LEGISLATIVE COUNSEL'S DIGEST


AB 2117, as amended, Niello. Unclaimed property.
(1) The Unclaimed Property Law provides for the escheat to the
state of abandoned property, including certain deposits, accounts,
shares, or other interests with a banking or financial organization,
business association, or other holder of personal property. Under
existing law, the holder of abandoned property transfers the property
to the Controller after the property is inactive for a period of 3
years, including when the owner has not increased or decreased the
amount of a deposit, cashed an interest check, or presented a
passbook or other similar evidence of a deposit for the crediting of
interest.
This bill would extend this 3-year period to require that the
holder transfer the abandoned property to the Controller after the
property is inactive for a period of 5 years.
(2) Existing law allows any person, excluding another state, who
claims an interest in property paid or delivered to the Controller
under the above provisions of law to file a claim to the property or
to the net proceeds from its sale. Existing law requires the
Controller to consider each claim within 180 days after it is filed.
Existing law also requires the Controller, following a public
hearing, to adopt guidelines and forms that provide instructions to
assist owners in filing a claim.
This bill would require the Controller to add interest, at a
prescribed rate, to the amount of any claim paid to the owner under
these provisions for the period the property was on deposit in the
Unclaimed Property Fund, except as specified. It would require a
holder who pays to the owner property that has escheated to the state
and that, if claimed from the Controller, would be subject to the
provisions regarding the payment of interest to add interest in
accordance with those provisions, and would require the Controller to
repay that interest to the holder. This bill would also delete
the requirement that the Controller adopt guidelines and forms, as
provided.
(3) Existing law requires that all money received pursuant to the
Unclaimed Property Law, including proceeds from the sale of property,
be deposited in the Abandoned Property Account in the Unclaimed
Property Fund. This fund is continuously appropriated to the
Controller, who is required to transfer all money in the fund in
excess of $50,000 to the General Fund at the end of each month, as
specified. Existing law requires the Controller to record
the names and last known addresses of each person in connection with
the escheated property, as specified, and to make this record
available for public inspection.
This bill would delete the requirement that the Controller
transfer all money in the Unclaimed Property Fund in excess of
$50,000 to the General Fund and to record and make available
specified names and addresses, as described above .

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Comments/questions on AB 2117 (Niello): Unclaimed property.