BILL ANALYSIS                                                                                                                                                                                                    



          Subject matter was not heard in Assembly policy committee this  
          legislative
          Session, should be noted in the last paragraph of the background  
          section of the 
          CSA analysis.  Language will vary depending on the circumstance.
           AB 204
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 204 (Harman)
          As Amended June 22, 2005
          Majority vote
           
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          |ASSEMBLY:  |71-0 |(April 21,      |SENATE: |33-0 |(July 1, 2005) |
          |           |     |2005)           |        |     |               |
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           Original Committee Reference:    INS.  

           SUMMARY  :   Clarifies the conditions for distribution of property  
          after the decedent's death for a posthumously conceived child.   
          Specifically,  this bill  :  

          1)Requires the decedent's written specifications regarding the  
            use of his or her genetic material posthumously to be dated,  
            as well as signed.

          2)Deletes the requirement that the decedent's written  
            specifications be signed by at least one competent witness.

          3)Deletes the reference to the decedent's designation of his or  
            her spouse or domestic partner and substitutes 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)Makes each person to whom payment, delivery, or transfer of  
            the decedent's property is made, personally liable to a person  
            who, pursuant to Probate Code Section 249.5, has a superior  
            right by testate or intestate succession to the payment or  
            property for the fair market value of the payment or property  
            at the time of transfer, and for triple the market value if  
            the payment, delivery or transfer was obtained by fraud.

          5)Requires an action to recover a payment, delivery or transfer  
            erroneously paid or transferred to be barred three years after  








          Subject matter was not heard in Assembly policy committee this  
          legislative
          Session, should be noted in the last paragraph of the background  
          section of the 
          CSA analysis.  Language will vary depending on the circumstance.
           AB 204
                                                                  Page  2

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

          6)Allows 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.

          7)Clarifies that the provisions apply to a posthumously  
            conceived child or children.

           The Senate amendments  make further clarifications and impose  
          liability to any person who receives a distribution of the  
          decedent's property wrongfully.

           EXISTING LAW  :

          1)Provides that, for purposes of determining rights to property  
            to be distributed upon the death of a decedent, a child of the  
            decedent conceived after the decedent's death, other than a  
            child conceived as a result of human cloning, is deemed to  
            have been born in the decedent's lifetime if the child or his  
            or her representative proves by clear and convincing evidence  
            that specified conditions are satisfied including the  
            requirement that the child or the child's representative has  
            given written notice by certified mail that the decedent's  
            genetic material was available for the purpose of posthumous  
            conception.

          2)Bars a decedent's child, conceived after the decedent's death,  
            or the child's representative from making a claim against the  
            person making or receiving the distribution of the decedent's  
            property when the claim is based on wrongful distribution and  
            written notice has not been given in a timely manner.

           AS PASSED BY THE ASSEMBLY  , this bill required that the  
          decedent's spouse or registered domestic partner or some other  
          designated person, rather than the child or the child's  
          representative, would give written notice that the decedent's  
          genetic material was available for the purpose of posthumous  








          Subject matter was not heard in Assembly policy committee this  
          legislative
          Session, should be noted in the last paragraph of the background  
          section of the 
          CSA analysis.  Language will vary depending on the circumstance.
           AB 204
                                                                  Page  3

          conception.

           FISCAL EFFECT  :  None

           COMMENTS  :  Last year, AB 1910 (Harman), Chapter 775, established  
          the procedure for determining the rights of a posthumously  
          conceived child with respect to distribution of property after  
          the decedent's death.  It required the posthumously conceived  
          child or the child's representative to prove, by clear and  
          convincing evidence, specified facts to establish those rights.   
          It further prohibited a person with control over the  
          distribution of decedent's property, 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.  That bill relieved  
          persons with control over the distribution of decedent's  
          property from liability for making distributions unless the  
          person receives a required written notice or has actual  
          knowledge that decedent intended to have a posthumously  
          conceived child by depositing genetic material prior to his or  
          her death for that purpose.

          Due to time constraints last year, the author was unable to make  
          clarifying additions to the bill.  This bill, AB 204, will make  
          these changes, help further explain the intent and purpose of  
          the requirements for inheritance set forth in AB 1910, and also  
          deal with the liability of a person who wrongfully received a  
          distribution of decedent's property.  

          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  








          Subject matter was not heard in Assembly policy committee this  
          legislative
          Session, should be noted in the last paragraph of the background  
          section of the 
          CSA analysis.  Language will vary depending on the circumstance.
           AB 204
                                                                  Page  4

          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 person.  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.  Furthermore,  
          the bill would bar any action by a posthumously conceived child  
          or his/her representative to recover property wrongfully  
          distributed 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.

           
          Analysis Prepared by  :    Cindy Fischer / JUD. / (916) 319-2334 


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