Senate BillNo. 1115


Introduced by Senator Leno

February 17, 2016


An act to amend Sections 1571 and 1572 of the Code of Civil Procedure, relating to unclaimed property.

LEGISLATIVE COUNSEL’S DIGEST

SB 1115, as introduced, Leno. Unclaimed Property Law

Under the existing Unclaimed Property Law, any tangible or intangible personal property, demand, savings, or matured time deposit, or other prescribed deposits or accounts escheat to the state when the owner of the deposits or accounts has not, for more than 3 years, indicated an interest in the deposit, as specified. The Unclaimed Property Law authorizes the Controller to examine a person’s records if the Controller has reason to believe that the person has failed to report property that should have been reported pursuant to that law. Existing law also permits the Controller to bring an action for specified purposes to enforce the Unclaimed Property Law.

This bill would instead authorize the Controller to examine records under this law even if the holder of those records does not believe that he or she has failed to report property, as required. This bill would also require a court to award the Controller its costs and attorney’s fees if he or she prevails on an action to enforce the Unclaimed Property Law, as specified.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 1571 of the Code of Civil Procedure is
2amended to read:

3

1571.  

(a) The Controller may at reasonable times and upon
4reasonable notice examine the records ofbegin delete anyend deletebegin insert aend insert personbegin insert evenend insert if the
5begin delete Controller has reason to believe that the person is a holder whoend delete
6begin insert person does not believe that he or sheend insert has failed to report property
7that should have been reported pursuant to this chapter.

8(b) When requested by the Controller, the examination shall be
9conducted bybegin delete anyend deletebegin insert aend insert licensing or regulating agency otherwise
10empowered by the laws of this state to examine the records of the
11holder. For the purpose of determining compliance with this
12chapter, the Commissioner of Business Oversight is vested with
13full authority to examine the records ofbegin delete anyend deletebegin insert aend insert banking organization
14begin delete and anyend deletebegin insert orend insert savings association doing business within this state but
15not organized under the laws of or created in this state.

16(c) Following a public hearing, the Controller shall adopt
17guidelines as to the policies and procedures governing the activity
18of third-party auditors who are hired by the Controller.

19(d) Following a public hearing, the Controller shall adopt
20guidelines, on or before July 1, 1999, establishing forms, policies,
21and procedures to enable a person to dispute or appeal the results
22ofbegin delete anyend deletebegin insert aend insert record examination conducted pursuant to this section.

23

SEC. 2.  

Section 1572 of the Code of Civil Procedure is
24amended to read:

25

1572.  

(a) Thebegin delete Stateend delete Controller may bring an action in a court
26of appropriate jurisdiction, as specified in this section, for any of
27the following purposes:

28(1) To enforce the duty ofbegin delete anyend deletebegin insert aend insert person under this chapter to
29permit the examination of thebegin delete records of such person.end deletebegin insert person’s
30records.end insert

31(2) For a judicial determination that particular property is subject
32to escheat by this state pursuant to this chapter.

33(3) To enforce the delivery ofbegin delete anyend delete property to thebegin delete Stateend delete
34 Controller as required under this chapter.

35(b) Thebegin delete Stateend delete Controller may bring an action under this chapter
36inbegin delete any court of this stateend deletebegin insert a state courtend insert of appropriate jurisdiction
37in any of the following cases:

P3    1(1) begin deleteWhere the end deletebegin insertThe end insertholder isbegin delete anyend deletebegin insert aend insert person domiciled in this state,
2or is a government or governmental subdivision or agency of this
3state.

4(2) begin deleteWhere the end deletebegin insertThe end insertholder isbegin delete anyend deletebegin insert aend insert person engaged in or
5transacting business in this state, although not domiciled in this
6state.

7(3) begin deleteWhere the end deletebegin insertThe end insertproperty is tangible personal property and is
8held in this state.

9(c) begin deleteIn any case where no court of this state can end deletebegin insertIf a state court
10cannotend insert
begin insert end insertobtain jurisdiction over the holder, thebegin delete Stateend delete Controller
11may bring an action in any federal or state court with jurisdiction
12over the holder.

begin insert

13(d) If the Controller prevails in an action brought pursuant to
14this section, the court shall award the Controller his or her costs,
15including attorney’s fees.

end insert


O

    99