BILL NUMBER: AB 2426	CHAPTERED
	BILL TEXT

	CHAPTER  138
	FILED WITH SECRETARY OF STATE  AUGUST 13, 2010
	APPROVED BY GOVERNOR  AUGUST 13, 2010
	PASSED THE SENATE  JULY 1, 2010
	PASSED THE ASSEMBLY  AUGUST 2, 2010
	AMENDED IN SENATE  JUNE 29, 2010
	AMENDED IN ASSEMBLY  MAY 10, 2010
	AMENDED IN ASSEMBLY  APRIL 28, 2010

INTRODUCED BY   Assembly Member Bradford

                        FEBRUARY 19, 2010

   An act to add Part 7 (commencing with Section 7960) to Division 12
of the Family Code, relating to surrogacy facilitators.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2426, Bradford. Surrogacy facilitators.
   Existing law defines "assisted reproduction" as conception by any
means other than sexual intercourse, and "assisted reproduction
agreement" as a written contract that includes a person who intends
to be the legal parent of a child or children born through assisted
reproduction and that defines the terms of the relationship between
the parties to the contract.
   This bill would regulate the practice of surrogacy facilitators,
as defined, and would require a nonattorney surrogacy facilitator to
direct his or her client to deposit client funds in an independent,
bonded escrow account or a trust account maintained by an attorney,
subject to specified withdrawal requirements.


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

  SECTION 1.  Part 7 (commencing with Section 7960) is added to
Division 12 of the Family Code, to read:

      PART 7.  SURROGACY FACILITATORS


   7960.  For purposes of this part, the following terms have the
following meanings:
   (a) "Surrogacy facilitator" means a person or organization that
engages in either of the following activities:
   (1) Advertising for the purpose of soliciting parties to an
assisted reproduction agreement or acting as an intermediary between
the parties to an assisted reproduction agreement.
   (2) Charging a fee or other valuable consideration for services
rendered relating to an assisted reproduction agreement.
   (b) "Nonattorney surrogacy facilitator" means a surrogacy
practitioner who is not an attorney in good standing licensed to
practice law in this state.
   (c) "Assisted reproduction agreement" has the same meaning as
defined in subdivision (b) of Section 7606.
   (d) "Fund management agreement" means the agreement between the
intended parents and the surrogacy facilitator relating to the fee or
other valuable consideration for services rendered or that will be
rendered by the surrogacy facilitator.
   7961.  (a) A nonattorney surrogacy facilitator shall direct the
client to deposit all client funds into either of the following:
   (1) An independent, bonded escrow depository maintained by a
licensed, independent, bonded escrow company.
   (2) A trust account maintained by an attorney.
   (b) For purposes of this section, a nonattorney surrogacy
facilitator may not have a financial interest in any escrow company
holding client funds. A nonattorney surrogacy facilitator and any of
its directors or employees shall not be an agent of any escrow
company holding client funds.
   (c) Client funds may only be disbursed by the attorney or escrow
agent as set forth in the assisted reproduction agreement and fund
management agreement.
   (d) This section shall not apply to funds that are both of the
following:
   (1) Not provided for in the fund management agreement.
   (2) Paid directly to a medical doctor for medical services or a
psychologist for psychological services.