The bill amends existing laws concerning the handling of escheated property by creating a more structured framework for the allocation of funds derived from escheated IOLTA. Specifically, it provides that 25% of the funds from the Abandoned IOLTA Property Account will be deposited into the IOLTA Claims Reserve Subaccount, which will be continuously appropriated for claims related to escheated funds. This change aims to ensure that the management of unclaimed property is efficient and responsive to the needs of individuals who may be entitled to such funds.
Assembly Bill No. 2350 addresses the management of unclaimed property in California, particularly focusing on how funds from Interest on Lawyers Trust Accounts (IOLTA) are handled upon escheatment to the state. The bill mandates that funds classified as unclaimed must be deposited into a newly established Unclaimed Property Offset Account. This account is designed to facilitate the payment to governmental entities to offset moneys owed by individuals claiming ownership of escheated property, thus streamlining the claims process for parties seeking to reclaim unclaimed property.
Overall sentiment towards AB 2350 appears to be positive, with support for the bill reflecting a desire for clear procedures around unclaimed property and improved access for claimants. The implementation of the Unclaimed Property Offset Account is seen as a proactive step, ensuring that funds are readily available for payments when claims are made, which could enhance public trust in how unclaimed property is managed by the state.
While the bill seems to enjoy broad support, there may be some contention regarding how these funds are allocated, especially concerning the removal of authorization for the IOLTA Claims Reserve Subaccount to cover general costs associated with escheated IOLTA funds. This may raise questions among stakeholders about the potential for future claims processing efficiency and the extent of state control over unclaimed property funds.