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.--

1(1) A power of attorney shall be dated, and it shall be
2signed [and dated] by the principal by signature or mark, or
3by another individual on behalf of and at the direction of
4the principal <-if the principal is unable to sign but 
5specifically directs another individual to sign the power of 
6attorney.

7(2) If the power of attorney is executed by mark or by
8another individual, then it shall be witnessed by two
9individuals, each of whom is 18 years of age or older. A
10witness shall not be the individual who signed the power of
11attorney on behalf of and at the direction of the principal.

12(3) For a power of attorney executed on or after the
13effective date of this paragraph, the signature or mark of
14the principal, or the signature or mark of another individual
15signing a power of attorney on behalf of <-and at the direction 
16of the principal, shall be:

17(i) Acknowledged before a notary public or other
18individual authorized by law to take acknowledgments. <-The 
19notary public or other individual authorized by law to 
20take acknowledgments shall not be the agent designated in 
21the power of attorney.

22(ii) Witnessed by two individuals, each of whom is
<-23at least 18 years of age 18 years of age or older. A
24witness shall not be the individual who signed the power
25of attorney on behalf of and at the direction of the
26principal<-., the agent designated in the power of attorney
27or the notary public or other person authorized by law to
28take acknowledgments before whom the power of attorney is
29acknowledged.

30(c) Notice.--All powers of attorney shall include the

1following notice in capital letters at the beginning of the
2power of attorney. The notice shall be signed by the principal.
3In the absence of a signed notice, upon a challenge to the
4authority of an agent to exercise a power under the power of
5attorney, the agent shall have the burden of demonstrating that
6the exercise of this authority is proper.

7NOTICE

8The purpose of this power of attorney is to give the
9person you designate (your "agent") broad powers to handle
10your property, which may include powers to sell or otherwise
11dispose of any real or personal property without advance
12notice to you or approval by you.

13This power of attorney does not impose a duty on your
14agent to exercise granted powers, but when powers are
15exercised, your agent must use due care to act for your
16benefit and in accordance with this power of attorney.

17Your agent may exercise the powers given here throughout
18your lifetime, even after you become incapacitated, unless
19you expressly limit the duration of these powers or you
20revoke these powers or a court acting on your behalf
21terminates your agent's authority.

22Your agent must [keep your funds separate from your
23agent's funds.] act in accordance with your reasonable 
24expectations to the extent actually known by your agent and, 
25otherwise, in your best interest, act in good faith and act 
26only within the scope of authority granted by you in the 
27power of attorney.

28The law permits you, if you choose, to grant broad
29authority to an agent under power of attorney, including the
30ability to give away all of your property while you are alive

1or to substantially change how your property is distributed
2at your death. Before signing this document, you should seek
3the advice of an attorney at law to make sure you understand
4it.

5A court can take away the powers of your agent if it
6finds your agent is not acting properly.

7The powers and duties of an agent under a power of
8attorney are explained more fully in 20 Pa.C.S. Ch. 56.

9If there is anything about this form that you do not
10understand, you should ask a lawyer of your own choosing to
11explain it to you.

12I have read or had explained to me this notice and I
13understand its contents.

15(Principal)

(Date)

16(d) Acknowledgment executed by agent.--An agent shall have
17no authority to act as agent under the power of attorney unless
18the agent has first executed and affixed to the power of
19attorney an acknowledgment in substantially the following form:

20I,	,have read the attached power of

21attorney and am the person identified as the agent for
22the principal. I hereby acknowledge that [in the absence
23of a specific provision to the contrary in the power of
24attorney or in 20 Pa.C.S.] when I act as agent:

25I shall [exercise the powers for the benefit of the
26principal] act in accordance with the principal's 
27reasonable expectations to the extent actually known by 
28me and, otherwise, in the principal's best interest, act 
29in good faith and act only within the scope of authority 
30granted to me by the principal in the power of attorney.

1[I shall keep the assets of the principal separate
2from my assets.

3I shall exercise reasonable caution and prudence.

4I shall keep a full and accurate record of all
5actions, receipts and disbursements on behalf of the
6principal.]

8(Agent)

(Date)

13(1) Exercise the powers for the benefit of the
14principal.

15(2) Keep separate the assets of the principal from those
16of an agent.

17(3) Exercise reasonable caution and prudence.

18(4) Keep a full and accurate record of all actions,
19receipts and disbursements on behalf of the principal.]

20(e.1) Limitation on applicability in commercial
21transaction.--

22[(1) Subsections (c), (d) and (e) do not apply to a
23power or a power of attorney contained in an instrument used
24in a commercial transaction which simply authorizes an agency
25relationship. This paragraph includes the following:

26(i) A power given to or for the benefit of a
27creditor in connection with a loan or other credit
28transaction.

29(ii) A power exclusively granted to facilitate
30transfer of stock, bonds and other assets.

1(iii) A power contained in the governing document
2for a corporation, partnership or limited liability
3company or other legal entity by which a director,
4partner or member authorizes others to do other things on
5behalf of the entity.

6(iv) A warrant of attorney conferring authority to
7confess judgment.

8(v) A power given to a dealer as defined by the act
9of December 22, 1983 (P.L.306, No.84), known as the Board
10of Vehicles Act, when using the power in conjunction with
11a sale, purchase or transfer of a vehicle as authorized
12by 75 Pa.C.S. § 1119 (relating to application for
13certificate of title by agent).]

14(1.1) Subsections (b)(3)(ii), (c) and (d) do not apply
15to:

16(i) A power contained in an instrument used in a
17commercial transaction which authorizes an agency
18relationship.

19(ii) A power to the extent it is coupled with an
20interest in the subject of the power, including a power
21given to or for the benefit of a creditor in connection
22with a loan or other credit transaction.

23(iii) A power exclusively granted to facilitate
24transfer of stock, bonds and other assets.

25(iv) A power contained in the governing document for
26a corporation, partnership or limited liability company
27or other legal entity by which a director, partner or
28member authorizes others to do other things on behalf of
29the entity or a proxy or other delegation to exercise
30voting rights or management rights with respect to a

1legal entity.

2(v) A warrant of attorney conferring authority to
3confess judgment.

4(vi) A power given to a dealer as defined by the act
5of December 22, 1983 (P.L.306, No.84), known as the Board
6of Vehicles Act, when using the power in conjunction with
7a sale, purchase or transfer of a vehicle as authorized
8by 75 Pa.C.S. § 1119 (relating to application for
9certificate of title by agent).

10(vii) A power created on a form prescribed by a
11Commonwealth agency, political subdivision or an
12authority or instrumentality of the Commonwealth or a
13political subdivision.

14(2) Powers and powers of attorney exempted by this
15subsection need not be dated.

16(e.2) Limitation on applicability in health care [power] and 
17mental health care powers of attorney.--Subsections (b)(3)(i), 
18(c) and (d) and section 5601.3 (relating to agent's duties) do
19not apply to a power of attorney which exclusively provides for
20health care decision making or mental health care decision 
21making.

22(f) [Definition.--As used in this chapter, the term "agent"
23means a person designated by a principal in a power of attorney
24to act on behalf of that principal.] Definitions.--The following 
25words and phrases when used in this chapter shall have the 
26meanings given to them in this subsection unless the context 
27clearly indicates otherwise:

28"Agent." A person designated by a principal in a power of
29attorney to act on behalf of that principal.

30"Good faith." Honesty in fact.

1Section 2. Section 5601.2 of Title 20 is repealed:

2[§ 5601.2. Special rules for gifts.

3(a) General rule.--A principal may empower an agent to make
4a gift in a power of attorney only as provided in this section.

5(b) Limited gifts.--A principal may authorize an agent to
6make a limited gift as defined under section 5603(a)(2)
7(relating to implementation of power of attorney) by the
8inclusion of:

9(1) the language quoted in section 5602(a)(1) (relating
10to form of power of attorney); or

11(2) other language showing a similar intent on the part
12of the principal to empower the agent to make a limited gift.

13(c) Unlimited gifts.--A principal may authorize an agent to
14make any other gift only by specifically providing for and
15defining the agent's authority in the power of attorney.

16(d) Nature of gifts.--In the absence of a specific provision
17to the contrary in the power of attorney:

18(1) A power to make a limited gift shall be construed to
19empower the agent to make a gift to each donee either
20outright or in trust.

21(2) In the case of any gift to a minor, that gift may be
22made in trust or in accordance with Chapter 53 (relating to
23Pennsylvania Uniform Transfers to Minors Act) or section 5155
24(relating to order of court).

25(3) In the case of any gift made in trust, the agent may
26execute a deed of trust for such purpose, designating one or
27more persons, including the agent, as original or successor
28trustees, or may make an addition to an existing trust.

29(4) In making any gift, the agent need not treat the
30donees equally or proportionately and may entirely exclude

1one or more permissible donees.

2(5) The pattern followed on the occasion of any gift
3need not be followed on the occasion of any other gift.

4(e) Equity.--An agent and the donee of a gift shall be
5liable as equity and justice may require to the extent that, as
6determined by the court, a gift made by the agent is
7inconsistent with prudent estate planning or financial
8management for the principal or with the known or probable
9intent of the principal with respect to disposition of the
10estate.

11(f) Third party.--No transfer agent, depository or other
12third party acting in good faith shall have any responsibility
13to see to the proper discharge of the agent's duty.]

14Section 3. Title 20 is amended by adding sections to read:

15§ 5601.3. Agent's duties.

16(a) General rule.--Notwithstanding any provision in the
17power of attorney, an agent that has accepted appointment shall:

18(1) Act in accordance with the principal's reasonable
19expectations to the extent actually known by the agent and,
20otherwise, in the principal's best interest.

21(2) Act in good faith.

22(3) Act only within the scope of authority granted in
23the power of attorney.

24(b) Other duties.--Except as otherwise provided in the power
25of attorney, an agent that has accepted appointment shall:

26(1) Act loyally for the principal's benefit.

<-27(1.1) Keep the agent's funds separate from the
28principal's funds after the date of execution of the power of
29attorney, unless the funds were not kept separate as of the
30date of the execution of the power of attorney.

<-1(1.1) Keep the agent's funds separate from the
2principal's funds unless:

3(i) the funds were not kept separate as of the date
4of the execution of the power of attorney; or

5(ii) the principal commingles the funds after the
6date of the execution of the power of attorney and the
7agent is the principal's spouse.

8(2) Act so as not to create a conflict of interest that
9impairs the agent's ability to act impartially in the
10principal's best interest.

11(3) Act with the care, competence and diligence
12ordinarily exercised by agents in similar circumstances.

13(4) Keep a record of all receipts, disbursements and
14transactions made on behalf of the principal.

15(5) Cooperate with a person who has authority to make
16health care decisions for the principal to carry out the
17principal's reasonable expectations to the extent actually
18known by the agent and, otherwise, act in the principal's
19best interest.

20(6) Attempt to preserve the principal's estate plan, to
21the extent actually known by the agent, if preserving the
22plan is consistent with the principal's best interest based
23on all relevant factors, including:

24(i) The value and nature of the principal's
25property.

26(ii) The principal's foreseeable obligations and
27need for maintenance.

28(iii) Minimization of taxes, including income,
29estate, inheritance, generation-skipping transfer and
30gift taxes.

1(iv) Eligibility for a benefit, program or
2assistance under a statute or regulation.

3(c) Nonliability of agent.--

4(1) An agent that acts in good faith shall not be liable
5to a beneficiary of the principal's estate plan for failure
6to preserve the plan.

7(2) An agent that acts with care, competence and
8diligence for the best interest of the principal shall not be
9liable solely because the agent also benefits from the act or
10has an individual or conflicting interest in relation to the
11property or affairs of the principal.

12(3) If an agent is selected by the principal because of
13special skills or expertise possessed by the agent or in
14reliance on the agent's representation that the agent has
15special skills or expertise, the special skills or expertise
16must be considered in determining whether the agent has acted
17with care, competence and diligence under the circumstances.

18(4) Absent a breach of duty to the principal, an agent
19shall not be liable if the value of the principal's property
20declines.

21(5) An agent that exercises authority to delegate to
22another person the authority granted by the principal or that
23engages another person on behalf of the principal shall not
24be liable for an act, error of judgment or default of that
25person if the agent exercises care, competence and diligence
26in selecting and monitoring the person.

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

28(1) Except as otherwise provided in the power of
29attorney, an agent shall not be required to disclose
30receipts, disbursements or transactions conducted on behalf

1of the principal unless ordered by a court or requested by
2the principal, a guardian, conservator, another fiduciary
3acting for the principal, governmental agency having
4authority to protect the welfare of the principal or, upon
5the death of the principal, the personal representative or
6successor in interest of the principal's estate.

7(2) Within 30 days of the request, the agent shall
8either comply with the request or provide a writing or other
9record substantiating the reason additional time is needed,
10in which case the agent shall comply with the request within
11an additional 30 days.

12§ 5601.4. Authority that requires specific and general grant of 
13authority.

14(a) General rule.--An agent under a power of attorney may do
15the following on behalf of the principal or with the principal's
16property only if the power of attorney expressly grants the
17agent the authority and exercise of the authority is not
18otherwise prohibited by another agreement or instrument to which
19the authority or property is subject:

20(1) Create, amend, revoke or terminate an inter vivos
21trust other than as permitted under section 5602(a)(2), (3)
22and (7) (relating to form of power of attorney).

23(2) Make a gift.

24(3) Create or change rights of survivorship.

25(4) Create or change a beneficiary designation.

26(5) Delegate authority granted under the power of
27attorney.

28(6) Waive the principal's right to be a beneficiary of a
29joint and survivor annuity, including a survivor benefit
30under a retirement plan.

1(7) Exercise fiduciary powers that the principal has
2authority to delegate.

3(8) Disclaim property, including a power of appointment.

4(b) Limitation.--Notwithstanding a grant of authority to do
5an act described in subsection (a), unless the power of attorney
6otherwise provides, an agent that is not an ancestor, spouse or
7descendant of the principal may not exercise authority under a
8power of attorney to create in the agent, or in an individual to
9whom the agent owes a legal obligation of support, an interest
10in the principal's property, whether by gift, right of
11survivorship, beneficiary designation, disclaimer or otherwise.

12(c) Scope of authority.--Subject to subsections (a), (b),
13(d), and (e), if a power of attorney grants to an agent
14authority to do all acts that a principal is authorized to
15perform, the agent has <-the general authority described in all of
16the powers which may be incorporated by reference pursuant to
17section 5602(a).

18(d) Gifts.--Unless the power of attorney otherwise provides,
19a grant of authority to make a gift is subject to section
205603(a.1) (relating to implementation of power of attorney).

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

25(f) Property.--Authority granted in a power of attorney is
26exercisable with respect to property that the principal has when
27the power of attorney is executed or acquires later, whether or
28not the property is located in this State and whether or not the
29authority is exercised or the power of attorney is executed in
30this State.

1(g) Legal effect of agent's actions.--An act performed by an
2agent pursuant to a power of attorney has the same effect and
3inures to the benefit of and binds the principal and the
4principal's successors in interest as if the principal had
5performed the act.

<-6Section 4. Section 5602(a)(5) and (17) of Title 20 are
7amended to read:

<-8Section 4. Sections 5602(a)(5) and (17) and (c) and 5603(a),
9(e), (k)(4), (p), (q) and (v) of Title 20 are amended and the
10sections are amended by adding subsections to read:

11§ 5602. Form of power of attorney.

12(a) Specification of powers.--A principal may, by inclusion
13of the language quoted in any of the following paragraphs or by
14inclusion of other language showing a similar intent on the part
15of the principal, empower an agent to do any or all of the
16following, each of which is defined in section 5603 (relating to
17implementation of power of attorney):

18* * *

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

20* * *

21(17) "To engage in insurance and annuity transactions."

22* * *

<-23(a.1) Modification of authority.--A principal may modify the
24authority of an agent that is incorporated by reference as
25described in subsection (a).

26* * *

27(c) Filing and recording of power of attorney.--An 
28originally executed [copy of the] power of attorney may be filed 
29with the clerk of the orphans' court division of the court of 
30common pleas in the county in which the principal resides, and
 

1if it is acknowledged, it may be recorded in the office for the 
2recording of deeds of the county of the principal's residence 
3and of each county in which real property to be affected by an 
4exercise of the power is located. A power of attorney executed 
5in electronic form may be recorded in the same manner as a 
6document subject to the act of July 5, 2012 (P.L.935, No.100), 
7known as the Uniform Real Property Electronic Recording Act. The 
8clerk of the orphans' court division or any office for the 
9recording of deeds with whom the power has been filed, may, upon 
10request, issue certified copies of the power of attorney. Each 
11such certified copy shall have the same validity and the same 
12force and effect as if it were the original, and it may be filed 
13of record in any other office of this Commonwealth (including, 
14without limitation, the clerk of the orphans' court division or 
15the office for the recording of deeds) as if it were the 
16original.

17(d) Copy of power of attorney.--Except for the purpose of
18filing or recording under subsection (c), a photocopy or
19electronically transmitted copy of an originally executed power
20of attorney has the same effect as the original.

<-21Section 5. Section 5603(a), (e), (p) and (q) (k)(4), (p), 
22(q) and (v) of Title 20 are amended and the section is amended
23by adding a subsection to read:

24§ 5603. Implementation of power of attorney.

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

26(2) A power "to make limited gifts" shall mean that the
27agent may make only gifts for or on behalf of the principal
28which are limited as follows:

29(i) The class of permissible donees under this
30paragraph shall consist solely of the principal's spouse,

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

3(ii) During each calendar year, the gifts made to 
4any permissible donee, pursuant to such power, shall have 
5an aggregate value not in excess of, and shall be made in 
6such manner as to qualify in their entirety for, the 
7annual exclusion from the Federal gift tax permitted 
8under section 2503(b) of the Internal Revenue Code of 
91986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) for the
10principal and, if applicable, the principal's spouse.

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

17(v) The agent may consent, pursuant to section
182513(a) of the Internal Revenue Code of 1986, to the
19splitting of gifts made by the principal's spouse to the
20principal's issue or a spouse of the principal's issue in
21any amount and to the splitting of gifts made by the
22principal's spouse to any other person in amounts not
23exceeding the aggregate annual gift tax exclusions for
24both spouses under section 2503(b) of the Internal
25Revenue Code of 1986.]

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

27(1) Unless the power of attorney otherwise provides, the
28power to make limited gifts or other language in a power of
29attorney granting general authority with respect to gifts
30authorizes the agent only to:

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

5(A) in an amount per donee not to exceed the
6annual dollar limits of the Federal gift tax
7exclusion under section 2503(b) of the Internal
8Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
92503(b)), without regard to whether the Federal gift
10tax exclusion applies to the gift; or

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

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

21(2) An agent may make a gift of the principal's property
22only as the agent determines is consistent with the
23principal's objectives if actually known by the agent and, if
24unknown, as the agent determines is consistent with the
25principal's best interest based on all relevant factors,
26including:

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

29(ii) The principal's foreseeable obligations and
30need for maintenance.

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

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

6(v) The principal's personal history of making or
7joining in making gifts.

8(3) As used in this subsection, the phrase "a gift for
9the benefit of a person" includes a gift to a trust, an
10account under Chapter 53 (relating to Pennsylvania Uniform
11Transfers to Minors Act) and a tuition savings account or
12prepaid tuition plan as defined under section 529 of the
13Internal Revenue Code of 1986 (26 U.S.C. § 529).

14* * *

15[(e) Power to disclaim any interest in property.--A power
16"to disclaim any interest in property" shall mean that the agent
17may release or disclaim any interest in property on behalf of
18the principal in accordance with Chapter 62 (relating to
19disclaimers) or section 6103 (relating to release or disclaimer
20of powers or interests), provided that any disclaimer under
21Chapter 62 shall be in accordance with the provisions of section
226202 (relating to disclaimers by fiduciaries or agents) in the
23case of a principal who shall have been adjudicated an
24incapacitated person at the time of the execution of the
25disclaimer.]

26* * *

<-27(k) Power to engage in stock, bond and other securities
28transactions.--A power to "engage in stock, bond and other
29securities transactions" shall mean that the agent may:

30* * *

1(4) Join in any merger, reorganization, consolidation, 
2dissolution, liquidation, voting-trust plan or other
3concerted action of security holders and make payments in
4connection therewith.

5* * *

6(p) Power to engage in insurance and annuity transactions.--
7A power to "engage in insurance and annuity transactions" shall
8mean that the agent may:

9(1) Purchase, continue, renew, convert or terminate any
10type of insurance (including, but not limited to, life,
11accident, health, disability or liability insurance) or 
12annuity and pay premiums and collect benefits and proceeds
13under insurance policies and annuity contracts.

14(2) Exercise nonforfeiture provisions under insurance
15policies and annuity contracts.

16(3) In general, exercise all powers with respect to
17insurance and annuities that the principal could if present;
18[however, the agent cannot designate himself beneficiary of a
19life insurance policy unless the agent is the spouse, child,
20grandchild, parent, brother or sister of the principal. An 
21agent and a beneficiary of a life insurance policy shall be 
22liable as equity and justice may require to the extent that, 
23as determined by the court, a beneficiary designation made by 
24the agent is inconsistent with the known or probable intent 
25of the principal] provided, however, that the agent shall 
26have no power to create or change a beneficiary designation 
27unless authorized in accordance with section 5601.4 (relating 
28to authority that requires specific and general grant of 
29authority).

30(q) Power to engage in retirement plan transactions.--A
 

1power to "engage in retirement plan transactions" shall mean 
2that the agent may contribute to, withdraw from and deposit 
3funds in any type of retirement plan (including, but not limited 
4to, any tax qualified or nonqualified pension, profit sharing, 
5stock bonus, employee savings and retirement plan, deferred 
6compensation plan or individual retirement account), select and 
7change payment options for the principal, make roll-over 
8contributions from any retirement plan to other retirement plans 
9and, in general, exercise all powers with respect to retirement 
10plans that the principal could if present[. However, the agent 
11cannot designate himself beneficiary of a retirement plan unless 
12the agent is the spouse, child, grandchild, parent, brother or 
13sister of the principal. An agent and a beneficiary of a 
14retirement plan shall be liable as equity and justice may 
15require to the extent that, as determined by the court, a 
16beneficiary designation made by the agent is inconsistent with 
17the known or probable intent of the principal] provided, 
18however, that the agent shall have no power to create or change 
19a beneficiary designation unless authorized in accordance with 
20section 5601.4.

21* * *

<-22(v) Powers generally.--

23(1) All powers described in this section shall be 
24exercisable with respect to any matter in which the principal 
25is in any way interested at the giving of the power of 
26attorney or thereafter and whether arising in this 
27Commonwealth or elsewhere.

28(2) A principal may, in a power of attorney, modify any
29power described in this section.

30Section 6 <-5. Section 5608 of Title 20 is amended to read:

1§ 5608. [Liability] Acceptance of and reliance upon power of 
2attorney.

3[(a) Third party liability.--Any person who is given
4instructions by an agent in accordance with the terms of a power
5of attorney shall comply with the instructions. Any person who
6without reasonable cause fails to comply with those instructions
7shall be subject to civil liability for any damages resulting
8from noncompliance. Reasonable cause under this subsection shall
9include, but not be limited to, a good faith report having been
10made by the third party to the local protective services agency
11regarding abuse, neglect, exploitation or abandonment pursuant
12to section 302 of the act of November 6, 1987 (P.L.381, No.79),
13known as the Older Adults Protective Services Act.

14(b) Third party immunity.--Any person who acts in good faith
15reliance on a power of attorney shall incur no liability as a
16result of acting in accordance with the instructions of the
17agent.]

18(c) Genuineness.--A person who in good faith accepts a power
19of attorney without actual knowledge that a signature or mark of
20any of the following are not genuine may, without liability,
21rely upon the genuineness of the signature or mark of:

22(1) The principal.

23(2) A person who signed the power of attorney on behalf
24of the principal and at the direction of the principal.

25(3) A witness.

26(4) A notary public or other person authorized by law to
27take acknowledgments.

28(d) Immunity.--A person who in good faith accepts a power of
29attorney without actual knowledge of any of the following may,
30without liability, rely upon the power of attorney as if the

1power of attorney and agent's authority were genuine, valid and
2still in effect and the agent had not exceeded and had properly
3exercised the authority that:

4(1) The power of attorney is void, invalid or
5terminated.

6(2) The purported agent's authority is void, invalid or
7terminated.

8(3) The agent is exceeding or improperly exercising the
9agent's authority.

10(e) Request for information.--A person who is asked to
11accept a power of attorney may request and, without liability,
12rely upon without further investigation:

13(1) An agent's certification under penalty of perjury of
14any factual matter concerning the principal, agent or power
15of attorney or an affidavit under section 5606 (relating to
16proof of continuance of powers of attorney by affidavit).

17(2) An English translation of the power of attorney, if
18the power of attorney contains, in whole or in part, language
19other than English.

20(3) An opinion of counsel relating to whether the agent
21is acting within the scope of the authority granted by the
22power of attorney, if the person making the request provides
23in a writing or other record the reason for the request.

24(f) Additional request for information.--A person who has
25accepted a power of attorney, whether or not the person has a
26certification or opinion of counsel under subsection (e) or an
27affidavit under section 5606, and has acted upon it by allowing
28the agent to exercise authority granted under the power of
29attorney, shall not be precluded from requesting at later times
30a certification or opinion of counsel under this subsection,

1subsection (e) or an affidavit under section 5606 with regard to
2any further exercise of authority by the agent under the power
3of attorney.

4(g) English translation.--An English translation or an
5opinion of counsel requested under this section shall be at the
6principal's expense, unless the request is made more than seven
7business days after the power of attorney<- is presented for
8acceptance. <-or any revision or addition to a power of attorney:

9(1) is presented for acceptance; or

10(2) after being previously accepted by a person, is
11presented to exercise a power not previously exercised by the
12agent in a transaction with that person.

13(h) Limitations.--Except as otherwise provided by law,
14nothing in this section shall in itself:

15(1) validate a forged instrument conveying an interest
16in real property;

17(2) provide that the recording of a forged instrument
18gives constructive notice of a conveyance of an interest in
19real property; or

20(3) limit the liability of an insurer, indemnitor or
21guarantor of contractual obligations to indemnify, hold
22harmless or defend a person who accepts or relies upon a
23power of attorney.

24Section 7 <-6. Title 20 is amended by adding sections to read:

25§ 5608.1. Liability for refusal to accept power of attorney.

26(a) Acceptance required.--Except as provided under
27subsections (b) and (d):

28(1) A person shall either:

29(i) accept a power of attorney; or

30(ii) request one of the following:

1(A) an affidavit under section 5606 (relating to
2proof of continuance of powers of attorney by
3affidavit); or

4(B) a certification, translation or an opinion
5of counsel under section 5608(e) (relating to
6acceptance of and reliance upon power of attorney);

7not later than seven business days after presentation of
8the power of attorney for acceptance.

9(2) If a person requests a certification, a translation,
10an affidavit under section 5606 or an opinion of counsel
11under section 5608(e), the person shall accept the power of
12attorney not later than five business days after receipt of
13the certification, translation, affidavit or opinion of
14counsel or, unless the information provided by the
15certification, translation, affidavit or opinion of counsel
16provides a substantial basis for making a further request
17under section 5606 or 5608(e).

18(3) A person may not require an additional or different
19form of power of attorney for authority granted in the power
20of attorney presented.

21(b) Acceptance not required.--A person may not be required
22to accept a power of attorney if any of the following applies:

23(1) The person is not otherwise required to engage in a
24transaction with the principal in the same circumstances.

25(2) Engaging in a transaction with the agent or the
26principal in the same circumstances would be inconsistent
27with any provisions of this chapter, including:

28(i) the failure of the power of attorney to be
29executed in the manner required under section 5601(b)
30(relating to general provisions); and

1(ii) circumstances in which an agent has no
2authority to act because of the absence of an
3acknowledgment as provided under section 5601(d), except
4as provided under section 5601(e.1) or (e.2).

5(3) Engaging in a transaction with the agent in the same
6circumstances would be inconsistent with any other law or
7regulation.

8(4) The person has actual knowledge of the termination
9of the agent's authority or of the power of attorney before
10exercise of the power.

11(5) A request for a certification, a translation, an
12affidavit under section 5606 or an opinion of counsel under
13section 5608(e) is refused, including a certification, an
14affidavit or an opinion of counsel requested to demonstrate
15that the exercise of authority pursuant to a power of
16attorney is proper without the notice provided for under
17section 5601(c), except as provided under section 5601(e.1)
18or (e.2).

19(6) The person in good faith believes that the power of
20attorney is not valid or the agent does not have the
21authority to perform the act requested, whether or not a
22certification, a translation, an affidavit under section 5606
23or opinion of counsel under section 5608(e) has been
24requested or provided.

25(7) The person makes a report to the local protective
26services agency under section 302 of the act of November 6,
271987 (P.L.381, No.79), known as the Older Adults Protective
28Services Act, stating a good faith belief that the principal
29may be subject to physical or financial abuse, neglect,
30exploitation or abandonment by the agent or someone acting

1for or with the agent.

2(8) The person has actual knowledge that another person
3has made a report to the local protective services agency
4under section 302 of the Older Adults Protective Services
5Act, stating a good faith belief that the principal may be
6subject to physical or financial abuse, neglect, exploitation
7or abandonment by the agent or someone acting for or with the
8agent.

9(c) Violation.--A person who refuses, in violation of this
10section, to accept a power of attorney shall be subject to:

11(1) Civil liability for pecuniary harm to the economic
12interests of the principal proximately caused by the person's
13refusal to comply with the instructions of the agent
14designated in the power of attorney.

15(2) A court order mandating acceptance of the power of
16attorney.

17(d) Nonapplicability.--The requirements and penalties of
18this section shall not apply to:

19(1) a power of attorney subject to the laws of another
20state or jurisdiction; or

21(2) a power of attorney prescribed by a government or
22governmental subdivision, agency or instrumentality for a
23governmental purpose.

24§ 5608.2. Activities through employees.

25For the purposes of sections 5608 (relating to acceptance of
26and reliance upon power of attorney) and 5608.1 (relating to
27liability for refusal to accept power of attorney), the
28following shall apply:

29(1) A person who conducts activities through employees
30shall be considered to be without actual knowledge of a fact

1relating to a power of attorney, a principal or an agent, if
2the employee conducting the transaction involving the power
3of attorney is without knowledge of the fact.

4(2) An employee has knowledge of a fact if the employee
5has actual knowledge of the fact or acts with conscious
6disregard or willful ignorance regarding the existence of the
7fact.

8Section 8 <-7. Section 5611 of Title 20 is amended to read:

9§ 5611. Validity.

10A power of attorney executed in [another state or
11jurisdiction and in conformity with the laws of that state or
12jurisdiction shall be considered valid in this Commonwealth,
13except to the extent that the power of attorney executed in
14another state or jurisdiction would allow an agent to make a
15decision inconsistent with the laws of this Commonwealth.] or 
16under the laws of another state or jurisdiction shall be valid 
17in this Commonwealth if, when the power of attorney was 
18executed, the execution complied with:

19(1) the law of the jurisdiction indicated in the power
20of attorney and, in the absence of an indication of
21jurisdiction, the law of the jurisdiction in which the power
22of attorney was executed; or

23(2) the requirements for a military power of attorney
24under 10 U.S.C. § 1044(b) (relating to legal assistance).

25Section 9 <-8. Title 20 is amended by adding a section read:

26§ 5612. Principles of law and equity.

27Unless displaced by a provision of this chapter, the
28principles of law and equity supplement this chapter.

29Section 10 <-9. The following shall apply:

30(1) Except as provided by this section, the provisions

1of this act apply to powers of attorney created before, on or
2after the respective effective dates of such provisions, but
3do not apply to the acts or omissions of agents, or third
4parties presented with instructions by agents, that occur
5before such respective effective dates.

6(2) Except as provided by this section, the provisions
7of this act apply to judicial proceedings concerning a power
8of attorney commenced before, on or after the respective
9effective dates of such provisions, unless the court finds
10that application of a provision of this act would
11substantially interfere with the effective conduct of the
12judicial proceeding or prejudice the rights of a party, in
13which case that provision does not apply and the superseded
14law applies.

15(3) The amendment, addition or repeal of 20 Pa.C.S. §§
165601(b), (c), (d) and (e.2), 5601.2, 5601.4, 5602(a)(5) and
17(17) and 5603 apply only to powers of attorney created on or
18after the effective dates of those provisions.

19(4) The amendment of 20 Pa.C.S. §§ 5601(f) and 5608
20shall apply retroactively to acts performed after December
2115, 1992, and to judicial proceedings commenced prior to the
22effective dates of those provisions.

23(5) In interpreting and applying the amendment or
24addition of 20 Pa.C.S. §§ 5601(f), 5608, 5608.1, 5608.2 and
255611, a court shall give due consideration of the intent of
26the General Assembly to reverse the interpretation of 20
27Pa.C.S. § 5608 as set forth in Teresa M. Vine v. Commonwealth
28of Pennsylvania, State Employees' Retirement Board, 9 A.3d
291150 (Pa. 2010).

30Section 11 <-10. This act shall take effect as follows:

1(1) The amendment or addition of 20 Pa.C.S. §§ 5601(f),
25608, 5608.1, 5608.2, 5611 and 5612 shall take effect
3immediately.

4(2) This section shall take effect immediately.

5(3) The remainder of this act shall take effect <-on the 
6first July 1 or January 1 which occurs five months or more 
7after the date of enactment of this act. <-January 1, 2015.