The laws governing surrogacy agreements vary from state to state. State laws sometime depend on the type of surrogacy agreement, such as gestational or traditional surrogacy.

Permitted. Six states allow individuals and couples to enter into surrogacy contracts: Arkansas, California, Illinois (gestational surrogacy only), Massachusetts, New Jersey (uncompensated surrogacy agreements only) and Washington (uncompensated surrogacy agreements only).

Prohibited. The District of Columbia and 11 states prohibit surrogacy agreements in all or some instances. The District of Columbia and Florida prohibit surrogacy for all unmarried couples; Indiana and Louisiana prohibit traditional surrogacy; Michigan and Nebraska prohibit compensated surrogacy agreements; Nevada prohibits surrogacy for all unmarried couples; New York, North Dakota and Texas prohibit surrogacy for all unmarried couples; and Utah and Virginia prohibit surrogacy for all unmarried couples.

The remaining 34 states have mixed or unclear laws and/or court case rulings on whether surrogacy agreements are allowed.

Gestational Carrier Contracts

A Gestational Carrier Contract is an agreement between intended parents and a gestational carrier and her partner/spouse, if any. These contracts can be compensated or uncompensated and are intended to detail the parties' rights, obligations, intentions and expectations in connection with their arrangement. The contract addresses subjects such as parental rights, custody issues, location of delivery, future contact between the parties and insurance (both health and life). In addition, the contract covers issues such as control over medical decisions during the pregnancy, payment of medical bills, liability for medical complications, availability of medical history and personal medical information on the gestational carrier, and intended parents' presence during doctor's visits and at the delivery. Financial considerations such as the gestational carrier's compensation and expenses, including lost wages, legal fees, child care and maternity clothes, are also addressed in the contract.

The Gestational Carrier Contract is usually negotiated once the intended parents and the gestational carrier undergo medical testing and are fully screened.