BILL NUMBER: SB 202	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 20, 2010
	AMENDED IN ASSEMBLY  JULY 1, 2009
	AMENDED IN ASSEMBLY  JUNE 15, 2009
	AMENDED IN SENATE  MAY 14, 2009
	AMENDED IN SENATE  MAY 5, 2009
	AMENDED IN SENATE  APRIL 22, 2009

INTRODUCED BY    Senators   Harman,
    Aanestad,  
  Cox,    
Ducheny,     and Wyland 
 Senator   Harman 
    (   Coauthors:  
Assembly Members   Adams,  
  Gaines,   
Garrick,     Hall,
    Jones,  
  and Silva   ) 

                        FEBRUARY 23, 2009

    An act to amend Section 7570 of, and to add Section
7560.5 to, the Business and Professions Code, relating to private
investigators.   An act to amend Sections 15408, 16061,
16061.5, 16061.7, 16061.8, 16061.9, 16064, 16336.4, and 17200 of, and
to add Sections 16060.7, 16068, and 16069 to, the Probate Code,
relating to probate. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 202, as amended, Harman.  Private investigators:
continuing education.   Trustees: duties.  
   (1) Existing law regulates the administration of trusts by
trustees on behalf of beneficiaries. Existing law provides that, if
the principal of a trust does not exceed $20,000 in value, the
trustee has the power to terminate the trust.  
   This bill would provide, instead, that a trustee has the power to
terminate a trust if the principal does not exceed $50,000 in value.
 
   (2) Existing law provides that the trustee shall provide the
beneficiary, upon reasonable request, information about the assets,
liabilities, receipts and disbursements of the trust, acts of the
trustee, and the administration of the trust relevant to the
beneficiary's interest. Existing law also allows the trust instrument
to waive the report, as provided.  
   This bill would instead provide that on reasonable written request
the trustee shall report to the beneficiary information relating to
the administration of the trust, and on request of the beneficiary
the trustee shall provide the terms of the trust, unless it is during
the period when a revocable trust can be revoked, as provided, or if
the beneficiary and the trustee are the same person. This bill would
allow a beneficiary or trustee to petition the court to determine
the existence of a trust if a trustee has failed to report the
requested information within 60 days after written request. This bill
would also require a court to compel the trustee to account,
regardless of waiver by a beneficiary, upon a showing that it is
reasonably likely that a material breach of the trust has occurred
and would provide when a waiver is void as against public policy.
 
   (3) Existing law requires, when a revocable trust or any portion
of a revocable trust becomes irrevocable, as provided, the trustee to
provide a copy of the trust to any beneficiary who requests it and
to any heir of a deceased settlor who requests it. Existing law also
requires a trustee to serve a notification, as provided, to specified
persons including each beneficiary of an irrevocable trust, each
heir of the deceased settlor, and to the Attorney General if the
trust is a charitable trust.  
   This bill would revise and recast these provisions to require the
trustee to provide a true and complete copy of the terms of an
irrevocable trust, or the irrevocable portion of the trust, to any
beneficiary or heir of a deceased settlor who requests it, as
provided, including when the power of appointment is effective or
lapses upon the death of a settlor, to any beneficiary whenever there
is a change of trustee of an irrevocable trust, and if the trust is
a charitable trust subject to the supervision of the Attorney
General, to the Attorney General, as provided. This bill would also
specify that the duty to serve the notification by the trustee is the
duty of the continuing or successor trustee.  
   Existing law also provides that a trustee who fails, except after
exercising reasonable diligence, to serve the notification, as
required, shall be responsible for all damages, attorney's fees, and
costs.  
   This bill would provide that a trustee exercises reasonable
diligence in ascertaining the identity and mailing address of a
beneficiary or heir by giving notice by first-class mail at the last
mailing address known to the trustee, if notice is not returned as
undelivered within 60 days, in which case the trustee must make
investigative efforts, as provided, to locate the beneficiary. 

   Existing law, the Private Investigator Act, provides for the
licensure and regulation of private investigators by the Bureau of
Security and Investigative Services within the Department of Consumer
Affairs. Existing law requires an applicant for licensure to submit
a specified application, meet certain requirements, and pay a fee not
to exceed $175. Existing law provides that a private investigator
license expires 2 years following the date of issuance or on the
assigned renewal date. A licensee is required to apply for a renewal
and pay a renewal fee not to exceed $125 in order to renew his or her
license.  
   On and after January 1, 2013, this bill would require a licensee,
as a condition of license renewal, to complete 12 hours of continuing
education in specified subjects, and as otherwise specified for a
licensee renewing a license between January 1, 2012, and January 1,
2013, or for a licensee who is a retired peace officer. The bill
would require a licensee for renewal to submit to the department a
signed statement attesting that he or she has completed the specified
continuing education requirements, for which a false statement may
be subject to a specified civil penalty as well as suspension of a
license. The bill would specify that these continuing education
requirements do not apply to any individual licensed as a private
investigator who is 70 years of age or older and has been in good
standing for at least 25 consecutive years, is an inactive licensed
private investigator, as defined, or is a peace officer, as defined.
The bill would authorize an inactive licensee to become active by,
among other things, submitting to the department a signed statement
attesting that he or she has completed the specified continuing
education requirements, for which a false statement may be subject to
a specified civil penalty as well as suspension of a license. The
bill would specify standards to be met by continuing education
providers and would require the department to convene a review panel
to consult with the department in the consideration and approval of
course providers and course content. The bill would require the
department to establish and impose a fee on course providers, in an
amount that does not exceed $20 per course to cover the department's
direct costs in implementing various provisions of the bill. The bill
would also increase the fee for an original license to up to $195
and the renewal fee to up to $145. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


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

   SECTION 1.    Section 15408 of the   Probate
Code   is amended to read: 
   15408.  (a) On petition by a trustee or beneficiary, if the court
determines that the fair market value of the principal of a trust has
become so low in relation to the cost of administration that
continuation of the trust under its existing terms will defeat or
substantially impair the accomplishment of its purposes, the court
may, in its discretion and in a manner that conforms as nearly as
possible to the intention of the settlor, order any of the following:

   (1) Termination of the trust.
   (2) Modification of the trust.
   (3) Appointment of a new trustee.
   (b) Notwithstanding subdivision (a), if the trust principal does
not exceed  twenty   fifty  thousand
dollars  ($20,000)   ($50,000)  in value,
the trustee has the power to terminate the trust.
   (c) The existence of a trust provision restraining transfer of the
beneficiary's interest does not prevent application of this section.

   SEC. 2.    Section 16060.7 is added t   o
the   Probate Code   , to read:  
   16060.7.  On the request of a beneficiary, the trustee shall
provide the terms of the trust to the beneficiary, if the trustee is
not required to provide the terms of the trust to the beneficiary in
accordance with Section 16069. 
   SEC. 3.    Section 16061 of the   Probate
Code   is amended to read: 
   16061.  Except as provided in Section  16064 
 16069  , on reasonable  written  request by a
beneficiary, the trustee shall  provide   report
to  the beneficiary  with a report of   by
providing requested  information  about the assets,
liabilities, receipts, and disbursements of the trust, the acts of
the trustee, and the particulars   to the beneficiary
 relating to the administration of the trust relevant to the
beneficiary's interest  , including the terms of the trust
 .
   SEC. 4.    Section 16061.5 of the   Probate
Code   is amended to read: 
   16061.5.  (a)  When a revocable trust or any portion of a
revocable trust becomes irrevocable because of the death of one or
more of the settlors of the trust, or because, by the express terms
of the trust, the trust becomes irrevocable within one year of the
death of a settlor because of a contingency related to the death of
one or more of the settlors of the trust, the trustee shall provide a
true and complete copy of the terms of the irrevocable trust, or
irrevocable portion of the trust, to any beneficiary of the trust who
requests it and to any heir of a deceased settlor who requests it.
  A trustee shall provide a true and   complete
copy of the terms of the irrevocable trust, or irrevocable portion
of the trust, to each of the following:  
   (1) Any beneficiary of the trust who requests it, and to any heir
of a deceased settlor who requests it, when a revocable trust or any
portion of a revocable trust becomes irrevocable because of the death
of one or more of the settlors of the trust, when a power of
appointment is effective or lapses upon the death of a settlor under
the circumstances described in paragraph (3) of subdivision (a) of
Section 16061.7, or because, by the express terms of the trust, the
trust becomes irrevocable within one year of the death of a settlor
because of a contingency related to the death of one or more of the
settlors of the trust.  
   (2) Any beneficiary of the trust who requests it, whenever there
is a change of trustee of an irrevocable trust.  
   (3) If the trust is a charitable trust subject to the supervision
of the Attorney General, to the Attorney General, if requested, when
a revocable trust or any portion of a revocable trust becomes
irrevocable because of the death of one or more of the settlors of
the trust, when a power of appointment is effective or lapses upon
the death of a settlor under the circumstances described in paragraph
(3) of subdivision (a) of Section 16061.7, or because, by the
express terms of the trust, the trust becomes irrevocable within one
year of the death of a settlor because of a contingency related to
the death of one or more of the settlors of the trust, and whenever
there is a change of trustee of an irrevocable trust. 
   (b) The trustee shall, for purposes of this section, rely upon any
final judicial determination of heirship. However, the trustee shall
have discretion to make a good faith determination by any reasonable
means of the heirs of a deceased settlor in the absence of a final
judicial determination of heirship known to the trustee.
   SEC. 5.    Section 16061.7 of the   Probate
Code   is amended to read: 
   16061.7.  (a) A trustee shall serve a notification by the trustee
as described in this section in the following events:
   (1) When a revocable trust or any portion thereof becomes
irrevocable because of the death of one or more of the settlors of
the trust, or because, by the express terms of the trust, the trust
becomes irrevocable within one year of the death of a settlor because
of a contingency related to the death of one or more of the settlors
of the trust.
   (2) Whenever there is a change of trustee of an irrevocable trust.
 The duty to serve the notification by the trustee is the
duty of the continuing or successor trustee, and any one cotrustee
may serve the notification.  
   (3) Whenever a power of appointment retained by a settlor is
effective or lapses upon death of the settlor with respect to an
inter vivos trust which was, or was purported to be, irrevocable upon
its creation.  
   (4) The duty to serve the notification by the trustee pursuant to
this subdivision is the duty of the continuing or successor trustee,
and any one cotrustee may serve the notification. 
   (b) The notification by the trustee required by subdivision (a)
shall be served on each of the following:
   (1) Each beneficiary of the irrevocable trust or irrevocable
portion of the trust, subject to the limitations of Section 15804.
   (2) Each heir of the deceased settlor, if the event that requires
notification is the death of a settlor or irrevocability within one
year of the death of the settlor of the trust by the express terms of
the trust because of a contingency related to the death of a
settlor.
   (3) If the trust is a charitable trust subject to the supervision
of the Attorney General, to the Attorney General.
   (c) A trustee shall, for purposes of this section, rely upon any
final judicial determination of heirship, known to the trustee, but
the trustee shall have discretion to make a good faith determination
by any reasonable means of the heirs of a deceased settlor in the
absence of a final judicial determination of heirship known to the
trustee.
   (d) The trustee need not provide a copy of the notification by
trustee to any beneficiary or heir (1) known to the trustee but who
cannot be located by the trustee after reasonable diligence or (2)
unknown to the trustee.
   (e) The notification by trustee shall be served by mail to the
last known address, pursuant to Section 1215, or by personal
delivery.
   (f) The notification by trustee shall be served not later than 60
days following the occurrence of the event requiring service of the
notification by trustee, or 60 days after the trustee became aware of
the existence of a person entitled to receive notification by
trustee, if that person was not known to the trustee on the
occurrence of the event requiring service of the notification. If
there is a vacancy in the office of the trustee on the date of the
occurrence of the event requiring service of the notification by
trustee, or if that event causes a vacancy, then the 60-day period
for service of the notification by trustee commences on the date the
new trustee commences to serve as trustee.
   (g) The notification by trustee shall contain the following
information:
   (1) The identity of the settlor or settlors of the trust and the
date of execution of the trust instrument.
   (2) The name, mailing address and telephone number of each trustee
of the trust.
   (3) The address of the physical location where the principal place
of administration of the trust is located, pursuant to Section
17002.
   (4) Any additional information that may be expressly required by
the terms of the trust instrument.
   (5) A notification that the recipient is entitled, upon reasonable
request to the trustee, to receive from the trustee a true and
complete copy of the terms of the trust.
   (h) If the notification by the trustee is served because a
revocable trust or any portion of it has become irrevocable because
of the death of one or more settlors of the trust, or because, by the
express terms of the trust, the trust becomes irrevocable within one
year of the death of a settlor because of a contingency related to
the death of one or more of the settlors of the trust, the
notification by the trustee shall also include a warning, set out in
a separate paragraph in not less than 10-point boldface type, or a
reasonable equivalent thereof, that states as follows:
   "You may not bring an action to contest the trust more than 120
days from the date this notification by the trustee is served upon
you or 60 days from the date on which a copy of the terms of the
trust is mailed or personally delivered to you during that 120-day
period, whichever is later."
   (i) Any waiver by a settlor of the requirement of serving the
notification by trustee required by this section is against public
policy and shall be void.
   (j) A trustee may serve a notification by trustee in the form
required by this section on any person in addition to those on whom
the notification by trustee is required to be served. A trustee is
not liable to any person for serving or for not serving the notice on
any person in addition to those on whom the notice is required to be
served. A trustee is not required to serve a notification by trustee
if the event that otherwise requires service of the notification by
trustee occurs before January 1, 1998.
   SEC. 6.    Section 16061.8 of the   Probate
Code   is amended to read: 
   16061.8.  No person upon whom the notification by the trustee is
served pursuant to this chapter  , whether the notice is served
on him or her within or after the time period set forth in
subdivision (f) of Section 16061.7,  may bring an action to
contest the trust more than 120 days from the date the notification
by the trustee is served upon him or her, or 60 days from the day on
which a copy of the terms of the trust is mailed or personally
delivered to him or her during that 120-day period, whichever is
later.
   SEC. 7.    Section 16061.9 of the   Probate
Code   is amended to read: 
   16061.9.  (a)  A trustee who fails to serve the
notification by trustee as required by Section 16061.7 on a
beneficiary shall be responsible for all damages, attorney's fees,
and costs caused by the failure unless the trustee makes a reasonably
diligent effort to comply with that section.   Except
as provided in subdivision (b), a trustee who fails to comply with
Section 16061.7 shall be responsible for all damages caused by the
failure, including, but not limited to, reasonable attorney's fees
and costs incurred by or on behalf of the beneficiary or heir. 

   (b) A trustee who fails to serve the notification by trustee as
required by Section 16061.7 on an heir who is not a beneficiary and
whose identity is known to the trustee shall be responsible for all
damages caused to the heir by the failure unless the trustee shows
that the trustee made a reasonably diligent effort to comply with
that section. For purposes of this subdivision, "reasonably diligent
effort" means that the trustee has sent notice by first-class mail to
the heir at the heir's last mailing address actually known to the
trustee.  
   (b) (1) The trustee's exercise of reasonable diligence in
ascertaining the identity and mailing address of the beneficiary or
heir and otherwise complying with Section 16061.7 shall constitute a
complete defense to any action based on the beneficiary's or heir's
failure to receive the notification required by Section 16061.7.
 
   (2) For purposes of this subdivision, a trustee exercises
reasonable diligence in ascertaining the identity and mailing address
of a beneficiary or heir as follows:  
   (A) By giving notice by first-class mail to the beneficiary or
heir at the beneficiary's or heir's last mailing address known to the
trustee, provided the notice is not returned to the trustee as
undelivered mail within 60 days from the date the notification by the
trustee is served.  
   (B) If the notice described in subparagraph (A) is returned to the
trustee as undeliverable within 60 days from the date the
notification by the trustee is served, either by the trustee's
retention of an investigative service at the expense of the trust or
by the trustee making the following efforts to locate the
beneficiary:  
   (i) Reviewing city telephone directories, calling directory
assistance, and searching Internet telephone directories for the last
county of residence for the beneficiary or heir known to the
trustee.  
   (ii) Inquiring of a beneficiary's or an heir's relatives, friends,
acquaintances, or employers whose identity and contact information
is known to the trustee.  
   (iii) Mailing by first class mail of a request to the current
occupant of the beneficiary's or heir's last known residence for the
beneficiary's or heir's present address. 
   (c) A trustee, in exercising discretion with respect to the timing
and nature of distributions of trust assets, may consider the fact
that the period in which a beneficiary or heir could bring an action
to contest the trust has not expired.
   SEC. 8.    Section 16064 of the   Probate
Code   is amended to read: 
   16064.  The trustee is not required to  report information
or  account to a beneficiary  as described in
subdivision (a) of Section 16062,  in any of the following
circumstances:
   (a) To the extent the trust instrument waives the  report
or  account, except that no waiver described in subdivision
(e) of Section 16062 shall be valid or enforceable. Regardless of a
waiver of accounting in the trust instrument, upon a showing that it
is reasonably likely that a material breach of the trust has
occurred, the court may compel the trustee to  report
information about the trust and to  account. 
   (b) In the case of a beneficiary of a revocable trust, as provided
in Section 15800, for the period when the trust may be revoked.
 
   (c) 
    (b)  As to a beneficiary who has waived in writing the
right to  a report or   an  account. A
waiver of rights under this subdivision may be withdrawn in writing
at any time as to  the most recent account and future
 accounts  for transactions occurring after the date of
the written withdrawal  .  A waiver has no effect on the
beneficiary's right to petition for a report or account pursuant to
Section 17200.   Regardless of a waiver of accounting by
a beneficiary, upon a showing that is reasonably likely that a
material breach of the trust has occurred, the court may compel the
trustee to account.  
   (c) In any of the circumstances set forth in Section 16069.

   (d) Where the beneficiary and the trustee are the same person.

   SEC. 9.    Section 16068 is added to the  
Probate Code   , to read:  
   16068.  Any waiver by a settlor of the obligation of the trustee
of either of the following is against public policy and shall be
void:
   (a) To provide the terms of the trust to the beneficiary as
required by Sections 16060.7 and 16061.5.
   (b) To provide requested information to the beneficiary as
required by Section 16061. 
   SEC. 10.    Section 16069 is added to the  
Probate Code   , to read:  
   16069.  The trustee is not required to account to the beneficiary,
provide the terms of the trust to a beneficiary, or provide
requested information to the beneficiary pursuant to Section 16061,
in any of the following circumstances:
   (a) In the case of a beneficiary of a revocable trust, as provided
in Section 15800, for the period when the trust may be revoked.
   (b) If the beneficiary and the trustee are the same person. 
   SEC. 11.    Section 16336.4 of the  Probate
Code   is amended to read: 
   16336.4.  (a) Unless expressly prohibited by the governing
instrument, a trustee may convert a trust into a unitrust, as
described in this section. A trust that limits the power of the
trustee to make an adjustment between principal and income or modify
the trust does not affect the application of this section unless it
is clear from the governing instrument that it is intended to deny
the trustee the power to convert into a unitrust.
   (b) The trustee may convert a trust into a unitrust without a
court order if all of the following apply:
   (1) The conditions set forth in subdivision (a) of Section 16336
are satisfied.
   (2) The unitrust proposed by the trustee conforms to the
provisions of paragraphs (1) to (8), inclusive, of subdivision (e).
   (3) The trustee gives written notice of the trustee's intention to
convert the trust into a unitrust and furnishes the information
required by subdivision (c). The notice shall comply with the
requirements of Chapter 5 (commencing with Section 16500), including
notice to a beneficiary who is a minor and to the minor's guardian,
if any.
   (4) No beneficiary objects to the proposed action in a writing
delivered to the trustee within the period prescribed by subdivision
(d) of Section 16502 or a longer period as is specified in the notice
described in subdivision (c).
   (c) The notice described in paragraph (3) of subdivision (b) shall
include a copy of Sections 16336.4 to 16336.7, inclusive, and all of
the following additional information:
   (1) A statement that the trust shall be administered in accordance
with the provisions of subdivision (e) and the effective date of the
conversion.
   (2) A description of the method to be used for determining the
fair market value of trust assets.
   (3) The amount actually distributed to the income beneficiary
during the previous accounting year of the trust.
   (4) The amount that would have been distributed to the income
beneficiary during the previous accounting year of the trust had the
trustee's proposed changes been in effect during that entire year.
   (5)  The discretionary decisions the trustee proposes to make as
of the conversion date pursuant to subdivision (f).
   (d) In deciding whether to exercise the power conferred by this
section, a trustee may consider, among other things, the factors set
forth in subdivision (g) of Section 16336.
   (e) Except to the extent that the court orders otherwise or the
parties agree otherwise pursuant to Section 16336.5 after a trust is
converted to a unitrust, all of the following shall apply:
   (1) The trustee shall make regular distributions in accordance
with the governing instrument construed in accordance with the
provisions of this section.
   (2) The term "income" in the governing instrument shall mean an
annual distribution, the unitrust amount, equal to 4 percent, which
is the payout percentage, of the net fair market value of the trust's
assets, whether those assets would be considered income or principal
under other provisions of this chapter, averaged over the lesser of
 the following  :  (A) the three preceding years, or
(B) the period during which the trust has been in existence.
 
   (A) The three preceding years.  
   (B) The period during which the trust has been in existence. 

   (3) During each accounting year of the trust following its
conversion into a unitrust, the trustee shall, as early in the year
as is practicable, furnish each income beneficiary with a statement
describing the computation of the unitrust amount for that accounting
year.
   (4) The trustee shall determine the net fair market value of each
asset held in the trust no less often than annually. However, the
following property shall not be included in determining the unitrust
amount:
   (A) Any residential property or any tangible personal property
that, as of the first business day of the current accounting year,
one or more current beneficiaries of the trust have or have had the
right to occupy, or have or have had the right to possess or control,
other than in his or her capacity as trustee of the trust, which
property shall be administered according to other provisions of this
chapter as though no conversion to a unitrust had occurred.
   (B) Any asset specifically devised to a beneficiary to the extent
necessary, in the trustee's reasonable judgment, to avoid a material
risk of exhausting other trust assets prior to termination of the
trust. All net income generated by a specifically devised asset
excluded from the unitrust computation pursuant to this subdivision
shall be accumulated or distributed by the trustee according to the
rules otherwise applicable to that net income pursuant to other
provisions of this chapter.
   (C) Any asset while held in a testator's estate or a terminating
trust.
   (5) The unitrust amount, as otherwise computed pursuant to this
subdivision, shall be reduced proportionately for any material
distribution made to accomplish a partial termination of the trust
required by the governing instrument or made as a result of the
exercise of a power of appointment or withdrawal, other than
distributions of the unitrust amount, and shall be increased
proportionately for the receipt of any material addition to the
trust, other than a receipt that represents a return on investment,
during the period considered in paragraph (2) in computing the
unitrust amount. For the purpose of this paragraph, a distribution or
an addition shall be "material" if the net value of the distribution
or addition, when combined with all prior distributions made or
additions received during the same accounting year, exceeds 10
percent of the value of the assets used to compute the unitrust
amount as of the most recent prior valuation date. The trustee may,
in the reasonable exercise of his or her discretion, adjust the
unitrust amount pursuant to this subdivision even if the
distributions or additions are not sufficient to meet the definition
of materiality set forth in the preceding sentence.
   (6) In the case of a short year in which a beneficiary's right to
payments commences or ceases, the trustee shall prorate the unitrust
amount on a daily basis.
   (7) Unless otherwise provided by the governing instrument or
determined by the trustee, the unitrust amount shall be considered
paid in the following order from the following sources:
   (A) From the net taxable income,  other than capital gains,
 determined as if the trust were other than a unitrust.
   (B) From net realized short-term capital gains.
   (C) From net realized long-term capital gains.
   (D) From tax-exempt and other income.
   (E) From principal of the trust.
   (8) Expenses that would be deducted from income if the trust were
not a unitrust may not be deducted from the unitrust amount.
   (f) The trustee shall determine, in the trustee's discretion, all
of the following matters relating to administration of a unitrust
created pursuant to this section:
   (1) The effective date of a conversion to a unitrust.
   (2) The frequency of payments in satisfaction of the unitrust
amount.
   (3) Whether to value the trust's assets annually or more
frequently.
   (4) What valuation dates to use.
   (5) How to value nonliquid assets.
   (6) The characterization of the unitrust payout for income tax
reporting purposes. However, the trustee's characterization shall be
consistent.
   (7) Any other matters that the trustee deems appropriate for the
proper functioning of the unitrust.
   (g) A conversion into a unitrust does not affect a provision in
the governing instrument directing or authorizing the trustee to
distribute principal or authorizing the exercise of a power of
appointment over or withdrawal of all or a portion of the principal.
   (h) A trustee may not convert a trust into a unitrust in any of
the following circumstances:
   (1) If payment of the unitrust amount would change the amount
payable to a beneficiary as a fixed annuity or a fixed fraction of
the value of the trust assets.
   (2) If the unitrust distribution would be made from any amount
that is permanently set aside for charitable purposes under the
governing instrument and for which a federal estate or gift tax
deduction has been taken, unless both income and principal are set
aside.
   (3) If possessing or exercising the power to convert would cause
an individual to be treated as the owner of all or part of the trust
for federal income tax purposes, and the individual would not be
treated as the owner if the trustee did not possess the power to
convert.
   (4) If possessing or exercising the power to convert would cause
all or part of the trust assets to be subject to federal estate or
gift tax with respect to an individual, and the assets would not be
subject to federal estate or gift tax with respect to the individual
if the trustee did not possess the power to convert.
   (5) If the conversion would result in the disallowance of a
federal estate tax or gift tax marital deduction that would be
allowed if the trustee did not have the power to convert.

   (i) If paragraph (3) or (4) of subdivision (h) applies to a
trustee and there is more than one trustee, a cotrustee to whom the
provision does not apply may convert the trust unless the exercise of
the power by the remaining trustee or trustees is prohibited by the
governing instrument. If paragraph (3) or (4) of subdivision (h)
applies to all of the trustees, the court may order the conversion as
provided in subdivision (b) of Section 16336.5.
   (j)  (1)    A trustee may release the power
conferred by this section to convert to a unitrust if  (1)
the trustee is uncertain about whether possessing or exercising the
power will cause a result described in paragraph (3), (4), or (5) of
subdivision (h), or (2) the trustee determines that possessing or
exercising the power will or may deprive the trust of a tax benefit
or impose a tax burden not described in subdivision (h). The release
may be permanent or for a specified period, including a period
measured by the life of an individual.   either of the
following circumstances exist:  
   (A) The trustee is uncertain about whether possessing or
experiencing the power will cause a result described in paragraph
(3), (4), or (5) of subdivision (h).  
   (B) The trustee determines that possessing or exercising the power
will or may deprive the trust of a tax benefit or impose a tax
burden not described in subdivision (h).  
   (2) A release pursuant to paragraph (1) may be permanent or for a
specified period, including a period measured by the life of an
individual. 
   SEC. 12.    Section 17200 of the   Probate
Code   is amended to read: 
   17200.  (a) Except as provided in Section 15800, a trustee or
beneficiary of a trust may petition the court under this chapter
concerning the internal affairs of the trust or to determine the
existence of the trust.
   (b) Proceedings concerning the internal affairs of a trust
include, but are not limited to, proceedings for any of the following
purposes:
   (1) Determining questions of construction of a trust instrument.
   (2) Determining the existence or nonexistence of any immunity,
power, privilege, duty, or right.
   (3) Determining the validity of a trust provision.
   (4) Ascertaining beneficiaries and determining to whom property
shall pass or be delivered upon final or partial termination of the
trust, to the extent the determination is not made by the trust
instrument.
   (5) Settling the accounts and passing upon the acts of the
trustee, including the exercise of discretionary powers.
   (6) Instructing the trustee.
   (7) Compelling the trustee to  report information about
the trust or account to the beneficiary, if (A) the trustee has
failed to submit a requested report or account within 60 days after
written request of the beneficiary and (B) no report or account has
been made within six months preceding the request.   do
any of the following:  
   (A) Provide a copy of the terms of the trust.  
   (B) Report information about the trust under Section 16061 if the
trustee has failed to report the requested information within 60 days
after written request of the beneficiary, and the beneficiary has
not received the requested information from the trustee within the
six months preceding the request.  
   (C) Account to the beneficiary, subject to the provisions of
Section 16064, if the trustee has failed to submit a requested
account within 60 days after written request of the beneficiary and
no report or account has been made within six months preceding the
request. 
   (8) Granting powers to the trustee.
   (9) Fixing or allowing payment of the trustee's compensation or
reviewing the reasonableness of the trustee's compensation.
   (10) Appointing or removing a trustee.
   (11) Accepting the resignation of a trustee.
   (12) Compelling redress of a breach of the trust by any available
remedy.
   (13) Approving or directing the modification or termination of the
trust.
   (14) Approving or directing the combination or division of trusts.

   (15) Amending or conforming the trust instrument in the manner
required to qualify a decedent's estate for the charitable estate tax
deduction under federal law, including the addition of mandatory
governing instrument requirements for a charitable remainder trust as
required by final regulations and rulings of the United States
Internal Revenue Service.
   (16) Authorizing or directing transfer of a trust or trust
property to or from another jurisdiction.
   (17) Directing transfer of a testamentary trust subject to
continuing court jurisdiction from one county to another.
   (18) Approving removal of a testamentary trust from continuing
court jurisdiction.
   (19) Reforming or excusing compliance with the governing
instrument of an organization pursuant to Section 16105.
   (20) Determining the liability of the trust for any debts of a
deceased settlor. However, nothing in this paragraph shall provide
standing to bring an action concerning the internal affairs of the
trust to a person whose only claim to the assets of the decedent is
as a creditor.
   (21) Determining petitions filed pursuant to Section 15687 and
reviewing the reasonableness of compensation for legal services
authorized under that section. In determining the reasonableness of
compensation under this paragraph, the court may consider, together
with all other relevant circumstances, whether prior approval was
obtained pursuant to Section 15687.
   (22) If a member of the State Bar of California has transferred
the economic interest of his or her practice to a trustee and if the
member is a deceased member under Section 9764, a petition may be
brought to appoint a practice administrator. The procedures,
including, but not limited to, notice requirements, that apply to the
appointment of a practice administrator for a deceased member shall
apply to the petition brought under this section.
   (23) If a member of the State Bar of California has transferred
the economic interest of his or her practice to a trustee and if the
member is a disabled member under Section 2468, a petition may be
brought to appoint a practice administrator. The procedures,
including, but not limited to, notice requirements, that apply to the
appointment of a practice administrator for a disabled member shall
apply to the petition brought under this section. 
   (c) The court may, on its own motion, set and give notice of an
order to show cause why a trustee should not be removed for failing
to register in the Statewide Registry under Section 2850. 

  SECTION 1.   Section 7560.5 is added to the
Business and Professions Code, to read:
   7560.5.  (a) (1) On and after January 1, 2013, any individual
licensed as a private investigator shall complete 12 hours of
continuing education, as approved by the department, in order to
renew his or her license, and of these, two hours shall be on the
subject of privacy rights, two hours shall be on the subject of
professional ethics, two hours shall be on the subject of recent
legal developments relating to private investigators, and six hours
shall be on any subject relating to private investigators.
   (2) An individual licensed as a private investigator whose license
is subject to renewal between January 1, 2012, and January 1, 2013,
shall complete six hours of continuing education, as approved by the
department, in order to renew his or her license, and of these, two
hours shall be on the subject of privacy rights, two hours shall be
on the subject of professional ethics, and two hours shall be on the
subject of recent legal developments relating to private
investigators.
   (3) (A) Paragraphs (1) and (2) shall not apply to any individual
licensed as a private investigator who is a retired peace officer as
defined in Chapter 4.5 (commencing with Section 830) of Title 3 of
Part 2 of the Penal Code who has been retired for less than one year.

   (B) Notwithstanding paragraphs (1) and (2), on and after January
1, 2012, any individual licensed as a private investigator who is a
retired peace officer as defined in Chapter 4.5 (commencing with
Section 830) of Title 3 of Part 2 of the Penal Code who has been
retired for more than one year and not more than two years shall
complete six hours of continuing education, as approved by the
department, in order to renew his or her license, and of these, two
hours shall be on the subject of privacy rights, two hours shall be
on the subject of professional ethics, and two hours shall be on the
subject of recent legal developments relating to private
investigators.
   (b) A licensee shall submit to the department a signed statement
attesting that he or she has completed the continuing education
requirement in subdivision (a). This statement shall be submitted
with the license renewal application.
   (c) A licensee shall maintain, for a period of five years, copies
of certificates of continuing education completion demonstrating
compliance with the continuing education requirement in subdivision
(a).
   (d) The department may suspend for a period not to exceed 60 days,
the license of any licensee who is found not to be in compliance
with subdivision (a), (b), or (c), at which time the department shall
revoke the license unless the required continuing education has been
completed and documented.
   (e) The department shall have the right to audit the records of
any licensee to verify completion of the continuing education
requirement.
   (f) This section shall not apply to any individual licensed as a
private investigator who meets any of the following requirements:
   (1) Is 70 years of age or older and has been a licensee in good
standing for a minimum of 25 consecutive years.
   (2) Is an inactive licensed private investigator.
    (3) Is a peace officer as defined in Chapter 4.5 (commencing with
Section 830) of Title 3 of Part 2 of the Penal Code.
   (A) For the purposes of this subdivision, "inactive licensed
private investigator" shall mean an individual who meets all of the
following requirements:
   (i) Is licensed under this chapter.
   (ii) Has informed the department that he or she will not be
performing activities that require licensure.
   (iii) Does not perform activities requiring licensure.
   (B) A licensee who is inactive under this paragraph may become
active upon submission to the department of a signed statement
attesting that he or she has completed the continuing education
requirement in subdivision (a), and upon payment to the department of
the renewal fee, as specified in Section 7570.
   (g) (1) Continuing education providers (CEPs) shall obtain
approval from the department prior to offering a course for
continuing education to licensed private investigators.
   (A) CEPs shall submit to the department a course description,
certificate, and curriculum vitae of course instructors for review
and approval.
   (B) CEPs shall maintain a record of course sign-in forms, sign-out
forms, student enrollment, copies of certificates of completion, and
course outlines for a period of five years.
   (C) CEPs shall agree to audits performed by the department.
   (D) The director may revoke or deny the right of a CEP to offer
continuing education for failure to comply with any of the
requirements of this subdivision.
   (2) Notwithstanding paragraph (1):
   (A) CEPs that have been approved by, and are in good standing
with, the State Bar to provide mandatory continuing legal education
may offer courses for continuing education to licensed private
investigators without approval from the department.
   (B) CEPs that have been approved by, and are in good standing
with, the Commission on Peace Officer Standards and Training may
offer courses that have been approved by the commission to licensed
private investigators for continuing education without approval from
the department.
   (h) (1) The department shall establish a procedure for approving
CEPs to offer continuing education to licensed private investigators.

   (2) The department shall convene a review panel to consult with
the department in the consideration and approval of CEPs and course
content. The review panel shall include licensed private
investigators, representatives of CEPs, and professional associations
of licensed private investigators. Accredited academic institutions
and recognized national and state associations of licensed private
investigators may be approved by the department as CEPs.
   (3) The department shall develop criteria for course providers and
course content that, to the extent applicable and feasible, is
consistent with the provisions of Section 166.
   (4) The department shall establish and charge a fee, not to exceed
twenty dollars ($20) per course, to be paid by CEPs to cover the
department's direct costs in implementing the provisions of this
section that require the department to approve CEPs and course
content, to perform audits, as described in subdivision (g), and to
develop criteria for course providers and course content, as
described in subdivision (h).
   (i) If, in a signed statement required by subdivision (b) or (f),
a declarant willfully states as true any material fact he or she
knows to be false, that person shall be subject to a civil penalty of
up to ten thousand dollars ($10,000). In addition, the department
may suspend the license of a licensee for a period not to exceed one
year, at which time the department shall revoke the license unless
the licensee submits a signed statement attesting that he or she has
completed the continuing education requirement in subdivision (a).
Any public prosecutor may bring a civil action to impose the civil
penalty. A licensee shall be advised of the penalty authorized under
this subdivision in the documents submitted for signature. 

  SEC. 2.    Section 7570 of the Business and
Professions Code is amended to read:
   7570.  The fees prescribed by this chapter are as follows:
   (a) The application and examination fee for an original license
may not exceed fifty dollars ($50).
   (b) The application fee for an original branch office certificate
may not exceed thirty dollars ($30).
   (c) The fee for an original license for a private investigator may
not exceed one hundred ninety-five dollars ($195).
   (d) The renewal fee is as follows:
   (1) For a license as a private investigator, the fee may not
exceed one hundred forty-five dollars ($145).
   (2) For a combination license as a private investigator and
private patrol operator under Chapter 11.5 (commencing with Section
7580), AC or DC prefix, the fee may not exceed six hundred dollars
($600).
   (3) For a branch office certificate for a private investigator,
the fee may not exceed thirty dollars ($30), and for a combination
private investigator and private patrol operator under Chapter 11.5
(commencing with Section 7580), the fee may not exceed forty dollars
($40).
   (e) The delinquency fee is 50 percent of the renewal fee in effect
on the date of expiration.
   (f) A reinstatement fee is equal to the amount of the renewal fee
plus the regular delinquency fee.
   (g) The fee for reexamination of an applicant or his or her
manager may not exceed fifteen dollars ($15).