BILL NUMBER: AB 355 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 26, 2015
AMENDED IN ASSEMBLY MARCH 17, 2015
INTRODUCED BY Assembly Member Eduardo Garcia
FEBRUARY 17, 2015
An act to amend Section 1530 Sections 1531
and 1563 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. 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.
This bill would additionally require the business
association to include in its report to the Controller any name
attached to authorize the Controller to mail a
separate notice to an apparent owner of a United States savings
bond , war bond, or military award inside a safe deposit
box or other safekeeping repository that
whose name is shown on or can be associated with the cont
ents of a safe deposit box or other safekeeping repository and
is different from the name of the reported owner.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1531 of the Code of
Civil Procedure is amended to read:
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 ,
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) (1) 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.
(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.
(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.
SEC. 2. Section 1563 of the Code of
Civil Procedure is amended to read:
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 shall
may, at the discretion of the Controller, be
held in trust for the Controller at the California State Military
Museum and Resource Center. Center, or
successor entity. 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
Center Center, or successor entity, 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.
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.