Bill Text: CA AB1011 | 2013-2014 | Regular Session | Amended
Bill Title: Unclaimed property: interest payment.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1011 Detail]
Download: California-2013-AB1011-Amended.html
BILL NUMBER: AB 1011 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 7, 2013
INTRODUCED BY Assembly Member Salas
FEBRUARY 22, 2013
An act to amend Section 1540 of the Code of Civil Procedure and
to amend Section 12419.8 of the Government Code, relating
to unclaimed property.
LEGISLATIVE COUNSEL'S DIGEST
AB 1011, as amended, Salas. Unclaimed property: interest payment.
The Unclaimed Property Law, which is administered by the
Controller, governs the disposition of unclaimed property, including
the escheat of certain property to the state. Existing law specifies
the procedures for transferring the property from the holder of the
property to the state and for administering the property. Existing
law sets forth procedures whereby a person may file a claim to the
property or to the net proceeds from its sale. Existing law prohibits
the payment of interest on a claim paid by the Controller under the
Unclaimed Property Law.
This bill would require that the Controller add interest, at
specified rates, to the amount of any claim paid by the Controller to
an owner under the Unclaimed Property Law. The bill would also
impose the requirement to pay interest on a former holder of property
, as specified, who compensates an owner of
property that has escheated and been remitted to the Controller. The
bill would allow a former holder who makes such a payment to seek
reimbursement in that amount from the Controller, as specified.
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 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 180 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) (1) The Controller shall add interest at the rate of 5 percent
per year or the bond equivalent rate of 13-week United States
Treasury bills, 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, 2014. Any interest required to be
paid by the state pursuant to this section shall be computed as
simple interest, not as compound interest.
(2) For purposes of this section, the bond equivalent rate of
13-week United States Treasury bills shall be defined in accordance
with the following criteria:
(A) The bond equivalent rate of 13-week United States Treasury
bills established at the first auction held during the month of
January shall apply for the following July 1 to December 31,
inclusive.
(B) The bond equivalent rate of 13-week United States Treasury
bills established at the first auction held during the month of July
shall apply for the following January 1 to June 30, inclusive.
(d) A former holder of property, who , pursuant to
subdivision (b) of Section 1560, compensates the owner of
property that has escheated and been remitted to the state, shall
also pay interest as provided in subdivision (c) in addition to the
value of the property. Upon payment of the principal and interest
pursuant to this subdivision, the owner shall be deemed to have
forfeited his or her interest in the escheated property and the
former holder may seek and receive reimbursement from the Controller
in the amount that the former holder paid to the owner of the
escheated property. The request for reimbursement must be properly
submitted in the form prescribed by the Controller.
(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, his or her legal representative, or a public administrator
acting pursuant to the authority granted in Sections 7660 and 7661 of
the Probate Code.
(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 12419.8 of the Government Code is amended to read:
12419.8. (a) The Controller may, in his or her discretion, offset
any amount due a city or county from a person or entity pursuant to
paragraph (1), (2), or (4) of subdivision (c), and shall, at the
request of the city or county, offset any amount due a city or county
from a person or entity pursuant to paragraph (3) of subdivision
(c), against any amount owing the person or entity by a state agency
on a claim for a refund from the Franchise Tax Board under the
Personal Income Tax Law or the Bank and Corporation Tax Law, a claim
for refund from the State Board of Equalization under the Sales and
Use Tax Law, from winnings in the California State Lottery, or a
claim filed by the owner, as described in subdivision (e) of Section
1540 of the Code of Civil Procedure, for payment of money from
unclaimed property held by the state. Standards and procedures for
submission of requests for offsets shall be as prescribed by the
Controller. Whenever insufficient funds are available to satisfy an
offset request, the Controller, after first applying the amounts
available to any amount due a state agency, may allocate the balance
among any other requests for offset.
(b) The Controller shall deduct and retain from any amount offset
in favor of a city or county an amount sufficient to reimburse the
Controller, the Franchise Tax Board, the State Board of Equalization,
or the California State Lottery for their administrative costs of
processing the offset payment.
(c) This section shall apply only to any of the following
situations:
(1) Where the amount has been reduced to a judgment.
(2) Where the amount is contained in an order of a court.
(3) Where the amount is from a bench warrant for payment of any
fine, penalty, or assessment.
(4) Where the amount is delinquent unsecured property taxes on
which a certificate lien has been filed for record in the office of
the county recorder pursuant to Section 2191.3 of the Revenue and
Taxation Code.
(d) For purposes of paragraph (4) of subdivision (c):
(1) Upon the tax collector's request for taxpayer identification
numbers required by the Controller's procedures, the tax collector
shall immediately notify the appropriate assessee, by registered or
certified mail, that the request has been made for the purpose of
intercepting refunds from the state government due the taxpayer, in
order to offset the delinquent property tax obligation. The letter
shall state that if the assessee does not pay the outstanding tax
amount to the tax collector within 20 days, the required taxpayer
identification number will be so provided.
(2) The tax collector shall not be named in any action that may be
brought as a result of compliance with this subdivision.
