BILL NUMBER: AB 2438	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Huffman

                        FEBRUARY 24, 2012

   An act to amend Section 1564 of the Code of Civil Procedure,
relating to unclaimed property.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2438, as introduced, Huffman. Unclaimed property.
   Under the Unclaimed Property Law, all escheated property delivered
to the Controller is required to be sold by the Controller to the
highest bidder at public sale, as specified. All money received by
the state by escheat under the law, including proceeds from the sale
of escheated property, is required to be deposited in the Abandoned
Property Account of the Unclaimed Property Fund, which is
continuously appropriated to the Controller for expenditure in
carrying out and enforcing the Unclaimed Property Law, including the
payment of claims allowed by the Controller under the law, the refund
of amounts deposited in error to the fund, and the payment of costs
incurred by the Controller for the repair, maintenance, and upkeep of
property held in the name of an account in the fund.
   This bill would make technical, nonsubstantive changes to these
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 1564 of the Code of Civil Procedure is amended
to read:
   1564.  (a) All money received under this chapter, including the
proceeds from the sale of property under Section 1563, shall be
deposited in the Unclaimed Property Fund in an account titled
"Abandoned Property."
   (b) Notwithstanding Section 13340 of the Government Code, all
money in the Abandoned Property Account in the Unclaimed Property
Fund is hereby continuously appropriated to the Controller, without
regard to fiscal years, for expenditure in accordance with law in
carrying out and enforcing the provisions of this chapter, including,
but not limited to, the following purposes:
   (1) For payment of claims allowed by the Controller under the
provisions of this chapter.
   (2) For refund, to the person making  such  
the  deposit, of amounts, including overpayments, deposited in
error in  such   the  fund.
   (3) For payment of the cost of appraisals incurred by the
Controller covering property held in the name of an account in
 such   the  fund.
   (4) For payment of the cost incurred by the Controller for the
purchase of lost instrument indemnity bonds, or for payment to the
person entitled  thereto   to those bonds 
, for any unpaid lawful charges or costs  which 
 that  arose from holding any specific property or any
specific funds  which   that  were
delivered or paid to the Controller, or  which  
that  arose from complying with this chapter with respect to
 such   that  property or funds.
   (5) For payment of amounts required to be paid by the state as
trustee, bailee, or successor in interest to the preceding owner.
   (6) For payment of costs incurred by the Controller for the
repair, maintenance, and upkeep of property held in the name of an
account in  such   the  fund.
   (7) For payment of costs of official advertising in connection
with the sale of property held in the name of an account in such
fund.
   (8) For transfer to the General Fund as provided in subdivision
(c).
   (9) For transfer to the Inheritance Tax Fund of the amount of any
inheritance taxes determined to be due and payable to the state by
any claimant with respect to any property claimed by him or her under
 the provisions of  this chapter.
   (c) At the end of each month, or more often if he or she deems it
advisable, the Controller shall transfer all money in the Abandoned
Property Account in excess of fifty thousand dollars ($50,000) to the
General Fund. Before making this transfer, the Controller shall
record the name and last known address of each person appearing from
the holders' report to be entitled to the escheated property and the
name and last known address of each insured person or annuitant, and
with respect to each policy or contract listed in the report of a
life insurance corporation, its number, and the name of the
corporation. The record shall be available for public inspection at
all reasonable business hours.