Amended in Assembly April 8, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1712

Introduced by Assembly Member Gomez

February 13, 2014

An act to amend Section 1540 of the Code of Civil Procedure, relating to unclaimed property.

LEGISLATIVE COUNSEL’S DIGEST

AB 1712, as amended, Gomez. Unclaimed property.

Existing law, the Unclaimed Property Law, authorizes the Controller to administer property that has escheated to the state and sets forth procedures whereby a person may file a claim to the property or to the net proceeds from its sale. Existing law specifies that only a person who claims to have been an owner of the property, as defined, may file a claim with the Controller. Existing law defines an “owner” as the person who had legal right to the property prior to its escheat, his or her heirs or estate representative, his or her guardian or conservator, or a public administrator, as specified.

This bill would revise the definition of owner to also include a begin delete parent organization of a end delete nonprofit civic, charitable, or educational organization that granted a charter, sponsorship, or approval for the existence of the organization that begin delete owned the property but that is no longer chartered, sponsored, or approved, and has otherwise dissolved or is no longer in existence. end delete begin insert had the legal right to the property prior to its escheat but that has dissolved or is no longer in existence, if the charter, sponsorship, approval, organization bylaws, or other governing documents provide that surplus funds or property may be turned over to the granting organization. end insert

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

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 to
have been the owner, as defined in subdivision (d), of 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 180 days
after it is filed to determine if the claimant is the owner, as defined
in subdivision (d), 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. A notice of denial need not 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) Interest shall not be payable on any claim paid under this
chapter.

(d) Notwithstanding subdivision (g) of Section 1501, for
purposes of filing a claim pursuant to this section, “owner” means
the person who had legal right to the property prior to its escheat,
his or her heirs or estate representative, his or her guardian or
conservator, begin insert or end insert a public administrator acting pursuant to the
authority granted in Sections 7660 and 7661 of the Probate begin delete Code,
or a parent organization of end delete begin insert Code. An “owner” also means end insert a
nonprofit civic, charitable, or educational organization that granted
a charter, sponsorship, or approval for the existence of begin delete an end delete begin insert the end insert
organization that begin delete owned the property but that is no longer chartered,
sponsored, or approved, and has dissolved or is no longer in
existence. end delete begin insert had the legal right to the property prior to its escheat
but that has dissolved or is no longer in existence, if the charter,
sponsorship, approval, organization bylaws, or other governing
documents provide that surplus funds or property may be turned
over to the granting organization. end insert Only an owner, as defined in
this subdivision, may file a claim with the Controller pursuant to
this article.

(e) 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.