Bill Text: CA AB355 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Unclaimed property: safe deposit boxes.

Spectrum: Bipartisan Bill

Status: (Passed) 2015-09-21 - Chaptered by Secretary of State - Chapter 297, Statutes of 2015. [AB355 Detail]

Download: California-2015-AB355-Amended.html

---

BILL NUMBER: AB 355	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 23, 2015
	AMENDED IN SENATE  MAY 26, 2015
	AMENDED IN ASSEMBLY  MARCH 17, 2015

INTRODUCED BY   Assembly Member Eduardo Garcia

                        FEBRUARY 17, 2015

   An act to amend  Sections 1531 and   Section
 1563 of  ,   and to add Section 1531.6 to, 
the Code of Civil Procedure, relating to unclaimed property.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 355, as amended, Eduardo Garcia. Unclaimed property: safe
deposit boxes.
   Existing law, the Unclaimed Property Law, governs the disposition
of unclaimed property, including the escheat of certain property to
the state. Existing law provides for the escheat to the state of the
contents of, or proceeds of sale of the contents of, any safe deposit
box or any other safekeeping repository held in the state by a
business association, as specified. In cases where the contents of a
safe deposit box or other safekeeping repository escheat to the
state, existing law requires the business association to report to
the Controller certain information regarding the property and owner,
including a description of the property and the place where it is
held and may be inspected by the Controller. Within 165 days after
the final date for filing the report, existing law requires the
Controller to mail a notice to each person having an address listed
in the report who appears to be entitled to property escheated, as
specified.
   This bill would additionally authorize the Controller to mail a
separate notice to an apparent owner of a United States savings bond,
war bond, or military award inside a safe deposit box or other
safekeeping repository whose name is shown on or can be associated
with the contents of a safe deposit box or other safekeeping
repository and is different from the name of the reported owner.
   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 1531 of the Code of Civil
Procedure is amended to read:
   1531.  (a) Within one year after payment or delivery of escheated
property as required by Section 1532, the Controller shall cause a
notice to be published, in a newspaper of general circulation, which
the Controller determines is most likely to give notice to the
apparent owner of the property.
   (b) Each published notice shall be entitled "notice to owners of
unclaimed property."
   (c) Each published notice shall also contain a statement that
information concerning the amount or description of the property may
be obtained by any persons possessing an interest in the property by
addressing any inquiry to the Controller.
   (d) (1) Within 165 days after the final date for filing the report
required by Section 1530, the Controller shall mail a notice to each
person having an address listed in the report who appears to be
entitled to property of the value of fifty dollars ($50) or more
escheated under this chapter. If the report filed pursuant to Section
1530 includes a social security number, the Controller shall request
the Franchise Tax Board to provide a current address for the
apparent owner on the basis of that number. The Controller shall mail
the notice to the apparent owner for whom a current address is
obtained if the address is different from the address previously
reported to the Controller. If the Franchise Tax Board does not
provide an address or a different address, then the Controller shall
mail the notice to the address listed in the report required by
Section 1530.
   (2) The Controller may mail a separate notice to an apparent owner
of a United States savings bond, war bond, or military award whose
name is shown on or can be associated with the contents of a safe
deposit box or other safekeeping repository and is different from the
reported owner of the safe deposit box or other safekeeping
repository.
   (e) The mailed notice shall contain all of the following:
   (1) A statement that, according to a report filed with the
Controller, property is being held to which the addressee appears
entitled.
   (2) The name and address of the person holding the property and
any necessary information regarding changes of name and address of
the holder.
   (3) A statement that, if satisfactory proof of claim is not
presented by the owner to the holder by the date specified in the
notice, the property will be placed in the custody of the Controller
and may be sold or destroyed pursuant to this chapter, and all
further claims concerning the property or, if sold, the net proceeds
of its sale, must be directed to the Controller.
   (f) This section is intended to inform owners about the possible
existence of unclaimed property identified pursuant to this chapter.

   SECTION 1.    Section 1531.6 is added to the 
 Code of Civil Procedure   , to read:  
   1531.6.  (a) In addition to the notices required pursuant to this
chapter, the Controller may mail a separate notice to an apparent
owner of a United States savings bond, war bond, or military award
whose name is shown on or can be associated with the contents of a
safe deposit box or other safekeeping repository and is different
from the reported owner of the safe deposit box or other safekeeping
repository.
   (b) A notice sent pursuant to this section shall not contain a
photograph or likeness of an elected official.
   (c) (1) Notwithstanding any other law, upon request of the
Controller, a state or local governmental agency may furnish to the
Controller from its records the address or other identification or
location information that could reasonably be used to locate an owner
of unclaimed property.
   (2) If the address or other identification or location information
requested by the Controller is deemed confidential under any law or
regulation of the state, it shall nevertheless be furnished to the
Controller. However, neither the Controller nor any officer, agent,
or employee of the Controller shall use or disclose that information,
except as may be necessary in attempting to locate the owner of
unclaimed property.
   (3) This subdivision shall not be construed to require disclosure
of information in violation of federal law.
   (4) If a fee or change is customarily made for the information
requested by the Controller, the Controller shall pay the customary
fee or charge.
   (d) Costs for administering this section shall be subject to the
level of appropriation in the annual Budget Act. 
  SEC. 2.  Section 1563 of the Code of Civil Procedure is amended to
read:
   1563.  (a) Except as provided in subdivisions (b) and (c), all
escheated property delivered to the Controller under this chapter
shall be sold by the Controller to the highest bidder at public sale
in whatever city in the state affords in his or her judgment the most
favorable market for the property involved, or the Controller may
conduct the sale by electronic media, including, but not limited to,
the Internet, if in his or her judgment it is cost effective to
conduct the sale of the property involved in that manner. However, no
sale shall be made pursuant to this subdivision until 18 months
after the final date for filing the report required by Section 1530.
The Controller may decline the highest bid and reoffer the property
for sale if he or she considers the price bid insufficient. The
Controller need not offer any property for sale if, in his or her
opinion, the probable cost of sale exceeds the value of the property.
Any sale of escheated property held under this section shall be
preceded by a single publication of notice thereof, at least one week
in advance of sale, in an English language newspaper of general
circulation in the county where the property is to be sold.
   (b) Securities listed on an established stock exchange shall be
sold at the prevailing prices on that exchange. Other securities may
be sold over the counter at prevailing prices or, with prior approval
of the California Victim Compensation and Government Claims Board,
by any other method that the Controller may determine to be
advisable. These securities shall be sold by the Controller no sooner
than 18 months, but no later than 20 months, after the final date
for filing the report required by Section 1530. If securities
delivered to the Controller by a holder of the securities remain in
the custody of the Controller, a person making a valid claim for
those securities under this chapter shall be entitled to receive the
securities from the Controller. If the securities have been sold, the
person shall be entitled to receive the net proceeds received by the
Controller from the sale of the securities. United States government
savings bonds and United States war bonds shall be presented to the
United States for payment. Subdivision (a) does not apply to the
property described in this subdivision.
   (c) (1) All escheated property consisting of military awards,
decorations, equipment, artifacts, memorabilia, documents,
photographs, films, literature, and any other item relating to the
military history of California and Californians that is delivered to
the Controller is exempt from subdivision (a) and may, at the
discretion of the Controller, be held in trust for the Controller at
the California State Military Museum and Resource Center, or
successor entity. All escheated property held in trust pursuant to
this subdivision is subject to the applicable regulations of the
United States Army governing Army museum activities as described in
Section 179 of the Military and Veterans Code. Any person claiming an
interest in the escheated property may file a claim to the property
pursuant to Article 4 (commencing with Section 1540).
   (2) The California State Military Museum and Resource Center, or
successor entity, shall be responsible for the costs of storage and
maintenance of escheated property delivered by the Controller under
this subdivision.
   (d) The purchaser at any sale conducted by the Controller pursuant
to this chapter shall receive title to the property purchased, free
from all claims of the owner or prior holder thereof and of all
persons claiming through or under them. The Controller shall execute
all documents necessary to complete the transfer of title.