| 1 | 1 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 3266Introduced by Assembly Member McKinnorFebruary 16, 2024 An act to amend Section 1521 of the Code of Civil Procedure, relating to unclaimed property. LEGISLATIVE COUNSEL'S DIGESTAB 3266, as introduced, McKinnor. Unclaimed property: employee benefit plans.Existing law, the Unclaimed Property Law, provides that all tangible personal property located in the state and all intangible personal property, except property of specified classes, that has remained unclaimed by the owner for specified time periods escheats to the state. Existing law specifies the circumstances under which unclaimed employee benefit plan distributions escheat to the state.This bill would make a technical, nonsubstantive change to the provisions governing the escheat of employee benefit plan distributions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1521 of the Code of Civil Procedure is amended to read:1521. (a) Except as provided in subdivision (b), and subject to Section 1510, all employee benefit plan distributions and any income or other increment thereon escheats to the state if the owner has not, within three years after it becomes payable or distributable, accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or administrator of the plan under which the trust or fund is established. As used in this section, fiduciary means any a person exercising any power, authority, or responsibility of management or disposition with respect to any money or other property of a retirement system or plan, and administrator means the person specifically so designated by the plan, trust agreement, contract, or other instrument under which the retirement system or plan is operated, or if none is designated, the employer.(b) Except as provided in subdivision (c), an employee benefit plan distribution and any income or other increment thereon shall not escheat to this state if, at the time the distribution shall become payable to a participant in an employee benefit plan, the plan contains a provision for forfeiture or expressly authorizes the administrator to declare a forfeiture of a distribution to a beneficiary thereof who cannot be found after a period of time specified in the plan, and the trust or fund established under the plan has not terminated prior to the date on which the distribution would become forfeitable in accordance with the provision.(c) A participant entitled to an employee benefit plan distribution in the form of residuals shall be relieved from a forfeiture declared under subdivision (b) upon the making of a claim therefor. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 3266Introduced by Assembly Member McKinnorFebruary 16, 2024 An act to amend Section 1521 of the Code of Civil Procedure, relating to unclaimed property. LEGISLATIVE COUNSEL'S DIGESTAB 3266, as introduced, McKinnor. Unclaimed property: employee benefit plans.Existing law, the Unclaimed Property Law, provides that all tangible personal property located in the state and all intangible personal property, except property of specified classes, that has remained unclaimed by the owner for specified time periods escheats to the state. Existing law specifies the circumstances under which unclaimed employee benefit plan distributions escheat to the state.This bill would make a technical, nonsubstantive change to the provisions governing the escheat of employee benefit plan distributions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill |
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| 13 | 13 | | No. 3266 |
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| 15 | 15 | | Introduced by Assembly Member McKinnorFebruary 16, 2024 |
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| 17 | 17 | | Introduced by Assembly Member McKinnor |
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| 18 | 18 | | February 16, 2024 |
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| 20 | 20 | | An act to amend Section 1521 of the Code of Civil Procedure, relating to unclaimed property. |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 3266, as introduced, McKinnor. Unclaimed property: employee benefit plans. |
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| 28 | 28 | | Existing law, the Unclaimed Property Law, provides that all tangible personal property located in the state and all intangible personal property, except property of specified classes, that has remained unclaimed by the owner for specified time periods escheats to the state. Existing law specifies the circumstances under which unclaimed employee benefit plan distributions escheat to the state.This bill would make a technical, nonsubstantive change to the provisions governing the escheat of employee benefit plan distributions. |
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| 30 | 30 | | Existing law, the Unclaimed Property Law, provides that all tangible personal property located in the state and all intangible personal property, except property of specified classes, that has remained unclaimed by the owner for specified time periods escheats to the state. Existing law specifies the circumstances under which unclaimed employee benefit plan distributions escheat to the state. |
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| 32 | 32 | | This bill would make a technical, nonsubstantive change to the provisions governing the escheat of employee benefit plan distributions. |
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| 34 | 34 | | ## Digest Key |
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| 36 | 36 | | ## Bill Text |
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| 38 | 38 | | The people of the State of California do enact as follows:SECTION 1. Section 1521 of the Code of Civil Procedure is amended to read:1521. (a) Except as provided in subdivision (b), and subject to Section 1510, all employee benefit plan distributions and any income or other increment thereon escheats to the state if the owner has not, within three years after it becomes payable or distributable, accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or administrator of the plan under which the trust or fund is established. As used in this section, fiduciary means any a person exercising any power, authority, or responsibility of management or disposition with respect to any money or other property of a retirement system or plan, and administrator means the person specifically so designated by the plan, trust agreement, contract, or other instrument under which the retirement system or plan is operated, or if none is designated, the employer.(b) Except as provided in subdivision (c), an employee benefit plan distribution and any income or other increment thereon shall not escheat to this state if, at the time the distribution shall become payable to a participant in an employee benefit plan, the plan contains a provision for forfeiture or expressly authorizes the administrator to declare a forfeiture of a distribution to a beneficiary thereof who cannot be found after a period of time specified in the plan, and the trust or fund established under the plan has not terminated prior to the date on which the distribution would become forfeitable in accordance with the provision.(c) A participant entitled to an employee benefit plan distribution in the form of residuals shall be relieved from a forfeiture declared under subdivision (b) upon the making of a claim therefor. |
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| 40 | 40 | | The people of the State of California do enact as follows: |
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| 42 | 42 | | ## The people of the State of California do enact as follows: |
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| 44 | 44 | | SECTION 1. Section 1521 of the Code of Civil Procedure is amended to read:1521. (a) Except as provided in subdivision (b), and subject to Section 1510, all employee benefit plan distributions and any income or other increment thereon escheats to the state if the owner has not, within three years after it becomes payable or distributable, accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or administrator of the plan under which the trust or fund is established. As used in this section, fiduciary means any a person exercising any power, authority, or responsibility of management or disposition with respect to any money or other property of a retirement system or plan, and administrator means the person specifically so designated by the plan, trust agreement, contract, or other instrument under which the retirement system or plan is operated, or if none is designated, the employer.(b) Except as provided in subdivision (c), an employee benefit plan distribution and any income or other increment thereon shall not escheat to this state if, at the time the distribution shall become payable to a participant in an employee benefit plan, the plan contains a provision for forfeiture or expressly authorizes the administrator to declare a forfeiture of a distribution to a beneficiary thereof who cannot be found after a period of time specified in the plan, and the trust or fund established under the plan has not terminated prior to the date on which the distribution would become forfeitable in accordance with the provision.(c) A participant entitled to an employee benefit plan distribution in the form of residuals shall be relieved from a forfeiture declared under subdivision (b) upon the making of a claim therefor. |
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| 46 | 46 | | SECTION 1. Section 1521 of the Code of Civil Procedure is amended to read: |
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| 48 | 48 | | ### SECTION 1. |
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| 50 | 50 | | 1521. (a) Except as provided in subdivision (b), and subject to Section 1510, all employee benefit plan distributions and any income or other increment thereon escheats to the state if the owner has not, within three years after it becomes payable or distributable, accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or administrator of the plan under which the trust or fund is established. As used in this section, fiduciary means any a person exercising any power, authority, or responsibility of management or disposition with respect to any money or other property of a retirement system or plan, and administrator means the person specifically so designated by the plan, trust agreement, contract, or other instrument under which the retirement system or plan is operated, or if none is designated, the employer.(b) Except as provided in subdivision (c), an employee benefit plan distribution and any income or other increment thereon shall not escheat to this state if, at the time the distribution shall become payable to a participant in an employee benefit plan, the plan contains a provision for forfeiture or expressly authorizes the administrator to declare a forfeiture of a distribution to a beneficiary thereof who cannot be found after a period of time specified in the plan, and the trust or fund established under the plan has not terminated prior to the date on which the distribution would become forfeitable in accordance with the provision.(c) A participant entitled to an employee benefit plan distribution in the form of residuals shall be relieved from a forfeiture declared under subdivision (b) upon the making of a claim therefor. |
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| 52 | 52 | | 1521. (a) Except as provided in subdivision (b), and subject to Section 1510, all employee benefit plan distributions and any income or other increment thereon escheats to the state if the owner has not, within three years after it becomes payable or distributable, accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or administrator of the plan under which the trust or fund is established. As used in this section, fiduciary means any a person exercising any power, authority, or responsibility of management or disposition with respect to any money or other property of a retirement system or plan, and administrator means the person specifically so designated by the plan, trust agreement, contract, or other instrument under which the retirement system or plan is operated, or if none is designated, the employer.(b) Except as provided in subdivision (c), an employee benefit plan distribution and any income or other increment thereon shall not escheat to this state if, at the time the distribution shall become payable to a participant in an employee benefit plan, the plan contains a provision for forfeiture or expressly authorizes the administrator to declare a forfeiture of a distribution to a beneficiary thereof who cannot be found after a period of time specified in the plan, and the trust or fund established under the plan has not terminated prior to the date on which the distribution would become forfeitable in accordance with the provision.(c) A participant entitled to an employee benefit plan distribution in the form of residuals shall be relieved from a forfeiture declared under subdivision (b) upon the making of a claim therefor. |
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| 54 | 54 | | 1521. (a) Except as provided in subdivision (b), and subject to Section 1510, all employee benefit plan distributions and any income or other increment thereon escheats to the state if the owner has not, within three years after it becomes payable or distributable, accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or administrator of the plan under which the trust or fund is established. As used in this section, fiduciary means any a person exercising any power, authority, or responsibility of management or disposition with respect to any money or other property of a retirement system or plan, and administrator means the person specifically so designated by the plan, trust agreement, contract, or other instrument under which the retirement system or plan is operated, or if none is designated, the employer.(b) Except as provided in subdivision (c), an employee benefit plan distribution and any income or other increment thereon shall not escheat to this state if, at the time the distribution shall become payable to a participant in an employee benefit plan, the plan contains a provision for forfeiture or expressly authorizes the administrator to declare a forfeiture of a distribution to a beneficiary thereof who cannot be found after a period of time specified in the plan, and the trust or fund established under the plan has not terminated prior to the date on which the distribution would become forfeitable in accordance with the provision.(c) A participant entitled to an employee benefit plan distribution in the form of residuals shall be relieved from a forfeiture declared under subdivision (b) upon the making of a claim therefor. |
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| 58 | 58 | | 1521. (a) Except as provided in subdivision (b), and subject to Section 1510, all employee benefit plan distributions and any income or other increment thereon escheats to the state if the owner has not, within three years after it becomes payable or distributable, accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or administrator of the plan under which the trust or fund is established. As used in this section, fiduciary means any a person exercising any power, authority, or responsibility of management or disposition with respect to any money or other property of a retirement system or plan, and administrator means the person specifically so designated by the plan, trust agreement, contract, or other instrument under which the retirement system or plan is operated, or if none is designated, the employer. |
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| 60 | 60 | | (b) Except as provided in subdivision (c), an employee benefit plan distribution and any income or other increment thereon shall not escheat to this state if, at the time the distribution shall become payable to a participant in an employee benefit plan, the plan contains a provision for forfeiture or expressly authorizes the administrator to declare a forfeiture of a distribution to a beneficiary thereof who cannot be found after a period of time specified in the plan, and the trust or fund established under the plan has not terminated prior to the date on which the distribution would become forfeitable in accordance with the provision. |
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| 62 | 62 | | (c) A participant entitled to an employee benefit plan distribution in the form of residuals shall be relieved from a forfeiture declared under subdivision (b) upon the making of a claim therefor. |
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