Summary — HB 4644 (Uniform Power of Attorney Act) — Public Act 187 of 2023
Status & effective date
- Enacted as Public Act 187 of 2023; approved by the Governor November 7, 2023. Effective July 1, 2024.
- Repeals sections 700.5501–700.5505 of the Estates and Protected Individuals Code (EPIC).
- Tie-barred to HB 4645 and HB 4646, which amend cross‑references in the Natural Resources and Environmental Protection Act and the Public Health Code.
Purpose / intent
- To adopt the Uniform Power of Attorney Act (UPOAA) in Michigan, replacing the State’s prior durable power of attorney provisions with a modern, uniform statutory framework intended to improve portability, reduce interstate conflicts, and provide clearer rules protecting principals, agents, and third parties.
Key provisions and changes
- Scope and definitions: Establishes uniform definitions (principal, agent, power of attorney, durable, incapacity, record, presented for acceptance, etc.) and applies to most powers of attorney, with enumerated exclusions (e.g., powers coupled with an interest, certain guardianship/parental delegations, governmental forms, proxies for entity voting).
- Durability presumption: A power of attorney executed according to the Act’s formalities is durable (remains effective despite principal’s incapacity) unless it expressly states otherwise. Powers failing to meet execution requirements are not durable.
- Execution requirements: To be effective, a power must be signed by the principal (or another at the principal’s direction in the principal’s conscious presence). Durability typically requires notarization or attestation by two witnesses; witnesses may not be an agent named in the power.
- Agent authority, duties, and protections: Provides default rules on agents’ authorities and duties (including acting in the principal’s best interests, good‑faith standards), and statutory protections for third parties who rely in good faith on a power of attorney.
- Compensation and reimbursement: Agents are entitled to reimbursement of expenses and may receive compensation for services unless the power expressly prohibits compensation.
- Remedies & oversight: Specifies civil remedies and restitution if an agent violates the power; allows specified persons associated with the principal (e.g., caregiver, heirs) to petition a court to review agent conduct.
- Model statutory form: Includes a model form in statute intended to be widely accepted and to carry the meaning/effect prescribed by the Act.
- Notice/knowledge rules: Defines when a person or entity is deemed to have knowledge of facts concerning a power of attorney, and sets rules for when an entity is charged with notice based on employee knowledge and reasonable diligence.
- Transitional application: Generally applies to powers created before, on, or after the Act’s effective date and to judicial proceedings on or after the effective date, subject to exceptions.
Who is affected
- Principals (those who create powers of attorney) — clearer default durability and protections.
- Agents (attorneys‑in‑fact) — clarified authority, duties, compensation/reimbursement rights, and potential liability.
- Third parties (banks, businesses, health providers, government agencies) — standardized acceptance rules and protections for good‑faith reliance.
- Courts, caregivers, heirs and others with standing to challenge agent conduct.
- State statutes and agencies — cross‑references updated in related laws (via HB 4645 and HB 4646).
Fiscal impact
- Nonpartisan analyses report no direct fiscal impact on state or local governments; potential indirect benefits from reduced procedural confusion and interstate friction.
Practical effect
- Moves Michigan toward nationwide uniformity (UPOAA adopted by many states), simplifies interstate recognition of powers of attorney, and updates execution, reliance, and enforcement standards for contemporary (including electronic) records.
