BILL NUMBER: AB 1888	CHAPTERED  08/31/00

	CHAPTER   267
	FILED WITH SECRETARY OF STATE   AUGUST 31, 2000
	APPROVED BY GOVERNOR   AUGUST 30, 2000
	PASSED THE ASSEMBLY   AUGUST 21, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   AUGUST 10, 2000
	AMENDED IN SENATE   JUNE 13, 2000
	AMENDED IN ASSEMBLY   APRIL 3, 2000

INTRODUCED BY   Assembly Member Dutra

                        FEBRUARY 10, 2000

   An act to add Section 1577.5 to the Code of Civil Procedure,
relating to unclaimed property.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1888, Dutra.  Unclaimed property:  escheat.
   Under existing law, property that is held by a business that is
unclaimed for more than specified periods escheats to the state.
Existing law requires persons holding unclaimed property to report
and deliver it to the Controller within the time prescribed, and
imposes interest payments at the rate of 12% per annum and penalties
for a failure to do so.
   This bill would provide that any person who pays or delivers
property to the Controller on or before December 31, 2001, in
accordance with the requirements of the bill shall not be subject to
statutory interest payments for failure to pay or deliver unclaimed
property.  The bill would also require the Controller to publicize
its provisions, report to the Legislature regarding this program, as
specified, no later than December 31, 2002, and provide that it does
not preclude liability with regard to false claims.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1577.5 is added to the Code of Civil Procedure,
to read:
   1577.5.  (a) Section 1577 shall not apply to, and interest shall
not be imposed upon, any escheated property paid or delivered to the
Controller at any time on or before December 31, 2001.
   (b) Subdivision (a) shall apply only if the following requirements
are met:
   (1) As of January 3, 2000, the holder of the property is not the
subject of an investigation by the Attorney General, the subject of
an audit by the Controller, or a party to litigation with the
Controller, relating to the property.  "Investigation by the Attorney
General" means an investigation being conducted under any law
authorizing the investigation, including, but not limited to,
investigations authorized by or conducted pursuant to Article 2
(commencing with Section 11180) of Chapter 2 of Part 1 of Division 3
of Title 2 of the Government Code by the office of the Attorney
General relating to the escheat of property subject to subdivision
(a).  "Audit by the Controller" means a formal field audit of the
propertyholder's books and records by audit personnel of the
Controller's office for the purpose of determining compliance with
this chapter.
   (2) The property was required to be reported on or before November
1, 1999.
   (3) The property is surrendered directly to the state or its
authorized agent.
   (4) Reports respecting the property are reported by electronic
media satisfactory to the Controller, provided that paper reports
shall be permitted with respect to holders reporting fewer than 50
accounts or other items.
   (5) All property reported after the effective date of this act
shall be reported on a report separate from property currently
reportable, and may not be reported with property not eligible for
the amnesty program.
   (6) The property is paid or delivered to the Controller at the
time the report is made.
   (7) Securities are remitted in accordance with Section 1532.
   (8) Records shall be maintained in a manner satisfactory to the
Controller, to permit verification and compliance audits.
   (c) Nothing in subdivision (a) shall create an entitlement to a
refund of interest paid to the Controller prior to the effective date
of this section.
   (d) The Controller shall conduct an outreach and publicity program
regarding the provisions of this section.
   (e) The Controller shall submit a report to the Legislature on the
amnesty program.  The report shall include a comprehensive
accounting of all unclaimed property surrendered under the amnesty
program, the date the property was surrendered, and the identities of
the holders of surrendered unclaimed property.  The report shall be
published no later than December 31, 2002.
   (f) Nothing in this section shall preclude liability pursuant to
Article 9 (commencing with Section 12650) of Chapter 6 of Title 2 of
Division 3 of the Government Code regarding false claims.  Reporting
or filing extensions shall not be granted for property under this
section.