Bill Text: CA AB212 | 2013-2014 | Regular Session | Chaptered
Bill Title: Unclaimed property.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-09-26 - Chaptered by Secretary of State - Chapter 362, Statutes of 2013. [AB212 Detail]
Download: California-2013-AB212-Chaptered.html
BILL NUMBER: AB 212 CHAPTERED
BILL TEXT
CHAPTER 362
FILED WITH SECRETARY OF STATE SEPTEMBER 26, 2013
APPROVED BY GOVERNOR SEPTEMBER 26, 2013
PASSED THE SENATE SEPTEMBER 9, 2013
PASSED THE ASSEMBLY SEPTEMBER 10, 2013
AMENDED IN SENATE JUNE 24, 2013
AMENDED IN ASSEMBLY MAY 24, 2013
INTRODUCED BY Assembly Member Lowenthal
JANUARY 31, 2013
An act to amend Sections 1513.5 and 1530 of the Code of Civil
Procedure, relating to unclaimed property.
LEGISLATIVE COUNSEL'S DIGEST
AB 212, Lowenthal. Unclaimed property.
The Unclaimed Property Law (UPL) specifies the circumstances under
which unclaimed personal property held by a banking or financial
institution, business association, or other holder of personal
property escheats to the state. The UPL requires a banking or
financial organization, if it has in its records an address for the
apparent owner, which the records do not disclose to be inaccurate,
to make reasonable efforts to notify by mail any customer that the
customer's deposit, account, shares, or other interest in the banking
or financial organization will escheat to the state, as specified.
The UPL authorizes a banking or financial organization to impose a
service charge for the notice on the deposit, account, shares, or
other interest in an amount up to $2 but not exceeding the
administrative cost of mailing or electronically sending the notice,
but prohibits a banking or financial institution from imposing a
service charge for notice on items of less than $50. The UPL requires
every person holding funds or other property that escheated to the
state to submit a report to the Controller that includes, among other
items, the name and last known address of each person appearing to
be the owner of any property, except traveler's checks and money
orders, worth at least $50 that escheated to the state and, for items
worth less than $50, the nature and identifying number, if any, or
description of any intangible property reported in aggregate. The UPL
requires that the report be filed before November 1 of each year,
except with regard to the report of life insurance corporations and
of all insurance corporation demutualization proceeds subject to a
specified statute, in which case the UPL requires that the report be
filed before May 1 of each year.
This bill would, beginning July 1, 2014, require a person holding
escheated property to include in his or her report to the Controller
the name and last known address of the apparent owner of any
escheated property, except travelers checks and money orders, worth
at least $25. The bill would allow the holder to report information
regarding escheated items worth less than $25 in aggregate. The bill
would authorize a banking or financial institution to impose a
service charge for notice if the deposit, account, shares, or other
interest has a value greater than $2.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1513.5 of the Code of Civil Procedure is
amended to read:
1513.5. (a) Except as provided in subdivision (c), if the holder
has in its records an address for the apparent owner, which the
holder's records do not disclose to be inaccurate, every banking or
financial organization shall make reasonable efforts to notify any
owner by mail or, if the owner has consented to electronic notice,
electronically, that the owner's deposit, account, shares, or other
interest in the banking or financial organization will escheat to the
state pursuant to clause (i), (ii), or (iii) of subparagraph (A) of
paragraph (1), (2), or (6) of subdivision (a) of Section 1513. The
holder shall give notice either:
(1) Not less than two years nor more than two and one-half years
after the date of last activity by, or communication with, the owner
with respect to the account, deposit, shares, or other interest, as
shown on the record of the banking or financial organization.
(2) Not less than 6 nor more than 12 months before the time the
account, deposit, shares, or other interest becomes reportable to the
Controller in accordance with this chapter.
(b) The notice required by this section shall specify the time
that the deposit, account, shares, or other interest will escheat and
the effects of escheat, including the necessity for filing a claim
for the return of the deposit, account, shares, or other interest.
The face of the notice shall contain a heading at the top that reads
as follows: "THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT
YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT
CONTACT US," or substantially similar language. The notice required
by this section shall, in boldface type or in a font a minimum of two
points larger than the rest of the notice, exclusive of the heading,
(1) specify that since the date of last activity, or for the last
two years, there has been no owner activity on the deposit, account,
shares, or other interest; (2) identify the deposit, account, shares,
or other interest by number or identifier, which need not exceed
four digits; (3) indicate that the deposit, account, shares, or other
interest is in danger of escheating to the state; and (4) specify
that the Unclaimed Property Law requires banking and financial
organizations to transfer funds of a deposit, account, shares, or
other interest if it has been inactive for three years. It shall also
include a form, as prescribed by the Controller, by which the owner
may declare an intention to maintain the deposit, account, shares, or
other interest. If that form is filled out, signed by the owner, and
returned to the banking or financial organization, it shall satisfy
the requirement of clause (iii) of subparagraph (A) of paragraph (1),
clause (iii) of subparagraph (A) of paragraph (2), or clause (iii)
of subparagraph (A) of paragraph (6) of subdivision (a) of Section
1513. In lieu of returning the form, the banking or financial
organization may provide a telephone number or other electronic means
to enable the owner to contact that organization. The contact, as
evidenced by a memorandum or other record on file with the banking or
financial organization, shall satisfy the requirement of clause
(iii) of subparagraph (A) of paragraph (1), clause (iii) of
subparagraph (A) of paragraph (2), or clause (iii) of subparagraph
(A) of paragraph (6) of subdivision (a) of Section 1513. If the
deposit, account, shares, or other interest has a value greater than
two dollars ($2), the banking or financial organization may impose a
service charge on the deposit, account, shares, or other interest for
this notice in an amount not to exceed the administrative cost of
mailing or electronically sending the notice and form and in no case
to exceed two dollars ($2).
(c) Notice as provided by subdivisions (a) and (b) shall not be
required for deposits, accounts, shares, or other interests of less
than fifty dollars ($50), and, except as provided in subdivision (b),
no service charge may be made for notice on these items.
(d) In addition to the notices required pursuant to subdivision
(a), the holder may give additional notice as described in
subdivision (b) at any time between the date of last activity by, or
communication with, the owner and the date the holder transfers the
deposit, account, shares, or other interest to the Controller.
(e) At the time a new account is opened with a banking or
financial organization, the organization shall provide a written
notice to the person opening the account informing the person that
his or her property may be transferred to the appropriate state if no
activity occurs in the account within the time period specified by
state law. If the person opening the account has consented to
electronic notice, that notice may be provided electronically.
SEC. 2. Section 1530 of the Code of Civil Procedure is amended to
read:
1530. (a) Every person holding funds or other property escheated
to this state under this chapter shall report to the Controller as
provided in this section.
(b) The report shall be on a form prescribed or approved by the
Controller and shall include:
(1) Except with respect to traveler's checks and money orders, the
name, if known, and last known address, if any, of each person
appearing from the records of the holder to be the owner of any
property of value of at least fifty dollars ($50) escheated under
this chapter. This paragraph shall become inoperative on July 1,
2014.
(2) Except with respect to traveler's checks and money orders, the
name, if known, and last known address, if any, of each person
appearing from the records of the holder to be the owner of any
property of value of at least twenty-five dollars ($25) escheated
under this chapter. This paragraph shall become operative on July 1,
2014.
(3) In the case of escheated funds of life insurance corporations,
the full name of the insured or annuitant, and his or her last known
address, according to the life insurance corporation's records.
(4) In the case of the contents of a safe deposit box or other
safekeeping repository or in the case of other tangible property, a
description of the property and the place where it is held and may be
inspected by the Controller. The report shall set forth any amounts
owing to the holder for unpaid rent or storage charges and for the
cost of opening the safe deposit box or other safekeeping repository,
if any, in which the property was contained.
(5) The nature and identifying number, if any, or description of
any intangible property and the amount appearing from the records to
be due, except that items of value under twenty five dollars ($25)
each may be reported in aggregate.
(6) Except for any property reported in the aggregate, the date
when the property became payable, demandable, or returnable, and the
date of the last transaction with the owner with respect to the
property.
(7) Other information which the Controller prescribes by rule as
necessary for the administration of this chapter.
(c) If the holder is a successor to other persons who previously
held the property for the owner, or if the holder has changed his or
her name while holding the property, he or she shall file with his or
her report all prior known names and addresses of each holder of the
property.
(d) The report shall be filed before November 1 of each year as of
June 30 or fiscal yearend next preceding, but the report of life
insurance corporations, and the report of all insurance corporation
demutualization proceeds subject to Section 1515.5, shall be filed
before May 1 of each year as of December 31 next preceding. The
initial report for property subject to Section 1515.5 shall be filed
on or before May 1, 2004, with respect to conditions in effect on
December 31, 2003, and all property shall be determined to be
reportable under Section 1515.5 as if that section were in effect on
the date of the insurance company demutualization or related
reorganization. The Controller may postpone the reporting date upon
his or her own motion or upon written request by any person required
to file a report.
(e) The report, if made by an individual, shall be verified by the
individual; if made by a partnership, by a partner; if made by an
unincorporated association or private corporation, by an officer; and
if made by a public corporation, by its chief fiscal officer or
other employee authorized by the holder.
