Amended in Senate September 4, 2015

Senate Bill No. 155

Introduced by Senator Hertzberg

February 2, 2015

begin delete An act to add Part 3 (commencing with Section 13750) to Division 8 of the Probate Code, relating to decedent’s estates. end delete begin insert An act to amend Sections 352 and 359 of the Public Utilities Code, relating to electricity. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 155, as amended, Hertzberg. begin delete Decedent’s estates. end delete begin insert Independent System Operator. end insert

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The existing restructuring of the electrical industry within the Public Utilities Act provides for the establishment of an Independent System Operator and a Power Exchange as nonprofit public benefit corporations. Existing law requires the Independent System Operator to ensure efficient use and reliable operation of the electrical transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council. An Electricity Oversight Board is also established to oversee the Independent System Operator and the Power Exchange in order to ensure the success of electrical restructuring and to ensure a reliable supply of electricity in the transition to a new market structure. Existing law prohibits the Independent System Operator from entering into a multistate entity or regional organization unless the Independent System Operator receives approval from the Electricity Oversight Board.

end insert begin insert

This bill would authorize the Independent System Operator to enter into a multistate entity or regional organization if that entry is approved by its governing board at a duly noticed public meeting.

end insert begin insert

Existing law, relative to restructuring of the electrical industry, states the intent of the Legislature with respect to the evolution of the roles of the Independent System Operator and Power Exchange, including to evolve into regional organizations to promote the development of regional electricity transmission markets in the western states and to improve the access of consumers serviced by the Independent System Operator and the Power Exchange to those markets.

end insert begin insert

This bill would delete references to the Power Exchange in the above-described statement of Legislative intent.

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Existing law provides for the disposition of a testator’s property by will. Existing law establishes the Uniform Testamentary Additions to Trusts Act, under which a valid devise of property may be made by will to the trustee or trustees of a trust established or to be established by the testator or by the testator and some other person, commonly referred to as a pour-over will. Existing law provides that the decedent’s property, including property devised by a will, is generally subject to probate administration, except as specified. Existing law establishes simplified procedures for addressing a decedent’s estate valued under $150,000, including authorizing the successor of the decedent to collect property due to the decedent without letters of administration or awaiting probate of a will.

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This bill would establish simplified procedures for the distribution of property, real or personal property of any amount or value, devised by a will to the trustee or trustees of a recipient trust, as defined, without procuring letters of administration. The bill would authorize the trustee or trustees of a recipient trust to file a verified petition setting forth specified facts in the superior court of the county in which the estate of the decedent may be administered, and would authorize the court to issue an order that a particular item or items of property pass without administration and are transferred to the petitioner as trustee or trustees of the recipient trust. The bill would require attorneys’ fees for services performed in connection with these provisions to be determined by a private agreement between the attorney and the client, and would specify that attorneys’ fees are not subject to approval by the court.

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Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 352 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

352.  

The Independent System Operator may begin delete not end delete begin insert only end insert enter into
a multistate entity or a regional organization as authorized in
Section 359 begin delete unless end delete begin insert if end insert that entry is approved by begin delete the Oversight Board. end delete
begin insert its governing board at a duly noticed public meeting. end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 359 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

359.  

(a) It is the intent of the Legislature to provide for the
evolution of the Independent System Operator begin delete and the Power
Exchange end delete into begin insert a end insert regional begin delete organizations end delete begin insert organization end insert to promote
the development of regional electricity transmission markets in
the western states and to improve the access of consumers served
by the Independent System Operator begin delete and the Power Exchange end delete to
those markets.

(b) The preferred means by which the voluntary evolution
described in subdivision (a) should occur is through the adoption
of a regional compact or other comparable agreement among
cooperating party states, the retail customers of which states would
reside within the geographic territories served by the Independent
System begin delete Operator and the Power Exchange. end delete begin insert Operator. end insert

(c) The agreement described in subdivision (b) should provide
for all of the following:

(1) An equitable process for the appointment or confirmation
by party states of members of the governing begin delete boards end delete begin insert board end insert of the
Independent System begin delete Operator and the Power Exchange. end delete begin insert Operator. end insert

(2) A respecification of the size, structure, representation,
eligible membership, nominating procedures, and member terms
of service of the governing begin delete boards end delete begin insert board end insert of the Independent System
begin delete Operator and the Power Exchange. end delete begin insert Operator. end insert

(3) Mechanisms by which each party state, jointly or separately,
can oversee effectively the actions of the Independent System
Operator begin delete and the Power Exchange end delete as those actions relate to the
assurance of electricity system reliability within the party state
and to matters that affect electricity sales to the retail customers
of the party state or otherwise affect the general welfare of the
electricity consumers and the general public of the party state.

(4) The adherence by publicly owned and investor-owned
utilities located in party states to enforceable standards and
protocols to protect the reliability of the interconnected regional
transmission and distribution systems.

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SECTION 1.  

Part 3 (commencing with Section 13750) is added
to Division 8 of the Probate Code, to read:

 

PART 3.  Determination of Property Passing to
Trustee of Recipient Trust Without
Administration

 

Chapter  1. Definitions

 

13750.  

For purposes of this part, both of the following
definitions shall apply:

(a) “Pour-over will” means a devise by a will, including any
codicils, of property to the trustee or trustees of a recipient trust.

(b) “Recipient trust” means a trust established as a revocable
trust by a decedent during his or her lifetime, either alone or in
conjunction with his or her spouse or registered domestic partner,
and that is identified in the pour-over will.

 

Chapter  2. Court Order Determining Passage of
Property to Trustee or Trustees of Recipient Trust

 

13751.  

Subject to further requirements provided in this chapter,
if a decedent dies testate and by his or her pour-over will devises
some or all of his or her property to the trustee or trustees of a
recipient trust, the trustee or trustees of that recipient trust, without
procuring letters of administration, may file a petition in the
superior court of the county in which the estate of the decedent
may be administered requesting a court order that a particular item
or items of property pass without administration to the petitioner
as trustee or trustees of the recipient trust.

13752.  

(a) The procedure provided by this chapter may be
used only if:

(1) At least 40 days have elapsed since the death of the decedent.

(2) No proceeding is being or has been conducted for the probate
administration of the decedent’s estate, either in this state or in
any other jurisdiction.

(3) Except as provided in paragraph (4), the devise in the
pour-over will to the trustee or trustees of the recipient trust applies
to the entire remainder of the property subject to the pour-over
will.

(4) (A) The only other devise or devises, if any, in the pour-over
will are one or more specific gifts, as defined in subdivision (a) of
Section 21117, all of which would be eligible for disposition
without administration pursuant to either of the following
provisions:

(i) Part 1 (commencing with Section 13000), as determined by
the petitioner. Any property that is not a devise of a specific gift,
as defined in subdivision (a) of Section 21117, in the decedent’s
pour-over will shall be excluded in determining the property or
estate of the decedent or its value for this purpose.

(ii) Part 2 (commencing with Section 13500), as determined by
the petitioner.

(B) The court may rely on the petitioner’s representations
concerning determinations made by the petitioner pursuant to this
paragraph.

(b) The procedure provided by this chapter may be used for real
or personal property of any amount or value, so long as the other
requirements of this chapter are satisfied. The value of an
individual item, or aggregate value of items, of property does not
need to be included in the petition. An inventory and appraisal
shall not be required for the property subject to the procedure
provided by this chapter.

13753.  

(a) The petition shall be verified by each petitioner,
shall contain a request that the court make an order pursuant to
this chapter that a particular item or items of the decedent’s
property pass without administration to the petitioner as trustee or
trustees of the recipient trust, and shall state all of the following:

(1) The facts necessary to determine that the petition is filed in
the proper county.

(2) That at least 40 days have elapsed since the death of the
decedent.

(3) That no proceeding is being or has been conducted for
administration of the decedent’s estate, either in this state or in
any other jurisdiction.

(4) The facts and the provision or provisions of the pour-over
will upon which the petitioner bases the allegation that a particular
item or items of property pass without administration to the
petitioner as trustee or trustees of the recipient trust, including, but
not limited to, the following:

(A) That the devise in the pour-over will to the trustee or trustees
of the recipient trust applies to the entire remainder of the property
subject to the pour-over will.

(B) Either of the following, as applicable:

(i) That there is no devise in the pour-over will other than to the
trustee or trustees of the recipient trust.

(ii) The only other devise or devises, if any, in the pour-over
will are one or more specific gifts, as defined in subdivision (a) of
Section 21117, all of which would be eligible for disposition
without administration pursuant to either of the following
provisions:

(I) Part 1 (commencing with Section 13000), as determined by
the petitioner. Any property that is not a devise of a specific gift,
as defined in subdivision (a) of Section 21117, identified in the
decedent’s pour-over will shall be excluded in determining the
property or estate of the decedent or its value.

(II) Part 2 (commencing with Section 13500), as determined by
the petitioner.

(5) A description or descriptions of the particular item or items
of the decedent’s property for which the petitioner requests an
order pursuant to this chapter.

(6) The name, age, address, and relation to the decedent of each
of the following:

(A) Heir and devisee of the decedent.

(B) Each person named as executor or alternate executor of the
pour-over will.

(C) Each beneficiary of the recipient trust. For any future
interests, this determination shall be made pursuant to subdivision
(a) of Section 15804, so far as known to any petitioner.

(D) Each person named as trustee or successor trustee in the
recipient trust.

(7) The name and address of any person serving as guardian of
the estate or conservator of the estate of the decedent at the time
of the decedent’s death, so far as known to any petitioner.

(b) A copy of the pour-over will shall be attached to, and filed
in support of, the petition.

(c) A certification of trust for the recipient trust that satisfies
the requirements of Section 18100.5 shall be attached to, and filed
in support of, the petition.

13754.  

Notice of hearing shall be given as provided in Section
1220 to each of the persons named in the petition pursuant to
Section 13753.

13755.  

If the requirements of this chapter are satisfied, the
court shall issue an order that a particular item or items of property
pass without administration and are transferred to the petitioner
as trustee or trustees of the recipient trust. Each item of property
shall be described in the order. The court shall not issue an omnibus
order for final distribution pursuant to the procedure provided by
this chapter.

13756.  

(a) Except as provided in subdivision (b), upon
becoming final, an order under this chapter that property passes
without administration to the trustee or trustees of the recipient
trust shall be conclusive on all persons.

(b) An order issued by the court pursuant to Section 13755 shall
not preclude the filing of a petition pursuant to Section 17200.

13757.  

The attorney’s fees for services performed in connection
with the filing of a petition and obtaining a court order under this
chapter shall be determined by a private agreement between the
attorney and the client and are not subject to approval by the court.
If there is no agreement between the attorney and the client
concerning the attorney’s fees for services performed in connection
with the filing of a petition and obtaining a court order under this
chapter and there is a dispute concerning the reasonableness of the
attorney’s fees for those services, a petition may be filed with the
court in the same proceeding requesting that the court determine
the reasonableness of the attorney’s fees for those services. If there
is an agreement between the attorney and the client concerning
the attorney’s fees for services performed in connection with the
filing of a petition and obtaining a court order under this chapter
and there is a dispute concerning the meaning of the agreement, a
petition may be filed with the court in the same proceeding
requesting that the court determine the dispute.

13758.  

Nothing in this chapter excuses compliance with
Chapter 3 (commencing with Section 13100) by the holder of the
decedent’s personal property if an affidavit or declaration is
furnished as provided in that chapter.

 

Chapter  3. Liability for Debts of Decedent

 

13759.  

Property transferred to the trustee or trustees of a
recipient trust pursuant to an order issued under Section 13755
shall be subject to the payment of claims, debts, and expenses as
provided in Part 8 (commencing with Section 19000) of Division
9.

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