BILL NUMBER: SB 1271	CHAPTERED  06/21/02

	CHAPTER  67
	FILED WITH SECRETARY OF STATE  JUNE 21, 2002
	APPROVED BY GOVERNOR  JUNE 20, 2002
	PASSED THE ASSEMBLY  JUNE 10, 2002
	PASSED THE SENATE  APRIL 4, 2002
	AMENDED IN SENATE  MARCH 13, 2002
	AMENDED IN SENATE  MARCH 11, 2002

INTRODUCED BY   Senator Ackerman

                        JANUARY 15, 2002

   An act to amend Section 5501 of the Probate Code, relating to
nonprobate transfers.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1271, Ackerman.  Nonprobate transfers:  Uniform TOD Security
Registration Act.
   Existing law, the Uniform TOD Security Registration Act, provides
for the transfer of the ownership or proceeds of a security, as
defined, upon the death of the owner, without probate or estate
administration, and defines a security account for these purposes.
   This bill would add the term cash equivalents, as defined, and an
investment management or custody account with a trust company or a
trust department of a bank with trust powers, as specified, to the
definition of security account for purposes described above.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 5501 of the Probate Code is amended to read:
   5501.  For purposes of this part:
   (a) "Beneficiary form" means a registration of a security that
indicates the present owner of the security and the intention of the
owner regarding the person who will become the owner of the security
upon the death of the owner.
   (b) "Register," including its derivatives, means to issue a
certificate showing the ownership of a certificated security or, in
the case of an uncertificated security, to initiate or transfer an
account showing ownership of securities.
   (c) "Registering entity" means a person who originates or
transfers a security title by registration, and includes a broker
maintaining security accounts for customers and a transfer agent or
other person acting for or as an issuer of securities.
   (d) "Security" means a share, participation, or other interest in
property, in a business, or in an obligation of an enterprise or
other issuer, and includes a certificated security, an uncertificated
security, and a security account.
   (e) (1) "Security account" means any of the following:
   (A) A reinvestment account associated with a security, a
securities account with a broker, a cash balance in a brokerage
account, cash, cash equivalents, interest, earnings, or dividends
earned or declared on a security in an account, a reinvestment
account, or a brokerage account, whether or not credited to the
account before the owner's death.
   (B) An investment management or custody account with a trust
company or a trust department of a bank with trust powers, including
the securities in the account, the cash balance in the account, and
cash equivalents, and interest, earnings, or dividends earned or
declared on a security in the account, whether or not credited to the
account before the owner's death.
   (C) A cash balance or other property held for or due to the owner
of a security as a replacement for or product of an account security,
whether or not credited to the account before the owner's death.
   (2) For the purposes of this subdivision, "cash equivalent" means
an investment that is easily converted into cash, including, but not
limited to, treasury bills, treasury notes, money market funds,
certificates of deposit, and credit union shares.
   (f) This section may not be construed to govern cash equivalents
in multiple-party accounts that are governed by the California
Multiple-Party Accounts Law, Part 2 (commencing with Section 5100).