Texas Family-First Guardianship, Emergency Asset Protection, and Ward Stewardship Act

By:

H.B. No.

A BILL TO BE ENTITLED AN ACT

relating to family-first appointment and succession of guardians for certain adults, emergency protection of a vulnerable person's person and property before a guardianship hearing, expedited review following a material medical change, consensual safe-family residence arrangements and interstate transfer procedures for wards, independent stewardship and protection of a ward's estate regardless of estate size, enforcement of the bill of rights for wards, reporting of guardianship appointments and compensation, and accountability of guardians and court-appointed persons.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS

SECTION 1. SHORT TITLE.

This Act may be cited as the Texas Family-First Guardianship, Emergency Asset Protection, and Ward Stewardship Act.

SECTION 2. AMENDMENT.

Section 1101.103, Estates Code, is amended by adding Subsection (g) to read as follows:

(g) A court that creates a guardianship for an adult based in whole or in part on a letter or certificate under this section shall include in the order creating the guardianship a statement that a material change in the ward's diagnosis, prognosis, physical condition, mental functioning, or functional capacity may require expedited review under Section 1202.158.

SECTION 3. NEW PROVISION.

Subchapter D, Chapter 1202, Estates Code, is amended by adding Section 1202.158 to read as follows:

Sec. 1202.158. EXPEDITED REVIEW FOLLOWING MATERIAL MEDICAL CHANGE. (a) In this section, "material medical change" means a documented change in a ward's medical diagnosis, prognosis, physical condition, mental functioning, or functional capacity that:

(1) calls into reasonable question the factual basis for a finding of incapacity or the scope of authority granted to a guardian;

(2) states that the condition on which the guardianship was based has improved, resolved, was incorrectly diagnosed, or has been replaced by a different diagnosis; or

(3) indicates that a less restrictive alternative to guardianship may be feasible.

(b) A ward may request review under this section by informal letter, an accessible form, or a verified motion. The ward's attorney, an attorney ad litem, a guardian ad litem, the guardian, a person interested in the ward's welfare, or a health care provider who has examined or treated the ward may file a verified motion for expedited review. A filing that is not made by the ward must include a letter, certificate, medical record, or sworn declaration from a physician, psychologist, or advanced practice registered nurse describing the material medical change. If a ward files an informal request without supporting evidence, the court investigator, guardian ad litem, or attorney ad litem shall promptly assist the ward in obtaining available records and any letter or certificate required by Section 1202.152.

(c) Evidence from an advanced practice registered nurse is sufficient to trigger the expedited procedures under this section but does not replace a physician's or psychologist's letter or certificate required by Section 1202.152 for a final order restoring capacity or modifying the guardianship. The court may enter temporary protective relief while evidence required by Section 1202.152 is obtained.

(d) On filing of a request or motion under this section, the court shall:

(1) appoint a court investigator or guardian ad litem under Section 1202.054 not later than the fifth business day after the date the filing is made, unless an investigator or guardian ad litem has been appointed and the court finds in writing that a new appointment is unnecessary;

(2) provide notice of the filing to the ward, the ward's attorney ad litem, the guardian, each person entitled to notice under Section 1051.104, and each adult family member identified under Section 1104.1035;

(3) set a hearing not later than the 21st day after the date the filing is made; and

(4) make a written finding not later than the 10th day after the date of the hearing regarding whether the guardianship should be terminated, modified, continued, or subjected to a temporary protective limitation under Subsection (e).

(e) Pending the hearing and final order under this section, the court may enter a temporary order necessary to protect the ward. A temporary order may not:

(1) change the ward's residence;

(2) authorize removal of the ward from a safe family residence;

(3) authorize a sale, mortgage, gift, transfer, or other disposition of the ward's real property or a nonroutine expenditure from the ward's estate; or

(4) restrict reasonable in-person contact between the ward and an adult family member;

unless the court finds by clear and convincing evidence, in a written order supported by specific facts, that the action is immediately necessary to prevent substantial physical harm to the ward or substantial and irreparable loss to the ward's estate.

(f) The court shall consider the ward's current and previously expressed preferences, the opinion of the ward's treating health care providers, the availability of a willing and eligible family guardian, the safety and adequacy of the ward's proposed living arrangement, and the feasibility of a less restrictive alternative to guardianship.

(g) An expedited-review request under this section is not subject to a limitation on reapplication if the request is supported by evidence of a material medical change that was not available at the time of the most recent hearing.

(h) The court shall provide the ward a reasonable opportunity to attend the hearing in person or by remote means and to communicate the ward's wishes directly to the court, unless the court finds in writing that participation would cause substantial harm to the ward's health.

SECTION 4. NEW PROVISION.

Subchapter C, Chapter 1104, Estates Code, is amended by adding Section 1104.1035 to read as follows:

Sec. 1104.1035. FAMILY-FIRST APPOINTMENT AND SUCCESSION OF GUARDIAN OF PERSON. (a) In this section:

(1) "Adult family member" means an adult spouse, child, parent, sibling, grandchild, grandparent, aunt, uncle, niece, nephew, first cousin, or another adult related to the incapacitated person by blood, marriage, or adoption.

(2) "Material conflict of interest" means a present financial, legal, or personal interest that creates a substantial risk that the proposed guardian cannot act loyally in the incapacitated person's interest. Family disagreement or a potential future inheritance, without additional specific facts, is not a material conflict of interest.

(3) "Reasonable and documented efforts" means diligent efforts reasonably calculated to identify, locate, and provide notice, with each source consulted, inquiry made, address used, communication attempted, response received, and date recorded in a sworn filing.

(4) "Safe family residence" means a residence with an adult family member in which the incapacitated person's essential needs are met and for which there is no clear and convincing evidence of an imminent and substantial risk of physical harm that cannot be prevented by a less restrictive measure.

(5) "Substantiated finding" means a final conviction, final civil judgment, final administrative finding after notice and opportunity for review, or finding by a court after notice and an evidentiary hearing.

(b) This section applies to the appointment of a guardian of the person for an adult incapacitated person. This section does not limit:

(1) a valid declaration of guardian made by the incapacitated person under Subchapter E;

(2) the preference of the incapacitated person under Section 1104.002; or

(3) the appointment of a temporary guardian necessary to prevent imminent and substantial harm under Chapter 1251.

(c) Except as provided by Subsection (b), the court shall appoint a guardian of the person according to the following order of priority, if the person is eligible and willing to serve:

(1) the spouse of the incapacitated person;

(2) the adult children of the incapacitated person in descending order of age;

(3) the parents of the incapacitated person in descending order of age;

(4) the adult siblings of the incapacitated person in descending order of age;

(5) the adult grandchildren of the incapacitated person in descending order of age;

(6) the nearest living adult relative of the incapacitated person, with preference among relatives of the same degree of kinship given in descending order of age; and

(7) a qualified person appointed by the court under Section 1104.102(3).

(d) A person listed in Subsection (c) is eligible for appointment only if the person:

(1) meets the eligibility requirements otherwise imposed by this title;

(2) completes the training required by law before appointment, unless training is waived as authorized by law;

(3) files a sworn statement that the person is willing and able to serve and will comply with the duties of a guardian of the person; and

(4) is not disqualified under this title.

(e) The applicant for appointment shall file a sworn family-information affidavit identifying each adult family member known or reasonably ascertainable through reasonable inquiry of the proposed ward, emergency contacts, prior agents under powers of attorney or medical powers of attorney, reasonably available health-care and facility records, known estate-planning documents, and reasonably accessible public records. The affidavit must state each person's relationship and last known contact information, describe the source of the information, document every contact effort, identify any person whose location remains unknown, and disclose any known dispute or allegation affecting eligibility.

(f) The applicant shall supplement the affidavit not later than the fifth business day after discovering material additional information. A knowing and material omission or concealment is grounds for fee forfeiture, sanctions, referral to an appropriate authority, and any other remedy authorized by law.

(g) Before appointing a person under Subsection (c)(7), the court shall review the affidavit, direct any additional reasonable inquiry necessary to identify, locate, and notify each adult family member listed in Subsection (c)(1)-(6), and allow each notified family member not less than 21 days after service or actual notice to:

(1) file an application for appointment;

(2) file a written waiver under Section 1104.1036; or

(3) state an objection to the appointment of another proposed guardian.

(h) If a priority family member was materially omitted from the affidavit or notice process, the court shall promptly provide notice and conduct a new family-priority hearing. The court may preserve only powers immediately necessary to prevent imminent and substantial harm until the hearing is completed.

(i) A court may bypass a person with priority under Subsection (c) only if the court finds by clear and convincing evidence, stated with specific facts in a written order, that the person:

(1) is not eligible or qualified to serve;

(2) has filed a valid waiver under Section 1104.1036;

(3) is subject to a substantiated finding that the person committed abuse, neglect, exploitation, or a material breach of fiduciary duty against the incapacitated person or another vulnerable person;

(4) has a presently existing material conflict of interest that cannot be eliminated by a limited guardianship, bond, court supervision, appointment of a separate guardian of the estate, or another less restrictive protective measure, or has engaged in specific conduct that creates an imminent and substantial risk of physical or financial harm to the incapacitated person; or

(5) cannot be located after reasonable and documented efforts.

(j) The existence of disagreement among family members, standing alone, does not constitute a basis to bypass the priority order in Subsection (c) or appoint a professional guardian. A court shall first consider mediation, appointment of a court visitor or investigator, limited guardianship, or another less restrictive alternative reasonably available to resolve the disagreement.

(k) If a person with priority under Subsection (c) authorizes in a signed and notarized writing another eligible family member to serve as guardian of the person, the court may appoint the authorized family member if the court finds that the appointment is in the incapacitated person's best interest. The authorization must be filed with the court and provided to all persons entitled to notice under this section.

(l) Nothing in this section authorizes a guardian of the person to exercise powers over the ward's estate except as otherwise provided by this title and expressly authorized by court order.

SECTION 5. NEW PROVISION.

Chapter 1104, Estates Code, is amended by adding Section 1104.1036 to read as follows:

Sec. 1104.1036. WAIVER OF PRIORITY TO SERVE AS GUARDIAN OF PERSON. (a) A person with priority under Section 1104.1035 may waive the person's priority only by filing a sworn waiver with the court.

(b) The waiver must:

(1) identify the incapacitated person and the guardianship proceeding;

(2) state that the person understands the right to seek appointment under Section 1104.1035;

(3) state that the waiver is voluntary and is not the result of coercion, fraud, undue influence, a threat, a promise of compensation, or denial of access to the incapacitated person;

(4) state whether the person recommends another eligible family member for appointment;

(5) be signed before a notary public or other officer authorized to administer an oath;

(6) state that the waiver does not waive the person's right to receive notice, participate as an interested person, seek removal of a guardian for cause, report suspected abuse or exploitation, or petition for modification or termination of the guardianship; and

(7) be accompanied by a certification of service on each adult family member entitled to notice under Section 1104.1035.

(c) A waiver is void if procured by fraud, coercion, undue influence, material misrepresentation, concealment of a material fact, or denial of reasonable access to the incapacitated person. A person alleging that a waiver is void may file a verified motion, and the court shall set the motion for hearing not later than the 21st day after the date the motion is filed.

(d) A court-appointed guardian, temporary guardian, attorney ad litem, guardian ad litem, court investigator, court visitor, attorney representing a proposed guardian, nursing facility, financial institution, or person seeking appointment may not prepare, solicit, witness, notarize, or materially assist in obtaining a waiver from a family member unless the family member is represented by independent counsel or the court authorizes the process in a written order after notice and hearing.

(e) The Office of Court Administration of the Texas Judicial System shall develop a standard waiver form that courts shall make available without charge in paper and electronic formats.

SECTION 6. PROVISION.

Section 1104.102, Estates Code, is amended to read as follows:

Sec. 1104.102. APPOINTMENT PREFERENCES. (a) If the court finds that two or more eligible persons are equally entitled to be appointed guardian of an incapacitated person:

(1) the incapacitated person's spouse is entitled to the guardianship in preference to any other person, if the spouse is one of the eligible persons;

(2) subject to Section 1104.1035, the eligible person nearest of kin to the incapacitated person is entitled to the guardianship, if the incapacitated person's spouse is not one of the eligible persons; or

(3) the court shall appoint the eligible person who is best qualified to serve as guardian if:

(A) the persons entitled to serve under Subdivisions (1) and (2) refuse to serve;

(B) two or more persons entitled to serve under Subdivision (2) are related in the same degree of kinship to the incapacitated person; or

(b) For purposes of Subsection (a)(2) and Section 1104.1035, adult children and other relatives of the same degree of kinship are not equally entitled until the court has applied the order of priority under Section 1104.1035.

SECTION 7. NEW PROVISION.

Subtitle E, Title 3, Estates Code, is amended by adding Chapter 1166 to read as follows:

CHAPTER 1166. FAMILY GUARDIAN ESTATE STEWARDSHIP AND INDEPENDENT PROTECTION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1166.001. DEFINITIONS. In this chapter:

(1) "Affiliate" means a person or entity that directly or indirectly controls, is controlled by, is under common control with, employs, is employed by, shares compensation with, or has a material financial relationship with another person or entity.

(2) "Covered governmental agency" means the Department of Family and Protective Services, a law-enforcement agency, a prosecuting attorney, the Office of Court Administration of the Texas Judicial System, the Judicial Branch Certification Commission, or another governmental entity authorized by law to investigate or remedy abuse, neglect, exploitation, fiduciary misconduct, or a violation of a protected guardianship provision.

(3) "Covered institution" means:

(A) a financial institution, as defined by Section 281.001, Finance Code;

(B) a dealer or investment adviser subject to Subchapter H, Chapter 4004, Government Code;

(C) an insurer, health maintenance organization, insurance agent, or other person regulated by the Texas Department of Insurance that holds, administers, pays, or services a policy, contract, claim, annuity, retirement product, or other benefit belonging to a vulnerable person; or

(D) to the extent not preempted by federal law, a retirement-plan administrator, pension administrator, broker-dealer, investment custodian, or other person that holds or administers money, securities, benefits, or property of a vulnerable person.

(4) "Direct benefit to the ward" means a reasonably necessary, documented, and proportionate benefit to the ward's health, safety, housing, care, maintenance, support, rehabilitation, education, property preservation, legal rights, or expressed preferences that is not principally for another person's convenience or enrichment.

(5) "Emergency protection notice" means a notice made under Section 1166.011 alleging an emergency risk of abuse, neglect, exploitation, financial abuse, or dissipation of a vulnerable person's assets.

(6) "Financial-responsibility background check" means a review, conducted in compliance with applicable federal and state law, of final civil judgments, fiduciary removals, bankruptcies, liens, professional discipline, and other adjudicated matters materially relevant to the person's ability to safeguard a ward's estate.

(7) "Managing estate protector" means a qualified person appointed as guardian of the estate who possesses or controls ward property and performs the management duties of this chapter.

(8) "Material financial relationship" means a direct or indirect ownership interest, compensation arrangement, referral arrangement, shared business interest, creditor-debtor relationship, or other economic relationship that would cause a reasonable person to question the person's ability to act impartially or solely for the ward's benefit.

(9) "Nonroutine expenditure" means an expenditure or related series of expenditures from the ward's estate that:

(A) is not included in a court-approved allowance, estate stewardship plan, or budget;

(B) exceeds the lesser of $2,500 or two percent of the ward's nonexempt liquid estate during any 90-day period; or

(C) involves the sale, mortgage, lease for a term longer than one year, transfer, gift, or encumbrance of real property or another major asset of the ward.

(10) "Protected guardianship provision" means this chapter or Section 1101.151(d), 1101.152(d), 1104.1035, 1104.1036, 1151.051(c-1) or (c-2), 1151.053, 1151.351, 1151.352, 1202.158, 1203.051(a-1), 1203.1035, or a provision of Subchapter A, Chapter 1253, added or amended by the Act enacting this chapter.

(11) "Qualified person" means an individual or entity eligible to serve as guardian of the estate under this title who meets the qualifications of Section 1166.052 and has no disqualifying conflict of interest.

(12) "Reviewing estate protector" means a qualified, disinterested person appointed to review, investigate, report, object, and seek relief regarding management of a ward's estate but who does not possess, manage, invest, receive, or disburse ward property.

(13) "Safe family residence" has the meaning assigned by Section 1104.1035.

(14) "Substantial and irreparable loss" means a loss that is imminent, material in relation to the ward's needs or estate, and not reasonably remediable by restitution, bond, insurance, or other relief.

(15) "Vulnerable person" has the meaning assigned by Section 281.001, Finance Code, and includes a minor for whom a guardianship application has been filed or a guardian of the estate has been appointed.

SUBCHAPTER B. PRE-COURT EMERGENCY PROTECTION OF PERSON AND PROPERTY

Sec. 1166.011. EMERGENCY PROTECTION NOTICE; GOOD-FAITH REPORT. (a) An adult family member, a person with a valid durable power of attorney, a health care provider, a peace officer, an adult protective services worker, or another person with personal knowledge may make an emergency protection notice if the person has reasonable cause, supported by specific facts, to believe that a vulnerable person is at imminent risk of:

(1) abuse, neglect, or exploitation;

(2) financial abuse, financial exploitation, fraud, undue influence, identity theft, theft, or misapplication of property; or

(3) substantial dissipation, unauthorized transfer, foreclosure, repossession, loss, or concealment of property or funds.

(b) An emergency protection notice may be made orally by telephone or electronically to a covered institution, a local law-enforcement agency, or the Department of Family and Protective Services. A covered institution shall maintain a telephone number or electronic method for receiving notices during the institution's ordinary operating hours.

(1) the vulnerable person's name, address, age or date of birth, and relationship to the reporting person;

(2) the covered institution, account, policy, benefit, or asset reasonably believed to be at risk;

(3) the specific facts creating reasonable cause to believe an imminent risk exists;

(4) the reporting person's contact information; and

(5) whether law enforcement or the department has been contacted.

(d) A person who makes a notice in good faith under this section is immune from civil liability for making the notice. A person injured by a notice made with knowledge that the notice was materially false or with reckless disregard for its truth may bring an action against the reporting person for actual damages, reasonable attorney's fees, injunctive relief, and exemplary damages as authorized by Chapter 41, Civil Practice and Remedies Code. The action must be brought not later than the second anniversary of the date the claimant discovered or reasonably should have discovered the false notice.

Sec. 1166.012. IMMEDIATE ACTION BY COVERED INSTITUTION; NOTICE; REVIEW. (a) On receipt of a facially sufficient emergency protection notice, a covered institution shall promptly assess the notice. If the institution has reasonable cause to believe that a transaction or requested change is related to the reported risk, the institution shall:

(1) preserve relevant account, policy, transaction, communication, access-log, beneficiary-designation, and ownership records;

(2) place a provisional protective hold only on a transaction, change, or disbursement reasonably related to the reported risk;

(3) preserve payments and access reasonably necessary for the vulnerable person's food, shelter, medical care, insurance coverage, utilities, essential housing, lawful tax obligations, and other essential living expenses; and

(4) not later than the next business day, report the suspected exploitation to each agency required by applicable law.

(b) A covered institution may decline to place or continue a hold if the notice is facially insufficient, unsupported by specific facts, unrelated to property held or administered by the institution, or contradicted by reliable information. The institution shall document its decision and does not incur liability for a good-faith decision under this subsection.

(c) Unless the institution reasonably suspects that a person is engaged in the reported exploitation or disclosure is prohibited by law or would compromise an investigation, the institution shall provide prompt written or electronic notice of a hold to:

(1) the vulnerable person;

(2) each joint owner or other person authorized to transact business on the affected account or property;

(3) an agent acting under a known valid power of attorney; and

(4) the reporting person.

(d) The notice under Subsection (c) must identify the general category of transaction affected, state the date the hold began and will expire unless lawfully extended, describe how to request release of essential funds or review of the hold, and provide contact information for the institution and the agencies to which the report was made. The notice may omit information that would identify a confidential reporter or compromise an investigation.

(e) A provisional protective hold expires at the end of the fifth business day after the date the hold is placed unless:

(1) the institution has independent authority to continue the hold under Chapter 281, Finance Code, Subchapter H, Chapter 4004, Government Code, federal law, or another applicable law;

(2) an authorized governmental agency requests continuation as authorized by applicable law; or

(3) a court enters an order continuing, modifying, or terminating the hold.

(f) Filing a guardianship application or other protective proceeding does not by itself extend a hold. A person seeking continuation beyond the fifth business day must obtain lawful agency action or a court order. On a verified application to continue, modify, or terminate a hold, the court shall hold a hearing not later than the third business day after filing and may continue the hold only on clear and convincing evidence that the affected transaction presents an imminent risk of substantial and irreparable loss and that the order is narrowly tailored. An initial order may not exceed 20 days but may be renewed after notice and hearing.

(g) At any time, the vulnerable person or another person whose property or authority is affected may request release of essential funds from the institution or file a verified application for judicial review. The institution shall decide an essential-funds request not later than the next business day and shall document the basis for a denial.

(h) A covered institution acting in good faith under this section is immune from civil liability for a good-faith hold, refusal to hold, release, notice, report, or payment of essential expenses. This immunity does not apply to gross negligence, bad faith, or willful misconduct.

(i) This section does not require an institution to determine legal incapacity, adjudicate a family dispute, change ownership or beneficiary rights, violate a contractual obligation unrelated to the reported risk, or take action prohibited by federal law. Federal law controls to the extent of a conflict.

Sec. 1166.013. COORDINATION WITH LAW ENFORCEMENT AND PROTECTIVE SERVICES. (a) A peace officer, adult protective services worker, or other authorized governmental investigator who receives an emergency protection notice shall, consistent with the officer's or worker's authority, promptly assess the alleged risk and may request that a covered institution maintain or expand a protective hold only as authorized by applicable law.

(b) On a lawful request by an authorized governmental agency, a covered institution shall maintain a hold for the period and on the terms authorized by Chapter 281, Finance Code, Subchapter H, Chapter 4004, Government Code, federal law, or another applicable law.

(c) An emergency protection notice does not authorize a reporting person to take possession of the vulnerable person's funds, property, account credentials, identification documents, medication, or residence. A reporting person may take only reasonable actions necessary to protect the vulnerable person from immediate physical harm and must promptly coordinate with law enforcement or protective services.

Sec. 1166.014. PRE-COURT FAMILY PROTECTION PLAN. (a) If a family member makes an emergency protection notice and reasonably believes that a guardianship of the person or estate may be needed, the family member may prepare a temporary family protection plan identifying:

(1) the vulnerable person's immediate residence, medical needs, and known care needs;

(2) the adult family members identified under Section 1104.1035 and the efforts made to contact them;

(3) the identity and location of known assets, income, insurance, benefits, debts, and recurring payments;

(4) the emergency steps taken to preserve the vulnerable person's health, safety, housing, insurance, benefits, and property; and

(5) the family member willing to seek appointment under Section 1104.1035.

(b) A plan under this section does not create a guardianship, transfer authority over the vulnerable person or property, or excuse the filing of a guardianship application if court authority is required. The plan may be submitted to a court, peace officer, adult protective services worker, or covered institution as evidence of the family member's good-faith effort to preserve the vulnerable person's person and property.

SUBCHAPTER C. APPOINTMENT, QUALIFICATIONS, AND DUTIES OF ESTATE PROTECTOR

Sec. 1166.051. APPOINTMENT; ROLE. (a) The substantive protections, accounting requirements, expenditure standards, conflict-of-interest prohibitions, enforcement remedies, and rights created by this chapter apply to each adult ward and the ward's estate regardless of size or value.

(b) The court shall appoint a managing estate protector if a guardian of the estate is required and independent management is necessary to protect the ward. A managing estate protector must be appointed and qualified as guardian of the estate and is subject to every duty, bond, accounting, certification, and removal requirement applicable to a guardian of the estate.

(1) the guardian of the person and guardian of the estate are different persons and independent review is necessary;

(2) the court finds, on its own motion or on a verified motion of the ward or an interested person, that independent review is necessary to protect the ward's estate; or

(3) the ward, the ward's attorney, or an adult family member requests appointment and the court does not find by clear and convincing evidence, stated in a written order, that the probable cost would materially impair the ward's ability to obtain necessary care, housing, food, medicine, insurance, or other support and that no qualified unpaid or publicly funded reviewer is available.

(d) A person may not simultaneously serve as guardian of the estate and reviewing estate protector. If cost precludes a separate appointment, the court shall assign the reviewing duties to a court investigator, court visitor, auditor, guardianship program, or other disinterested person whose service does not diminish the ward's estate. The court may tailor reporting frequency to the nature and value of the estate but may not waive a substantive protection of this chapter.

(e) The court may appoint a managing or reviewing estate protector for a minor who has property requiring protection.

(f) The court shall apply the family-priority process in Section 1104.1035, to the extent practicable, in selecting an eligible family member. If no eligible and willing family member is available, the court may appoint a qualified independent person or entity.

(g) The guardian of the person, the guardian's attorney, a person employed by the guardian, a person with a direct or indirect financial interest in managing, investing, selling, purchasing, insuring, or providing services paid from the ward's property, and a person who prepared or solicited a waiver under Section 1104.1036 may not serve as reviewing estate protector.

Sec. 1166.052. QUALIFICATIONS. (a) An individual serving as a managing or reviewing estate protector must:

(1) be at least 21 years of age and legally competent;

(2) be a resident of this state or designate a resident agent for service of process in this state;

(3) complete required guardianship, fiduciary, ethics, financial-recordkeeping, benefits, insurance, exploitation-recognition, and conflict-of-interest training;

(4) consent to a criminal-history and financial-responsibility background check;

(5) file a sworn disclosure of all actual or potential conflicts of interest before appointment and annually thereafter;

(6) post a bond if appointed managing estate protector; and

(7) meet all other eligibility requirements applicable to the assigned role.

(b) A person is not qualified if the person:

(1) has been convicted of, or received deferred adjudication for, an offense involving fraud, theft, exploitation, financial abuse, breach of fiduciary duty, money laundering, violence against a vulnerable person, or a substantially similar offense;

(2) is subject to a substantiated finding, as defined by Section 1104.1035, of abuse, neglect, exploitation, or financial exploitation of a child, elderly person, or person with a disability;

(3) is subject to a final unsatisfied civil judgment involving fraud, theft, financial exploitation, or breach of fiduciary duty;

(4) has an undisclosed or unapproved direct or indirect financial interest in a transaction involving the ward's estate; or

(5) is otherwise disqualified under this title.

(c) For an estate with more than $250,000 in assets other than the ward's homestead, a managing estate protector must be an eligible family member who demonstrates sufficient financial competence and obtains approved professional assistance, or an independent person or entity with demonstrable fiduciary estate-management experience.

Sec. 1166.053. ESTATE STEWARDSHIP PLAN; ACCESS TO RECORDS. (a) Not later than the 60th day after appointment, the managing estate protector, or the guardian of the estate subject to review, shall file a proposed estate stewardship plan identifying the ward's property, income, benefits, insurance, liabilities, 12-month budget, asset-preservation strategy, proposed caregiver payments, and anticipated nonroutine transactions.

(b) The court shall approve, modify, or reject the plan after notice to the guardian of the person, ward's attorney ad litem, reviewing estate protector, interested persons requesting notice, and adult family members identified under Section 1104.1035. The plan must be reviewed annually and amended on a material change.

(c) A reviewing estate protector is entitled, without further court order and subject to lawful privacy safeguards, to inspect and copy records reasonably necessary to perform the appointment, including account statements, inventories, receipts, contracts, tax filings, insurance records, benefit records, medical billing records, fee applications, and transaction documents.

(d) A guardian, covered institution, service provider, court-appointed person, and person possessing a record described by Subsection (c) shall provide the record not later than the 10th business day after receiving a written request. A person may redact information unrelated to the ward or seek a protective order. The court shall hear a dispute under this subsection not later than the 10th day after a verified motion is filed.

(e) A reviewing estate protector shall protect confidential information, may use it only for the ward's benefit and the proceeding, and may disclose it only as authorized by law or court order.

Sec. 1166.054. DUTIES AND POWERS. (a) A managing estate protector shall perform every duty of a guardian of the estate and shall administer the approved estate stewardship plan, pursue income and benefits, preserve appropriate insurance, coordinate funds for care, maintain complete records, and report apparent misuse, depletion, conflict, abuse, exploitation, or noncompliance.

(b) A reviewing estate protector shall independently review budgets, accounts, fees, benefits, insurance, related-party transactions, and major expenditures; compare expenditures with the plan and the ward-benefit-only standard; report material concerns; object to improper fees or transactions; request an accounting or audit; and file a verified motion for emergency or other relief.

(c) A reviewing estate protector may not possess, manage, invest, receive, or disburse ward property and is not a guardian of the estate solely by reason of the appointment.

(d) A disagreement between a reviewing estate protector and guardian does not suspend an essential payment for the ward. Either person may seek expedited instructions, and the court shall rule not later than the fifth business day if delay threatens health, safety, housing, insurance, or preservation of property.

(e) Compensation must be reasonable, proportionate to the estate and work performed, and approved after itemized application and notice. The court shall prefer a qualified unpaid family member, public resource, or limited-scope review when necessary to avoid impairing the ward's essential support.

SUBCHAPTER D. AUTHORIZED, RESTRICTED, AND PROHIBITED USES OF WARD PROPERTY

Sec. 1166.101. WARD-BENEFIT-ONLY STANDARD. (a) Money and property of a ward's estate, including all income and benefits received by or for the ward, may be used only for the ward's health, safety, housing, care, maintenance, support, rehabilitation, education, direct benefit, and lawful expenses of administration approved by the court.

(b) Subject to the estate stewardship plan and applicable court orders, authorized uses include reasonable and documented expenditures for:

(1) housing, utilities, food, clothing, furnishings, household supplies, transportation, communication, and personal-care needs of the ward;

(2) medical, dental, vision, behavioral-health, rehabilitation, prescription, durable-medical-equipment, home-health, nursing, therapy, and care-coordination expenses;

(3) premiums, deductibles, copayments, and other reasonable costs necessary to preserve or use health, long-term-care, disability, Medicare, Medicaid, homeowners, automobile, liability, and other insurance coverage or public benefits available to the ward;

(4) accessibility, mobility, safety, security, monitoring, bedroom, bathroom, and home modifications reasonably necessary because of the ward's condition;

(5) reasonable caregiving, respite, supervision, housekeeping, meal, transportation, and other support services directly benefiting the ward;

(6) reasonable, documented household expenses attributable to the ward when the ward resides in a family guardian's home, including a proportionate share of rent or mortgage interest, utilities, food, maintenance, and household services;

(7) reasonable travel, lodging, mileage, and incidental expenses necessary to obtain medical care, visit family, maintain the ward's relationships, or support an approved residence arrangement;

(8) reasonable recreation, faith-community participation, communications access, and social, cultural, and personal activities consistent with the ward's known preferences and needs;

(9) taxes, debt payments, property maintenance, investment management, accounting, legal services, insurance, storage, appraisal, and other expenses reasonably necessary to preserve the ward's property or income; and

(10) documented reimbursement to a family caregiver for reasonable and necessary expenses paid for the ward, and prospective caregiver compensation only under a written agreement or court-approved payment plan.

(1) the personal debt, mortgage principal, rent, tuition, credit-card debt, luxury purchase, vacation, business expense, or other personal expense of a guardian, estate protector, relative, or other person;

(2) a gift, loan, advance, donation, transfer, or payment to or for the benefit of a guardian, estate protector, family member, friend, business, charity, political candidate, political committee, or political organization, except as expressly authorized by court order on findings required by Section 1166.104;

(3) a change in the ward's will, trust, beneficiary designation, payable-on-death designation, transfer-on-death designation, retirement beneficiary, annuity beneficiary, or other estate-planning designation unless expressly authorized by another law and a court order supported by specific written findings;

(4) speculative trading, margin transactions, cryptocurrency purchases, private placements, commingling with another person's funds, or another investment inconsistent with the approved estate stewardship plan;

(5) payment for legal, professional, or fiduciary services that do not directly benefit the ward or the ward's estate; or

(6) payment intended to isolate the ward from family members, friends, advocates, or other persons entitled to contact with the ward.

Sec. 1166.102. NONROUTINE EXPENDITURES AND FAMILY-CARE ARRANGEMENTS. (a) Transactions shall be aggregated for purposes of this section if they serve the same or a related purpose, involve the same payee or an affiliate, occur within a 90-day period, form part of a common plan, or are structured to avoid notice, documentation, or approval.

(b) A court may not approve a nonroutine expenditure unless:

(1) the guardian of the estate or managing estate protector files a verified application describing the purpose, amount, payee, supporting documentation, and expected direct benefit to the ward;

(2) at least 14 days' notice is provided to the guardian of the person, the ward's attorney ad litem, each interested person who has requested notice, and the adult family members identified under Section 1104.1035;

(3) the reviewing estate protector files a recommendation, if one is appointed; and

(4) the court makes written findings that the expenditure is reasonable, necessary, consistent with the ward's known preferences when practicable, and directly beneficial to the ward.

(c) A court may waive the notice period under Subsection (b)(2) only on written findings of an immediate and substantial threat to the ward's health, safety, essential housing, insurance coverage, or property. The court shall set a prompt post-expenditure review hearing.

(d) A family-caregiver compensation arrangement must:

(1) be in writing;

(2) identify the services, rate, schedule, method of recordkeeping, and duration of the arrangement;

(3) be prospectively approved by the court after notice and review by the reviewing estate protector, if one is appointed; and

(4) provide compensation consistent with reasonable market rates for comparable services, accounting for the actual care provided.

(e) A court may not approve retroactive family-caregiver compensation except on clear and convincing evidence that the services were necessary, directly benefited the ward, were fully documented, and could not reasonably have been submitted for prospective approval.

Sec. 1166.103. SEPARATE ACCOUNTING; RECEIPTS; NOTICE. (a) A guardian of the estate or managing estate protector who receives or spends money belonging to the ward shall maintain ward funds separate from personal funds and maintain records sufficient to identify every receipt and disbursement.

(b) A disbursement or related series of disbursements exceeding $250 must be supported by an invoice, receipt, contract, or comparable record and identified in the annual account or annual report required by this title.

(c) Transactions shall be aggregated under Section 1166.102(a) for purposes of the documentation threshold in Subsection (b).

(d) The court shall ensure that each managing or reviewing estate protector, the guardian of the person, ward's attorney ad litem, and each interested person who has requested notice receives a copy of:

(1) each inventory, appraisement, and list of claims;

(2) each annual account and annual report;

(3) each application to sell, mortgage, lease, transfer, gift, or otherwise dispose of a major asset;

(4) each application for compensation, reimbursement, allowance, or attorney's fees paid from the ward's estate; and

(5) each order approving a nonroutine expenditure or related-party transaction.

Sec. 1166.104. PROHIBITED RELATED-PARTY TRANSACTIONS. (a) A guardian, managing or reviewing estate protector, attorney ad litem, guardian ad litem, court investigator, court visitor, or other court-appointed person may not knowingly participate in a transaction involving the ward's estate that provides a direct or indirect financial benefit to that person or to a business, family member, employer, partner, or affiliate of that person unless:

(1) the material relationship and financial interest are disclosed in a sworn filing;

(2) all adult interested persons receive notice;

(3) the court holds a hearing; and

(4) the court finds by clear and convincing evidence, in a written order, that the transaction is necessary, fair, at or better than prevailing market terms, and directly beneficial to the ward.

(b) A transaction entered into in violation of this section is grounds for removal, surcharge, denial or forfeiture of compensation, rescission to the extent authorized by law, and any other remedy authorized by law.

SUBCHAPTER E. ACCOUNTABILITY AND ENFORCEMENT

Sec. 1166.151. COVERED COURT-APPOINTED PERSONS. In this subchapter, "covered court-appointed person" means a guardian, temporary guardian, managing or reviewing estate protector, attorney ad litem, guardian ad litem, court investigator, court visitor, receiver, court-appointed attorney, corporate fiduciary, or an employee, agent, contractor, or affiliate acting on behalf of one of those persons in a guardianship proceeding.

Sec. 1166.152. REQUIRED PERFORMANCE; FEE FORFEITURE; REMOVAL. (a) A covered court-appointed person shall comply with each protected guardianship provision and all other applicable duties.

(b) A covered court-appointed person who knowingly or recklessly violates a protected guardianship provision, misuses or conceals ward property, suppresses material medical information, procures an unlawful waiver, conceals a family member, fails to disclose a conflict, or participates in a prohibited related-party transaction is subject to removal, surcharge, reimbursement, denial or forfeiture of compensation, additional bond, referral, and any other remedy authorized by law.

(c) The court shall order forfeiture of compensation attributable to a knowing or reckless violation unless written findings identify services that directly benefited the ward and establish that complete forfeiture would be manifestly unjust.

(d) Conduct described by Subsection (b) constitutes cause for removal under Chapter 1203. A remedy under this section is cumulative of Sections 1155.151 and 1155.152 and Chapter 1203. The ward's estate may not pay compensation, costs, or attorney's fees attributable to the violation. The violator and any liable surety are responsible to the extent provided by law.

(e) A ward or the ward's personal representative may bring an action against a covered court-appointed person who knowingly files a materially false affidavit, report, account, waiver certification, or disclosure required by a protected guardianship provision and whose conduct proximately causes injury to the ward or the ward's estate. The claimant may recover actual damages, reasonable and necessary attorney's fees, declaratory or injunctive relief, and exemplary damages as authorized by Chapter 41, Civil Practice and Remedies Code. An employer, principal, or affiliate is liable only for the person's own knowing participation, authorization, ratification, or independent legal responsibility. The action must be brought not later than the fourth anniversary of the date the claimant discovered or reasonably should have discovered the conduct. Venue lies in the county of the guardianship or as otherwise provided by law. This subsection does not waive judicial immunity, sovereign immunity, governmental immunity, or another immunity not expressly waived.

Sec. 1166.153. VERIFIED MOTION TO ENFORCE PROTECTIONS; HEARING; REMEDIES. (a) The ward, the ward's attorney, an attorney ad litem, guardian ad litem, managing or reviewing estate protector, adult family member, interested person, or covered governmental agency may file a verified motion alleging a violation of a protected guardianship provision.

(b) The court shall set the motion for hearing not later than the 21st day after filing. If the motion alleges imminent physical harm, abuse, neglect, exploitation, unlawful isolation, retaliation, unauthorized relocation, financial abuse, or dissipation of property, the court shall hold an emergency hearing not later than the third business day after filing.

(c) The court may grant declaratory, injunctive, protective, accounting, turnover, surcharge, fee-forfeiture, removal, or other relief authorized by law. A court's failure to perform a ministerial duty imposed by a protected guardianship provision is reviewable by mandamus.

(d) A court may not assess costs, fees, sanctions, or a visitation restriction against a person solely because the person made a good-faith report or filed a good-faith motion.

(e) A movant may file a statement of inability to afford payment of court costs under Rule 145, Texas Rules of Civil Procedure. The clerk may not refuse or delay filing because a fee has not been paid. If the movant substantially prevails, the court shall award reasonable and necessary attorney's fees and costs against the person who committed the violation unless written findings establish that the award would be unjust. An award may not be paid from the ward's estate.

(f) The remedies provided by this section are cumulative.

Sec. 1166.154. REVIEW BY PRESIDING JUDGE; PROTECTIVE ASSIGNMENT. (a) If a verified motion alleges that a court has failed to perform a ministerial duty imposed by a protected guardianship provision and the court has not cured the failure within 10 days, the clerk shall transmit the motion and relevant docket information to the presiding judge of the administrative judicial region. The presiding judge shall review the matter not later than the 15th day after receipt and may assign a visiting judge or take another action authorized by law.

(b) A party may file with the regional presiding judge a verified petition requesting assignment of a different judge if specific facts establish an objectively reasonable question concerning structural impartiality arising from:

(1) an undisclosed material financial relationship involving the judge, a court-appointed person, or an affiliate;

(2) repeated appointments, referrals, or fee approvals involving a challenged appointee that, together with additional specific facts, indicate favoritism or a closed appointment network;

(3) retaliation for a protected report, complaint, or motion; or

(4) another ground for recusal, disqualification, or assignment authorized by law.

(c) A petition under Subsection (b) must identify the facts, the requested relief, and any prior recusal motion. It does not automatically stay the case. The regional presiding judge shall rule or refer the petition under applicable law not later than the 21st day after receipt and may assign another judge when authorized by Chapter 74, Government Code, or other law. This section does not itself create jurisdiction in another county or alter constitutional disqualification standards.

(d) This section does not limit mandamus, appellate relief, recusal or disqualification procedures, or a complaint to the State Commission on Judicial Conduct.

SECTION 8. PROVISION.

Section 1104.001(b), Estates Code, is amended by adding Subdivision (5) to read as follows:

(5) two or more adult family members who have priority under Section 1104.1035, if each person is otherwise eligible, each consents in a sworn writing to the joint appointment and to an allocation of duties stated in the order, and the court finds by clear and convincing evidence that the joint appointment is necessary to preserve safe family care or avoid appointment of a person who is not a family member. Disagreement among family members, standing alone, is not a basis to deny an appointment under this subdivision.

SECTION 9. PROVISION.

Sections 1101.151 and 1101.152, Estates Code, are amended by adding Subsection (d) to Section 1101.151 and Subsection (d) to Section 1101.152 to read as follows:

(d) An order under this section that grants a guardian the right to have physical possession of a ward or to establish the ward's legal domicile must identify the residence in which the ward will live on the date of the order and may authorize removal of the ward from a safe family residence only if the court finds by clear and convincing evidence, stated with specific facts in the order, that:

(1) remaining in the residence presents an imminent and substantial risk of physical harm to the ward;

(2) the harm cannot be prevented by a less restrictive alternative, additional services, a protective order, removal of an alleged perpetrator, or appointment of an eligible family guardian; and

(3) the proposed residence is the least restrictive, most integrated setting that is safe and consistent with the ward's current and previously expressed preferences.

(d) An order under this section that grants a guardian the right to have physical possession of a ward or to establish the ward's legal domicile must identify the residence in which the ward will live on the date of the order and may authorize removal of the ward from a safe family residence only if the court makes the findings required by Section 1101.151(d).

SECTION 10. PROVISION.

Section 1151.051, Estates Code, is amended by adding Subsections (c-1) and (c-2) to read as follows:

(c-1) Except as provided by Section 1151.053, the right described by Subsection (c)(1) is subject to Sections 1101.151(d), 1101.152(d), 1151.351, and 1202.158. A guardian may not change the ward's residence from a safe family residence, remove the ward from this state, or use an order authorizing physical possession to obtain the ward's removal unless the change or removal is expressly authorized by a written order containing the findings required by Section 1101.151(d).

(c-2) An emergency change of residence without a prior order is permitted only when necessary to prevent immediate physical harm or provide emergency medical care. The guardian shall file a verified report not later than the next business day stating the specific emergency facts, the ward's location, and why no less restrictive action was sufficient. The court shall hold a hearing not later than the third business day after the report is filed if the ward is not returned to the prior residence.

SECTION 11. NEW PROVISION.

Subchapter B, Chapter 1151, Estates Code, is amended by adding Section 1151.053 to read as follows:

Sec. 1151.053. CONSENSUAL SAFE-FAMILY RESIDENCE ARRANGEMENT. (a) In this section, "safe family residence" has the meaning assigned by Section 1104.1035.

(b) Notwithstanding Section 1151.051(c-1) or another provision requiring prior court authorization for a residence change or removal from this state, a guardian of the person may establish or continue the ward's residence with an adult family member in this state or another state without a hearing or prior court order if:

(1) the ward expresses a current preference to reside in the residence or, if the ward cannot communicate a current preference, the arrangement is consistent with the ward's reliably ascertainable previously expressed preference;

(2) the guardian of the person agrees to the arrangement;

(3) the residence is a safe family residence;

(4) a reasonable plan exists for the ward's housing, food, medical care, medication, transportation, supervision, personal care, insurance, public benefits, communication, and other essential needs;

(5) the guardian gives the notice required by Subsection (c); and

(6) a verified objection satisfying Subsection (f) is not timely filed.

(c) The guardian of the person shall file with the court and serve a notice of consensual safe-family residence arrangement on the ward, the ward's attorney, each guardian, each managing or reviewing estate protector, each adult family member identified under Section 1104.1035, and each interested person who has requested notice. The notice must state:

(1) the ward's current and previously expressed residential preferences and the manner in which the current preference was obtained;

(2) the address and identity of the adult family member responsible for day-to-day care;

(3) whether the arrangement is temporary, recurring, or expected to be permanent;

(4) the material terms of the care and support plan described by Subsection (b)(4), including the identity and contact information of treating health care providers to the extent disclosure is authorized by law;

(5) the anticipated care budget and requested payments or reimbursements from the ward's estate;

(6) that the guardian of the estate or managing estate protector has received the care budget and supporting information; and

(7) that an objection must comply with Subsection (f) and be filed not later than the fifth business day after service.

(d) Except as provided by Subsection (e), the guardian may implement or continue the arrangement on the sixth business day after service if no verified objection satisfying Subsection (f) is filed. The arrangement becomes effective by operation of law, without a hearing or further court order. The clerk shall accept the notice for filing and may not require a motion, application, hearing, order, or filing fee as a condition of effectiveness.

(e) The guardian may implement or continue the arrangement immediately on filing and service of the notice if a physician, psychologist, or advanced practice registered nurse who has examined or treated the ward provides a written recommendation that the arrangement is necessary or advisable for continuity of treatment, recovery, avoidance of a medically inadvisable transfer, or the ward's physical or mental well-being. A timely objection does not require the ward's return to the prior residence before the hearing required by Subsection (g).

(f) A person served under Subsection (c) may object only by filing a verified objection that states specific facts establishing probable cause to believe that:

(1) the arrangement presents an imminent and substantial risk of physical harm to the ward that cannot be prevented by a less restrictive condition;

(2) the care plan does not make reasonable provision for an essential need of the ward;

(3) the ward's stated preference resulted from fraud, coercion, exploitation, or undue influence;

(4) the arrangement involves material financial exploitation of the ward; or

(5) a proposed expenditure would cause substantial and irreparable loss to the ward's estate and the loss cannot be prevented by budgeting, accounting, bond, limitation of the disputed expenditure, or another less restrictive financial safeguard.

(g) A disagreement concerning the preferred state, city, facility, caregiver, administrative convenience, or comparative cost, standing alone, does not constitute a sufficient objection. A guardian of the estate, managing estate protector, or reviewing estate protector acting solely in that capacity may object only on a ground provided by Subsection (f)(4) or (5) and does not have authority to select or veto the ward's residence solely by reason of authority over or review of the estate.

(h) If a verified objection satisfying Subsection (f) is timely filed, the court shall hold a hearing not later than the fifth business day after filing. The objecting person has the burden to prove by clear and convincing evidence a ground under Subsection (f) and that a less restrictive condition will not adequately protect the ward or the estate. Pending the hearing and ruling, the court may not require the ward to leave or return from the safe family residence unless the court makes written findings, supported by clear and convincing evidence, that immediate action is necessary to prevent imminent and substantial physical harm.

(i) The court shall dismiss an objection that does not satisfy Subsection (f). If an objection concerns only a disputed expenditure, the court shall preserve the residence arrangement and resolve the expenditure under Chapter 1166, including by approving undisputed essential expenses and imposing accounting or payment conditions. A financial dispute does not authorize removal of the ward from the residence unless the requirements of Section 1101.151(d) are independently satisfied.

(j) The guardian of the person shall monitor the arrangement and file an amended notice not later than the fifth business day after learning of a material change in the residence, responsible caregiver, essential care plan, or ward's expressed preference. The arrangement does not limit the ward's rights under Section 1151.351 or the authority of the court to act on proof of abuse, neglect, exploitation, or imminent and substantial physical harm.

(k) Residence under this section in another state does not by itself transfer guardianship jurisdiction or terminate the Texas guardianship. The guardian shall continue required reports and supervision in this state until transfer or termination. If the arrangement is expected to be permanent, the guardian shall file an application under Chapter 1253 not later than the 60th day after the arrangement takes effect, unless the court extends the period for good cause. The ward is not required to return to this state while jurisdictional transfer is considered.

SECTION 12. NEW PROVISION.

Subchapter H, Chapter 1151, Estates Code, is amended by adding Section 1151.352 to read as follows:

Sec. 1151.352. EXPEDITED ENFORCEMENT OF RIGHTS; ANTI-RETALIATION. (a) The ward, a person chosen by the ward, an adult family member, or a person interested in the ward's welfare may file a verified motion alleging a violation of a right protected by Section 1151.351.

(b) The clerk shall accept the motion without requiring representation by counsel. The court shall set a hearing not later than the 14th day after filing or, if the motion alleges retaliation, unlawful isolation, an unauthorized residence change, denial of necessary care, or imminent harm, not later than the third business day after filing.

(c) The court may issue temporary protective relief, restore contact or visitation, order access to records, prevent or reverse an unauthorized residence change, suspend a power of the guardian, order an independent investigation, require an accounting, remove a guardian, or grant other relief necessary to enforce Section 1151.351.

(d) A guardian or covered court-appointed person, as defined by Section 1166.151, may not retaliate against the ward or another person for making a good-faith complaint, report, or motion. Retaliation includes restricting communication or visitation, changing the ward's residence, withholding information or property, seeking fees or sanctions, or threatening adverse action because of protected activity.

(e) The court shall protect the ward's expressed preferences and safety and shall use the least restrictive remedy sufficient to cure the violation. The court shall make written findings on each material allegation.

(f) Section 1166.153(d)-(f) applies to a motion under this section.

SECTION 13. PROVISION.

Section 1203.051, Estates Code, is amended by adding Subsection (a-1) and amending Subsection (b) to read as follows:

(a-1) In addition to the grounds provided by Subsection (a), the court shall remove or immediately suspend the powers of a guardian who intentionally exploits or converts ward property, intentionally retaliates against or unlawfully isolates the ward, or intentionally removes the ward from a safe family residence without legal authority. The court may remove or suspend a guardian who knowingly or recklessly violates Section 1101.151(d), 1101.152(d), 1104.1035, 1104.1036, 1151.051(c-1) or (c-2), 1151.053, 1151.351, 1151.352, 1166.152, or 1202.158. For purposes of Section 1203.056, a verified motion supported by specific facts showing an imminent risk of physical harm, exploitation, substantial dissipation of property, unlawful isolation, retaliation, or unauthorized removal from a safe family residence constitutes sworn evidence requiring prompt review.

(b) In a proceeding to remove a guardian under Subsection (a)(6) or (7) or Subsection (a-1), the court shall appoint a guardian ad litem as provided by Subchapter B, Chapter 1054, and an attorney ad litem. The attorney ad litem has the duties prescribed by Section 1054.004. The court may appoint the same person as guardian ad litem and attorney ad litem only if no conflict exists between the interests to be represented. A person appointed after an allegation of abuse, neglect, exploitation, financial misconduct, or retaliation may not have represented, been employed by, shared an office with, or had a material financial relationship during the preceding five years with the guardian, the guardian's attorney, or a person whose conduct is a subject of the proceeding.

SECTION 14. NEW PROVISION.

Subchapter C, Chapter 1203, Estates Code, is amended by adding Section 1203.1035 to read as follows:

Sec. 1203.1035. EXPEDITED FAMILY-FIRST SUCCESSOR; PRESERVATION AND TURNOVER. (a) On the death, resignation, incapacity, suspension, or removal of a guardian of the person, the court shall apply Section 1104.1035 anew and shall give the next willing and eligible family member in the order of priority the first opportunity to seek appointment.

(b) If immediate protection is necessary, the court may appoint a temporary successor with only the powers necessary to prevent imminent and substantial harm. A person who is not a family member may serve only until the family-priority hearing, which must be held not later than the 14th day after appointment.

(c) Not later than 48 hours after receiving notice of the event described by Subsection (a), the former guardian, the guardian's personal representative, employer, contractor, facility, financial institution, and each other person possessing property or records of the ward shall preserve the property and records and may not destroy, alter, conceal, transfer, or dissipate them.

(d) Not later than the fifth business day after a successor qualifies or as otherwise ordered by the court, each person described by Subsection (c) shall deliver the ward's property and records to the successor, estate protector, or court registry. The outgoing guardian or representative shall file a final account within 30 days. If removal involved abuse, neglect, exploitation, or financial misconduct, the estate protector or another disinterested qualified person shall audit the account and report possible surcharge, turnover, bond, restitution, fee-forfeiture, or referral remedies.

SECTION 15. PROVISION.

Section 1253.001, Estates Code, is amended to read as follows:

Sec. 1253.001. APPLICATION TO TRANSFER GUARDIANSHIP TO FOREIGN JURISDICTION. (a) On application of the guardian or on the court's own motion, a court that has jurisdiction over the guardianship may transfer the guardianship to a court in a foreign jurisdiction to which the ward has permanently moved.

(b) The ward, the ward's attorney, an adult family member, or a person interested in the ward's welfare may file an application for transfer if the ward has moved to the foreign jurisdiction or relocation there is proposed and transfer may facilitate family care, access to supports and services, or the ward's expressed residential preference. The application may be filed without the guardian's consent.

(c) An application under Subsection (b) may request provisional authorization for the ward to reside in a safe and appropriate residence in the foreign jurisdiction while acceptance and final transfer are coordinated. Provisional relocation does not transfer jurisdiction or terminate the Texas guardianship. A ward residing in another state under Section 1151.053 is not required to obtain provisional authorization under this subsection as a condition of residing there, and the transfer proceeding shall formalize jurisdiction rather than require the ward's physical return to this state.

SECTION 16. PROVISION.

Section 1253.002, Estates Code, is amended to read as follows:

Sec. 1253.002. NOTICE OF APPLICATION. Notice of an application to transfer a guardianship under this subchapter shall be:

(1) served personally on the ward;

(2) given to the foreign court to which transfer is proposed;

(3) served on each guardian, the ward's attorney, and each adult family member identified under Section 1104.1035; and

(4) provided in a manner accessible to the ward.

SECTION 17. PROVISION.

Section 1253.003, Estates Code, is amended by amending Subsections (a)-(c) and adding Subsections (d)-(j) to read as follows:

Sec. 1253.003. DETERMINATION REGARDING TRANSFER OF GUARDIANSHIP. (a) On the court's own motion or on the motion of the ward or any interested person, the court shall hold a hearing to consider an application under this subchapter. If the application is filed by the ward, the ward's attorney, or an adult family member, the hearing must be held not later than the 21st day after filing.

(b) The court shall transfer the guardianship if the court determines that transfer is in the ward's best interest and the foreign court accepts the guardianship. The final transfer order must be contingent on acceptance in the foreign jurisdiction and may include conditions needed for continuity of care, benefits, property management, bond, records, and judicial supervision.

(c) The court shall coordinate with the foreign court to facilitate orderly transfer, determine whether the foreign court will accept the guardianship, transmit necessary records, and resolve provisional arrangements. The court may conduct a joint or remote hearing with the foreign court.

(d) In addition to all requirements imposed by existing law, the court shall consider:

(1) the safety and adequacy of the proposed residence;

(2) continuity of medical care, services, insurance, and public benefits;

(3) arrangements for management and protection of the ward's property;

(4) availability of family care and community supports;

(5) the ward's social and community ties and current and previously expressed preferences;

(6) the comparative cost and restrictiveness of each arrangement; and

(7) any material medical change.

(e) There is a rebuttable presumption that transfer is in the ward's best interest if the ward is safely residing with family in the foreign jurisdiction, the foreign court indicates willingness to accept, and transfer is consistent with the ward's current or previously expressed preference. Opposition by the guardian, family disagreement, or the fact that the guardianship originated in this state, standing alone, does not rebut the presumption.

(f) Before the foreign court accepts jurisdiction, the Texas court may conditionally approve transfer and provisionally authorize residence in the foreign jurisdiction if the court finds that the residence is safe, appropriate, and consistent with the ward's preference and that arrangements exist for care, benefits, and protection of property. The Texas court retains jurisdiction and supervisory authority until final acceptance.

(g) The court may deny or defer final transfer if the foreign court refuses or has not yet accepted jurisdiction, transfer is legally impossible, or a required arrangement for care or property protection is not reasonably available. A denial on the merits after the foreign court indicates willingness to accept must be supported by clear and convincing evidence and specific written findings that transfer would expose the ward to an imminent and substantial risk of physical harm or substantial and irreparable financial loss that cannot be prevented by conditions imposed by either court.

(h) While an application is pending, the court may not compel the ward's return to this state, remove the ward from a safe family residence, or authorize a nonroutine expenditure to oppose transfer unless the court makes the findings required by Subsection (g). This subsection does not prevent emergency medical care or an order narrowly tailored to prevent immediate physical harm.

(i) The ward has the right to participate and communicate the ward's preference directly to the court in person or by remote means.

(j) The clerk shall promptly transmit the record and communications necessary to coordinate the transfer.

SECTION 18. NEW PROVISION.

Subchapter A, Chapter 1253, Estates Code, is amended by adding Section 1253.004 to read as follows:

Sec. 1253.004. COSTS; COUNSEL; EXPEDITED RELIEF. (a) The clerk may not refuse an application under Section 1253.001(b) because a filing fee has not been paid. A person unable to afford costs may file a statement under Rule 145, Texas Rules of Civil Procedure.

(b) The ward is entitled to representation by an attorney ad litem independent of the guardian and any person opposing transfer. The county shall pay the cost to the extent required by Section 1155.151 if the estate is insufficient.

(c) A person may seek mandamus or other expedited appellate relief from failure to hold the hearing or make the findings required by this subchapter.

SECTION 19. PROVISION.

Section 36.004, Government Code, is amended by amending Subsections (a) and (c) and adding Subsection (a-1) to read as follows:

Sec. 36.004. REPORT ON APPOINTMENTS. (a) In addition to a report required by other state law or rule, the clerk of each court in this state shall prepare a monthly report on each court appointment of an attorney ad litem, guardian ad litem, guardian, mediator, competency evaluator, managing or reviewing estate protector, court investigator, court visitor, receiver, corporate fiduciary, guardianship program, or other paid fiduciary or professional, and each affiliated vendor paid because of the appointment. The report must include the information otherwise required by this section for each category of appointee, without regard to whether compensation exceeds a stated amount.

(a-1) For an appointment in a guardianship proceeding, the report must state:

(1) the appointee's category and relationship, if any, to the ward;

(2) the stable identifier assigned by the Office of Court Administration, and each assumed name, controlling person, and disclosed affiliate;

(3) the judge, court, appointment date, and an anonymized case identifier that does not disclose the ward's identity;

(4) the number of active appointments held by the appointee in the county and statewide, calculated by the Office of Court Administration from submitted data;

(5) each amount requested, approved, and paid to the appointee or an affiliate, the payment source, hours billed, and expenses;

(6) whether the appointment departed from the family-priority order under Section 1104.1035, Estates Code, and the statutory ground for departure; and

(7) any removal, suspension, sanction, fee forfeiture, or final substantiated violation associated with the appointment, to the extent disclosure is permitted by law.

(c) The Office of Court Administration of the Texas Judicial System shall prescribe the reporting format; assign stable identifiers; calculate appointment totals; and post the information in a searchable, downloadable, machine-readable format permitting analysis by judge, court, county, appointee, affiliate, appointment category, compensation, payment source, sanction, and date. The office shall protect a ward's name, address, date of birth, medical information, financial-account information, and other confidential information.

SECTION 20. PROVISION.

Section 155.155, Government Code, is amended by adding Subsection (d) to read as follows:

(d) Notwithstanding another provision of this section, the Judicial Branch Certification Commission may provide the Office of Court Administration and a court or clerk the nonconfidential registration information necessary to administer Section 36.004 and Chapter 1166, Estates Code. The office may publish aggregate or case-linked appointment and compensation information required by Section 36.004 but may not publish a ward's name, address, date of birth, medical information, financial-account information, or other information made confidential by law.

SECTION 21. PROVISION.

Section 1163.001, Estates Code, is amended by adding Subsection (d) to read as follows:

(d) In addition to the requirements of this section, an annual account filed for a ward to whom Chapter 1166 applies must include a statement signed under oath that each expenditure was made for a purpose authorized by Section 1166.101 and must be served on each managing or reviewing estate protector and the guardian of the person not later than the fifth business day after filing.

SECTION 22. NEW PROVISION.

Chapter 281, Finance Code, is amended by adding Section 281.0045 to read as follows:

Sec. 281.0045. PROVISIONAL HOLD ON EMERGENCY PROTECTION NOTICE. (a) A financial institution that receives an emergency protection notice under Section 1166.011, Estates Code, shall comply with Section 1166.012, Estates Code.

(b) A financial institution that acts in good faith under this section or Section 1166.012, Estates Code, is entitled to the immunity provided by Section 1166.012, Estates Code, in addition to any other immunity provided by law.

SECTION 23. NEW PROVISION.

Subchapter I, Chapter 4004, Government Code, is amended by adding Section 4004.3555 to read as follows:

Sec. 4004.3555. PROVISIONAL HOLD ON EMERGENCY PROTECTION NOTICE. (a) A dealer or investment adviser that receives an emergency protection notice under Section 1166.011, Estates Code, shall comply with Section 1166.012, Estates Code, to the extent consistent with federal law and the rules of the securities commissioner.

(b) A dealer or investment adviser that acts in good faith under this section or Section 1166.012, Estates Code, is entitled to the immunity provided by Section 1166.012, Estates Code, in addition to any other immunity provided by law.

SECTION 24. NEW PROVISION.

Subtitle C, Title 5, Insurance Code, is amended by adding Chapter 567 to read as follows:

CHAPTER 567. EMERGENCY PROTECTION OF CERTAIN INSURANCE AND ANNUITY INTERESTS

Sec. 567.001. APPLICABILITY. This chapter applies to an insurer, health maintenance organization, insurance agent, or other person regulated by the Texas Department of Insurance that holds, administers, pays, or services a policy, contract, claim, annuity, retirement product, or benefit belonging to a vulnerable person.

Sec. 567.002. EMERGENCY PROTECTION NOTICE. A person subject to this chapter that receives an emergency protection notice under Section 1166.011, Estates Code, shall comply with Section 1166.012, Estates Code, to the extent consistent with federal law and rules adopted by the commissioner of insurance.

Sec. 567.003. IMMUNITY; OTHER AUTHORITY. A person that acts in good faith under this chapter or Section 1166.012, Estates Code, is entitled to the immunity provided by that section. This chapter does not limit another duty or authority under this code or federal law.

SECTION 25. PROVISION.

Section 1101.001, Estates Code, is amended by adding Subsection (c-1) to read as follows:

(c-1) An application for appointment of a guardian for an adult must be accompanied by the sworn family-information affidavit required by Section 1104.1035. The application must disclose the applicant's reasonable inquiry, all known agents under powers of attorney or medical powers of attorney, and any known estate-planning document that identifies a proposed guardian or family contact.

SECTION 26. PROVISION.

The Office of Court Administration of the Texas Judicial System shall, not later than August 1, 2027:

(1) develop and publish the waiver form required by Section 1104.1036, Estates Code, as added by this Act;

(2) develop a model family-notice affidavit for use under Section 1104.1035, Estates Code, as added by this Act;

(3) develop a model material-medical-change motion for use under Section 1202.158, Estates Code, as added by this Act;

(4) develop a model notice of consensual safe-family residence arrangement and verified objection for use under Section 1151.053, Estates Code, as added by this Act;

(5) develop a model estate stewardship plan and estate-protection report for use under Chapter 1166, Estates Code, as added by this Act; and

(6) publish a public guide describing the emergency protection notice process established by Subchapter B, Chapter 1166, Estates Code, as added by this Act;

(7) modify the appointments-and-fees reporting system and guardianship-registration interfaces as necessary to implement Section 36.004, Government Code, as amended by this Act; and

(8) adopt model notices and procedures for provisional holds, essential-expense releases, and judicial review under Sections 1166.011 through 1166.013, Estates Code, as added by this Act.

SECTION 27. PROVISION.

The Department of Family and Protective Services, the Finance Commission of Texas, the Texas Department of Insurance, the securities commissioner, and the Office of Court Administration of the Texas Judicial System may adopt rules necessary to implement this Act.

SECTION 28. PROVISION.

(a) Except as provided by this section, the changes in law made by this Act apply to a guardianship or guardianship proceeding pending on or commenced on or after the effective date of this Act, regardless of the date the guardianship was created.

(b) Sections 1104.1035 and 1104.1036, Estates Code, as added by this Act, govern an appointment or succession occurring on or after the effective date of this Act. An appointment finally made before that date is not invalid solely because the appointment would not satisfy those sections, but the ward or an interested person may seek modification, removal, succession, or other prospective relief under the law as amended by this Act.

(c) Sections 1151.053, 1151.352, and 1166.153, Estates Code, as added by this Act, and Chapters 1202, 1203, and 1253, Estates Code, as amended by this Act, are procedural remedies available on and after the effective date of this Act in a pending or existing guardianship.

(d) A civil penalty, exemplary damages, fee forfeiture, surcharge, or other monetary liability based solely on a change in law made by this Act applies only to conduct occurring on or after the effective date of this Act. Conduct occurring before that date remains governed by the law in effect when the conduct occurred, and the former law is continued in effect for that purpose.

(e) The substantive estate protections and prospective accounting, notice, conflict-of-interest, and expenditure requirements of Chapter 1166, Estates Code, as added by this Act, apply on and after the effective date of this Act regardless of estate size. A court shall review an existing guardianship for compliance at the first annual review occurring after the effective date and may act earlier on motion of the ward or an interested person.

(f) Sections 1166.011 through 1166.014, Estates Code, as added by this Act, apply to an emergency protection notice made on or after the applicable effective date. Section 36.004, Government Code, as amended by this Act, applies to a report due on or after September 1, 2027.

SECTION 29. PROVISION.

(a) Sections 26 and 27 of this Act take effect immediately if this Act 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, Sections 26 and 27 take effect September 1, 2027.

(b) Except as provided by Subsection (a), this Act takes effect September 1, 2027.