BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 495|
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UNFINISHED BUSINESS
Bill No: SB 495
Author: Fuller (R)
Amended: 8/18/11
Vote: 21
SENATE JUDICIARY COMMITTEE : 5-0, 5/3/11
AYES: Evans, Harman, Blakeslee, Corbett, Leno
SENATE APPROPRIATIONS COMMITTEE : 9-0, 5/26/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Runner, Steinberg
SENATE FLOOR : 39-0, 6/2/11
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon,
Cannella, Corbett, Correa, De Le�n, DeSaulnier, Dutton,
Emmerson, Evans, Fuller, Gaines, Hancock, Harman,
Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu,
Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio,
Simitian, Steinberg, Strickland, Vargas, Walters, Wolk,
Wright, Wyland, Yee
NO VOTE RECORDED: Runner
ASSEMBLY FLOOR : 71-3, 8/25/11 - See last page for vote
SUBJECT : Unclaimed property
SOURCE : California State Controller
DIGEST : This bill makes several changes to the Unclaimed
Property Law (UPL) to increase the period of time the State
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Controller (Controller) must hold property that has been
delivered to the state under the UPL. Specifically, this
bill (1) extends the period of time that property of no
commercial value must be held by the Controller from 18
months to seven years; (2) specifies additional
circumstances under which certain funds in retirement
accounts and plans become due and payable and exempts
tangible or intangible property from escheating to the
state if the fiduciary and owner of the property have taken
specified actions regarding the property; and (3) makes
other technical and clarifying amendments, including
property holder reporting requirements to specify that the
person holding the property only need report property
subject to escheat.
Assembly Amendments delete provisions affecting Code of
Civil Procedure (CCP) Section 1514 relative to (1)
increasing the holding period of property in a safe deposit
box and (2) provision relative to notice time frame.
ANALYSIS : Existing law, the UPL, provides that funds
held by a business association in an individual retirement
account or under a retirement plan for self-employed
individuals or similar account or plan established pursuant
to the internal revenue laws of the United States or of
this state escheat to the state when the owner, for more
than three years after the funds become payable or
distributable, has not done any of the following: (1)
increased or decreased the principal; (2) accepted payment
of principal or income; or (3) corresponded electronically
or in writing concerning the property or otherwise
indicated an interest. (CCP Section 1513(a)(6).) Existing
law provides that the above funds are not considered
payable or distributable unless, under the terms of the
account or plan, distribution of all or part of the funds
would then be mandatory. (CCP Section 1513(a)(6))
Existing law provides that all tangible and intangible
personal property located in this state, as specified, and
the income on that property, held in a fiduciary capacity
for the benefit of another person escheats to the state if
after it becomes payable or distributable, the owner has
not, within a period of three years, increased or decreased
the principal, accepted payment of principal or income,
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corresponded in writing regarding the property, or
otherwise indicated an interest. (CCP Section 1518.)
Existing law provides that funds in an individual
retirement account or retirement plan for self-employed
individuals or similar account are not considered payable
or distributable unless under the terms of the account or
plan, distribution of all or part of the funds would then
be mandatory. (CCP Section 1518(b))
This bill, instead, provides that the funds are not
considered payable or distributable unless: (1) under the
terms of the account or plan, distribution of all or a part
of the funds would then be mandatory; or (2) for an account
or plan that is not subject to a mandatory distribution
requirement under the internal revenue laws of the United
States or laws of this state, the owner has attained the
age of 70 and one-half years of age.
Existing law requires the Controller to retain delivered
unclaimed property that has no apparent commercial value
for a period no less than 18 months. Property may
thereafter be destroyed or otherwise disposed of, and no
action against the Controller or the holder of the property
may be brought or maintained. (CCP Section 1565)
This bill extends the Controller's holding period for
property that has no apparent commercial value from not
less than 18 months to not less than seven years.
This bill makes other technical, clarifying changes.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Extended escheat period
$1,200General
Holding items of no value
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$152General
Compliance program staff $261 $528
$528General
Compliance program revenues ($5,021)
($11,7110) General
NET costs/(revenues) $261 ($4,493)
(9,831)General
SUPPORT : (Verified 8/25/11)
California State Controller (source)
ARGUMENTS IN SUPPORT : According to the author, "SB 495
is intended to further address the problems and concerns of
the state's unclaimed property program by ensuring that as
much personal property as possible never escheats to the
state while helping to return property that has escheated
to its rightful owners."
ASSEMBLY FLOOR : 71-3, 8/25/11
AYES: Achadjian, Alejo, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bradford, Brownley,
Buchanan, Butler, Charles Calderon, Carter, Cedillo,
Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng,
Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines,
Galgiani, Garrick, Gordon, Grove, Hagman, Halderman,
Hall, Harkey, Hayashi, Roger Hern�ndez, Hill, Huber,
Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Olsen, Pan, Perea,
V. Manuel P�rez, Portantino, Silva, Skinner, Smyth,
Solorio, Swanson, Valadao, Wagner, Wieckowski, Yamada,
John A. P�rez
NOES: Allen, Gatto, Norby
NO VOTE RECORDED: Bonilla, Campos, Gorell, Hueso, Torres,
Williams
RJG:kc 8/26/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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