] behalf.
16	16	SECTION 2. Section 751.00201, Estates Code, is amended to
17	17	read as follows:
18	18	Sec. 751.00201. MEANING OF DISABLED OR INCAPACITATED FOR
19	19	PURPOSES OF DURABLE POWER OF ATTORNEY. Unless otherwise defined by
20	20	a durable power of attorney, an individual [a person] is considered
21	21	disabled or incapacitated for purposes of the durable power of
22	22	attorney if a physician certifies in writing at a date later than
23	23	the date the durable power of attorney is executed that, based on
24	24	the physician's medical examination of the individual [person], the
25	25	individual [person] is determined to be mentally incapable of
26	26	managing the individual's [person's] financial affairs.
27	27	SECTION 3. Section 752.001(a), Estates Code, is amended to
28	28	read as follows:
29	29	(a) An individual [A person] may use a statutory durable
30	30	power of attorney to grant an [attorney in fact or] agent powers
31	31	with respect to an individual's [a person's] property and financial
32	32	matters.
33	33	SECTION 4. Section 752.107, Estates Code, is amended to
34	34	read as follows:
35	35	Sec. 752.107. BUSINESS OPERATION TRANSACTIONS. Subject to
36	36	the terms of an agreement or other document governing or relating to
37	37	an entity or entity ownership interest, to the extent the agent is
38	38	permitted by law to act for the principal and unless the power of
39	39	attorney provides otherwise, the [The] language conferring
40	40	authority with respect to business operating transactions in a
41	41	statutory durable power of attorney empowers the [attorney in fact
42	42	or] agent to:
43	43	(1) operate, buy, sell, enlarge, reduce, or terminate
44	44	an ownership [a business] interest;
45	45	(2) [do the following, to the extent that an attorney
46	46	in fact or agent is permitted by law to act for a principal and
47	47	subject to the terms of a partnership agreement:
48	48	[(A)] perform a duty or[,] discharge a liability,
49	49	or exercise in person or by proxy a right, power, privilege, or
50	50	option that the principal has, may have, or claims to have [under
51	51	the partnership agreement, whether or not the principal is a
52	52	general or limited partner];
53	53	(3) [(B)] enforce the terms of an agreement or other
54	54	document governing or relating to an entity or entity ownership
55	55	interest [the partnership agreement by litigation, action, or
56	56	otherwise]; [and]
57	57	(4) [(C)] defend, submit to arbitration, settle, or
58	58	compromise litigation or an action to which the principal is a party
59	59	because of an entity ownership interest [membership in the
60	60	partnership];
61	61	(5) [(3)] exercise in person or by proxy, or enforce
62	62	by litigation, action, or otherwise, a right, power, privilege, or
63	63	option the principal has or claims to have as the holder of a
64	64	certificated or uncertificated ownership interest;
65	65	(6) [bond, share, or other similar instrument and]
66	66	defend, submit to alternative dispute resolution [arbitration],
67	67	settle, or compromise litigation [a legal proceeding] to which the
68	68	principal is a party concerning a certificated or uncertificated
69	69	ownership interest [because of a bond, share, or similar
70	70	instrument];
71	71	(7) [(4)] with respect to a business or other entity
72	72	owned solely by the principal:
73	73	(A) continue, modify, renegotiate, extend, and
74	74	terminate a contract made by or on behalf of the principal with
75	75	respect to the business or other entity [before execution of the
76	76	power of attorney with an individual, legal entity, firm,
77	77	association, or corporation by or on behalf of the principal with
78	78	respect to the business];
79	79	(B) determine:
80	80	(i) the location of the business's or other
81	81	entity's operation;
82	82	(ii) the nature and extent of the business;
83	83	(iii) the methods of manufacturing,
84	84	selling, merchandising, financing, accounting, and advertising
85	85	employed in the business's or other entity's operation;
86	86	(iv) the amount and types of insurance
87	87	carried; and
88	88	(v) the method of engaging, compensating,
89	89	and dealing with the business's or other entity's accountants,
90	90	attorneys, or [and] other agents [and employees];
91	91	(C) change the name or form of organization under
92	92	which the business or other entity is operated and enter into an [a
93	93	partnership] agreement with other persons [or organize a
94	94	corporation] to take over all or part of the operation of the
95	95	business or other entity; and
96	96	(D) demand and receive money due or claimed by
97	97	the principal or on the principal's behalf in the operation of the
98	98	business or other entity and control and disburse the money in the
99	99	operation of the business or other entity;
100	100	(8) [(5)] put additional capital into a business or
101	101	other entity in which the principal has an interest;
102	102	(9) [(6)] join in a plan of reorganization,
103	103	consolidation, interest exchange, conversion, or merger of the
104	104	business or other entity;
105	105	(10) [(7)] sell or liquidate a business or other
106	106	entity or all or part of the assets of the business or other entity
107	107	[at the time and on the terms that the attorney in fact or agent
108	108	considers desirable];
109	109	(11) [(8)] establish the value of a business or other
110	110	entity under a buy-out agreement to which the principal is a party;
111	111	(12) [(9) do the following:
112	112	[(A)] prepare, sign, file, and deliver reports,
113	113	compilations of information, returns, or other papers with respect
114	114	to a business or other entity and[:
115	115	[(i) that are required by a governmental
116	116	agency, department, or instrumentality; or
117	117	[(ii) that the attorney in fact or agent
118	118	considers desirable; and
119	119	[(B)] make related payments; and
120	120	(13) [(10)] pay, compromise, or contest taxes or
121	121	assessments and perform any other act [that the attorney in fact or
122	122	agent considers desirable] to protect the principal from illegal or
123	123	unnecessary taxation, fines, penalties, or assessments with
124	124	respect to a business or other entity, including attempts to
125	125	recover, in any manner permitted by law, money paid before or after
126	126	the execution of the power of attorney.
127	127	SECTION 5. Section 752.107, Estates Code, as amended by
128	128	this Act, applies only to a durable power of attorney, including a
129	129	statutory durable power of attorney, executed on or after the
130	130	effective date of this Act. A durable power of attorney, including a
131	131	statutory durable power of attorney, executed before the effective
132	132	date of this Act is governed by the law in effect on the date the
133	133	durable power of attorney was executed, and the former law is
134	134	continued in effect for that purpose.
135	135	SECTION 6. This Act takes effect September 1, 2021.