BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                         Senator Joseph L. Dunn, Chair
                           2005-2006 Regular Session


          AB 204                                                 A
          Assembly Member Harman                                 B
          As Amended June 6, 2005
          Hearing Date: June 14, 2005                            2
          Probate Code                                           0
          GMO:rm                                                 4
                                                                 

                                     SUBJECT
                                         
              Decedents' Estates:  Posthumously Conceived Children


                                   DESCRIPTION  

          This bill would revise several provisions of the statute  
          enacted in 2004, that established rules for determining the  
          rights of a posthumously conceived and born child with  
          respect to distribution of property after a decedent's  
          death. 

          It would:
          (1)  require the decedent's written specifications  
          regarding the use of his or her 
                genetic material posthumously to be dated, as well as  
          signed; 
          (2)  delete the requirement that the decedent's written  
          specifications be signed by  
                 at least one competent witness; 
          (3)  delete the reference to the decedent's designation of  
          his or her spouse or  
                domestic partner and substitute any person  
          specifically designated by the 
                decedent as the person in control of the use of  
          decedent's genetic material and 
                therefore required to give the required written  
          notice regarding availability of 
                the genetic material; 
          (4)  make a person who receives payment or other property  
          as a distribution of 
                                                                 
          (more)



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                decedent's property liable to any person with  
          superior right to the payment 
                or property for the fair market value of the payment  
          or property at the time of 
                transfer, with a triple penalty for fraud; and 
          (5)  impose a three-year statute of limitation on an action  
          to recover payment or 
                property.
                                         





                                   BACKGROUND  

          In enacting AB 1910 (Harman, Chapter 775, Statutes 2004)  
          the state finally recognized that advances in "assisted  
          reproduction" technology has made it possible for a child  
          to be conceived and born after death of a decedent. (e.g.,  
          artificial insemination of the female using the preserved  
          sperm of the deceased male, or in vitro insemination of a  
          deceased female's preserved egg with live sperm, or even  
          the use of both preserved egg and preserved sperm).

          AB 1910 established the procedure for determining the  
          rights of a posthumously conceived child with respect to  
          distribution of property after decedent's death, and  
          prohibited a person with control over distribution of a  
          decedent's estate from making distributions once notice of  
          the availability of the genetic material for posthumous  
          conception of a child is received.    

                             CHANGES TO EXISTING LAW
           
           Existing law  requires a posthumously conceived child or the  
          child's representative to prove, by clear and convincing  
          evidence, specified facts to establish rights to property  
          of a decedent whose genetic material was used to conceive  
          the child.  One of those requirements is decedent's writing  
          specifying that his or her genetic material shall be used  
          for posthumous conception of a child.  The writing must be  
          signed by the decedent and by at least one witness.

           This bill  would require that that writing be signed and  
                                                                       




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          dated by the decedent.

           Existing law  also requires that the writing designate a  
          spouse, or a domestic partner, or a person specified by the  
          decedent as the person to use the genetic material, and  
          that this person notify the person in control of the  
          distribution of the estate that the genetic material is  
          available.

           This bill  would remove the reference to spouse or domestic  
          partner, thus leaving only the person designated by the  
          decedent as the person to use the genetic material.  The  
          bill also would require the designated person to provide  
          the notice to the person in control of the distribution of  
          decedent's property, as required by Probate Code  249.5.

           Existing law  provides that a person with control over the  
          distribution of decedent's property is prohibited, upon  
          receipt of a required written notice or actual knowledge  
          that decedent's genetic material was available for purposes  
          of posthumous conception of a child, from making any  
          distribution of property or paying death benefits before  
          two years after issuance of a certificate of decedent's  
          death or court order establishing the fact of decedent's  
          death, whichever is earlier.  
           Existing law  also relieves a person with control over the  
          distribution of decedent's property from liability for  
          making distributions unless the person made the  
          distribution prior to receiving notice or acquiring actual  
          knowledge that decedent intended to have a posthumously  
          conceived child by depositing 
          genetic material prior to his or her death for that  
          purpose.

           This bill  would make a person who receives payment,  
          delivery or transfer of decedent's property based on the  
          rights of a posthumously conceived child liable to any  
          person who has a superior right by testate or intestate  
          succession from the decedent for the fair market value of  
          the property and for triple the market value if the  
          payment, delivery or transfer was obtained by fraud.

           This bill  would require an action to recover a payment,  
          delivery or transfer erroneously paid or transferred to be  
          barred three years after distribution to the holder of the  
                                                                       




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          property or three years after discovery of the fraud,  
          whichever is later.

           This bill  would allow an action involving the rights of a  
          posthumously conceived child to be brought in a probate  
          proceeding involving a will or other testamentary  
          instrument or in a probate proceeding involving  
          administration of a trust.
          
          
                                     COMMENT
           
          1.    Need for the bill  

            The author states that in the last rush before the end of  
            session last year, a few clarifying amendments that  
            should have been made to AB 1910 were not made.  AB 204  
            would make those clarifying changes to AB 1910, and also  
            deal with the liability of a person who wrongfully  
            received a distribution of decedent's property as a to  
            others such as posthumously conceived child who would  
            otherwise have received the distribution.

          2.    Person in control of genetic material must be  
          specified in writing

             Under current law, the decedent's writing that specifies  
            his or her intent to use the preserved genetic material  
            for posthumous conception of a child must designate a  
            spouse, or a domestic partner, or any other person as the  
            person in control of the use of the genetic material.

            This bill would delete the reference to a spouse or  
            domestic partner, and leave only the third choice, any  
            person designated by the decedent, to be in control of  
            the use of the genetic material.  This change makes sense  
            and forces the decedent to specify the person by name, so  
            that no questions may be asked as to the validity of a  
            claim by a spouse or a domestic partner to be in control  
            of the genetic material.  In other words, under existing  
            law, a second wife's claim to use of decedent's genetic  
            material may be challenged by a first wife who was the  
            spouse when the genetic material was collected.  Similar  
            situations could easily be imagined, lending the statute  
            to extensive litigation.  The deletion of the reference  
                                                                       




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            to spouse or domestic partner would therefore provide  
            clarity and avoid this type of litigation over a  
            decedent's genetic material.  However, the onus would be  
            on the decedent to change the designated person, should  
            his or her relationship with the person change over time.  


            This bill also would require this designated person, not  
            the posthumously conceived child or his/her  
            representative, to provide the written notice to the  
            person in control of  the distribution of the decedent's  
            property.   This makes eminent sense, since the  
            posthumously conceived child may not yet have been  
            conceived and born, let alone pick a representative, by  
            the time a notice needs to be made.  Under existing law,  
            notice must be provided to the person in control of the  
            distribution of decedent's property within four months of  
            the date of issuance of a certificate of decedent's death  
            or entry of judgment of the fact of decedent's death,  
            whichever occurs first.

          3.    Liability imposed on person who wrongfully received  
            estate distribution instead of the posthumously conceived  
            child or children; three-year statute of limitation  
            allowed  

            Current law relieves a person in charge of distribution  
            of a decedent's estate for distributions made prior to  
            receipt of a notice that the decedent had left genetic  
            material to be used for conceiving a child posthumously  
            or prior to having actual knowledge of that fact.  The  
            law is silent regarding situations that could conceivably  
            induce the person in charge of distribution to go ahead  
            and make a distribution before the posthumously conceived  
            child or his/her representative could make a claim or  
            send notice of a claim.  In this case, the person who  
            makes the distribution would be relieved of liability,  
            but the posthumously conceived child would have no  
            remedy.  

            According to the author, this bill intends to make the  
            person who receives a distribution wrongfully, in  
            derogation of the rights of the posthumously conceived  
            child (whose rights would be superior), liable for the  
            fair market value of the property received by that  
                                                                       




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            person.

            However, the language of the bill on page 4, lines 33 and  
            34 reads the exact opposite: that the person who  
            qualified to receive a distribution as a posthumously  
            conceived child would be liable to another person with  
            superior right to the decedent's property.  This reading  
            was not the author's intent, nor that of the probate  
            judges who were concerned that other distributees of  
            decedent's estate may maneuver to deprive the posthumous  
            child of his or her inheritance. 

             Suggested amendment :  rewrite page 4, lines 33 to 36,  
            inclusive, as follows:

              (e)  Each person to whom payment, delivery, or transfer  
            of the decedent's property is made is personally liable  
            to a person who, pursuant to Section 249.5, has a  
            superior right by testate or intestate succession to the  
            payment, delivery or transfer of decedent's property.   
            The aggregate of the personal

            The value of the property transferred would be based on  
            the aggregate fair market value of the property on the  
            date the transfer was made.  This bill  also would impose  
            triple the value if the person to whom the property was  
            transferred secured the transfer fraudulently. 

            AB 204 also would bar any action by a posthumously  
            conceived child or his/her representative to recover  
            property wrongfully distributed to another after three  
            years from the date the distribution was made to the  
            holder of the property, or three years from the date the  
            fraud is discovered, whichever is later.

          4.    Competent witness not required in all cases  

            AB 204 would also make some technical clean-up of the  
            provisions enacted by AB 1910.  It would require, for  
            example, that the decedent's writing (of the specific  
            instructions regarding the use of the genetic material)  
            be signed - strictly an oversight from last year's  
            legislation. 

            The bill also would make the following changes:
                                                                       




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            (a)  remove the requirement that the decedent's execution  
            of the written 
                   specifications regarding the use of the genetic  
            material be signed by a 
                   competent witness.

                This is not a strictly technical change, however.   
                When AB 1910 was heard last year there were questions  
                about ensuring that the decedent was certain about  
                what he or she wanted to do about the genetic  
                material and that he or she knew the consequences of  
                a posthumously conceived child. The competent witness  
                was the answer.  This bill would delete that  
                requirement.  Thus, any adult may, for whatever  
                reason, save his or her genetic material for later  
                use in case of an untimely death, and not tell anyone  
                this fact.  Without a competent witness or a  
                testamentary instrument, however, this person's wish  
                to use his or her preserved genetic material to  
                conceive a child posthumously could die with him or  
                her.

                 However, the requirement of a competent witness is  
                 retained by the bill, as to the notice given by the  
                 person responsible for the use of the genetic  
                 material that the material will not be used to  
                 conceive a posthumous child.  This would give such  
                 persons cover, in the event genetic material is  
                 destroyed and someone else purporting to know the  
                 decedent's desire to have a posthumously conceived  
                 child comes forward.

               (b) allow an interested person to file a petition  
               either in the administration   
                    of estates section or in the administration of  
               estates section of the    
                    Probate Code, requesting a delayed distribution  
               of property of the 
                    decedent or of death benefits payable by reason  
               of decedent's death 
                    (e.g., life insurance policy) based on the  
               provisions related to a 
                    posthumously conceived child.

                                                                       




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               (c) clarify that the provisions apply to a  
               posthumously conceived child or 
                    children.



          Support: California Judges' Association

          Opposition: None Known

                                     HISTORY
           
          Source: Author

          Related Pending Legislation: None Known

          Prior Legislation: AB 1910 (Harman, Ch. 775, Stats. 2004).   
          See Background.

          Prior Vote: Asm. Jud. (Ayes 9, Noes 0) (Consent)
                    Asm. Flr. (Ayes 71, Noes 0) (Consent)

          
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