Upon written authorization from the executive director, a sole proprietorship may continue to operate for a period of up to 15 months following the death or incapacitation of the sole proprietor. The executive director, subject to ratification at the next board meeting, may permit the continued operation of the sole proprietorship when he has been provided with:

1. (1) In the event of the death of the sole proprietor:

   1. (A) a certified copy of the sole proprietor's death certificate;
   2. (B) a copy of the power of attorney from the sole proprietor's executor, administrator, or heir along with a document from the executor, administrator or heir designating a Texas CPA in good standing with the board with the authority and intention to manage the sole proprietorship; and
   3. (C) written evidence that a disruption in the continuation of the sole proprietorship would jeopardize the survivability of the firm.

2. (2) In the event of the incapacitation of the sole proprietor:

   1. (A) a notarized affidavit from the sole proprietor's physician stating that the sole proprietor, because of a severe ongoing physical, mental impairment or medical condition is not able to perform the day-to-day tasks necessary for the continued operation of the firm;
   2. (B) a copy of a power of attorney or a court ordered guardianship along with a document from the holder of the power of attorney or the guardian designating a Texas CPA in good standing with the board with the authority and intention to manage the sole proprietorship; and
   3. (C) written evidence that a disruption of the continuation of the sole proprietorship would jeopardize the survivability of the firm.

Source Note:The provisions of this §513.16 adopted to be effective August 4, 2004, 29 TexReg 7307; amended to be effective August 3, 2017, 42 TexReg 3786.