Bill Text: CA AB2350 | 2017-2018 | Regular Session | Chaptered

California Assembly Bill 2350 (Prior Session Legislation)

Bill Title: Unclaimed property.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2018-09-14 - Chaptered by Secretary of State - Chapter 390, Statutes of 2018. [AB2350 Detail]

Download: California-2017-AB2350-Chaptered.html

Assembly Bill No. 2350

CHAPTER 390

An act to amend Section 1564.5 of the Code of Civil Procedure, and to add Section 16378 to the Government Code, relating to unclaimed property, and making an appropriation therefore.

[ Approved by Governor September 14, 2018. Filed with Secretary of State September 14, 2018. ]

LEGISLATIVE COUNSEL'S DIGEST

AB 2350, Obernolte. Unclaimed property.

(1) Existing law provides for the escheat of property to the state. Existing law requires all property that escheats to the state to be deposited into the Abandoned Property Account in the Unclaimed Property Fund, which is continuously appropriated for specified purposes. Existing law establishes procedures for submitting a claim for property that has escheated.

This bill would create in the Special Deposit Fund the Unclaimed Property Offset Account as a continuously appropriated fund for the payment of moneys to a state or local governmental entity to offset the moneys owed by a person claiming to be the owner of unclaimed property that has escheated to the state.

(2) Existing law requires funds in Interest on Lawyers’ Trust Accounts (IOLTA) that escheat to the state to be deposited into the Abandoned IOLTA Property Account, which is within the Unclaimed Property Fund. Existing law establishes the IOLTA Claims Reserve Subaccount within the account and requires that 25% of IOLTA escheated funds be deposited into the subaccount to be used by the Controller, upon appropriation by the Legislature, for the purposes of paying refunds, claims, and costs associated with escheated IOLTA funds.

This bill would make the IOLTA Claims Reserve Subaccount a continuously appropriated fund and remove the authorization for the subaccount to be used for general costs associated with escheated IOLTA funds.

Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 1564.5 of the Code of Civil Procedure is amended to read:

1564.5.

(a) Notwithstanding any law, including, but not limited to, Section 1564, all money received under this chapter from funds held in an Interest on Lawyers’ Trust Account (IOLTA) that escheat to the state shall be administered as set forth in this section. The money shall be deposited into the Abandoned IOLTA Property Account, which is hereby established within the Unclaimed Property Fund.

(b) Twenty-five percent of the money in the Abandoned IOLTA Property Account shall be deposited into the IOLTA Claims Reserve Subaccount, which is hereby established within the Abandoned IOLTA Property Account. Notwithstanding Section 13340 of the Government Code, funds in the subaccount are continuously appropriated to the Controller for the payment of all refunds and claims pursuant to this chapter related to escheated IOLTA funds.

(c) The balance of the funds in the Abandoned IOLTA Property Account, excluding funds in the subaccount, shall be transferred on an annual basis to the Public Interest Attorney Loan Repayment Account established pursuant to Section 6032.5 of the Business and Professions Code. Before making this transfer, the Controller shall record the name and last known address of each person appearing from the holders’ report to be entitled to the escheated property. The record shall be available for public inspection at all reasonable business hours.

SEC. 2.

Section 16378 is added to the Government Code, to read:

16378.

(a) There is established in the Special Deposit Fund in the State Treasury the Unclaimed Property Offset Account. Notwithstanding Section 13340, moneys in the account are continuously appropriated pursuant to Section 16372 for both of the following purposes:

(1) The payment of moneys to a state agency, local agency, city, county, community college district, special district, or court, or any other state or local governmental entity, to offset the moneys owed by a person claiming to be the owner of unclaimed property that has escheated to the state under Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure.

(2) The payment of moneys to owners of unclaimed property that has escheated to the state after offsetting moneys paid pursuant to paragraph (1).

(b) The Controller may transfer to the Unclaimed Property Offset Account moneys held by the Controller from property that has escheated to the state under Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure if the Controller has reason to believe the owner of the property has a debt to a state or local governmental entity.