BILL NUMBER: AB 698 CHAPTERED
BILL TEXT
CHAPTER 1029
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 1998
APPROVED BY GOVERNOR SEPTEMBER 30, 1998
PASSED THE ASSEMBLY AUGUST 27, 1998
PASSED THE SENATE AUGUST 25, 1998
AMENDED IN SENATE AUGUST 20, 1998
AMENDED IN SENATE AUGUST 17, 1998
AMENDED IN SENATE AUGUST 6, 1998
AMENDED IN SENATE JULY 27, 1998
AMENDED IN SENATE JUNE 30, 1998
AMENDED IN SENATE JUNE 3, 1998
AMENDED IN SENATE JULY 14, 1997
AMENDED IN SENATE JULY 2, 1997
AMENDED IN ASSEMBLY MAY 28, 1997
AMENDED IN ASSEMBLY MAY 5, 1997
AMENDED IN ASSEMBLY APRIL 17, 1997
INTRODUCED BY Assembly Member Cardenas
FEBRUARY 26, 1997
An act to amend Sections 1540 and 1571 of the Code of Civil
Procedure, relating to unclaimed property.
LEGISLATIVE COUNSEL'S DIGEST
AB 698, Cardenas. Unclaimed property.
Existing law, known as the Unclaimed Property Law, provides for
the escheat to the state of, among other property, certain personal
property held or owing in the ordinary course of the holder's
business. Existing law authorizes the Controller, or upon the
request of the Controller, one of certain licensing or regulatory
agencies, to examine the records of a holder of property of another
to determine if the holder is in compliance with the Unclaimed
Property Law. Existing law authorizes the Controller to bring an
action to enforce specified provisions of the Unclaimed Property Law
and provides for the imposition of penalties and interest against
holders who willfully fail to comply with the Unclaimed Property Law.
This bill would direct the Controller, after holding public
hearings, to adopt guidelines as to the policies and procedures
governing 3rd-party auditors who are hired by the Controller, and to
establish guidelines, forms, and procedures for filing claims and for
disputing or appealing a record examination.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1540 of the Code of Civil Procedure is amended
to read:
1540. (a) Any person, excluding another state, who claims an
interest in property paid or delivered to the Controller under this
chapter may file a claim to the property or to the net proceeds from
its sale. The claim shall be on a form prescribed by the Controller
and shall be verified by the claimant.
(b) The Controller shall consider each claim within 90 days after
it is filed and may hold a hearing and receive evidence. The
Controller shall give written notice to the claimant if he or she
denies the claim in whole or in part. The notice may be given by
mailing it to the address, if any, stated in the claim as the address
to which notices are to be sent. If no address is stated in the
claim, the notice may be mailed to the address, if any, of the
claimant as stated in the claim. No notice of denial need be given
if the claim fails to state either an address to which notices are to
be sent or an address of the claimant.
(c) The Controller shall add interest at the rate of 5 percent
compounded annually or the current interest rate received upon
deposits held in the Pooled Money Investment Account, whichever is
lower, to the amount of any claim paid the owner under this section
for the period the property was on deposit in the Unclaimed Property
Fund. No interest shall be payable for any period prior to January
1, 1977.
(d) Any holder who pays to the owner, property that has escheated
to the state and that, if claimed from the Controller, would be
subject to subdivision (c) may add interest as provided in
subdivision (c). This added interest shall be repaid to the holder
by the Controller in the same manner as the principal.
(e) For the purposes of this section, "owner" means the person who
had legal right to the property prior to its escheat, his or her
heirs, or his or her legal representative.
(f) Following a public hearing, the Controller shall adopt
guidelines and forms that shall provide specific instructions to
assist owners in filing claims pursuant to this article.
SEC. 2. Section 1571 of the Code of Civil Procedure is amended to
read:
1571. (a) The Controller may at reasonable times and upon
reasonable notice examine the records of any person if the Controller
has reason to believe that the person is a holder who has failed to
report property that should have been reported pursuant to this
chapter.
(b) When requested by the Controller, the examination shall be
conducted by any licensing or regulating agency otherwise empowered
by the laws of this state to examine the records of the holder. For
the purpose of determining compliance with this chapter, the
Commissioner of Financial Institutions is vested with full authority
to examine the records of any banking organization and any savings
association doing business within this state but not organized under
the laws of or created in this state.
(c) Following a public hearing, the Controller shall adopt
guidelines as to the policies and procedures governing the activity
of third-party auditors who are hired by the Controller.
(d) Following a public hearing, the Controller shall adopt
guidelines, on or before July 1, 1999, establishing forms, policies,
and procedures to enable a person to dispute or appeal the results of
any record examination conducted pursuant to this section.
SEC. 3. This act shall not be construed to affect any civil action
or proceeding pending on or before January 1, 1999. This act shall
only apply prospectively.