Amended in Senate May 26, 2015

Amended in Assembly March 17, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 355

Introduced by Assembly Member Eduardo Garcia

February 17, 2015

An act to amend begin delete Section 1530 end delete begin insert Sections 1531 and 1563 end insert of the Code of Civil Procedure, relating to unclaimed property.

LEGISLATIVE COUNSEL’S DIGEST

AB 355, as amended, Eduardo Garcia. Unclaimed property: safe deposit boxes.

Existing law, the Unclaimed Property Law, governs the disposition of unclaimed property, including the escheat of certain property to the state. Existing law provides for the escheat to the state of the contents of, or proceeds of sale of the contents of, any safe deposit box or any other safekeeping repository held in the state by a business association, as specified. In cases where the contents of a safe deposit box or other safekeeping repository escheat to the state, existing law requires the business association to report to the Controller certain information regarding the property and owner, including a description of the property and the place where it is held and may be inspected by the Controller. begin insert Within 165 days after the final date for filing the report, existing law requires the Controller to mail a notice to each person having an address listed in the report who appears to be entitled to property escheated, as specified. end insert

This bill would additionally begin delete require the business association to include in its report to the Controller any name attached to end delete begin insert authorize the Controller to mail a separate notice to an apparent owner of end insert a United States savings bond begin insert , war bond, end insert or military award inside a safe deposit box or other safekeeping repository begin delete that end delete begin insert whose name is shown on or can be associated with the contents of a safe deposit box or other safekeeping repository and end insert is different from the name of the begin insert reported end insert owner.

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1531 of the end insert begin insert Code of Civil Procedure end insert begin insert is
amended to read: end insert

1531.  

(a) Within one year after payment or delivery of
escheated property as required by Section 1532, the Controller
shall cause a notice to be published, in a newspaper of general
circulation begin insert , end insert which the Controller determines is most likely to give
notice to the apparent owner of the property.

(b) Each published notice shall be entitled “notice to owners of
unclaimed property.”

(c) Each published notice shall also contain a statement that
information concerning the amount or description of the property
may be obtained by any persons possessing an interest in the
property by addressing any inquiry to the Controller.

(d)  begin insert (1) end insert begin insert   end insert Within 165 days after the final date for filing the report
required by Section 1530, the Controller shall mail a notice to each
person having an address listed in the report who appears to be
entitled to property of the value of fifty dollars ($50) or more
escheated under this chapter. If the report filed pursuant to Section
1530 includes a social security number, the Controller shall request
the Franchise Tax Board to provide a current address for the
apparent owner on the basis of that number. The Controller shall
mail the notice to the apparent owner for whom a current address
is obtained if the address is different from the address previously
reported to the Controller. If the Franchise Tax Board does not
provide an address or a different address, then the Controller shall
mail the notice to the address listed in the report required by
Section 1530.

begin insert

(2) The Controller may mail a separate notice to an apparent
owner of a United States savings bond, war bond, or military
award whose name is shown on or can be associated with the
contents of a safe deposit box or other safekeeping repository and
is different from the reported owner of the safe deposit box or other
safekeeping repository.

end insert

(e) The mailed notice shall contain all of the following:

(1) A statement that, according to a report filed with the
Controller, property is being held to which the addressee appears
entitled.

(2) The name and address of the person holding the property
and any necessary information regarding changes of name and
address of the holder.

(3) A statement that, if satisfactory proof of claim is not
presented by the owner to the holder by the date specified in the
notice, the property will be placed in the custody of the Controller
and may be sold or destroyed pursuant to this chapter, and all
further claims concerning the property or, if sold, the net proceeds
of its sale, must be directed to the Controller.

(f) This section is intended to inform owners about the possible
existence of unclaimed property identified pursuant to this chapter.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1563 of the end insert begin insert Code of Civil Procedure end insert begin insert is
amended to read: end insert

1563.  

(a) Except as provided in subdivisions (b) and (c), all
escheated property delivered to the Controller under this chapter
shall be sold by the Controller to the highest bidder at public sale
in whatever city in the state affords in his or her judgment the most
favorable market for the property involved, or the Controller may
conduct the sale by electronic media, including, but not limited
to, the Internet, if in his or her judgment it is cost effective to
conduct the sale of the property involved in that manner. However,
no sale shall be made pursuant to this subdivision until 18 months
after the final date for filing the report required by Section 1530.
The Controller may decline the highest bid and reoffer the property
for sale if he or she considers the price bid insufficient. The
Controller need not offer any property for sale if, in his or her
opinion, the probable cost of sale exceeds the value of the property.
Any sale of escheated property held under this section shall be
preceded by a single publication of notice thereof, at least one
week in advance of sale, in an English language newspaper of
general circulation in the county where the property is to be sold.

(b) Securities listed on an established stock exchange shall be
sold at the prevailing prices on that exchange. Other securities may
be sold over the counter at prevailing prices or, with prior approval
of the California Victim Compensation and Government Claims
Board, by any other method that the Controller may determine to
be advisable. These securities shall be sold by the Controller no
sooner than 18 months, but no later than 20 months, after the final
date for filing the report required by Section 1530. If securities
delivered to the Controller by a holder of the securities remain in
the custody of the Controller, a person making a valid claim for
those securities under this chapter shall be entitled to receive the
securities from the Controller. If the securities have been sold, the
person shall be entitled to receive the net proceeds received by the
Controller from the sale of the securities. United States government
savings bonds and United States war bonds shall be presented to
the United States for payment. Subdivision (a) does not apply to
the property described in this subdivision.

(c) (1) All escheated property consisting of military awards,
decorations, equipment, artifacts, memorabilia, documents,
photographs, films, literature, and any other item relating to the
military history of California and Californians that is delivered to
the Controller is exempt from subdivision (a) and begin delete shall end delete begin insert may, at the
discretion of the Controller, end insert be held in trust for the Controller at
the California State Military Museum and Resource begin delete Center. end delete begin insert Center,
or successor entity. end insert All escheated property held in trust pursuant
to this subdivision is subject to the applicable regulations of the
United States Army governing Army museum activities as
described in Section 179 of the Military and Veterans Code. Any
person claiming an interest in the escheated property may file a
claim to the property pursuant to Article 4 (commencing with
Section 1540).

(2) The California State Military Museum and Resource begin delete Center end delete
begin insert Center, or successor entity, end insert shall be responsible for the costs of
storage and maintenance of escheated property delivered by the
Controller under this subdivision.

(d) The purchaser at any sale conducted by the Controller
pursuant to this chapter shall receive title to the property purchased,
free from all claims of the owner or prior holder thereof and of all
persons claiming through or under them. The Controller shall
execute all documents necessary to complete the transfer of title.

begin delete

SECTION 1.  

Section 1530 of the Code of Civil Procedure is
amended to read:

1530.  

(a) Every person holding funds or other property
escheated to the 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. This paragraph shall become inoperative on July 1,
2014.

(2) 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 twenty-five dollars ($25) escheated
under this chapter. This paragraph shall become operative on July
1, 2014.

(3) 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.

(4) 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, including any name attached to a
United States savings bond or military award inside the safe deposit
box or other safekeeping repository that is different from the name
of the owner, 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.

(5) 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 twenty-five dollars
($25) each may be reported in aggregate.

(6) 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.

(7) 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.

end delete