BILL NUMBER: AB 938 CHAPTERED 05/05/00 CHAPTER 16 FILED WITH SECRETARY OF STATE MAY 5, 2000 APPROVED BY GOVERNOR MAY 5, 2000 PASSED THE ASSEMBLY APRIL 24, 2000 PASSED THE SENATE APRIL 13, 2000 AMENDED IN SENATE MARCH 8, 2000 AMENDED IN SENATE AUGUST 18, 1999 AMENDED IN ASSEMBLY APRIL 13, 1999 INTRODUCED BY Assembly Member Dutra (Coauthors: Assembly Members Aroner, Ashburn, Baldwin, Bates, Baugh, Bock, Briggs, Calderon, Campbell, Cardenas, Cardoza, Cedillo, Corbett, Correa, Cox, Dickerson, Ducheny, Firebaugh, Florez, Frusetta, Gallegos, Granlund, Havice, Hertzberg, House, Jackson, Kaloogian, Kuehl, Leach, Leonard, Longville, Lowenthal, Maddox, Maldonado, Margett, Mazzoni, Nakano, Olberg, Reyes, Runner, Steinberg, Strom-Martin, Thompson, Thomson, Vincent, Washington, Wayne, Wesson, and Wildman) FEBRUARY 25, 1999 An act to amend Section 1563 of the Code of Civil Procedure, relating to escheat, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 938, Dutra. Escheat: military awards. Existing law requires all escheated property delivered to the Controller to be sold by the Controller to the highest bidder at public sale, as specified. This bill would exempt from those provisions all escheated property consisting of military awards and decorations that is delivered to the Controller, and would require that property to be held in trust at the California National Guard Museum and Resource Center subject to a claim by persons having an interest therein, as specified. This bill would provide that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature hereby finds and declares all of the following: (a) Members of the United States Armed Forces have consistently answered their nation's call to duty with honor and bravery. (b) Californians serve proudly and with distinction in every branch of the United States Armed Forces. (c) Californians have been recognized for their distinguished service by being honored through the awarding of Purple Hearts, Silver Stars, and Congressional Medals of Honor, among other commendations and awards. (d) Military awards and decorations are irreplaceable and are unique symbols of the patriotism and distinguished heroism shown by our men and women while serving in uniform. (e) Military awards and decorations are a crucial part of any family's heritage and history. (f) Military awards and decorations are also an important part of the heritage and culture of the State of California. SEC. 2. Section 1563 of the Code of Civil Procedure is amended to read: 1563. (a) Except as provided in subdivisions (b) and (d), 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. 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 within two years following receipt by the Controller 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 State Board of Control, by such other method as the Controller may determine to be advisable. 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) All escheated property consisting of military awards and decorations that is delivered to the Controller is exempt from subdivision (a) and shall be held in trust for the Controller at the California National Guard Museum and Resource Center. Any person claiming an interest in the escheated property may file a claim to the property pursuant to Article 4 (commencing with Section 1540). (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. SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to prevent the sale of priceless items of cultural significance to the state and families residing in the state, it is necessary that this act take effect immediately.