BILL NUMBER: AB 227	CHAPTERED  04/17/02

	CHAPTER  22
	FILED WITH SECRETARY OF STATE  APRIL 17, 2002
	APPROVED BY GOVERNOR  APRIL 17, 2002
	PASSED THE ASSEMBLY  APRIL 11, 2002
	PASSED THE SENATE  APRIL 4, 2002
	AMENDED IN SENATE  MARCH 21, 2002
	AMENDED IN SENATE  MARCH 11, 2002
	AMENDED IN SENATE  JANUARY 14, 2002
	AMENDED IN ASSEMBLY  JUNE 4, 2001
	AMENDED IN ASSEMBLY  MARCH 29, 2001

INTRODUCED BY   Assembly Member Dutra

                        FEBRUARY 13, 2001

   An act to amend Section 1577.5 of the Code of Civil Procedure,
relating to unclaimed property, and declaring the urgency thereof, to
take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 227, Dutra.  Unclaimed property:  escheat.
   Under existing law, property that is held by a business that is
unclaimed for more than specified periods escheats to the state.
Existing law requires persons holding unclaimed property to report
and deliver it to the Controller within a prescribed time period, and
imposes interest payments at the rate of 12% per annum and penalties
for a failure to do so.  Existing law also provides that any person
who paid or delivered to the Controller on or before December 31,
2001, in accordance with specified requirements, is not subject to
statutory interest payments for failure to pay or deliver unclaimed
property.  Existing law requires the Controller to submit a report to
the Legislature on the amnesty program, to be published no later
than December 31, 2002.
   This bill would extend the above deadline for paying or delivering
unclaimed property to the Controller to December 31, 2002, subject
to specified conditions.  The bill would also extend the time for the
Controller to submit a report to the Legislature to no later than
July 31, 2003, and would make other technical, nonsubstantive
changes.
   The bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1577.5 of the Code of Civil Procedure is
amended to read:
   1577.5.  (a) Section 1577 does not apply to, and interest may not
be imposed upon, any escheated property paid or delivered to the
Controller at any time on or before December 31, 2002.
   (b) Subdivision (a) shall apply only if the following requirements
are met:
   (1) On or before January 1, 2003, the holder of the property was
not the subject of an investigation by the Attorney General or a
party to litigation with the Controller, relating to the property.
"Investigation by the Attorney General" means an investigation being
conducted under any law authorizing the investigation, including, but
not limited to, investigations authorized by or conducted pursuant
to Article 2 (commencing with Section 11180) of Chapter 2 of Part 1
of Division 3 of Title 2 of the Government Code by the office of the
Attorney General relating to the escheat of property subject to
subdivision (a).
   (2) On or before January 3, 2000, the holder of the property was
not the subject of an audit by the Controller relating to the
property.  "Audit by the Controller" means a formal field audit of
the propertyholder's books and records by audit personnel of the
Controller's office for the purpose of determining compliance with
this chapter.
   (3) The property was required to be reported on or before November
1, 1999.
   (4) The property is surrendered directly to the state or its
authorized agent.
   (5) Reports respecting the property are reported by electronic
media satisfactory to the Controller, provided that paper reports
shall be permitted with respect to holders reporting fewer than 50
accounts or other items.
   (6) All property reported after the effective date of this act
shall be reported on a report separate from property currently
reportable, and may not be reported with property not eligible for
the amnesty program.
   (7) The property is paid or delivered to the Controller at the
time the report is made.
   (8) Securities are remitted in accordance with Section 1532.
   (9) Records shall be maintained in a manner satisfactory to the
Controller, to permit verification and compliance audits.
   (c) Nothing in subdivision (a) shall create an entitlement to a
refund of interest paid to the Controller prior to the effective date
of this section.
   (d) The Controller shall conduct an outreach and publicity program
regarding the provisions of this section.
   (e) The Controller shall submit a report to the Legislature on the
amnesty program.  The report shall include a comprehensive
accounting of all unclaimed property surrendered under the amnesty
program, the date the property was surrendered, and the identities of
the holders of surrendered unclaimed property.  The report shall be
published no later than July 31, 2003.
   (f) Nothing in this section shall preclude liability pursuant to
Article 9 (commencing with Section 12650) of Chapter 6 of Title 2 of
Division 3 of the Government Code regarding false claims.  Reporting
or filing extensions shall not be granted for property under this
section.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   To ensure the financial solvency of the State of California in
view of the fiscal crisis, it is necessary that this act take effect
immediately.