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
19signed [and dated] by the principal by signature or mark, or
20by another individual on behalf of and at the direction of
21the principal.

1(2) If the power of attorney is executed by mark or by
2another individual, then it shall be witnessed by two
3individuals, each of whom is 18 years of age or older. A
4witness shall not be the individual who signed the power of
5attorney on behalf of and at the direction of the principal.

6(3) For a power of attorney executed on or after the
7effective date of this paragraph, the signature or mark of
8the principal, or the signature or mark of another individual
9signing a power of attorney on behalf of the principal, shall
10be:

11(i) Acknowledged before a notary public or other
12individual authorized by law to take acknowledgments.

13(ii) Witnessed by two individuals, each of whom is
14at least 18 years of age. A witness shall not be the
15individual who signed the power of attorney on behalf of
16and at the direction of the principal.

17(c) Notice.--All powers of attorney shall include the
18following notice in capital letters at the beginning of the
19power of attorney. The notice shall be signed by the principal.
20In the absence of a signed notice, upon a challenge to the
21authority of an agent to exercise a power under the power of
22attorney, the agent shall have the burden of demonstrating that
23the exercise of this authority is proper.

24NOTICE

25The purpose of this power of attorney is to give the
26person you designate (your "agent") broad powers to handle
27your property, which may include powers to sell or otherwise
28dispose of any real or personal property without advance
29notice to you or approval by you.

30This power of attorney does not impose a duty on your

1agent to exercise granted powers, but when powers are
2exercised, your agent must use due care to act for your
3benefit and in accordance with this power of attorney.

4Your agent may exercise the powers given here throughout
5your lifetime, even after you become incapacitated, unless
6you expressly limit the duration of these powers or you
7revoke these powers or a court acting on your behalf
8terminates your agent's authority.

9Your agent must [keep your funds separate from your
10agent's funds] act in accordance with your reasonable 
11expectations to the extent actually known by your agent and, 
12otherwise, in your best interest, act in good faith and act 
13only within the scope of authority granted by you in the 
14power of attorney.

15The law permits you, if you choose, to grant broad
16authority to an agent under power of attorney, including the
17ability to give away all of your property while you are alive
18or to substantially change how your property is distributed
19at your death. Before signing this document, you should seek
20the advice of an attorney at law to make sure you understand
21it.

22A court can take away the powers of your agent if it
23finds your agent is not acting properly.

24The powers and duties of an agent under a power of
25attorney are explained more fully in 20 Pa.C.S. Ch. 56.

26If there is anything about this form that you do not
27understand, you should ask a lawyer of your own choosing to
28explain it to you.

29I have read or had explained to me this notice and I
30understand its contents.

2

3(Principal)

(Date)

4(d) Acknowledgment executed by agent.--An agent shall have
5no authority to act as agent under the power of attorney unless
6the agent has first executed and affixed to the power of
7attorney an acknowledgment in substantially the following form:

8I,	,have read the attached power of

9attorney and am the person identified as the agent for
10the principal. I hereby acknowledge that [in the absence
11of a specific provision to the contrary in the power of
12attorney or in 20 Pa.C.S.]when I act as agent:

13I shall [exercise the powers for the benefit of the
14principal] act in accordance with the principal's 
15reasonable expectations to the extent actually known by 
16me and, otherwise, in the principal's best interest, act 
17in good faith and act only within the scope of authority 
18granted to me by the principal in the power of attorney.

19[I shall keep the assets of the principal separate
20from my assets.

21I shall exercise reasonable caution and prudence.

22I shall keep a full and accurate record of all
23actions, receipts and disbursements on behalf of the
24principal.]

26

27(Agent)

(Date)

28[(e) Fiduciary relationship.--An agent acting under a power
29of attorney has a fiduciary relationship with the principal. In
30the absence of a specific provision to the contrary in the power

1of attorney, the fiduciary relationship includes the duty to:

2(1) Exercise the powers for the benefit of the
3principal.

4(2) Keep separate the assets of the principal from those
5of an agent.

6(3) Exercise reasonable caution and prudence.

7(4) Keep a full and accurate record of all actions,
8receipts and disbursements on behalf of the principal.]

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

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

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

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

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

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

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

1by 75 Pa.C.S. § 1119(relating to application for
2certificate of title by agent).]

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

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

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

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

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

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

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

29(vii) A power created on a form prescribed by a
30Commonwealth agency, political subdivision or an

1authority or instrumentality of the Commonwealth or a
2political subdivision.

3(2) Powers and powers of attorney exempted by this
4subsection need not be dated.

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

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

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

19"Good faith." Honesty in fact.

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

21[§ 5601.2. Special rules for gifts.

22(a) General rule.--A principal may empower an agent to make
23a gift in a power of attorney only as provided in this section.

24(b) Limited gifts.--A principal may authorize an agent to
25make a limited gift as defined under section 5603(a)(2)
26(relating to implementation of power of attorney) by the
27inclusion of:

28(1) the language quoted in section 5602(a)(1) (relating
29to form of power of attorney); or

30(2) other language showing a similar intent on the part

1of the principal to empower the agent to make a limited gift.

2(c) Unlimited gifts.--A principal may authorize an agent to
3make any other gift only by specifically providing for and
4defining the agent's authority in the power of attorney.

5(d) Nature of gifts.--In the absence of a specific provision
6to the contrary in the power of attorney:

7(1) A power to make a limited gift shall be construed to
8empower the agent to make a gift to each donee either
9outright or in trust.

10(2) In the case of any gift to a minor, that gift may be
11made in trust or in accordance with Chapter 53 (relating to
12Pennsylvania Uniform Transfers to Minors Act) or section 5155
13(relating to order of court).

14(3) In the case of any gift made in trust, the agent may
15execute a deed of trust for such purpose, designating one or
16more persons, including the agent, as original or successor
17trustees, or may make an addition to an existing trust.

18(4) In making any gift, the agent need not treat the
19donees equally or proportionately and may entirely exclude
20one or more permissible donees.

21(5) The pattern followed on the occasion of any gift
22need not be followed on the occasion of any other gift.

23(e) Equity.--An agent and the donee of a gift shall be
24liable as equity and justice may require to the extent that, as
25determined by the court, a gift made by the agent is
26inconsistent with prudent estate planning or financial
27management for the principal or with the known or probable
28intent of the principal with respect to disposition of the
29estate.

30(f) Third party.--No transfer agent, depository or other

1third party acting in good faith shall have any responsibility
2to see to the proper discharge of the agent's duty.]

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

4§ 5601.3. Agent's duties.

5(a) General rule.--Notwithstanding any provision in the
6power of attorney, an agent that has accepted appointment shall:

7(1) Act in accordance with the principal's reasonable
8expectations to the extent actually known by the agent and,
9otherwise, in the principal's best interest.

10(2) Act in good faith.

11(3) Act only within the scope of authority granted in
12the power of attorney.

13(b) Other duties.--Except as otherwise provided in the power
14of attorney, an agent that has accepted appointment shall:

15(1) Act loyally for the principal's benefit.

16(2) Act so as not to create a conflict of interest that
17impairs the agent's ability to act impartially in the
18principal's best interest.

19(3) Act with the care, competence and diligence
20ordinarily exercised by agents in similar circumstances.

21(4) Keep a record of all receipts, disbursements and
22transactions made on behalf of the principal.

23(5) Cooperate with a person who has authority to make
24health care decisions for the principal to carry out the
25principal's reasonable expectations to the extent actually
26known by the agent and, otherwise, act in the principal's
27best interest.

28(6) Attempt to preserve the principal's estate plan, to
29the extent actually known by the agent, if preserving the
30plan is consistent with the principal's best interest based

1on all relevant factors, including:

2(i) The value and nature of the principal's
3property.

4(ii) The principal's foreseeable obligations and
5need for maintenance.

6(iii) Minimization of taxes, including income,
7estate, inheritance, generation-skipping transfer and
8gift taxes.

9(iv) Eligibility for a benefit, program or
10assistance under a statute or regulation.

11(c) Nonliability of agent.--

12(1) An agent that acts in good faith shall not be liable
13to a beneficiary of the principal's estate plan for failure
14to preserve the plan.

15(2) An agent that acts with care, competence and
16diligence for the best interest of the principal shall not be
17liable solely because the agent also benefits from the act or
18has an individual or conflicting interest in relation to the
19property or affairs of the principal.

20(3) If an agent is selected by the principal because of
21special skills or expertise possessed by the agent or in
22reliance on the agent's representation that the agent has
23special skills or expertise, the special skills or expertise
24must be considered in determining whether the agent has acted
25with care, competence and diligence under the circumstances.

26(4) Absent a breach of duty to the principal, an agent
27shall not be liable if the value of the principal's property
28declines.

29(5) An agent that exercises authority to delegate to
30another person the authority granted by the principal or that

1engages another person on behalf of the principal shall not
2be liable for an act, error of judgment or default of that
3person if the agent exercises care, competence and diligence
4in selecting and monitoring the person.

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

6(1) Except as otherwise provided in the power of
7attorney, an agent shall not be required to disclose
8receipts, disbursements or transactions conducted on behalf
9of the principal unless ordered by a court or requested by
10the principal, a guardian, conservator, another fiduciary
11acting for the principal, governmental agency having
12authority to protect the welfare of the principal or, upon
13the death of the principal, the personal representative or
14successor in interest of the principal's estate.

15(2) Within 30 days of the request, the agent shall
16either comply with the request or provide a writing or other
17record substantiating the reason additional time is needed,
18in which case the agent shall comply with the request within
19an additional 30 days.

20§ 5601.4. Authority that requires specific and general grant of
21authority.

22(a) General rule.--An agent under a power of attorney may do
23the following on behalf of the principal or with the principal's
24property only if the power of attorney expressly grants the
25agent the authority and exercise of the authority is not
26otherwise prohibited by another agreement or instrument to which
27the authority or property is subject:

28(1) Create, amend, revoke or terminate an inter vivos
29trust other than as permitted under section 5602(a)(2), (3)
30and (7) (relating to form of power of attorney).

1(2) Make a gift.

2(3) Create or change rights of survivorship.

3(4) Create or change a beneficiary designation.

4(5) Delegate authority granted under the power of
5attorney.

6(6) Waive the principal's right to be a beneficiary of a
7joint and survivor annuity, including a survivor benefit
8under a retirement plan.

9(7) Exercise fiduciary powers that the principal has
10authority to delegate.

11(8) Disclaim property, including a power of appointment.

12(b) Limitation.--Notwithstanding a grant of authority to do
13an act described in subsection (a), unless the power of attorney
14otherwise provides, an agent that is not an ancestor, spouse or
15descendant of the principal may not exercise authority under a
16power of attorney to create in the agent, or in an individual to
17whom the agent owes a legal obligation of support, an interest
18in the principal's property, whether by gift, right of
19survivorship, beneficiary designation, disclaimer or otherwise.

20(c) Scope of authority.--Subject to subsections (a), (b),
21(d), and (e), if a power of attorney grants to an agent
22authority to do all acts that a principal is authorized to
23perform, the agent has the general authority described in
24section 5602(a).

25(d) Gifts.--Unless the power of attorney otherwise provides,
26a grant of authority to make a gift is subject to section
275603(a.1) (relating to implementation of power of attorney).

28(e) Similar or overlapping subjects.--Subject to subsections
29(a), (b) and (d), if the subjects over which authority is
30granted in a power of attorney are similar or overlap, the

1broadest authority controls.

2(f) Property.--Authority granted in a power of attorney is
3exercisable with respect to property that the principal has when
4the power of attorney is executed or acquires later, whether or
5not the property is located in this State and whether or not the
6authority is exercised or the power of attorney is executed in
7this State.

8(g) Legal effect of agent's actions.--An act performed by an
9agent pursuant to a power of attorney has the same effect and
10inures to the benefit of and binds the principal and the
11principal's successors in interest as if the principal had
12performed the act.

13Section 4. Section 5602(a)(5) and (17) of Title 20 are
14amended to read:

15§ 5602. Form of power of attorney.

16(a) Specification of powers.--A principal may, by inclusion
17of the language quoted in any of the following paragraphs or by
18inclusion of other language showing a similar intent on the part
19of the principal, empower an agent to do any or all of the
20following, each of which is defined in section 5603 (relating to
21implementation of power of attorney):

22* * *

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

24* * *

25(17) "To engage in insurance and annuity transactions."

26* * *

27Section 5. Section 5603(a), (e), (p) and (q) of Title 20 are
28amended and the section is amended by adding a subsection to
29read:

30§ 5603. Implementation of power of attorney.

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

2(2) A power "to make limited gifts" shall mean that the
3agent may make only gifts for or on behalf of the principal
4which are limited as follows:

5(i) The class of permissible donees under this
6paragraph shall consist solely of the principal's spouse,
7issue and a spouse of the principal's issue (including
8the agent if a member of any such class), or any of them.

9(ii) During each calendar year, the gifts made to 
10any permissible donee, pursuant to such power, shall have 
11an aggregate value not in excess of, and shall be made in 
12such manner as to qualify in their entirety for, the 
13annual exclusion from the Federal gift tax permitted 
14under section 2503(b) of the Internal Revenue Code of 
151986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) for the
16principal and, if applicable, the principal's spouse.

17(iv) In addition to the gifts authorized by
18subparagraphs (i) and (ii), a gift made pursuant to such
19power may be for the tuition or medical care of any
20permissible donee to the extent that the gift is excluded
21from the Federal gift tax under section 2503(e) of the
22Internal Revenue Code of 1986 as a qualified transfer.

23(v) The agent may consent, pursuant to section
242513(a) of the Internal Revenue Code of 1986, to the
25splitting of gifts made by the principal's spouse to the
26principal's issue or a spouse of the principal's issue in
27any amount and to the splitting of gifts made by the
28principal's spouse to any other person in amounts not
29exceeding the aggregate annual gift tax exclusions for
30both spouses under section 2503(b) of the Internal

1Revenue Code of 1986.]

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

3(1) Unless the power of attorney otherwise provides, the
4power to make limited gifts or other language in a power of
5attorney granting general authority with respect to gifts
6authorizes the agent only to:

7(i) Make outright to or for the benefit of a person,
8a gift of any of the principal's property, including by
9the exercise of a presently exercisable general power of
10appointment held by the principal:

11(A) in an amount per donee not to exceed the
12annual dollar limits of the Federal gift tax
13exclusion under section 2503(b) of the Internal
14Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
152503(b)), without regard to whether the Federal gift
16tax exclusion applies to the gift; or

17(B) if the principal's spouse agrees to consent
18to a split gift pursuant to section 2513 of the
19Internal Revenue Code of 1986, in an amount per donee
20not to exceed twice the annual Federal gift tax
21exclusion limit.

22(ii) Consent, pursuant to section 2513 of the
23Internal Revenue Code of 1986, to the splitting of a gift
24made by the principal's spouse in an amount per donee not
25to exceed the aggregate annual gift tax exclusions for
26both spouses.

27(2) An agent may make a gift of the principal's property
28only as the agent determines is consistent with the
29principal's objectives if actually known by the agent and, if
30unknown, as the agent determines is consistent with the

1principal's best interest based on all relevant factors,
2including:

3(i) The value and nature of the principal's
4property.

5(ii) The principal's foreseeable obligations and
6need for maintenance.

7(iii) Minimization of taxes, including income,
8estate, inheritance, generation-skipping transfer and
9gift taxes.

10(iv) Eligibility for a benefit, program or
11assistance under a statute or regulation.

12(v) The principal's personal history of making or
13joining in making gifts.

14(3) As used in this subsection, the phrase "a gift for
15the benefit of a person" includes a gift to a trust, an
16account under Chapter 53 (relating to Pennsylvania Uniform
17Transfers to Minors Act) and a tuition savings account or
18prepaid tuition plan as defined under section 529 of the
19Internal Revenue Code of 1986.

20* * *

21[(e) Power to disclaim any interest in property.--A power 
22"to disclaim any interest in property" shall mean that the agent 
23may release or disclaim any interest in property on behalf of 
24the principal in accordance with Chapter 62 (relating to 
25disclaimers) or section 6103 (relating to release or disclaimer 
26of powers or interests), provided that any disclaimer under 
27Chapter 62 shall be in accordance with the provisions of section 
286202 (relating to disclaimers by fiduciaries or agents) in the 
29case of a principal who shall have been adjudicated an 
30incapacitated person at the time of the execution of the 

1disclaimer.]

2* * *

3(p) Power to engage in insurance and annuity transactions.--
4A power to "engage in insurance and annuity transactions" shall  
5mean that the agent may:

6(1) Purchase, continue, renew, convert or terminate any
7type of insurance (including, but not limited to, life,
8accident, health, disability or liability insurance) or 
9annuity and pay premiums and collect benefits and proceeds
10under insurance policies and annuity contracts.

11(2) Exercise nonforfeiture provisions under insurance
12policies and annuity contracts.

13(3) In general, exercise all powers with respect to
14insurance and annuities that the principal could if present;
15[however, the agent cannot designate himself beneficiary of a
16life insurance policy unless the agent is the spouse, child,
17grandchild, parent, brother or sister of the principal. An 
18agent and a beneficiary of a life insurance policy shall be 
19liable as equity and justice may require to the extent that, 
20as determined by the court, a beneficiary designation made by 
21the agent is inconsistent with the known or probable intent 
22of the principal] provided, however, that the agent shall 
23have no power to create or change a beneficiary designation 
24unless authorized in accordance with section 5601.4 (relating 
25to authority that requires specific and general grant of 
26authority).

27(q) Power to engage in retirement plan transactions.--A 
28power to "engage in retirement plan transactions" shall mean 
29that the agent may contribute to, withdraw from and deposit 
30funds in any type of retirement plan (including, but not limited 

1to, any tax qualified or nonqualified pension, profit sharing, 
2stock bonus, employee savings and retirement plan, deferred 
3compensation plan or individual retirement account), select and 
4change payment options for the principal, make roll-over 
5contributions from any retirement plan to other retirement plans 
6and, in general, exercise all powers with respect to retirement 
7plans that the principal could if present[. However, the agent 
8cannot designate himself beneficiary of a retirement plan unless 
9the agent is the spouse, child, grandchild, parent, brother or 
10sister of the principal. An agent and a beneficiary of a 
11retirement plan shall be liable as equity and justice may 
12require to the extent that, as determined by the court, a 
13beneficiary designation made by the agent is inconsistent with 
14the known or probable intent of the principal] provided, 
15however, that the agent shall have no power to create or change 
16a beneficiary designation unless authorized in accordance with 
17section 5601.4.

18* * *

19Section 6. Section 5608 of Title 20 is amended to read:

20§ 5608. [Liability] Acceptance of and reliance upon power of 
21attorney.

22[(a) Third party liability.--Any person who is given
23instructions by an agent in accordance with the terms of a power
24of attorney shall comply with the instructions. Any person who
25without reasonable cause fails to comply with those instructions
26shall be subject to civil liability for any damages resulting
27from noncompliance. Reasonable cause under this subsection shall
28include, but not be limited to, a good faith report having been
29made by the third party to the local protective services agency
30regarding abuse, neglect, exploitation or abandonment pursuant

1to section 302 of the act of November 6, 1987 (P.L.381, No.79),
2known as the Older Adults Protective Services Act.

3(b) Third party immunity.--Any person who acts in good faith
4reliance on a power of attorney shall incur no liability as a
5result of acting in accordance with the instructions of the
6agent.]

7(c) Genuineness.--A person who in good faith accepts a power
8of attorney without actual knowledge that a signature or mark of
9any of the following are not genuine may, without liability,
10rely upon the genuineness of the signature or mark of:

11(1) The principal.

12(2) A person who signed the power of attorney on behalf
13of the principal and at the direction of the principal.

14(3) A witness.

15(4) A notary public or other person authorized by law to
16take acknowledgments.

17(d) Immunity.--A person who in good faith accepts a power of
18attorney without actual knowledge of any of the following may,
19without liability, rely upon the power of attorney as if the
20power of attorney and agent's authority were genuine, valid and
21still in effect and the agent had not exceeded and had properly
22exercised the authority that:

23(1) The power of attorney is void, invalid or
24terminated.

25(2) The purported agent's authority is void, invalid or
26terminated.

27(3) The agent is exceeding or improperly exercising the
28agent's authority.

29(e) Request for information.--A person who is asked to
30accept a power of attorney may request and, without liability,

1rely upon without further investigation:

2(1) An agent's certification under penalty of perjury of
3any factual matter concerning the principal, agent or power
4of attorney or an affidavit under section 5606 (relating to
5proof of continuance of powers of attorney by affidavit).

6(2) An English translation of the power of attorney, if
7the power of attorney contains, in whole or in part, language
8other than English.

9(3) An opinion of counsel relating to whether the agent
10is acting within the scope of the authority granted by the
11power of attorney, if the person making the request provides
12in a writing or other record the reason for the request.

13(f) Additional request for information.--A person who has
14accepted a power of attorney, whether or not the person has a
15certification or opinion of counsel under subsection (e) or an
16affidavit under section 5606, and has acted upon it by allowing
17the agent to exercise authority granted under the power of
18attorney, shall not be precluded from requesting at later times
19a certification or opinion of counsel under this subsection,
20subsection (e) or an affidavit under section 5606 with regard to
21any further exercise of authority by the agent under the power
22of attorney.

23(g) English translation.--An English translation or an
24opinion of counsel requested under this section shall be at the
25principal's expense, unless the request is made more than seven
26business days after the power of attorney is presented for
27acceptance.

28(h) Limitations.--Except as otherwise provided by law,
29nothing in this section shall in itself:

30(1) validate a forged instrument conveying an interest

1in real property;

2(2) provide that the recording of a forged instrument
3gives constructive notice of a conveyance of an interest in
4real property; or

5(3) limit the liability of an insurer, indemnitor or
6guarantor of contractual obligations to indemnify, hold
7harmless or defend a person who accepts or relies upon a
8power of attorney.

9Section 7. Title 20 is amended by adding sections to read:

10§ 5608.1. Liability for refusal to accept power of attorney.

11(a) Acceptance required.--Except as provided under
12subsections (b) and (d):

13(1) A person shall either:

14(i) accept a power of attorney; or

15(ii) request one of the following:

16(A) an affidavit under section 5606 (relating to
17proof of continuance of powers of attorney by
18affidavit); or

19(B) a certification, translation or an opinion
20of counsel under section 5608(e) (relating to
21acceptance of and reliance upon power of attorney);

22not later than seven business days after presentation of
23the power of attorney for acceptance.

24(2) If a person requests a certification, a translation,
25an affidavit under section 5606 or an opinion of counsel
26under section 5608(e), the person shall accept the power of
27attorney not later than five business days after receipt of
28the certification, translation, affidavit or opinion of
29counsel or, unless the information provided by the
30certification, translation, affidavit or opinion of counsel

1provides a substantial basis for making a further request
2under section 5606 or 5608(e).

3(3) A person may not require an additional or different
4form of power of attorney for authority granted in the power
5of attorney presented.

6(b) Acceptance not required.--A person may not be required
7to accept a power of attorney if any of the following applies:

8(1) The person is not otherwise required to engage in a
9transaction with the principal in the same circumstances.

10(2) Engaging in a transaction with the agent or the
11principal in the same circumstances would be inconsistent
12with any provisions of this chapter, including:

13(i) the failure of the power of attorney to be
14executed in the manner required under section 5601(b)
15(relating to general provisions); and

16(ii) circumstances in which an agent has no
17authority to act because of the absence of an
18acknowledgment as provided under section 5601(d), except
19as provided under section 5601(e.1) or (e.2).

20(3) Engaging in a transaction with the agent in the same
21circumstances would be inconsistent with any other law or
22regulation.

23(4) The person has actual knowledge of the termination
24of the agent's authority or of the power of attorney before
25exercise of the power.

26(5) A request for a certification, a translation, an
27affidavit under section 5606 or an opinion of counsel under
28section 5608(e) is refused, including a certification, an
29affidavit or an opinion of counsel requested to demonstrate
30that the exercise of authority pursuant to a power of

1attorney is proper without the notice provided for under
2section 5601(c), except as provided under section 5601(e.1)
3or (e.2).

4(6) The person in good faith believes that the power of
5attorney is not valid or the agent does not have the
6authority to perform the act requested, whether or not a
7certification, a translation, an affidavit under section 5606
8or opinion of counsel under section 5608(e) has been
9requested or provided.

10(7) The person makes a report to the local protective
11services agency under section 302 of the act of November 6,
121987 (P.L.381, No.79), known as the Older Adults Protective
13Services Act, stating a good faith belief that the principal
14may be subject to physical or financial abuse, neglect,
15exploitation or abandonment by the agent or someone acting
16for or with the agent.

17(8) The person has actual knowledge that another person
18has made a report to the local protective services agency
19under section 302 of the Older Adults Protective Services
20Act, stating a good faith belief that the principal may be
21subject to physical or financial abuse, neglect, exploitation
22or abandonment by the agent or someone acting for or with the
23agent.

24(c) Violation.--A person who refuses, in violation of this
25section, to accept a power of attorney shall be subject to civil
26liability for pecuniary harm to the economic interests of the
27principal proximately caused by the person's refusal to comply
28with the instructions of the agent designated in the power of
29attorney.

30(d) Nonapplicability.--The requirements of this section

1shall not apply to:

2(1) a power of attorney subject to the laws of another
3state or jurisdiction; or

4(2) a power of attorney prescribed by a government or
5governmental subdivision, agency or instrumentality for a
6governmental purpose.

7§ 5608.2. Activities through employees.

8For the purposes of sections 5608 (relating to acceptance of
9and reliance upon power of attorney) and 5608.1 (relating to
10liability for refusal to accept power of attorney), the
11following shall apply:

12(1) A person who conducts activities through employees
13shall be considered to be without actual knowledge of a fact
14relating to a power of attorney, a principal or an agent, if
15the employee conducting the transaction involving the power
16of attorney is without knowledge of the fact.

17(2) An employee has knowledge of a fact if the employee
18has actual knowledge of the fact or acts with conscious
19disregard or willful ignorance regarding the existence of the
20fact.

21Section 8. Section 5611 of Title 20 is amended to read:

22§ 5611. Validity.

23A power of attorney executed in [another state or
24jurisdiction and in conformity with the laws of that state or
25jurisdiction shall be considered valid in this Commonwealth,
26except to the extent that the power of attorney executed in
27another state or jurisdiction would allow an agent to make a
28decision inconsistent with the laws of this Commonwealth.] or 
29under the laws of another state or jurisdiction shall be valid 
30in this Commonwealth if, when the power of attorney was 

1executed, the execution complied with:

2(1) the law of the jurisdiction indicated in the power
3of attorney and, in the absence of an indication of
4jurisdiction, the law of the jurisdiction in which the power
5of attorney was executed; or

6(2) the requirements for a military power of attorney
7under 10 U.S.C. § 1044(b) (relating to legal assistance).

8Section 9. Title 20 is amended by adding a section read:

9§ 5612. Principles of law and equity.

10Unless displaced by a provision of this chapter, the
11principles of law and equity supplement this chapter.

12Section 10. The following shall apply:

13(1) Except as provided by this section, the provisions
14of this act apply to powers of attorney created before, on or
15after the respective effective dates of such provisions, but
16do not apply to the acts or omissions of agents, or third
17parties presented with instructions by agents, that occur
18before such respective effective dates.

19(2) Except as provided by this section, the provisions
20of this act apply to judicial proceedings concerning a power
21of attorney commenced before, on or after the respective
22effective dates of such provisions, unless the court finds
23that application of a provision of this act would
24substantially interfere with the effective conduct of the
25judicial proceeding or prejudice the rights of a party, in
26which case that provision does not apply and the superseded
27law applies.

28(3) The amendment or addition of 20 Pa.C.S. §§ 5601(b),
29(c), (d) and (e.2), 5601.2, 5601.4, 5602(a)(5) and (17) and
305603 apply only to powers of attorney created on or after the

1effective dates of those provisions.

2(4) The amendment of 20 Pa.C.S. §§ 5601(f) and 5608
3shall apply retroactively to acts performed after December
415, 1992, and to judicial proceedings commenced prior to the
5effective dates of those provisions.

6(5) In interpreting and applying the amendment or
7addition of 20 Pa.C.S. §§ 5601(f), 5608, 5608.1, 5608.2 and
85611, a court shall give due consideration of the intent of
9the General Assembly to reverse the interpretation of 20
10Pa.C.S. § 5608 as set forth in Teresa M. Vine v. Commonwealth
11of Pennsylvania, State Employees' Retirement Board, 9 A.3d
121150 (Pa. 2010).

13Section 11. This act shall take effect as follows:

14(1) The amendment or addition of 20 Pa.C.S. §§ 5601(f),
155608, 5608.1, 5608.2, 5611 and 5612 shall take effect
16immediately.

17(2) This section shall take effect immediately.

18(3) The remainder of this act shall take effect on the
19first July 1 or January 1 which occurs five months or more
20after the date of enactment of this act.