HBA-SEP H.B. 1883 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1883 By: Thompson Judicial Affairs 8/7/2001 Enrolled BACKGROUND AND PURPOSE Adult Protective Services has indicated that reports of elderly abuse, neglect, and exploitation have risen by 267 percent in the last decade. As a result, the Silver-Haired Legislature this past year recommended amending the Durable Power of Attorney Act to institute a waiting period for certain transactions involving an elderly principal and to require an attorney to file a bond, obtain court approval, or both before completing such a transaction. There are other classes of people who have been exploited because of the actions of the attorney in fact or agent attorney. Requiring the attorney to timely inform persons and provide an accounting may protect individuals from further exploitation. House Bill 1883 provides that the attorney in fact or agent is a fiduciary and has a duty to inform and to account for actions taken pursuant to the power of attorney. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1883 amends the Texas Probate Code to provide that the attorney in fact or agent (attorney) is a fiduciary and has a duty to inform and to account for actions taken pursuant to the power of attorney. The attorney is required to timely inform the principal of all actions taken pursuant to the power of attorney. Failure to timely inform, as to third parties, does not invalidate any action of the attorney. The attorney is required to maintain records of each action taken or decision made by the attorney. The principal is authorized to demand an accounting by the attorney. The bill sets forth the content of the accounting. Unless otherwise directed by the principal, the attorney is required to also provide to the principal all documentation regarding the principal's property. The attorney is required to maintain all records until delivered to the principal, released by the principal, or discharged by a court. If the attorney fails or refuses to inform the principal, provide documentation, or deliver the accounting within 60 days (or such longer or shorter time that the principal demands or a court may order), the principal is authorized to file suit to compel the attorney to deliver the accounting or assets or to terminate the power of attorney. These provisions do not limit the right of the principal to terminate the power of attorney or to make additional requirements of or to give additional instructions to the attorney. EFFECTIVE DATE September 1, 2001.