BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 204
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        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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        |COMMITTEE VOTE:  |8-0  |(July 7, 2005)      |RECOMMENDATION: |Concur    |
        |                 |     |                    |                |          |
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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)Requires that the decedent's written specifications specifically  
          designate the person in control of the use of the decedent's  
          genetic material and requires that such person provide required  
          written notice regarding availability of the genetic material.

        4)Makes a person, to whom payment, delivery, or transfer of the  
          decedent's property is made, personally liable to a posthumously  
          conceived child with a superior right by testate or intestate  
          succession to the property for the fair market value of the  
          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  








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

        6)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)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.  

        3)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.  

        4)Relieves a person with control over the distribution of  
          decedent's property from liability for making distributions if  
          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.  









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        5)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 conception.

         FISCAL EFFECT  :  None

         COMMENTS  :  This bill, affecting the inheritance rights of  
        posthumously conceived children, was originally heard by this  
        Committee on April 12, 2005 and passed by consent.  It is now back  
        for a concurrence hearing based on amendments taken in the Senate.   
        Those amendments, among other things, impose liability on any  
        person who receives a decedent's property in place of a  
        posthumously conceived child with superior rights. 

        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 makes those changes,  
        further explaining the intent and purpose of the requirements for  








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        inheritance set forth in AB 1910, as discussed below.

        Current law relieves a person in charge of distribution of a  
        decedent's estate from liability 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 the  
        liability of the person who received distribution.  In this case,  
        the person who makes the distribution would be relieved of  
        liability, but the posthumously conceived child would have no  
        remedy against the person who received the distribution.

        This bill seeks to make a 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 liability for triple the value  
        if the person to whom the property was transferred secured the  
        transfer fraudulently.  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.

        AB 204 would also clean-up other provisions enacted by AB 1910.   
        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, 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.  The deletion of the reference to  
        spouse or domestic partner would therefore provide clarity and  
        minimize litigation over a decedent's genetic material.  

        The bill also would remove the requirement that the decedent's  








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        execution of the written specifications regarding the use of the  
        genetic material be signed by a competent witness.  However, a  
        competent witness would still be required for the notice from the  
        person responsible for the use of the genetic material that the  
        material will not be used to conceive a posthumous child.  This  
        would provide 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 later.

         
        Analysis Prepared by  :    Leora Gershenzon / JUD. / (916) 319-2334 


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