HBA-EDN, JLV H.B. 1083 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1083
By: Thompson
Judicial Affairs
2/26/2001
Introduced



BACKGROUND AND PURPOSE 

Property owners will frequently grant a power of attorney to a spouse,
another family member, or a third party.  If a property owner files for
bankruptcy the power of attorney is subsequently challenged.  House Bill
1083 clarifies the statute to provide that a bankruptcy petition does not
void a durable power of attorney, but stays its use until the bankruptcy is
resolved. 

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 1053 amends the Texas Probate Code to provide that after
execution of a durable power of attorney, the filing of a bankruptcy
petition in connection with the principal's debts does not revoke or
terminate the agency as to the principal's attorney in fact or agent.  Any
act of the attorney in fact or agent with respect to the principal's
property is subject to the limitations and requirements of the United
States Bankruptcy Code until a final determination is made in the
bankruptcy proceeding. 

EFFECTIVE DATE

September 1, 2001.