BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2765| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2765 Author: Assembly Judiciary Committee Amended: 6/29/10 in Senate Vote: 21 SENATE JUDICIARY COMMITTEE : 4-0, 6/22/10 AYES: Corbett, Harman, Hancock, Leno NO VOTE RECORDED: Walters ASSEMBLY FLOOR : 74-0, 5/6/10 - See last page for vote SUBJECT : Civil actions: statutes of limitation: theft SOURCE : Author DIGEST : This bill extends the statute of limitations (SOL) from three to six years for actions against a museum, gallery, auctioneer, or dealer for specific recovery of an article of historical, interpretive, scientific, cultural, or artistic significance. This bill provides that the statute of limitations for these types of actions begins to accrue at the time of the actual discovery of the whereabouts of the article and the facts constituting the cause of action. This bill applies these provisions to actions based on property taken by theft prior to 1982, regardless of whether or not the action would otherwise have been barred by an applicable statute of limitation under any other provision of law in effect prior to 1982. This bill authorizes the revival of actions, and would apply to pending actions including an appeal from a prior CONTINUED AB 2765 Page 2 dismissed action, against a museum, gallery, auctioneer, or dealer for specific recovery of an article of historical, interpretive, scientific, cultural, or artistic significance that would have satisfied a six-year statute of limitations based on the actual discovery of the whereabouts of the article and the facts constituting the cause of action. The revival of or application to such actions must have been dismissed in whole or in part upon the expiration of the statute of limitations existing at the time of the dismissal. ANALYSIS : Existing law provides a statute of limitations of three years for actions to recover stolen personal property. (Code Civ. Proc. Sec. 338(c).) Existing law provides that the statute of limitations pertaining to the recovery of stolen articles of historical, interpretive, scientific, or artistic significance begins to accrue upon the plaintiff's discovery of the whereabouts of the stolen article. (Code Civ. Proc. Sec. 338(c).) This bill would extend the statute of limitations from three years to six years for actions against a museum, gallery, auctioneer, or dealer for specific recovery of an article of historical, interpretive, scientific, cultural, or artistic significance. This bill would provide that the statute of limitations for actions against a museum, gallery, auctioneer, or dealer for specific recovery of an article of historical, interpretive, scientific, cultural, or artistic significance begins to accrue at the time of the actual discovery of the whereabouts of the article and the facts constituting the cause of action. This bill makes corresponding changes in the definition of "dealer." This bill would apply a six-year statute of limitations and actual discovery rule to actions for property taken by theft prior to 1982 against a museum, gallery, auctioneer, or dealer for specific recovery of an article of historical, interpretive, scientific, cultural, or artistic CONTINUED AB 2765 Page 3 significance, regardless of whether or not the action would otherwise have been barred by an applicable statute of limitation under any other provision of law in effect prior to 1982. This bill would authorize the revival of actions, and would apply to pending actions including an appeal from a prior dismissed action, against a museum, gallery, auctioneer, or dealer for specific recovery of an article of historical, interpretive, scientific, cultural, or artistic significance that would have satisfied a six-year statute of limitations based on the actual discovery of the whereabouts of the article and the facts constituting the cause of action. The revival of or application to such actions must have been dismissed in whole or in part upon the expiration of the statute of limitations existing at the time of the dismissal. The bill specifies that this action must be commenced within five years of the effective date adding this provision. According to the author's office: This bill addresses a problem faced by persons who are attempting to recover art and other valuable objects that may have been stolen several years ago and are only more recently on display at a museum or gallery. It is in the very nature of stolen art that it circulates underground for several years before it appears in museums and galleries, and by that time the SOL has passed. Case law in California and elsewhere has recognized that, given the nature of stolen art, the proper trigger for the SOL is actual discovery. Recent cases have divided on the question of whether the "discovery" rule that was adopted by the Legislature in 1982 applies to works stolen before 1983 (when the statute became effective) and whether the discovery intended was "actual" or "constructive." This amendment would clarify these questions for purposes of actions brought to recover art on display in a museum or gallery. In addition to these state appellate cases, a recent decision striking down a statute targeted solely at the Nazi-looted art (on foreign policy preemption grounds) also noted the confusion of the two appellate court rulings on these CONTINUED AB 2765 Page 4 questions. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No ASSEMBLY FLOOR : AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill Berryhill, Tom Berryhill, Blakeslee, Blumenfield, Bradford, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De Leon, DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma, Miller, Monning, Nava, Nestande, Niello, Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran, Villines, Yamada, John A. Perez NO VOTE RECORDED: Bass, Block, De La Torre, Gilmore, Mendoza RJG:nl 6/30/10 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED