1Amending Title 20 (Decedents, Estates and Fiduciaries) of the
2Pennsylvania Consolidated Statutes, in powers of attorney,
3further providing for general provisions and for special
4rules for gifts; providing for agent's duties and for
5principles of law and equity; further providing for form of
6power of attorney, for implementation of power of attorney
7and for liability; providing for liability for refusal to
8accept power of attorney and for activities through
9employees; and further providing for validity.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1. Section 5601(b), (c), (d), (e), (e.1), (e.2) and
13(f) of Title 20 of the Pennsylvania Consolidated Statutes are
14amended to read:

15§ 5601. General provisions.

16* * *

17(b) Execution.--

18(1) A power of attorney shall be dated, and it shall be

1signed [and dated] by the principal by signature or mark, or
2by another individual<-, in the principal's conscious presence,
3on behalf of and at the direction of the principal.

4(2) If the power of attorney is executed by mark or by
5another individual, then it shall be witnessed by two
6individuals, each of whom is 18 years of age or older. A
7witness shall not be the individual who signed the power of
8attorney on behalf of and at the direction of the principal.

9(3) For a power of attorney executed on or after the
10effective date of this paragraph, the signature or mark of
11the principal, or the signature or mark of another individual
12signing a power of attorney on behalf of the principal, shall
13be:

14(i) Acknowledged before a notary public or other
15individual authorized by law to take acknowledgments.

16(ii) Witnessed by two individuals, each of whom is
17at least 18 years of age. A witness shall not be the
18individual who signed the power of attorney on behalf of
19and at the direction of the principal.

20(c) Notice.--All powers of attorney shall include the
21following notice in capital letters at the beginning of the
22power of attorney. The notice shall be signed by the principal.
23In the absence of a signed notice, upon a challenge to the
24authority of an agent to exercise a power under the power of
25attorney, the agent shall have the burden of demonstrating that
26the exercise of this authority is proper.

27NOTICE

28The purpose of this power of attorney is to give the
29person you designate (your "agent") broad powers to handle
30your property, which may include powers to sell or otherwise

1dispose of any real or personal property without advance
2notice to you or approval by you.

3This power of attorney does not impose a duty on your
4agent to exercise granted powers, but when powers are
5exercised, your agent must use due care to act for your
6benefit and in accordance with this power of attorney.

7Your agent may exercise the powers given here throughout
8your lifetime, even after you become incapacitated, unless
9you expressly limit the duration of these powers or you
10revoke these powers or a court acting on your behalf
11terminates your agent's authority.

12Your agent must <-[keep your funds separate from your
13agent's funds<-[.],.] act in accordance with your reasonable 
14expectations to the extent actually known by your agent and, 
15otherwise, in your best interest, act in good faith and act 
16only within the scope of authority granted by you in the 
17power of attorney.

<-18The law permits you, if you choose, to grant broad
19authority to an agent under power of attorney, including the
20ability to give away all of your property while you are alive
21or to substantially change how your property is distributed
22at your death. Before signing this document, you should seek
23the advice of an attorney at law to make sure you understand
24it.

25A court can take away the powers of your agent if it
26finds your agent is not acting properly.

27The powers and duties of an agent under a power of
28attorney are explained more fully in 20 Pa.C.S. Ch. 56.

29If there is anything about this form that you do not
30understand, you should ask a lawyer of your own choosing to

1explain it to you.

2I have read or had explained to me this notice and I
3understand its contents.

4.............................................................

5(Principal)

(Date)

6(d) Acknowledgment executed by agent.--An agent shall have
7no authority to act as agent under the power of attorney unless
8the agent has first executed and affixed to the power of
9attorney an acknowledgment in substantially the following form:

10I,	,have read the attached power of

11attorney and am the person identified as the agent for
12the principal. I hereby acknowledge that [in the absence
13of a specific provision to the contrary in the power of
14attorney or in 20 Pa.C.S.] when I act as agent:

15I shall [exercise the powers for the benefit of the
16principal] act in accordance with the principal's 
17reasonable expectations to the extent actually known by 
18me and, otherwise, in the principal's best interest, act 
19in good faith and act only within the scope of authority 
20granted to me by the principal in the power of attorney.

<-21[I shall keep the assets of the principal separate
22from my assets.

<-23[I shall exercise reasonable caution and prudence.

24I shall keep a full and accurate record of all
25actions, receipts and disbursements on behalf of the
26principal.]

27.........................................................

28(Agent)

(Date)

29[(e) Fiduciary relationship.--An agent acting under a power
30of attorney has a fiduciary relationship with the principal. In

1the absence of a specific provision to the contrary in the power
2of attorney, the fiduciary relationship includes the duty to:

3(1) Exercise the powers for the benefit of the
4principal.

5(2) Keep separate the assets of the principal from those
6of an agent.

7(3) Exercise reasonable caution and prudence.

8(4) Keep a full and accurate record of all actions,
9receipts and disbursements on behalf of the principal.]

10(e.1) Limitation on applicability in commercial
11transaction.--

12[(1) Subsections (c), (d) and (e) do not apply to a
13power or a power of attorney contained in an instrument used
14in a commercial transaction which simply authorizes an agency
15relationship. This paragraph includes the following:

16(i) A power given to or for the benefit of a
17creditor in connection with a loan or other credit
18transaction.

19(ii) A power exclusively granted to facilitate
20transfer of stock, bonds and other assets.

21(iii) A power contained in the governing document
22for a corporation, partnership or limited liability
23company or other legal entity by which a director,
24partner or member authorizes others to do other things on
25behalf of the entity.

26(iv) A warrant of attorney conferring authority to
27confess judgment.

28(v) A power given to a dealer as defined by the act
29of December 22, 1983 (P.L.306, No.84), known as the Board
30of Vehicles Act, when using the power in conjunction with

1a sale, purchase or transfer of a vehicle as authorized
2by 75 Pa.C.S. § 1119 (relating to application for
3certificate of title by agent).]

4(1.1) Subsections (b)(3)(ii), (c) and (d) do not apply
5to:

6(i) A power contained in an instrument used in a
7commercial transaction which authorizes an agency
8relationship.

9(ii) A power to the extent it is coupled with an
10interest in the subject of the power, including a power
11given to or for the benefit of a creditor in connection
12with a loan or other credit transaction.

13(iii) A power exclusively granted to facilitate
14transfer of stock, bonds and other assets.

15(iv) A power contained in the governing document for
16a corporation, partnership or limited liability company
17or other legal entity by which a director, partner or
18member authorizes others to do other things on behalf of
19the entity or a proxy or other delegation to exercise
20voting rights or management rights with respect to a
21legal entity.

22(v) A warrant of attorney conferring authority to
23confess judgment.

24(vi) A power given to a dealer as defined by the act
25of December 22, 1983 (P.L.306, No.84), known as the Board
26of Vehicles Act, when using the power in conjunction with
27a sale, purchase or transfer of a vehicle as authorized
28by 75 Pa.C.S. § 1119 (relating to application for
29certificate of title by agent).

30(vii) A power created on a form prescribed by a

1Commonwealth agency, political subdivision or an
2authority or instrumentality of the Commonwealth or a
3political subdivision.

4(2) Powers and powers of attorney exempted by this
5subsection need not be dated.

6(e.2) Limitation on applicability in health care [power] and 
7mental health care powers of attorney.--Subsections (b)(3)(i), 
8(c) and (d) and section 5601.3 (relating to agent's duties) do
9not apply to a power of attorney which exclusively provides for
10health care decision making or mental health care decision 
11making.

12(f) [Definition.--As used in this chapter, the term "agent"
13means a person designated by a principal in a power of attorney
14to act on behalf of that principal.] Definitions.--The following 
15words and phrases when used in this chapter shall have the 
16meanings given to them in this subsection unless the context 
17clearly indicates otherwise:

18"Agent." A person designated by a principal in a power of
19attorney to act on behalf of that principal.

20"Good faith." Honesty in fact <-based upon a sincere belief
21with a proper motive.

22Section 2. Section 5601.2 of Title 20 is repealed:

23[§ 5601.2. Special rules for gifts.

24(a) General rule.--A principal may empower an agent to make
25a gift in a power of attorney only as provided in this section.

26(b) Limited gifts.--A principal may authorize an agent to
27make a limited gift as defined under section 5603(a)(2)
28(relating to implementation of power of attorney) by the
29inclusion of:

30(1) the language quoted in section 5602(a)(1) (relating

1to form of power of attorney); or

2(2) other language showing a similar intent on the part
3of the principal to empower the agent to make a limited gift.

4(c) Unlimited gifts.--A principal may authorize an agent to
5make any other gift only by specifically providing for and
6defining the agent's authority in the power of attorney.

7(d) Nature of gifts.--In the absence of a specific provision
8to the contrary in the power of attorney:

9(1) A power to make a limited gift shall be construed to
10empower the agent to make a gift to each donee either
11outright or in trust.

12(2) In the case of any gift to a minor, that gift may be
13made in trust or in accordance with Chapter 53 (relating to
14Pennsylvania Uniform Transfers to Minors Act) or section 5155
15(relating to order of court).

16(3) In the case of any gift made in trust, the agent may
17execute a deed of trust for such purpose, designating one or
18more persons, including the agent, as original or successor
19trustees, or may make an addition to an existing trust.

20(4) In making any gift, the agent need not treat the
21donees equally or proportionately and may entirely exclude
22one or more permissible donees.

23(5) The pattern followed on the occasion of any gift
24need not be followed on the occasion of any other gift.

25(e) Equity.--An agent and the donee of a gift shall be
26liable as equity and justice may require to the extent that, as
27determined by the court, a gift made by the agent is
28inconsistent with prudent estate planning or financial
29management for the principal or with the known or probable
30intent of the principal with respect to disposition of the

1estate.

2(f) Third party.--No transfer agent, depository or other
3third party acting in good faith shall have any responsibility
4to see to the proper discharge of the agent's duty.]

5Section 3. Title 20 is amended by adding sections to read:

6§ 5601.3. Agent's duties.

7(a) General rule.--Notwithstanding any provision in the
8power of attorney, an agent that has accepted appointment shall:

9(1) Act in accordance with the principal's reasonable
10expectations to the extent actually known by the agent and,
11otherwise, in the principal's best interest.

12(2) Act in good faith.

13(3) Act only within the scope of authority granted in
14the power of attorney.

15(b) Other duties.--Except as otherwise provided in the power
16of attorney, an agent that has accepted appointment shall:

17(1) Act loyally for the principal's benefit.

<-18(1.1) Keep the agent's funds separate from the
19principal's funds after the date of execution of the power of
20attorney, unless the funds were not kept separate as of the
21date of the execution of the power of attorney.

22(2) Act so as not to create a conflict of interest that
23impairs the agent's ability to act impartially in the
24principal's best interest.

25(3) Act with the care, competence and diligence
26ordinarily exercised by agents in similar circumstances.

27(4) Keep <-separate records and financial institution
28accounts, including a record of all receipts, disbursements
29and transactions made on behalf of the principal.

30(5) Cooperate with a person who has authority to make

1health care decisions for the principal to carry out the
2principal's reasonable expectations to the extent actually
3known by the agent and, otherwise, act in the principal's
4best interest.

5(6) Attempt to preserve the principal's estate plan, to
6the extent actually known by the agent, if preserving the
7plan is consistent with the principal's best interest based
8on all relevant factors, including:

9(i) The value and nature of the principal's
10property.

11(ii) The principal's foreseeable obligations and
12need for maintenance.

13(iii) Minimization of taxes, including income,
14estate, inheritance, generation-skipping transfer and
15gift taxes.

<-16(iv) Eligibility for a benefit, program or
17assistance under a statute or regulation.

18(c) Nonliability of agent.--

19(1) An agent that acts in good faith shall not be liable
20to a beneficiary of the principal's estate plan for failure
21to preserve the plan.

22(2) An agent that acts with care, competence and
23diligence for the best interest of the principal shall not be
24liable solely because the agent also benefits from the act or
25has an individual or conflicting interest in relation to the
26property or affairs of the principal.

27(3) If an agent is selected by the principal because of
28special skills or expertise possessed by the agent or in
29reliance on the agent's representation that the agent has
30special skills or expertise, the special skills or expertise

1must be considered in determining whether the agent has acted
2with care, competence and diligence under the circumstances.

3(4) Absent a breach of duty to the principal, an agent
4shall not be liable if the value of the principal's property
5declines.

6(5) An agent that exercises authority to delegate to
7another person the authority granted by the principal or that
8engages another person on behalf of the principal shall not
9be liable for an act, error of judgment or default of that
10person if the agent exercises care, competence and diligence
11in selecting and monitoring the person.

12(d) Disclosure of receipts, disbursements or transactions.--

13(1) Except as otherwise provided in the power of
14attorney, an agent <-is not shall not be required to disclose
15receipts, disbursements or transactions conducted on behalf
16of the principal unless ordered by a court or requested by
17the principal, a guardian, conservator, another fiduciary
18acting for the principal, <-government governmental agency
19having authority to protect the welfare of the principal<-,
20government agency thathas been requested to provide medical
21assistance or otherbenefits to the principal or to a
22dependent of the principal,or that has provided such
23benefits, or, upon the death of the principal, the personal
24representative or successor in interest of the principal's
25estate.

26(2) Within 30 days of the request, the agent shall
27either comply with the request or provide a writing or other
28record substantiating the reason additional time is needed,
29in which case the agent shall comply with the request within
30an additional 30 days.

<-1(e) Liability of agent.--A provision in a power of attorney
2relieving an agent of liability for breach of duty is binding on
3the principal and the principal's successors in interest except
4to the extent the provision:

5(1) relieves the agent of liability for breach of duty
6committed dishonestly, with an improper motive or with
7reckless indifference to the purposes of the power of
8attorney or the best interest of the principal; or

9(2) was inserted as a result of an abuse of a
10confidential or fiduciary relationship with the principal.

11(f) Estate plan.--Nothing in this section shall authorize an
12agent to act contrary to an estate plan approved by the court
13under section 5536 (relating to distributions of income and
14principal during incapacity).

15§ 5601.4. Authority that requires specific and general grant of
16authority.

17(a) General rule.--An agent under a power of attorney may do
18the following on behalf of the principal or with the principal's
19property only if the power of attorney expressly grants the
20agent the authority and exercise of the authority is not
21otherwise prohibited by another agreement or instrument to which
22the authority or property is subject:

23(1) Create, amend, revoke or terminate an inter vivos
24trust other than as permitted under section 5602(a)(2), (3)
25and (7) (relating to form of power of attorney).

26(2) Make a gift.

27(3) Create or change rights of survivorship.

28(4) Create or change a beneficiary designation.

29(5) Delegate authority granted under the power of
30attorney.

1(6) Waive the principal's right to be a beneficiary of a
2joint and survivor annuity, including a survivor benefit
3under a retirement plan.

4(7) Exercise fiduciary powers that the principal has
5authority to delegate.

6(8) Disclaim property, including a power of appointment.

7(b) Limitation.--Notwithstanding a grant of authority to do
8an act described in subsection (a), unless the power of attorney
9otherwise provides, an agent that is not an ancestor, spouse or
10descendant of the principal may not exercise authority under a
11power of attorney to create in the agent, or in an individual to
12whom the agent owes a legal obligation of support, an interest
13in the principal's property, whether by gift, right of
14survivorship, beneficiary designation, disclaimer or otherwise.

15(c) Scope of authority.--Subject to subsections (a), (b),
16(d), and (e), if a power of attorney grants to an agent
17authority to do all acts that a principal is authorized to
18perform, the agent has the general authority described in
19section 5602(a).

20(d) Gifts.--Unless the power of attorney otherwise provides,
21a grant of authority to make a gift is subject to section
225603(a.1) (relating to implementation of power of attorney).

23(e) Similar or overlapping subjects.--Subject to subsections
24(a), (b) and (d), if the subjects over which authority is
25granted in a power of attorney are similar or overlap, the
26broadest authority controls.

27(f) Property.--Authority granted in a power of attorney is
28exercisable with respect to property that the principal has when
29the power of attorney is executed or acquires later, whether or
30not the property is located in this State and whether or not the

1authority is exercised or the power of attorney is executed in
2this State.

3(g) Legal effect of agent's actions.--An act performed by an
4agent pursuant to a power of attorney has the same effect and
5inures to the benefit of and binds the principal and the
6principal's successors in interest as if the principal had
7performed the act.

8Section 4. Section 5602(a)(5) and (17) of Title 20 are
9amended to read:

10§ 5602. Form of power of attorney.

11(a) Specification of powers.--A principal may, by inclusion
12of the language quoted in any of the following paragraphs or by
13inclusion of other language showing a similar intent on the part
14of the principal, empower an agent to do any or all of the
15following, each of which is defined in section 5603 (relating to
16implementation of power of attorney):

17* * *

18[(5) "To disclaim any interest in property."]

19* * *

20(17) "To engage in insurance and annuity transactions."

21* * *

22Section 5. Section 5603(a), (e), (p) and (q) of Title 20 are
23amended and the section is amended by adding a subsection to
24read:

25§ 5603. Implementation of power of attorney.

26[(a) Power to make limited gifts.--

27(2) A power "to make limited gifts" shall mean that the
28agent may make only gifts for or on behalf of the principal
29which are limited as follows:

30(i) The class of permissible donees under this

1paragraph shall consist solely of the principal's spouse,
2issue and a spouse of the principal's issue (including
3the agent if a member of any such class), or any of them.

4(ii) During each calendar year, the gifts made to 
5any permissible donee, pursuant to such power, shall have 
6an aggregate value not in excess of, and shall be made in 
7such manner as to qualify in their entirety for, the 
8annual exclusion from the Federal gift tax permitted 
9under section 2503(b) of the Internal Revenue Code of 
101986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) for the
11principal and, if applicable, the principal's spouse.

12(iv) In addition to the gifts authorized by
13subparagraphs (i) and (ii), a gift made pursuant to such
14power may be for the tuition or medical care of any
15permissible donee to the extent that the gift is excluded
16from the Federal gift tax under section 2503(e) of the
17Internal Revenue Code of 1986 as a qualified transfer.

18(v) The agent may consent, pursuant to section
192513(a) of the Internal Revenue Code of 1986, to the
20splitting of gifts made by the principal's spouse to the
21principal's issue or a spouse of the principal's issue in
22any amount and to the splitting of gifts made by the
23principal's spouse to any other person in amounts not
24exceeding the aggregate annual gift tax exclusions for
25both spouses under section 2503(b) of the Internal
26Revenue Code of 1986.]

27(a.1) Power to make limited gifts.--

28(1) Unless the power of attorney otherwise provides, the
29power to make limited gifts or other language in a power of
30attorney granting general authority with respect to gifts

1authorizes the agent only to:

2(i) Make outright to or for the benefit of a person,
3a gift of any of the principal's property, including by
4the exercise of a presently exercisable general power of
5appointment held by the principal:

6(A) in an amount per donee not to exceed the
7annual dollar limits of the Federal gift tax
8exclusion under section 2503(b) of the Internal
9Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
102503(b)), without regard to whether the Federal gift
11tax exclusion applies to the gift; or

12(B) if the principal's spouse agrees to consent
13to a split gift pursuant to section 2513 of the
14Internal Revenue Code of 1986 (26 U.S.C. § 2513), in
15an amount per donee not to exceed twice the annual
16Federal gift tax exclusion limit.

17(ii) Consent, pursuant to section 2513 of the
18Internal Revenue Code of 1986, to the splitting of a gift
19made by the principal's spouse in an amount per donee not
20to exceed the aggregate annual gift tax exclusions for
21both spouses.

22(2) An agent may make a gift of the principal's property
23only as the agent determines is consistent with the
24principal's objectives if actually known by the agent and, if
25unknown, as the agent determines is consistent with the
26principal's best interest based on all relevant factors,
27including:

28(i) The value and nature of the principal's
29property.

30(ii) The principal's foreseeable obligations and

1need for maintenance.

2(iii) Minimization of taxes, including income,
3estate, inheritance, generation-skipping transfer and
4gift taxes.

<-5(iv) Eligibility for a benefit, program or
6assistance under a statute or regulation.

<-7(iv) (v) The principal's personal history of making
8or joining in making gifts.

9(3) As used in this subsection, the phrase "a gift for
10the benefit of a person" includes a gift to a trust, an
11account under Chapter 53 (relating to Pennsylvania Uniform
12Transfers to Minors Act) and a tuition savings account or
13prepaid tuition plan as defined under section 529 of the
14Internal Revenue Code of 1986 (26 U.S.C. § 529).

<-15(4) The class of permissible donees under this
16subsection shall consist solely of the principal's spouse,
17principal's issue and a spouse of the principal's issue,
18including the agent if a member of any such class, or any of
19them.

20(5) An agent and the donee of a gift shall be liable as
21equity and justice may require to the extent that, as
22determined by the court, a gift made by the agent is
23inconsistent with prudent estate planning or financial
24management for the principal or with the known or probable
25intent of the principal with respect to disposition of the
26estate.

27* * *

28[(e) Power to disclaim any interest in property.--A power
29"to disclaim any interest in property" shall mean that the agent
30may release or disclaim any interest in property on behalf of

1the principal in accordance with Chapter 62 (relating to
2disclaimers) or section 6103 (relating to release or disclaimer
3of powers or interests), provided that any disclaimer under
4Chapter 62 shall be in accordance with the provisions of section
56202 (relating to disclaimers by fiduciaries or agents) in the
6case of a principal who shall have been adjudicated an
7incapacitated person at the time of the execution of the
8disclaimer.]

9* * *

10(p) Power to engage in insurance and annuity transactions.--
11A power to "engage in insurance and annuity transactions" shall
12mean that the agent may:

13(1) Purchase, continue, renew, convert or terminate any
14type of insurance (including, but not limited to, life,
15accident, health, disability or liability insurance) or 
16annuity and pay premiums and collect benefits and proceeds
17under insurance policies and annuity contracts.

18(2) Exercise nonforfeiture provisions under insurance
19policies and annuity contracts.

20(3) In general, exercise all powers with respect to
21insurance and annuities that the principal could if present;
22[however, the agent cannot designate himself beneficiary of a
23life insurance policy unless the agent is the spouse, child,
24grandchild, parent, brother or sister of the principal. An 
25agent and a beneficiary of a life insurance policy shall be 
26liable as equity and justice may require to the extent that, 
27as determined by the court, a beneficiary designation made by 
28the agent is inconsistent with the known or probable intent 
29of the principal] provided, however, that the agent shall 
30have no power to create or change a beneficiary designation

1unless authorized in accordance with section 5601.4 (relating 
2to authority that requires specific and general grant of 
3authority).

4(q) Power to engage in retirement plan transactions.--A 
5power to "engage in retirement plan transactions" shall mean 
6that the agent may contribute to, withdraw from and deposit 
7funds in any type of retirement plan (including, but not limited 
8to, any tax qualified or nonqualified pension, profit sharing, 
9stock bonus, employee savings and retirement plan, deferred 
10compensation plan or individual retirement account), select and 
11change payment options for the principal, make roll-over 
12contributions from any retirement plan to other retirement plans 
13and, in general, exercise all powers with respect to retirement 
14plans that the principal could if present[. However, the agent 
15cannot designate himself beneficiary of a retirement plan unless 
16the agent is the spouse, child, grandchild, parent, brother or 
17sister of the principal. An agent and a beneficiary of a 
18retirement plan shall be liable as equity and justice may 
19require to the extent that, as determined by the court, a 
20beneficiary designation made by the agent is inconsistent with 
21the known or probable intent of the principal] provided, 
22however, that the agent shall have no power to create or change 
23a beneficiary designation unless authorized in accordance with 
24section 5601.4.

25* * *

26Section 6. Section 5608 of Title 20 is amended to read:

27§ 5608. [Liability] Acceptance of and reliance upon power of 
28attorney.

29[(a) Third party liability.--Any person who is given
30instructions by an agent in accordance with the terms of a power

1of attorney shall comply with the instructions. Any person who
2without reasonable cause fails to comply with those instructions
3shall be subject to civil liability for any damages resulting
4from noncompliance. Reasonable cause under this subsection shall
5include, but not be limited to, a good faith report having been
6made by the third party to the local protective services agency
7regarding abuse, neglect, exploitation or abandonment pursuant
8to section 302 of the act of November 6, 1987 (P.L.381, No.79),
9known as the Older Adults Protective Services Act.

10(b) Third party immunity.--Any person who acts in good faith
11reliance on a power of attorney shall incur no liability as a
12result of acting in accordance with the instructions of the
13agent.]

14(c) Genuineness.--A person who in good faith accepts a power
15of attorney without actual knowledge that a signature or mark of
16any of the following are not genuine may, without liability,
17rely upon the genuineness of the signature or mark of:

18(1) The principal.

19(2) A person who signed the power of attorney on behalf
20of the principal and at the direction of the principal.

21(3) A witness.

22(4) A notary public or other person authorized by law to
23take acknowledgments.

24(d) Immunity.--A person who in good faith accepts a power of
25attorney without actual knowledge of any of the following may,
26without liability, rely upon the power of attorney as if the
27power of attorney and agent's authority were genuine, valid and
28still in effect and the agent had not exceeded and had properly
29exercised the authority that:

30(1) The power of attorney is void, invalid or

1terminated.

2(2) The purported agent's authority is void, invalid or
3terminated.

4(3) The agent is exceeding or improperly exercising the
5agent's authority.

6(e) Request for information.--A person who is asked to
7accept a power of attorney may request and, without liability,
8rely upon without further investigation:

9(1) An agent's certification under penalty of perjury of
10any factual matter concerning the principal, agent or power
11of attorney or an affidavit under section 5606 (relating to
12proof of continuance of powers of attorney by affidavit).

13(2) An English translation of the power of attorney, if
14the power of attorney contains, in whole or in part, language
15other than English.

16(3) An opinion of counsel relating to whether the agent
17is acting within the scope of the authority granted by the
18power of attorney, if the person making the request provides
19in a writing or other record the reason for the request.

20(f) Additional request for information.--A person who has
21accepted a power of attorney, whether or not the person has a
22certification or opinion of counsel under subsection (e) or an
23affidavit under section 5606, and has acted upon it by allowing
24the agent to exercise authority granted under the power of
25attorney, shall not be precluded from requesting at later times
26a certification or opinion of counsel under this subsection,
27subsection (e) or an affidavit under section 5606 with regard to
28any further exercise of authority by the agent under the power
29of attorney.

30(g) English translation.--An English translation or an

1opinion of counsel requested under this section shall be at the
2principal's expense, unless the request is made more than seven
3business days after the power of attorney is presented for
4acceptance.

5(h) Limitations.--Except as otherwise provided by law,
6nothing in this section shall in itself:

7(1) validate a forged instrument conveying an interest
8in real property;

9(2) provide that the recording of a forged instrument
10gives constructive notice of a conveyance of an interest in
11real property; or

12(3) limit the liability of an insurer, indemnitor or
13guarantor of contractual obligations to indemnify, hold
14harmless or defend a person who accepts or relies upon a
15power of attorney.

16Section 7. Title 20 is amended by adding sections to read:

17§ 5608.1. Liability for refusal to accept power of attorney.

18(a) Acceptance required.--Except as provided under
19subsections (b) and (d):

20(1) A person shall either:

21(i) accept a power of attorney; or

22(ii) request one of the following:

23(A) an affidavit under section 5606 (relating to
24proof of continuance of powers of attorney by
25affidavit); or

26(B) a certification, translation or an opinion
27of counsel under section 5608(e) (relating to
28acceptance of and reliance upon power of attorney);

29not later than seven business days after presentation of
30the power of attorney for acceptance.

1(2) If a person requests a certification, a translation,
2an affidavit under section 5606 or an opinion of counsel
3under section 5608(e), the person shall accept the power of
4attorney not later than five business days after receipt of
5the certification, translation, affidavit or opinion of
6counsel or, unless the information provided by the
7certification, translation, affidavit or opinion of counsel
8provides a substantial basis for making a further request
9under section 5606 or 5608(e).

10(3) A person may not require an additional or different
11form of power of attorney for authority granted in the power
12of attorney presented.

13(b) Acceptance not required.--A person may not be required
14to accept a power of attorney if any of the following applies:

15(1) The person is not otherwise required to engage in a
16transaction with the principal in the same circumstances.

17(2) Engaging in a transaction with the agent or the
18principal in the same circumstances would be inconsistent
19with any provisions of this chapter, including:

20(i) the failure of the power of attorney to be
21executed in the manner required under section 5601(b)
22(relating to general provisions); and

23(ii) circumstances in which an agent has no
24authority to act because of the absence of an
25acknowledgment as provided under section 5601(d), except
26as provided under section 5601(e.1) or (e.2).

27(3) Engaging in a transaction with the agent in the same
28circumstances would be inconsistent with any other law or
29regulation.

30(4) The person has actual knowledge of the termination

1of the agent's authority or of the power of attorney before
2exercise of the power.

3(5) A request for a certification, a translation, an
4affidavit under section 5606 or an opinion of counsel under
5section 5608(e) is refused, including a certification, an
6affidavit or an opinion of counsel requested to demonstrate
7that the exercise of authority pursuant to a power of
8attorney is proper without the notice provided for under
9section 5601(c), except as provided under section 5601(e.1)
10or (e.2).

11(6) The person in good faith believes that the power of
12attorney is not valid or the agent does not have the
13authority to perform the act requested, whether or not a
14certification, a translation, an affidavit under section 5606
15or opinion of counsel under section 5608(e) has been
16requested or provided.

17(7) The person makes a report to the local protective
18services agency under section 302 of the act of November 6,
191987 (P.L.381, No.79), known as the Older Adults Protective
20Services Act, stating a good faith belief that the principal
21may be subject to physical or financial abuse, neglect,
22exploitation or abandonment by the agent or someone acting
23for or with the agent.

24(8) The person has actual knowledge that another person
25has made a report to the local protective services agency
26under section 302 of the Older Adults Protective Services
27Act, stating a good faith belief that the principal may be
28subject to physical or financial abuse, neglect, exploitation
29or abandonment by the agent or someone acting for or with the
30agent.

1(c) Violation.--A person who refuses, in violation of this
2section, to accept a power of attorney shall be subject to:

3(1) Civil liability for pecuniary harm to the economic
4interests of the principal proximately caused by the person's
5refusal to comply with the instructions of the agent
6designated in the power of attorney.

7(2) A court order mandating acceptance of the power of
8attorney.

9(d) Nonapplicability.--The requirements and penalties of
10this section shall not apply to:

11(1) a power of attorney subject to the laws of another
12state or jurisdiction; <-or

13(2) a power of attorney prescribed by a government or
14governmental subdivision, agency or instrumentality for a
15governmental purpose<-; or.

<-16(3) a power of attorney that is not accepted by the
17Department of Public Welfare in connection with the
18application for or receipt of medical assistance or other
19benefits.

20§ 5608.2. Activities through employees.

21For the purposes of sections 5608 (relating to acceptance of
22and reliance upon power of attorney) and 5608.1 (relating to
23liability for refusal to accept power of attorney), the
24following shall apply:

25(1) A person who conducts activities through employees
26shall be considered to be without actual knowledge of a fact
27relating to a power of attorney, a principal or an agent, if
28the employee conducting the transaction involving the power
29of attorney is without knowledge of the fact.

30(2) An employee has knowledge of a fact if the employee

1has actual knowledge of the fact or acts with conscious
2disregard or willful ignorance regarding the existence of the
3fact.

4Section 8. Section 5611 of Title 20 is amended to read:

5§ 5611. Validity.

6A power of attorney executed in [another state or
7jurisdiction and in conformity with the laws of that state or
8jurisdiction shall be considered valid in this Commonwealth,
9except to the extent that the power of attorney executed in
10another state or jurisdiction would allow an agent to make a
11decision inconsistent with the laws of this Commonwealth.] or 
12under the laws of another state or jurisdiction shall be valid 
13in this Commonwealth if, when the power of attorney was 
14executed, the execution complied with:

15(1) the law of the jurisdiction indicated in the power
16of attorney and, in the absence of an indication of
17jurisdiction, the law of the jurisdiction in which the power
18of attorney was executed; or

19(2) the requirements for a military power of attorney
20under 10 U.S.C. § 1044(b) (relating to legal assistance).

21Section 9. Title 20 is amended by adding a section read:

22§ 5612. Principles of law and equity.

23Unless displaced by a provision of this chapter, the
24principles of law and equity supplement this chapter.

25Section 10. The following shall apply:

26(1) Except as provided by this section, the provisions
27of this act apply to powers of attorney created before, on or
28after the respective effective dates of such provisions, but
29do not apply to the acts or omissions of agents, or third
30parties presented with instructions by agents, that occur

1before such respective effective dates.

2(2) Except as provided by this section, the provisions
3of this act apply to judicial proceedings concerning a power
4of attorney commenced before, on or after the respective
5effective dates of such provisions, unless the court finds
6that application of a provision of this act would
7substantially interfere with the effective conduct of the
8judicial proceeding or prejudice the rights of a party, in
9which case that provision does not apply and the superseded
10law applies.

11(3) The amendment, addition or repeal of 20 Pa.C.S. §§
125601(b), (c), (d) and (e.2), 5601.2, 5601.4, 5602(a)(5) and
13(17) and 5603 apply only to powers of attorney created on or
14after the effective dates of those provisions.

15(4) The amendment of 20 Pa.C.S. §§ 5601(f) and 5608
16shall apply retroactively to acts performed after December
1715, 1992, and to judicial proceedings commenced prior to the
18effective dates of those provisions.

19(5) In interpreting and applying the amendment or
20addition of 20 Pa.C.S. §§ 5601(f), 5608, 5608.1, 5608.2 and
215611, a court shall give due consideration of the intent of
22the General Assembly to reverse the interpretation of 20
23Pa.C.S. § 5608 as set forth in Teresa M. Vine v. Commonwealth
24of Pennsylvania, State Employees' Retirement Board, 9 A.3d
251150 (Pa. 2010).

26Section 11. This act shall take effect as follows:

27(1) The amendment or addition of 20 Pa.C.S. §§ 5601(f),
285608, 5608.1, 5608.2, 5611 and 5612 shall take effect
29immediately.

30(2) This section shall take effect immediately.

1(3) The remainder of this act shall take effect on the
2first July 1 or January 1 which occurs five months or more
3after the date of enactment of this act.