BILL NUMBER: AB 212	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Lowenthal

                        JANUARY 31, 2013

   An act to amend Sections 1513.5, 1520, and 1530 of the Code of
Civil Procedure, relating to unclaimed property.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 212, as introduced, Lowenthal. Unclaimed property.
   The Unclaimed Property Law (UPL) specifies the circumstances under
which unclaimed personal property held by a banking or financial
institution, business association, or other holder of personal
property escheats to the state. The UPL requires a banking or
financial organization, if it has in its records an address for the
apparent owner, which the records do not disclose to be inaccurate,
to make reasonable efforts to notify by mail any customer that the
customer's deposit, account, shares, or other interest in the banking
or financial organization will escheat to the state, as specified.
The UPL provides an exception from this notice requirement for
deposits, accounts, shares, or other interests of less than $50. The
UPL authorizes a banking or financial organization to impose a
service charge for the notice on the deposit, account, shares, or
other interest in an amount up to $2 but not exceeding the
administrative cost of mailing or electronically sending the notice,
but prohibits a banking or financial institution from imposing a
service charge for notice on items of less than $50. The UPL requires
every person holding funds or other property that escheated to the
state to submit a report to the Controller that includes, among other
items, the name and last known address of each person appearing to
be the owner of any property worth at least $50 that escheated to the
state and, for items worth less than $50, the nature and identifying
number, if any, or description of any intangible property reported
in aggregate.
   This bill would delete the notice exception for a deposit,
account, shares, and other interest of less than $50, thereby
requiring a banking or financial institution to make reasonable
efforts to notify the customer regardless of the value of the
interest. The bill would authorize a banking or financial institution
to impose a service charge for notice if the deposit, account,
shares, or other interest has a value greater than $2. The bill would
require a person holding funds or other property escheated to the
state to include in its report to the Controller the name and last
known address of each person appearing to be the owner of any
property escheated to the state, regardless of its value. The bill
would allow the holder to report information regarding escheated
items worth less than $50 in aggregate if the name of the owner is
not known and there is no last known address in the records of the
holder. The bill also would make conforming changes.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 1513.5 of the Code of Civil Procedure is
amended to read:
   1513.5.  (a)  Except as provided in subdivision (c), if
  If  the holder has in its records an address for
the apparent owner, which the holder's records do not disclose to be
inaccurate, every banking or financial organization shall make
reasonable efforts to notify any owner by mail or, if the owner has
consented to electronic notice, electronically, that the owner's
deposit, account, shares, or other interest in the banking or
financial organization will escheat to the state pursuant to clause
(i), (ii), or (iii) of subparagraph (A) of paragraph (1), (2), or (6)
of subdivision (a) of Section 1513. The holder shall give notice
either:
   (1) Not less than two years nor more than two and one-half years
after the date of last activity by, or communication with, the owner
with respect to the account, deposit, shares, or other interest, as
shown on the record of the banking or financial organization.
   (2) Not less than 6 nor more than 12 months before the time the
account, deposit, shares, or other interest becomes reportable to the
Controller in accordance with this chapter.
   (b) The notice required by this section shall specify the time
that the deposit, account, shares, or other interest will escheat and
the effects of escheat, including the necessity for filing a claim
for the return of the deposit, account, shares, or other interest.
The face of the notice shall contain a heading at the top that reads
as follows: "THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT
YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT
CONTACT US," or substantially similar language. The notice required
by this section shall, in boldface type or in a font a minimum of two
points larger than the rest of the notice, exclusive of the heading,
(1) specify that since the date of last activity, or for the last
two years, there has been no owner activity on the deposit, account,
shares, or other interest; (2) identify the deposit, account, shares,
or other interest by number or identifier, which need not exceed
four digits; (3) indicate that the deposit, account, shares, or other
interest is in danger of escheating to the state; and (4) specify
that the Unclaimed Property Law requires banking and financial
organizations to transfer funds of a deposit, account, shares, or
other interest if it has been inactive for three years. It shall also
include a form, as prescribed by the Controller, by which the owner
may declare an intention to maintain the deposit, account, shares, or
other interest. If that form is filled out, signed by the owner, and
returned to the banking or financial organization, it shall satisfy
the requirement of clause (iii) of subparagraph (A) of paragraph (1),
clause (iii) of subparagraph (A) of paragraph (2), or clause (iii)
of subparagraph (A) of paragraph (6) of subdivision (a) of Section
1513. In lieu of returning the form, the banking or financial
organization may provide a telephone number or other electronic means
to enable the owner to contact that organization. The contact, as
evidenced by a memorandum or other record on file with the banking or
financial organization, shall satisfy the requirement of clause
(iii) of subparagraph (A) of paragraph (1), clause (iii) of
subparagraph (A) of paragraph (2), or clause (iii) of subparagraph
(A) of paragraph (6) of subdivision (a) of Section 1513.  The
  If the deposit, account, shares, or other interest
has a value greater than two dollars ($2), the  banking or
financial organization may impose a service charge on the deposit,
account, shares, or other interest for this notice in an amount not
to exceed the administrative cost of mailing or electronically
sending the notice and form and in no case to exceed two dollars
($2). 
   (c) Notice as provided by subdivisions (a) and (b) shall not be
required for deposits, accounts, shares, or other interests of less
than fifty dollars ($50), and no service charge may be made for
notice on these items.  
   (d) 
    (c)  In addition to the notices required pursuant to
subdivision (a), the holder may give additional notice as described
in subdivision (b) at any time between the date of last activity by,
or communication with, the owner and the date the holder transfers
the deposit, account, shares, or other interest to the Controller.

   (e) 
    (d)  At the time a new account is opened with a banking
or financial organization, the organization shall provide a written
notice to the person opening the account informing the person that
his or her property may be transferred to the appropriate state if no
activity occurs in the account within the time period specified by
state law. If the person opening the account has consented to
electronic notice, that notice may be provided electronically.
 This subdivision shall become effective on January 1, 2011.

  SEC. 2.  Section 1520 of the Code of Civil Procedure is amended to
read:
   1520.  (a) All tangible personal property located in this state
and, subject to Section 1510, all intangible personal property,
except property of the classes mentioned in Sections 1511, 1513,
1514, 1515, 1515.5, 1516, 1517, 1518, 1519, and 1521, including any
income or increment thereon and deducting any lawful charges, that is
held or owing in the ordinary course of the holder's business and
has remained unclaimed by the owner for more than three years after
it became payable or distributable escheats to this state.
   (b) Except as provided in subdivision (a) of Section 1513.5,
subdivision (b) of Section 1514, and subdivision (d) of Section 1516,
if the holder has in its records an address for the apparent owner
 of property valued at fifty dollars ($50) or more 
, which the holder's records do not disclose to be inaccurate, the
holder shall make reasonable efforts to notify the owner by mail or,
if the owner has consented to electronic notice, electronically, that
the owner's property will escheat to the state pursuant to this
chapter. The notice shall be mailed not less than 6 nor more than 12
months before the time when the owner's property held by the business
becomes reportable to the Controller in accordance with this
chapter. The face of the notice shall contain a heading at the top
that reads as follows: "THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY
YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF
YOU DO NOT CONTACT US," or substantially similar language. The notice
required by this subdivision shall specify the time when the
property will escheat and the effects of escheat, including the need
to file a claim in order for the owner's property to be returned to
the owner. The notice required by this section shall, in boldface
type or in a font a minimum of two points larger than the rest of the
notice, exclusive of the heading, (1) specify that since the date of
last activity, or for the last two years, there has been no owner
activity on the deposit, account, shares, or other interest; (2)
identify the deposit, account, shares, or other interest by number or
identifier, which need not exceed four digits; (3) indicate that the
deposit, account, shares, or other interest is in danger of
escheating to the state; and (4) specify that the Unclaimed Property
Law requires holders to transfer funds of a deposit, account, shares,
or other interest if it has been inactive for three years. It shall
also include a form, as prescribed by the Controller, by which the
owner may confirm the owner's current address. If that form is filled
out, signed by the owner, and returned to the holder, it shall be
deemed that the account, or other device in which the owner's
property is being held, remains currently active and recommences the
escheat period. In lieu of returning the form, the holder may provide
a telephone number or other electronic means to enable the owner to
contact the holder. With that contact, as evidenced by a memorandum
or other record on file with the holder, the account or other device
in which the owner's property is being held shall be deemed to remain
currently active and shall recommence the escheat period. The holder
may impose a service charge on the deposit, account, shares, or
other interest for this notice in an amount not to exceed the
administrative cost of mailing or electronically sending the notice
and form, and in no case to exceed two dollars ($2).
   (c) In addition to the notice required pursuant to subdivision
(b), the holder may give additional notice as described in
subdivision (b) at any time between the date of last activity by, or
communication with, the owner and the date the holder transfers the
property to the Controller.
   (d) For purposes of this section, "lawful charges" means charges
which are specifically authorized by statute, other than  the
Unclaimed Property Law   this chapter  , or by a
valid, enforceable contract.
  SEC. 3.  Section 1530 of the Code of Civil Procedure is amended to
read:
   1530.  (a) Every person holding funds or other property escheated
to this state under this chapter shall report to the Controller as
provided in this section.
   (b) The report shall be on a form prescribed or approved by the
Controller and shall include:
   (1) Except with respect to traveler's checks and money orders, the
name, if known, and last known address, if any, of each person
appearing from the records of the holder to be the owner of any
property  of value of at least fifty dollars ($50) 
escheated under this chapter.
   (2) In the case of escheated funds of life insurance corporations,
the full name of the insured or annuitant, and his or her last known
address, according to the life insurance corporation's records.
   (3) In the case of the contents of a safe deposit box or other
safekeeping repository or in the case of other tangible property, a
description of the property and the place where it is held and may be
inspected by the Controller. The report shall set forth any amounts
owing to the holder for unpaid rent or storage charges and for the
cost of opening the safe deposit box or other safekeeping repository,
if any, in which the property was contained.
   (4) The nature and identifying number, if any, or description of
any intangible property and the amount appearing from the records to
be due, except that items of value under fifty dollars ($50) each may
be reported in aggregate  if the name of the owner is unknown
and there is no last known address in the records of the holder 
.
   (5) Except for any property reported in the aggregate, the date
when the property became payable, demandable, or returnable, and the
date of the last transaction with the owner with respect to the
property.
   (6) Other information which the Controller prescribes by rule as
necessary for the administration of this chapter.
   (c) If the holder is a successor to other persons who previously
held the property for the owner, or if the holder has changed his or
her name while holding the property, he or she shall file with his or
her report all prior known names and addresses of each holder of the
property.
   (d) The report shall be filed before November 1 of each year as of
June 30 or fiscal yearend next preceding, but the report of life
insurance corporations, and the report of all insurance corporation
demutualization proceeds subject to Section 1515.5, shall be filed
before May 1 of each year as of December 31 next preceding. The
initial report for property subject to Section 1515.5 shall be filed
on or before May 1, 2004, with respect to conditions in effect on
December 31, 2003, and all property shall be determined to be
reportable under Section 1515.5 as if that section were in effect on
the date of the insurance company demutualization or related
reorganization. The Controller may postpone the reporting date upon
his or her own motion or upon written request by any person required
to file a report.
   (e) The report, if made by an individual, shall be verified by the
individual; if made by a partnership, by a partner; if made by an
unincorporated association or private corporation, by an officer; and
if made by a public corporation, by its chief fiscal officer or
other employee authorized by the holder.