| Old | New | Differences | |
|---|---|---|---|
| 1 | - | Amended IN Senate | |
| 1 | + | Amended IN Senate March 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 822Introduced by Senator BeckerFebruary 21, 2025An act relating to civil procedure.An act to amend Sections 1501, 1520, 1532, 1533, and 1563 of, and to add Section 1516.5 to, the Code of Civil Procedure, relating to unclaimed property.LEGISLATIVE COUNSEL'S DIGESTSB 822, as amended, Becker. Civil Procedure: unclaimed property.Unclaimed property: virtual currency.The Unclaimed Property Law (UPL) prescribes the circumstances under which intangible property escheats to the state, including how and when apparent owners must be notified that their property is at risk of escheating and the manner in which escheated property must be delivered to the State Controller. Intangible property is only subject to the UPL if the apparent owners last known address is within the state or, if that address is unknown, if there is another link to the state, as specified. Existing law provides how and when securities that escheat to the state pursuant to the UPL may be sold and how the securites or funds from their sale may be returned to their owner.With regard to all types of property, this bill would specify that an apparent owners last known address need not be a complete mailing address if the address is sufficient to identify that it is within the state. The bill would clarify that virtual currency is a form of intangible property subject to the UPL. The bill would prescribe requirements for holders of virtual currency to notify apparent owners prior to the currency escheating, which would include a form created by the Controller that may be returned to the holder by the apparent owner to restart the escheatment period, as specified. The bill would specify how escheated virtual currency must be transferred from the holder to the Controller. The bill also would permit the Controller, in their discretion, to determine that it is not in the states interest to take custody of virtual currency, as specified. The bill would make the provisions regarding the sale of securities and their return to their owner applicable to virtual currency, as specified.Existing law regulates civil procedure, as specified.This bill would express the intent of the Legislature to enact legislation relating to cryptocurrency and the unclaimed property program.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. It is the intent of the legislature to clarify that virtual currency is intangible property that is subject to the unclaimed property law.SEC. 2. Section 1501 of the Code of Civil Procedure is amended to read:1501. As used in this chapter, unless the context otherwise requires:(a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder.(b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization.(c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility.(d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.(e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter.(f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities.(g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or his or her their legal representative.(h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in his or her their own right or in a representative or fiduciary capacity.(i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements.(j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.(k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.(l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card.SEC. 3. Section 1516.5 is added to the Code of Civil Procedure, to read:1516.5. (a) Pursuant to Section 1510, any virtual currency held or owing by a business association escheats to the state if unclaimed by the owner for more than three years from the last indication of interest in the property by the owner.(b) If the business association has a mailing address for the apparent owner of virtual currency in its records, which is not known to be inaccurate, the business association shall send a notice to the owner via certified mail, return receipt requested.(c) If the business association does not have a mailing address for the apparent owner of virtual currency in its records, and the apparent owner has consented to electronic service, the notice may be sent electronically.(d) Notice pursuant to subdivision (b) or (c) shall be sent not less than 6 nor more than 12 months before the time the virtual currency becomes reportable to the Controller under this chapter.(1) The notice shall state at the top of the communication: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language.(2) The notice shall specify the time when the virtual currency will escheat and the effects of escheat, including the need to file a claim for the return of the virtual currency.(3) The notice shall do all of the following, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading:(A) Specify that since the date of last interest, or for the last two years, there has been no indication of owner interest in the virtual currency.(B) Identify the virtual currency by number or identifier, which need not exceed four digits.(C) Indicate that the virtual currency is in danger of escheating to the state.(D) Specify that the Unclaimed Property Law requires business associations to transfer virtual currency if it has been unclaimed for three years.(4) The notice shall include a form, prescribed by the Controller, by which the owner may confirm the owners current address. If that form is completed, signed by the owner, and returned to the holder of the virtual currency, or other device in which the owners property is being held, it is no longer considered inactive and the escheat period restarts. In lieu of returning the form, the holder may provide a telephone number or electronic means to enable the owner to contact the holder. If a holder is contacted by a presumed owner by telephone or electronic means, the holder shall document that contact in a memorandum which the holder is required to keep on file. That contact serves to indicate owner interest in the virtual currency and restarts the escheat period.(e) In addition to the notice required pursuant to subdivision (b) or (c), the holder may give additional notice at any time between the date of last owner interest and the date the holder transfers the virtual currency to the Controller.SEC. 4. Section 1520 of the Code of Civil Procedure is amended to read:1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state.(b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, and subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2).(c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller.(d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract.(e)This section shall become operative on January 1, 2023.SEC. 5. Section 1532 of the Code of Civil Procedure is amended to read:1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section.(b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat.(c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577.(d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller.(e) The holder of any virtual currency that is subject to Section 1516.5 shall, no more than 30 days after the final date for filing the report required by this section, transfer the exact virtual currency type and amount, unliquidated, to the Controllers crypto currency custodian or as the Controller by regulation may designate.(e)(f) Payment of any intangible property to the Controller shall be made at the office of the Controller in Sacramento or at another location as the Controller by regulation may designate. Except as otherwise agreed by the Controller and the holder, tangible personal property shall be delivered to the Controller at the place where it is held.(f)(g) Payment is deemed complete on the date the electronic funds transfer is initiated if the settlement to the states demand account occurs on or before the banking day following the date the transfer is initiated. If the settlement to the states demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.(g)(h) Any person required to pay cash by electronic funds transfer who makes the payment by means other than an authorized electronic funds transfer shall be liable for a civil penalty of 2 percent of the amount of the payment that is due pursuant to this section, in addition to any other penalty provided by law. Penalties are due at the time of payment. If the Controller finds that a holders failure to make payment by an appropriate electronic funds transfer in accordance with the Controllers procedures is due to reasonable cause and circumstances beyond the holders control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that holder shall be relieved of the penalties.(h)(i) An electronic funds transfer shall be accomplished by an automated clearinghouse debit, an automated clearinghouse credit, a Federal Reserve Wire Transfer (Fedwire), or by an international funds transfer. Banking costs incurred for the automated clearinghouse debit transaction by the holder shall be paid by the state. Banking costs incurred by the state for the automated clearinghouse credit transaction may be paid by the holder originating the credit. Banking costs incurred for the Fedwire transaction charged to the holder and the state shall be paid by the person originating the transaction. Banking costs charged to the holder and to the state for an international funds transfer may be charged to the holder.(i)(j) For purposes of this section:(1) Electronic funds transfer means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, modem, computer, or magnetic tape, so as to order, instruct, or authorize a financial institution to credit or debit an account.(2) Automated clearinghouse means any federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association or any similar organization, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and that authorizes an electronic transfer of funds between those banks or bank accounts.(3) Automated clearinghouse debit means a transaction in which the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the holders bank account and crediting the states bank account for the amount of payment.(4) Automated clearinghouse credit means an automated clearinghouse transaction in which the holder, through its own bank, originates an entry crediting the states bank account and debiting the holders bank account.(5) Fedwire means any transaction originated by the holder and utilizing the national electronic payment system to transfer funds through federal reserve banks, pursuant to which the holder debits its own bank account and credits the states bank account.(6) International funds transfer means any transaction originated by the holder and utilizing the international electronic payment system to transfer funds, pursuant to which the holder debits its own bank account, and credits the funds to a United States bank that credits the Unclaimed Property Fund.SEC. 6. Section 1533 of the Code of Civil Procedure is amended to read:1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the State Controller, and shall not escheat to the state, if the State Controller, in his their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of his their determination not to take custody of the property.(b) Subdivision (a) also applies to virtual currency that is subject to Section 1516.5.SEC. 7. 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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 and virtual currency on an established crypto currency exchange shall be sold at the prevailing prices on that exchange. Other securities or virtual currency may be sold over the counter at prevailing prices or by any other method that the Controller may determine to be advisable. These securities and virtual currency shall be sold by the Controller no sooner than 18 months, but no later than 20 months, after the actual date of filing of the report required by Section 1530. If securities or virtual currency 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 securities or virtual currency under this chapter shall be entitled to receive the securities or virtual currency from the Controller. If the securities or virtual currency have been sold, the person shall be entitled to receive the net proceeds received by the Controller from the sale of the securities. its sale. 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. A 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.SECTION 1.It is the intent of the Legislature to enact legislation in the Code of Civil Procedure relating to cryptocurrency and the unclaimed property program. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Senate March 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 822Introduced by Senator BeckerFebruary 21, 2025An act relating to civil procedure.An act to amend Sections 1501, 1520, 1532, 1533, and 1563 of, and to add Section 1516.5 to, the Code of Civil Procedure, relating to unclaimed property.LEGISLATIVE COUNSEL'S DIGESTSB 822, as amended, Becker. Civil Procedure: unclaimed property.Unclaimed property: virtual currency.The Unclaimed Property Law (UPL) prescribes the circumstances under which intangible property escheats to the state, including how and when apparent owners must be notified that their property is at risk of escheating and the manner in which escheated property must be delivered to the State Controller. Intangible property is only subject to the UPL if the apparent owners last known address is within the state or, if that address is unknown, if there is another link to the state, as specified. Existing law provides how and when securities that escheat to the state pursuant to the UPL may be sold and how the securites or funds from their sale may be returned to their owner.With regard to all types of property, this bill would specify that an apparent owners last known address need not be a complete mailing address if the address is sufficient to identify that it is within the state. The bill would clarify that virtual currency is a form of intangible property subject to the UPL. The bill would prescribe requirements for holders of virtual currency to notify apparent owners prior to the currency escheating, which would include a form created by the Controller that may be returned to the holder by the apparent owner to restart the escheatment period, as specified. The bill would specify how escheated virtual currency must be transferred from the holder to the Controller. The bill also would permit the Controller, in their discretion, to determine that it is not in the states interest to take custody of virtual currency, as specified. The bill would make the provisions regarding the sale of securities and their return to their owner applicable to virtual currency, as specified.Existing law regulates civil procedure, as specified.This bill would express the intent of the Legislature to enact legislation relating to cryptocurrency and the unclaimed property program.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Senate March 25, 2025 | |
| 6 | 6 | ||
| 7 | - | Amended IN Senate April 10, 2025 | |
| 8 | 7 | Amended IN Senate March 25, 2025 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Senate Bill | |
| 13 | 12 | ||
| 14 | 13 | No. 822 | |
| 15 | 14 | ||
| 16 | 15 | Introduced by Senator BeckerFebruary 21, 2025 | |
| 17 | 16 | ||
| 18 | 17 | Introduced by Senator Becker | |
| 19 | 18 | February 21, 2025 | |
| 20 | 19 | ||
| 21 | - | An act to amend Sections 1501, 1520, 1532, 1533, and 1563 of, and to add Section 1516.5 to, the Code of Civil Procedure, relating to unclaimed property. | |
| 20 | + | An act relating to civil procedure.An act to amend Sections 1501, 1520, 1532, 1533, and 1563 of, and to add Section 1516.5 to, the Code of Civil Procedure, relating to unclaimed property. | |
| 22 | 21 | ||
| 23 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 26 | 25 | ||
| 27 | - | SB 822, as amended, Becker. Unclaimed property: virtual currency. | |
| 26 | + | SB 822, as amended, Becker. Civil Procedure: unclaimed property.Unclaimed property: virtual currency. | |
| 28 | 27 | ||
| 29 | - | The Unclaimed Property Law (UPL) prescribes the circumstances under which intangible property escheats to the state, including how and when apparent owners must be notified that their property is at risk of escheating and the manner in which escheated property must be delivered to the State Controller. Intangible property is only subject to the UPL if the apparent owners last known address is within the state or, if that address is unknown, if there is another link to the state, as specified. Existing law provides how and when securities that escheat to the state pursuant to the UPL may be sold and how the securites | |
| 28 | + | The Unclaimed Property Law (UPL) prescribes the circumstances under which intangible property escheats to the state, including how and when apparent owners must be notified that their property is at risk of escheating and the manner in which escheated property must be delivered to the State Controller. Intangible property is only subject to the UPL if the apparent owners last known address is within the state or, if that address is unknown, if there is another link to the state, as specified. Existing law provides how and when securities that escheat to the state pursuant to the UPL may be sold and how the securites or funds from their sale may be returned to their owner.With regard to all types of property, this bill would specify that an apparent owners last known address need not be a complete mailing address if the address is sufficient to identify that it is within the state. The bill would clarify that virtual currency is a form of intangible property subject to the UPL. The bill would prescribe requirements for holders of virtual currency to notify apparent owners prior to the currency escheating, which would include a form created by the Controller that may be returned to the holder by the apparent owner to restart the escheatment period, as specified. The bill would specify how escheated virtual currency must be transferred from the holder to the Controller. The bill also would permit the Controller, in their discretion, to determine that it is not in the states interest to take custody of virtual currency, as specified. The bill would make the provisions regarding the sale of securities and their return to their owner applicable to virtual currency, as specified.Existing law regulates civil procedure, as specified.This bill would express the intent of the Legislature to enact legislation relating to cryptocurrency and the unclaimed property program. | |
| 30 | 29 | ||
| 31 | - | The Unclaimed Property Law (UPL) prescribes the circumstances under which intangible property escheats to the state, including how and when apparent owners must be notified that their property is at risk of escheating and the manner in which escheated property must be delivered to the State Controller. Intangible property is only subject to the UPL if the apparent owners last known address is within the state or, if that address is unknown, if there is another link to the state, as specified. Existing law provides how and when securities that escheat to the state pursuant to the UPL may be sold and how the securites | |
| 30 | + | The Unclaimed Property Law (UPL) prescribes the circumstances under which intangible property escheats to the state, including how and when apparent owners must be notified that their property is at risk of escheating and the manner in which escheated property must be delivered to the State Controller. Intangible property is only subject to the UPL if the apparent owners last known address is within the state or, if that address is unknown, if there is another link to the state, as specified. Existing law provides how and when securities that escheat to the state pursuant to the UPL may be sold and how the securites or funds from their sale may be returned to their owner. | |
| 32 | 31 | ||
| 33 | - | With regard to all types of property, this bill would specify that an apparent owners last known address need not be a complete mailing address if the address is sufficient to identify that it is within the state. The bill would clarify that virtual currency is digital financial assets are a form of intangible property subject to the UPL. The bill would prescribe requirements for holders of virtual currency digital financial assets to notify apparent owners prior to the currency assets escheating, which would include a form created by the Controller that may be returned to the holder by the apparent owner to restart the escheatment period, as specified. The bill would specify how escheated virtual currency digital financial assets must be transferred from the holder to the Controller. The bill also would permit the Controller, in their discretion, to determine that it is not in the states interest to take custody of virtual currency, digital financial assets, as specified. The bill would make the provisions regarding the sale of securities and their return to their owner applicable to virtual currency, digital financial assets, as specified. | |
| 32 | + | With regard to all types of property, this bill would specify that an apparent owners last known address need not be a complete mailing address if the address is sufficient to identify that it is within the state. The bill would clarify that virtual currency is a form of intangible property subject to the UPL. The bill would prescribe requirements for holders of virtual currency to notify apparent owners prior to the currency escheating, which would include a form created by the Controller that may be returned to the holder by the apparent owner to restart the escheatment period, as specified. The bill would specify how escheated virtual currency must be transferred from the holder to the Controller. The bill also would permit the Controller, in their discretion, to determine that it is not in the states interest to take custody of virtual currency, as specified. The bill would make the provisions regarding the sale of securities and their return to their owner applicable to virtual currency, as specified. | |
| 33 | + | ||
| 34 | + | Existing law regulates civil procedure, as specified. | |
| 35 | + | ||
| 36 | + | ||
| 37 | + | ||
| 38 | + | This bill would express the intent of the Legislature to enact legislation relating to cryptocurrency and the unclaimed property program. | |
| 39 | + | ||
| 40 | + | ||
| 34 | 41 | ||
| 35 | 42 | ## Digest Key | |
| 36 | 43 | ||
| 37 | 44 | ## Bill Text | |
| 38 | 45 | ||
| 39 | - | The people of the State of California do enact as follows:SECTION 1. It is the intent of the legislature to clarify that virtual currency is | |
| 46 | + | The people of the State of California do enact as follows:SECTION 1. It is the intent of the legislature to clarify that virtual currency is intangible property that is subject to the unclaimed property law.SEC. 2. Section 1501 of the Code of Civil Procedure is amended to read:1501. As used in this chapter, unless the context otherwise requires:(a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder.(b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization.(c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility.(d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.(e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter.(f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities.(g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or his or her their legal representative.(h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in his or her their own right or in a representative or fiduciary capacity.(i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements.(j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.(k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.(l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card.SEC. 3. Section 1516.5 is added to the Code of Civil Procedure, to read:1516.5. (a) Pursuant to Section 1510, any virtual currency held or owing by a business association escheats to the state if unclaimed by the owner for more than three years from the last indication of interest in the property by the owner.(b) If the business association has a mailing address for the apparent owner of virtual currency in its records, which is not known to be inaccurate, the business association shall send a notice to the owner via certified mail, return receipt requested.(c) If the business association does not have a mailing address for the apparent owner of virtual currency in its records, and the apparent owner has consented to electronic service, the notice may be sent electronically.(d) Notice pursuant to subdivision (b) or (c) shall be sent not less than 6 nor more than 12 months before the time the virtual currency becomes reportable to the Controller under this chapter.(1) The notice shall state at the top of the communication: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language.(2) The notice shall specify the time when the virtual currency will escheat and the effects of escheat, including the need to file a claim for the return of the virtual currency.(3) The notice shall do all of the following, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading:(A) Specify that since the date of last interest, or for the last two years, there has been no indication of owner interest in the virtual currency.(B) Identify the virtual currency by number or identifier, which need not exceed four digits.(C) Indicate that the virtual currency is in danger of escheating to the state.(D) Specify that the Unclaimed Property Law requires business associations to transfer virtual currency if it has been unclaimed for three years.(4) The notice shall include a form, prescribed by the Controller, by which the owner may confirm the owners current address. If that form is completed, signed by the owner, and returned to the holder of the virtual currency, or other device in which the owners property is being held, it is no longer considered inactive and the escheat period restarts. In lieu of returning the form, the holder may provide a telephone number or electronic means to enable the owner to contact the holder. If a holder is contacted by a presumed owner by telephone or electronic means, the holder shall document that contact in a memorandum which the holder is required to keep on file. That contact serves to indicate owner interest in the virtual currency and restarts the escheat period.(e) In addition to the notice required pursuant to subdivision (b) or (c), the holder may give additional notice at any time between the date of last owner interest and the date the holder transfers the virtual currency to the Controller.SEC. 4. Section 1520 of the Code of Civil Procedure is amended to read:1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state.(b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, and subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2).(c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller.(d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract.(e)This section shall become operative on January 1, 2023.SEC. 5. Section 1532 of the Code of Civil Procedure is amended to read:1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section.(b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat.(c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577.(d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller.(e) The holder of any virtual currency that is subject to Section 1516.5 shall, no more than 30 days after the final date for filing the report required by this section, transfer the exact virtual currency type and amount, unliquidated, to the Controllers crypto currency custodian or as the Controller by regulation may designate.(e)(f) Payment of any intangible property to the Controller shall be made at the office of the Controller in Sacramento or at another location as the Controller by regulation may designate. Except as otherwise agreed by the Controller and the holder, tangible personal property shall be delivered to the Controller at the place where it is held.(f)(g) Payment is deemed complete on the date the electronic funds transfer is initiated if the settlement to the states demand account occurs on or before the banking day following the date the transfer is initiated. If the settlement to the states demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.(g)(h) Any person required to pay cash by electronic funds transfer who makes the payment by means other than an authorized electronic funds transfer shall be liable for a civil penalty of 2 percent of the amount of the payment that is due pursuant to this section, in addition to any other penalty provided by law. Penalties are due at the time of payment. If the Controller finds that a holders failure to make payment by an appropriate electronic funds transfer in accordance with the Controllers procedures is due to reasonable cause and circumstances beyond the holders control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that holder shall be relieved of the penalties.(h)(i) An electronic funds transfer shall be accomplished by an automated clearinghouse debit, an automated clearinghouse credit, a Federal Reserve Wire Transfer (Fedwire), or by an international funds transfer. Banking costs incurred for the automated clearinghouse debit transaction by the holder shall be paid by the state. Banking costs incurred by the state for the automated clearinghouse credit transaction may be paid by the holder originating the credit. Banking costs incurred for the Fedwire transaction charged to the holder and the state shall be paid by the person originating the transaction. Banking costs charged to the holder and to the state for an international funds transfer may be charged to the holder.(i)(j) For purposes of this section:(1) Electronic funds transfer means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, modem, computer, or magnetic tape, so as to order, instruct, or authorize a financial institution to credit or debit an account.(2) Automated clearinghouse means any federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association or any similar organization, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and that authorizes an electronic transfer of funds between those banks or bank accounts.(3) Automated clearinghouse debit means a transaction in which the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the holders bank account and crediting the states bank account for the amount of payment.(4) Automated clearinghouse credit means an automated clearinghouse transaction in which the holder, through its own bank, originates an entry crediting the states bank account and debiting the holders bank account.(5) Fedwire means any transaction originated by the holder and utilizing the national electronic payment system to transfer funds through federal reserve banks, pursuant to which the holder debits its own bank account and credits the states bank account.(6) International funds transfer means any transaction originated by the holder and utilizing the international electronic payment system to transfer funds, pursuant to which the holder debits its own bank account, and credits the funds to a United States bank that credits the Unclaimed Property Fund.SEC. 6. Section 1533 of the Code of Civil Procedure is amended to read:1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the State Controller, and shall not escheat to the state, if the State Controller, in his their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of his their determination not to take custody of the property.(b) Subdivision (a) also applies to virtual currency that is subject to Section 1516.5.SEC. 7. 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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 and virtual currency on an established crypto currency exchange shall be sold at the prevailing prices on that exchange. Other securities or virtual currency may be sold over the counter at prevailing prices or by any other method that the Controller may determine to be advisable. These securities and virtual currency shall be sold by the Controller no sooner than 18 months, but no later than 20 months, after the actual date of filing of the report required by Section 1530. If securities or virtual currency 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 securities or virtual currency under this chapter shall be entitled to receive the securities or virtual currency from the Controller. If the securities or virtual currency have been sold, the person shall be entitled to receive the net proceeds received by the Controller from the sale of the securities. its sale. 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. A 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.SECTION 1.It is the intent of the Legislature to enact legislation in the Code of Civil Procedure relating to cryptocurrency and the unclaimed property program. | |
| 40 | 47 | ||
| 41 | 48 | The people of the State of California do enact as follows: | |
| 42 | 49 | ||
| 43 | 50 | ## The people of the State of California do enact as follows: | |
| 44 | 51 | ||
| 45 | - | SECTION 1. It is the intent of the legislature to clarify that virtual currency is | |
| 52 | + | SECTION 1. It is the intent of the legislature to clarify that virtual currency is intangible property that is subject to the unclaimed property law. | |
| 46 | 53 | ||
| 47 | - | SECTION 1. It is the intent of the legislature to clarify that virtual currency is | |
| 54 | + | SECTION 1. It is the intent of the legislature to clarify that virtual currency is intangible property that is subject to the unclaimed property law. | |
| 48 | 55 | ||
| 49 | - | SECTION 1. It is the intent of the legislature to clarify that virtual currency is | |
| 56 | + | SECTION 1. It is the intent of the legislature to clarify that virtual currency is intangible property that is subject to the unclaimed property law. | |
| 50 | 57 | ||
| 51 | 58 | ### SECTION 1. | |
| 52 | 59 | ||
| 53 | - | SEC. 2. Section 1501 of the Code of Civil Procedure is amended to read:1501. As used in this chapter, unless the context otherwise requires:(a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder.(b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization.(c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility.(d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.(e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter.(f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities.(g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or their legal representative.(h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in their own right or in a representative or fiduciary capacity.(i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements.(j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.(k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.(l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card. | |
| 60 | + | SEC. 2. Section 1501 of the Code of Civil Procedure is amended to read:1501. As used in this chapter, unless the context otherwise requires:(a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder.(b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization.(c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility.(d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.(e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter.(f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities.(g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or his or her their legal representative.(h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in his or her their own right or in a representative or fiduciary capacity.(i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements.(j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.(k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.(l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card. | |
| 54 | 61 | ||
| 55 | 62 | SEC. 2. Section 1501 of the Code of Civil Procedure is amended to read: | |
| 56 | 63 | ||
| 57 | 64 | ### SEC. 2. | |
| 58 | 65 | ||
| 59 | - | 1501. As used in this chapter, unless the context otherwise requires:(a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder.(b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization.(c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility.(d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.(e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter.(f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities.(g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or their legal representative.(h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in their own right or in a representative or fiduciary capacity.(i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements.(j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.(k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.(l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card. | |
| 66 | + | 1501. As used in this chapter, unless the context otherwise requires:(a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder.(b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization.(c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility.(d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.(e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter.(f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities.(g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or his or her their legal representative.(h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in his or her their own right or in a representative or fiduciary capacity.(i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements.(j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.(k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.(l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card. | |
| 60 | 67 | ||
| 61 | - | 1501. As used in this chapter, unless the context otherwise requires:(a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder.(b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization.(c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility.(d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.(e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter.(f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities.(g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or their legal representative.(h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in their own right or in a representative or fiduciary capacity.(i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements.(j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.(k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.(l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card. | |
| 68 | + | 1501. As used in this chapter, unless the context otherwise requires:(a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder.(b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization.(c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility.(d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.(e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter.(f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities.(g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or his or her their legal representative.(h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in his or her their own right or in a representative or fiduciary capacity.(i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements.(j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.(k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.(l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card. | |
| 62 | 69 | ||
| 63 | - | 1501. As used in this chapter, unless the context otherwise requires:(a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder.(b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization.(c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility.(d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.(e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter.(f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities.(g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or their legal representative.(h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in their own right or in a representative or fiduciary capacity.(i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements.(j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.(k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.(l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card. | |
| 70 | + | 1501. As used in this chapter, unless the context otherwise requires:(a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder.(b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization.(c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility.(d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.(e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter.(f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities.(g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or his or her their legal representative.(h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in his or her their own right or in a representative or fiduciary capacity.(i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements.(j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.(k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.(l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card. | |
| 64 | 71 | ||
| 65 | 72 | ||
| 66 | 73 | ||
| 67 | 74 | 1501. As used in this chapter, unless the context otherwise requires: | |
| 68 | 75 | ||
| 69 | 76 | (a) Apparent owner means the person who appears from the records of the holder to be entitled to property held by the holder. | |
| 70 | 77 | ||
| 71 | 78 | (b) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe-deposit company, private banker, or any similar organization. | |
| 72 | 79 | ||
| 73 | 80 | (c) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two or more individuals, whether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insurance corporation, and utility. | |
| 74 | 81 | ||
| 75 | 82 | (d) Financial organization means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization. | |
| 76 | 83 | ||
| 77 | 84 | (e) Holder means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this chapter. | |
| 78 | 85 | ||
| 79 | 86 | (f) Life insurance corporation means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments, and annuities. | |
| 80 | 87 | ||
| 81 | - | (g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or their legal representative. | |
| 88 | + | (g) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this chapter, or his or her their legal representative. | |
| 82 | 89 | ||
| 83 | - | (h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in their own right or in a representative or fiduciary capacity. | |
| 90 | + | (h) Person means any individual, business association, government or governmental subdivision or agency, two or more persons having a joint or common interest, or any other legal or commercial entity, whether that person is acting in his or her their own right or in a representative or fiduciary capacity. | |
| 84 | 91 | ||
| 85 | 92 | (i) Employee benefit plan distribution means any money, life insurance, endowment or annuity policy or proceeds thereof, securities or other intangible property, or any tangible property, distributable to a participant, former participant, or the beneficiary or estate or heirs of a participant or former participant or beneficiary, from a trust or custodial fund established under a plan to provide health and welfare, pension, vacation, severance, retirement benefit, death benefit, stock purchase, profit sharing, employee savings, supplemental unemployment insurance benefits or similar benefits, or which is established under a plan by a business association functioning as or in conjunction with a labor union which receives for distribution residuals on behalf of employees working under collective-bargaining agreements. | |
| 86 | 93 | ||
| 87 | 94 | (j) Residuals means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials. | |
| 88 | 95 | ||
| 89 | 96 | (k) Last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state of last known address, even if the description, code, or indication of the location is not sufficient to direct the delivery of first-class United States mail to the apparent owner. | |
| 90 | 97 | ||
| 91 | - | (l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card. | |
| 98 | + | (l) Virtual currency means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include: (A) the software or protocols governing the transfer of the digital representation of value; (B) game-related digital content; or (C) a loyalty card or gift card. | |
| 92 | 99 | ||
| 93 | - | SEC. 3. Section 1516.5 is added to the Code of Civil Procedure, to read:1516.5. (a) Pursuant to Section 1510, any virtual currency | |
| 100 | + | SEC. 3. Section 1516.5 is added to the Code of Civil Procedure, to read:1516.5. (a) Pursuant to Section 1510, any virtual currency held or owing by a business association escheats to the state if unclaimed by the owner for more than three years from the last indication of interest in the property by the owner.(b) If the business association has a mailing address for the apparent owner of virtual currency in its records, which is not known to be inaccurate, the business association shall send a notice to the owner via certified mail, return receipt requested.(c) If the business association does not have a mailing address for the apparent owner of virtual currency in its records, and the apparent owner has consented to electronic service, the notice may be sent electronically.(d) Notice pursuant to subdivision (b) or (c) shall be sent not less than 6 nor more than 12 months before the time the virtual currency becomes reportable to the Controller under this chapter.(1) The notice shall state at the top of the communication: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language.(2) The notice shall specify the time when the virtual currency will escheat and the effects of escheat, including the need to file a claim for the return of the virtual currency.(3) The notice shall do all of the following, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading:(A) Specify that since the date of last interest, or for the last two years, there has been no indication of owner interest in the virtual currency.(B) Identify the virtual currency by number or identifier, which need not exceed four digits.(C) Indicate that the virtual currency is in danger of escheating to the state.(D) Specify that the Unclaimed Property Law requires business associations to transfer virtual currency if it has been unclaimed for three years.(4) The notice shall include a form, prescribed by the Controller, by which the owner may confirm the owners current address. If that form is completed, signed by the owner, and returned to the holder of the virtual currency, or other device in which the owners property is being held, it is no longer considered inactive and the escheat period restarts. In lieu of returning the form, the holder may provide a telephone number or electronic means to enable the owner to contact the holder. If a holder is contacted by a presumed owner by telephone or electronic means, the holder shall document that contact in a memorandum which the holder is required to keep on file. That contact serves to indicate owner interest in the virtual currency and restarts the escheat period.(e) In addition to the notice required pursuant to subdivision (b) or (c), the holder may give additional notice at any time between the date of last owner interest and the date the holder transfers the virtual currency to the Controller. | |
| 94 | 101 | ||
| 95 | 102 | SEC. 3. Section 1516.5 is added to the Code of Civil Procedure, to read: | |
| 96 | 103 | ||
| 97 | 104 | ### SEC. 3. | |
| 98 | 105 | ||
| 99 | - | 1516.5. (a) Pursuant to Section 1510, any virtual currency | |
| 106 | + | 1516.5. (a) Pursuant to Section 1510, any virtual currency held or owing by a business association escheats to the state if unclaimed by the owner for more than three years from the last indication of interest in the property by the owner.(b) If the business association has a mailing address for the apparent owner of virtual currency in its records, which is not known to be inaccurate, the business association shall send a notice to the owner via certified mail, return receipt requested.(c) If the business association does not have a mailing address for the apparent owner of virtual currency in its records, and the apparent owner has consented to electronic service, the notice may be sent electronically.(d) Notice pursuant to subdivision (b) or (c) shall be sent not less than 6 nor more than 12 months before the time the virtual currency becomes reportable to the Controller under this chapter.(1) The notice shall state at the top of the communication: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language.(2) The notice shall specify the time when the virtual currency will escheat and the effects of escheat, including the need to file a claim for the return of the virtual currency.(3) The notice shall do all of the following, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading:(A) Specify that since the date of last interest, or for the last two years, there has been no indication of owner interest in the virtual currency.(B) Identify the virtual currency by number or identifier, which need not exceed four digits.(C) Indicate that the virtual currency is in danger of escheating to the state.(D) Specify that the Unclaimed Property Law requires business associations to transfer virtual currency if it has been unclaimed for three years.(4) The notice shall include a form, prescribed by the Controller, by which the owner may confirm the owners current address. If that form is completed, signed by the owner, and returned to the holder of the virtual currency, or other device in which the owners property is being held, it is no longer considered inactive and the escheat period restarts. In lieu of returning the form, the holder may provide a telephone number or electronic means to enable the owner to contact the holder. If a holder is contacted by a presumed owner by telephone or electronic means, the holder shall document that contact in a memorandum which the holder is required to keep on file. That contact serves to indicate owner interest in the virtual currency and restarts the escheat period.(e) In addition to the notice required pursuant to subdivision (b) or (c), the holder may give additional notice at any time between the date of last owner interest and the date the holder transfers the virtual currency to the Controller. | |
| 100 | 107 | ||
| 101 | - | 1516.5. (a) Pursuant to Section 1510, any virtual currency | |
| 108 | + | 1516.5. (a) Pursuant to Section 1510, any virtual currency held or owing by a business association escheats to the state if unclaimed by the owner for more than three years from the last indication of interest in the property by the owner.(b) If the business association has a mailing address for the apparent owner of virtual currency in its records, which is not known to be inaccurate, the business association shall send a notice to the owner via certified mail, return receipt requested.(c) If the business association does not have a mailing address for the apparent owner of virtual currency in its records, and the apparent owner has consented to electronic service, the notice may be sent electronically.(d) Notice pursuant to subdivision (b) or (c) shall be sent not less than 6 nor more than 12 months before the time the virtual currency becomes reportable to the Controller under this chapter.(1) The notice shall state at the top of the communication: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language.(2) The notice shall specify the time when the virtual currency will escheat and the effects of escheat, including the need to file a claim for the return of the virtual currency.(3) The notice shall do all of the following, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading:(A) Specify that since the date of last interest, or for the last two years, there has been no indication of owner interest in the virtual currency.(B) Identify the virtual currency by number or identifier, which need not exceed four digits.(C) Indicate that the virtual currency is in danger of escheating to the state.(D) Specify that the Unclaimed Property Law requires business associations to transfer virtual currency if it has been unclaimed for three years.(4) The notice shall include a form, prescribed by the Controller, by which the owner may confirm the owners current address. If that form is completed, signed by the owner, and returned to the holder of the virtual currency, or other device in which the owners property is being held, it is no longer considered inactive and the escheat period restarts. In lieu of returning the form, the holder may provide a telephone number or electronic means to enable the owner to contact the holder. If a holder is contacted by a presumed owner by telephone or electronic means, the holder shall document that contact in a memorandum which the holder is required to keep on file. That contact serves to indicate owner interest in the virtual currency and restarts the escheat period.(e) In addition to the notice required pursuant to subdivision (b) or (c), the holder may give additional notice at any time between the date of last owner interest and the date the holder transfers the virtual currency to the Controller. | |
| 102 | 109 | ||
| 103 | - | 1516.5. (a) Pursuant to Section 1510, any virtual currency | |
| 110 | + | 1516.5. (a) Pursuant to Section 1510, any virtual currency held or owing by a business association escheats to the state if unclaimed by the owner for more than three years from the last indication of interest in the property by the owner.(b) If the business association has a mailing address for the apparent owner of virtual currency in its records, which is not known to be inaccurate, the business association shall send a notice to the owner via certified mail, return receipt requested.(c) If the business association does not have a mailing address for the apparent owner of virtual currency in its records, and the apparent owner has consented to electronic service, the notice may be sent electronically.(d) Notice pursuant to subdivision (b) or (c) shall be sent not less than 6 nor more than 12 months before the time the virtual currency becomes reportable to the Controller under this chapter.(1) The notice shall state at the top of the communication: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language.(2) The notice shall specify the time when the virtual currency will escheat and the effects of escheat, including the need to file a claim for the return of the virtual currency.(3) The notice shall do all of the following, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading:(A) Specify that since the date of last interest, or for the last two years, there has been no indication of owner interest in the virtual currency.(B) Identify the virtual currency by number or identifier, which need not exceed four digits.(C) Indicate that the virtual currency is in danger of escheating to the state.(D) Specify that the Unclaimed Property Law requires business associations to transfer virtual currency if it has been unclaimed for three years.(4) The notice shall include a form, prescribed by the Controller, by which the owner may confirm the owners current address. If that form is completed, signed by the owner, and returned to the holder of the virtual currency, or other device in which the owners property is being held, it is no longer considered inactive and the escheat period restarts. In lieu of returning the form, the holder may provide a telephone number or electronic means to enable the owner to contact the holder. If a holder is contacted by a presumed owner by telephone or electronic means, the holder shall document that contact in a memorandum which the holder is required to keep on file. That contact serves to indicate owner interest in the virtual currency and restarts the escheat period.(e) In addition to the notice required pursuant to subdivision (b) or (c), the holder may give additional notice at any time between the date of last owner interest and the date the holder transfers the virtual currency to the Controller. | |
| 104 | 111 | ||
| 105 | 112 | ||
| 106 | 113 | ||
| 107 | - | 1516.5. (a) Pursuant to Section 1510, any virtual currency | |
| 114 | + | 1516.5. (a) Pursuant to Section 1510, any virtual currency held or owing by a business association escheats to the state if unclaimed by the owner for more than three years from the last indication of interest in the property by the owner. | |
| 108 | 115 | ||
| 109 | - | (b) If the business association has a mailing address for the apparent owner of virtual currency | |
| 116 | + | (b) If the business association has a mailing address for the apparent owner of virtual currency in its records, which is not known to be inaccurate, the business association shall send a notice to the owner via certified mail, return receipt requested. | |
| 110 | 117 | ||
| 111 | - | (c) If the business association does not have a mailing address for the apparent owner of virtual currency | |
| 118 | + | (c) If the business association does not have a mailing address for the apparent owner of virtual currency in its records, and the apparent owner has consented to electronic service, the notice may be sent electronically. | |
| 112 | 119 | ||
| 113 | - | (d) Notice pursuant to subdivision (b) or (c) shall be sent not less than 6 nor more than 12 months before the time the virtual currency | |
| 120 | + | (d) Notice pursuant to subdivision (b) or (c) shall be sent not less than 6 nor more than 12 months before the time the virtual currency becomes reportable to the Controller under this chapter. | |
| 114 | 121 | ||
| 115 | 122 | (1) The notice shall state at the top of the communication: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. | |
| 116 | 123 | ||
| 117 | - | (2) The notice shall specify the time when the virtual currency | |
| 124 | + | (2) The notice shall specify the time when the virtual currency will escheat and the effects of escheat, including the need to file a claim for the return of the virtual currency. | |
| 118 | 125 | ||
| 119 | 126 | (3) The notice shall do all of the following, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading: | |
| 120 | 127 | ||
| 121 | - | (A) Specify that since the date of last interest, or for the last two years, there has been no indication of owner interest in the virtual currency. | |
| 128 | + | (A) Specify that since the date of last interest, or for the last two years, there has been no indication of owner interest in the virtual currency. | |
| 122 | 129 | ||
| 123 | - | (B) Identify the virtual currency | |
| 130 | + | (B) Identify the virtual currency by number or identifier, which need not exceed four digits. | |
| 124 | 131 | ||
| 125 | - | (C) Indicate that the virtual currency | |
| 132 | + | (C) Indicate that the virtual currency is in danger of escheating to the state. | |
| 126 | 133 | ||
| 127 | - | (D) Specify that the Unclaimed Property Law requires business associations to transfer virtual currency | |
| 134 | + | (D) Specify that the Unclaimed Property Law requires business associations to transfer virtual currency if it has been unclaimed for three years. | |
| 128 | 135 | ||
| 129 | - | (4) The notice shall include a form, prescribed by the Controller, by which the owner may confirm the owners current address. If that form is completed, signed by the owner, and returned to the holder of the virtual currency | |
| 136 | + | (4) The notice shall include a form, prescribed by the Controller, by which the owner may confirm the owners current address. If that form is completed, signed by the owner, and returned to the holder of the virtual currency, or other device in which the owners property is being held, it is no longer considered inactive and the escheat period restarts. In lieu of returning the form, the holder may provide a telephone number or electronic means to enable the owner to contact the holder. If a holder is contacted by a presumed owner by telephone or electronic means, the holder shall document that contact in a memorandum which the holder is required to keep on file. That contact serves to indicate owner interest in the virtual currency and restarts the escheat period. | |
| 130 | 137 | ||
| 131 | - | (e) In addition to the notice required pursuant to subdivision (b) or (c), the holder may give additional notice at any time between the date of last owner interest and the date the holder transfers the virtual currency | |
| 138 | + | (e) In addition to the notice required pursuant to subdivision (b) or (c), the holder may give additional notice at any time between the date of last owner interest and the date the holder transfers the virtual currency to the Controller. | |
| 132 | 139 | ||
| 133 | - | SEC. 4. Section 1520 of the Code of Civil Procedure is amended to read:1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state.(b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2).(c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller.(d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract. | |
| 140 | + | SEC. 4. Section 1520 of the Code of Civil Procedure is amended to read:1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state.(b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, and subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2).(c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller.(d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract.(e)This section shall become operative on January 1, 2023. | |
| 134 | 141 | ||
| 135 | 142 | SEC. 4. Section 1520 of the Code of Civil Procedure is amended to read: | |
| 136 | 143 | ||
| 137 | 144 | ### SEC. 4. | |
| 138 | 145 | ||
| 139 | - | 1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state.(b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2).(c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller.(d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract. | |
| 146 | + | 1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state.(b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, and subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2).(c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller.(d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract.(e)This section shall become operative on January 1, 2023. | |
| 140 | 147 | ||
| 141 | - | 1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state.(b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2).(c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller.(d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract. | |
| 148 | + | 1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state.(b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, and subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2).(c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller.(d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract.(e)This section shall become operative on January 1, 2023. | |
| 142 | 149 | ||
| 143 | - | 1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state.(b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2).(c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller.(d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract. | |
| 150 | + | 1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state.(b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, and subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2).(c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller.(d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract.(e)This section shall become operative on January 1, 2023. | |
| 144 | 151 | ||
| 145 | 152 | ||
| 146 | 153 | ||
| 147 | 154 | 1520. (a) All tangible personal property located in this state and, subject to Section 1510, all intangible personal property, except property of the classes mentioned in Sections 1511, 1513, 1514, 1515, 1515.5, 1516, 1516.5, 1517, 1518, 1518.5, 1519, and 1521, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary course of the holders business and has remained unclaimed by the owner for more than three years after it became payable or distributable escheats to this state. | |
| 148 | 155 | ||
| 149 | - | (b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2). | |
| 156 | + | (b) Except as provided in subdivision (a) of Section 1513.5, subdivision (b) of Section 1514, and subdivision (d) of Section 1516, and subdivisions (b) and (c) of Section 1516.5, if the holder has in its records an address for the apparent owner of property valued at fifty dollars ($50) or more, which the holders records do not disclose to be inaccurate, the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owners property will escheat to the state pursuant to this chapter. The notice shall be mailed not less than 6 nor more than 12 months before the time when the owners property held by the business becomes reportable to the Controller in accordance with this chapter. The face of the notice shall contain a heading at the top that reads as follows: THE STATE OF CALIFORNIA REQUIRES US TO NOTIFY YOU THAT YOUR UNCLAIMED PROPERTY MAY BE TRANSFERRED TO THE STATE IF YOU DO NOT CONTACT US, or substantially similar language. The notice required by this subdivision shall specify the time when the property will escheat and the effects of escheat, including the need to file a claim in order for the owners property to be returned to the owner. The notice required by this section shall, in boldface type or in a font a minimum of two points larger than the rest of the notice, exclusive of the heading, (1) specify that since the date of last activity, or for the last two years, there has been no owner activity on the deposit, account, shares, or other interest; (2) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires holders to transfer funds of a deposit, account, shares, or other interest if it has been inactive for three years. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owners current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the account, or other device in which the owners property is being held, remains currently active and recommences the escheat period. In lieu of returning the form, the holder may provide a telephone number or other electronic means to enable the owner to contact the holder. With that contact, as evidenced by a memorandum or other record on file with the holder, the account or other device in which the owners property is being held shall be deemed to remain currently active and shall recommence the escheat period. The holder may impose a service charge on the deposit, account, shares, or other interest for this notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed two dollars ($2). | |
| 150 | 157 | ||
| 151 | 158 | (c) In addition to the notice required pursuant to subdivision (b), the holder may give additional notice as described in subdivision (b) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the property to the Controller. | |
| 152 | 159 | ||
| 153 | 160 | (d) For purposes of this section, lawful charges means charges that are specifically authorized by statute, other than the Unclaimed Property Law, or by a valid, enforceable contract. | |
| 154 | 161 | ||
| 155 | - | SEC. 5. Section 1532 of the Code of Civil Procedure is amended to read:1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section.(b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat.(c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577.(d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller.(e) The holder of any virtual currency digital financial asset that is subject to Section 1516.5 shall, no more than 30 days after the final date for filing the report required by this section, transfer the exact virtual currency digital financial asset type and amount, unliquidated, to the Controllers crypto currency custodian or as the Controller by regulation may designate.(f) Payment of any intangible property to the Controller shall be made at the office of the Controller in Sacramento or at another location as the Controller by regulation may designate. Except as otherwise agreed by the Controller and the holder, tangible personal property shall be delivered to the Controller at the place where it is held.(g) Payment is deemed complete on the date the electronic funds transfer is initiated if the settlement to the states demand account occurs on or before the banking day following the date the transfer is initiated. If the settlement to the states demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.(h) Any person required to pay cash by electronic funds transfer who makes the payment by means other than an authorized electronic funds transfer shall be liable for a civil penalty of 2 percent of the amount of the payment that is due pursuant to this section, in addition to any other penalty provided by law. Penalties are due at the time of payment. If the Controller finds that a holders failure to make payment by an appropriate electronic funds transfer in accordance with the Controllers procedures is due to reasonable cause and circumstances beyond the holders control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that holder shall be relieved of the penalties.(i) An electronic funds transfer shall be accomplished by an automated clearinghouse debit, an automated clearinghouse credit, a Federal Reserve Wire Transfer (Fedwire), or by an international funds transfer. Banking costs incurred for the automated clearinghouse debit transaction by the holder shall be paid by the state. Banking costs incurred by the state for the automated clearinghouse credit transaction may be paid by the holder originating the credit. Banking costs incurred for the Fedwire transaction charged to the holder and the state shall be paid by the person originating the transaction. Banking costs charged to the holder and to the state for an international funds transfer may be charged to the holder.(j) For purposes of this section:(1) Electronic funds transfer means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, modem, computer, or magnetic tape, so as to order, instruct, or authorize a financial institution to credit or debit an account.(2) Automated clearinghouse means any federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association or any similar organization, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and that authorizes an electronic transfer of funds between those banks or bank accounts.(3) Automated clearinghouse debit means a transaction in which the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the holders bank account and crediting the states bank account for the amount of payment.(4) Automated clearinghouse credit means an automated clearinghouse transaction in which the holder, through its own bank, originates an entry crediting the states bank account and debiting the holders bank account.(5) Fedwire means any transaction originated by the holder and utilizing the national electronic payment system to transfer funds through federal reserve banks, pursuant to which the holder debits its own bank account and credits the states bank account.(6) International funds transfer means any transaction originated by the holder and utilizing the international electronic payment system to transfer funds, pursuant to which the holder debits its own bank account, and credits the funds to a United States bank that credits the Unclaimed Property Fund. | |
| 162 | + | (e)This section shall become operative on January 1, 2023. | |
| 163 | + | ||
| 164 | + | ||
| 165 | + | ||
| 166 | + | SEC. 5. Section 1532 of the Code of Civil Procedure is amended to read:1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section.(b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat.(c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577.(d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller.(e) The holder of any virtual currency that is subject to Section 1516.5 shall, no more than 30 days after the final date for filing the report required by this section, transfer the exact virtual currency type and amount, unliquidated, to the Controllers crypto currency custodian or as the Controller by regulation may designate.(e)(f) Payment of any intangible property to the Controller shall be made at the office of the Controller in Sacramento or at another location as the Controller by regulation may designate. Except as otherwise agreed by the Controller and the holder, tangible personal property shall be delivered to the Controller at the place where it is held.(f)(g) Payment is deemed complete on the date the electronic funds transfer is initiated if the settlement to the states demand account occurs on or before the banking day following the date the transfer is initiated. If the settlement to the states demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.(g)(h) Any person required to pay cash by electronic funds transfer who makes the payment by means other than an authorized electronic funds transfer shall be liable for a civil penalty of 2 percent of the amount of the payment that is due pursuant to this section, in addition to any other penalty provided by law. Penalties are due at the time of payment. If the Controller finds that a holders failure to make payment by an appropriate electronic funds transfer in accordance with the Controllers procedures is due to reasonable cause and circumstances beyond the holders control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that holder shall be relieved of the penalties.(h)(i) An electronic funds transfer shall be accomplished by an automated clearinghouse debit, an automated clearinghouse credit, a Federal Reserve Wire Transfer (Fedwire), or by an international funds transfer. Banking costs incurred for the automated clearinghouse debit transaction by the holder shall be paid by the state. Banking costs incurred by the state for the automated clearinghouse credit transaction may be paid by the holder originating the credit. Banking costs incurred for the Fedwire transaction charged to the holder and the state shall be paid by the person originating the transaction. Banking costs charged to the holder and to the state for an international funds transfer may be charged to the holder.(i)(j) For purposes of this section:(1) Electronic funds transfer means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, modem, computer, or magnetic tape, so as to order, instruct, or authorize a financial institution to credit or debit an account.(2) Automated clearinghouse means any federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association or any similar organization, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and that authorizes an electronic transfer of funds between those banks or bank accounts.(3) Automated clearinghouse debit means a transaction in which the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the holders bank account and crediting the states bank account for the amount of payment.(4) Automated clearinghouse credit means an automated clearinghouse transaction in which the holder, through its own bank, originates an entry crediting the states bank account and debiting the holders bank account.(5) Fedwire means any transaction originated by the holder and utilizing the national electronic payment system to transfer funds through federal reserve banks, pursuant to which the holder debits its own bank account and credits the states bank account.(6) International funds transfer means any transaction originated by the holder and utilizing the international electronic payment system to transfer funds, pursuant to which the holder debits its own bank account, and credits the funds to a United States bank that credits the Unclaimed Property Fund. | |
| 156 | 167 | ||
| 157 | 168 | SEC. 5. Section 1532 of the Code of Civil Procedure is amended to read: | |
| 158 | 169 | ||
| 159 | 170 | ### SEC. 5. | |
| 160 | 171 | ||
| 161 | - | 1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section.(b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat.(c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577.(d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller.(e) The holder of any virtual currency | |
| 172 | + | 1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section.(b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat.(c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577.(d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller.(e) The holder of any virtual currency that is subject to Section 1516.5 shall, no more than 30 days after the final date for filing the report required by this section, transfer the exact virtual currency type and amount, unliquidated, to the Controllers crypto currency custodian or as the Controller by regulation may designate.(e)(f) Payment of any intangible property to the Controller shall be made at the office of the Controller in Sacramento or at another location as the Controller by regulation may designate. Except as otherwise agreed by the Controller and the holder, tangible personal property shall be delivered to the Controller at the place where it is held.(f)(g) Payment is deemed complete on the date the electronic funds transfer is initiated if the settlement to the states demand account occurs on or before the banking day following the date the transfer is initiated. If the settlement to the states demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.(g)(h) Any person required to pay cash by electronic funds transfer who makes the payment by means other than an authorized electronic funds transfer shall be liable for a civil penalty of 2 percent of the amount of the payment that is due pursuant to this section, in addition to any other penalty provided by law. Penalties are due at the time of payment. If the Controller finds that a holders failure to make payment by an appropriate electronic funds transfer in accordance with the Controllers procedures is due to reasonable cause and circumstances beyond the holders control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that holder shall be relieved of the penalties.(h)(i) An electronic funds transfer shall be accomplished by an automated clearinghouse debit, an automated clearinghouse credit, a Federal Reserve Wire Transfer (Fedwire), or by an international funds transfer. Banking costs incurred for the automated clearinghouse debit transaction by the holder shall be paid by the state. Banking costs incurred by the state for the automated clearinghouse credit transaction may be paid by the holder originating the credit. Banking costs incurred for the Fedwire transaction charged to the holder and the state shall be paid by the person originating the transaction. Banking costs charged to the holder and to the state for an international funds transfer may be charged to the holder.(i)(j) For purposes of this section:(1) Electronic funds transfer means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, modem, computer, or magnetic tape, so as to order, instruct, or authorize a financial institution to credit or debit an account.(2) Automated clearinghouse means any federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association or any similar organization, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and that authorizes an electronic transfer of funds between those banks or bank accounts.(3) Automated clearinghouse debit means a transaction in which the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the holders bank account and crediting the states bank account for the amount of payment.(4) Automated clearinghouse credit means an automated clearinghouse transaction in which the holder, through its own bank, originates an entry crediting the states bank account and debiting the holders bank account.(5) Fedwire means any transaction originated by the holder and utilizing the national electronic payment system to transfer funds through federal reserve banks, pursuant to which the holder debits its own bank account and credits the states bank account.(6) International funds transfer means any transaction originated by the holder and utilizing the international electronic payment system to transfer funds, pursuant to which the holder debits its own bank account, and credits the funds to a United States bank that credits the Unclaimed Property Fund. | |
| 162 | 173 | ||
| 163 | - | 1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section.(b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat.(c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577.(d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller.(e) The holder of any virtual currency | |
| 174 | + | 1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section.(b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat.(c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577.(d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller.(e) The holder of any virtual currency that is subject to Section 1516.5 shall, no more than 30 days after the final date for filing the report required by this section, transfer the exact virtual currency type and amount, unliquidated, to the Controllers crypto currency custodian or as the Controller by regulation may designate.(e)(f) Payment of any intangible property to the Controller shall be made at the office of the Controller in Sacramento or at another location as the Controller by regulation may designate. Except as otherwise agreed by the Controller and the holder, tangible personal property shall be delivered to the Controller at the place where it is held.(f)(g) Payment is deemed complete on the date the electronic funds transfer is initiated if the settlement to the states demand account occurs on or before the banking day following the date the transfer is initiated. If the settlement to the states demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.(g)(h) Any person required to pay cash by electronic funds transfer who makes the payment by means other than an authorized electronic funds transfer shall be liable for a civil penalty of 2 percent of the amount of the payment that is due pursuant to this section, in addition to any other penalty provided by law. Penalties are due at the time of payment. If the Controller finds that a holders failure to make payment by an appropriate electronic funds transfer in accordance with the Controllers procedures is due to reasonable cause and circumstances beyond the holders control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that holder shall be relieved of the penalties.(h)(i) An electronic funds transfer shall be accomplished by an automated clearinghouse debit, an automated clearinghouse credit, a Federal Reserve Wire Transfer (Fedwire), or by an international funds transfer. Banking costs incurred for the automated clearinghouse debit transaction by the holder shall be paid by the state. Banking costs incurred by the state for the automated clearinghouse credit transaction may be paid by the holder originating the credit. Banking costs incurred for the Fedwire transaction charged to the holder and the state shall be paid by the person originating the transaction. Banking costs charged to the holder and to the state for an international funds transfer may be charged to the holder.(i)(j) For purposes of this section:(1) Electronic funds transfer means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, modem, computer, or magnetic tape, so as to order, instruct, or authorize a financial institution to credit or debit an account.(2) Automated clearinghouse means any federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association or any similar organization, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and that authorizes an electronic transfer of funds between those banks or bank accounts.(3) Automated clearinghouse debit means a transaction in which the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the holders bank account and crediting the states bank account for the amount of payment.(4) Automated clearinghouse credit means an automated clearinghouse transaction in which the holder, through its own bank, originates an entry crediting the states bank account and debiting the holders bank account.(5) Fedwire means any transaction originated by the holder and utilizing the national electronic payment system to transfer funds through federal reserve banks, pursuant to which the holder debits its own bank account and credits the states bank account.(6) International funds transfer means any transaction originated by the holder and utilizing the international electronic payment system to transfer funds, pursuant to which the holder debits its own bank account, and credits the funds to a United States bank that credits the Unclaimed Property Fund. | |
| 164 | 175 | ||
| 165 | - | 1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section.(b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat.(c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577.(d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller.(e) The holder of any virtual currency | |
| 176 | + | 1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section.(b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat.(c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577.(d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller.(e) The holder of any virtual currency that is subject to Section 1516.5 shall, no more than 30 days after the final date for filing the report required by this section, transfer the exact virtual currency type and amount, unliquidated, to the Controllers crypto currency custodian or as the Controller by regulation may designate.(e)(f) Payment of any intangible property to the Controller shall be made at the office of the Controller in Sacramento or at another location as the Controller by regulation may designate. Except as otherwise agreed by the Controller and the holder, tangible personal property shall be delivered to the Controller at the place where it is held.(f)(g) Payment is deemed complete on the date the electronic funds transfer is initiated if the settlement to the states demand account occurs on or before the banking day following the date the transfer is initiated. If the settlement to the states demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.(g)(h) Any person required to pay cash by electronic funds transfer who makes the payment by means other than an authorized electronic funds transfer shall be liable for a civil penalty of 2 percent of the amount of the payment that is due pursuant to this section, in addition to any other penalty provided by law. Penalties are due at the time of payment. If the Controller finds that a holders failure to make payment by an appropriate electronic funds transfer in accordance with the Controllers procedures is due to reasonable cause and circumstances beyond the holders control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that holder shall be relieved of the penalties.(h)(i) An electronic funds transfer shall be accomplished by an automated clearinghouse debit, an automated clearinghouse credit, a Federal Reserve Wire Transfer (Fedwire), or by an international funds transfer. Banking costs incurred for the automated clearinghouse debit transaction by the holder shall be paid by the state. Banking costs incurred by the state for the automated clearinghouse credit transaction may be paid by the holder originating the credit. Banking costs incurred for the Fedwire transaction charged to the holder and the state shall be paid by the person originating the transaction. Banking costs charged to the holder and to the state for an international funds transfer may be charged to the holder.(i)(j) For purposes of this section:(1) Electronic funds transfer means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, modem, computer, or magnetic tape, so as to order, instruct, or authorize a financial institution to credit or debit an account.(2) Automated clearinghouse means any federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association or any similar organization, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and that authorizes an electronic transfer of funds between those banks or bank accounts.(3) Automated clearinghouse debit means a transaction in which the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the holders bank account and crediting the states bank account for the amount of payment.(4) Automated clearinghouse credit means an automated clearinghouse transaction in which the holder, through its own bank, originates an entry crediting the states bank account and debiting the holders bank account.(5) Fedwire means any transaction originated by the holder and utilizing the national electronic payment system to transfer funds through federal reserve banks, pursuant to which the holder debits its own bank account and credits the states bank account.(6) International funds transfer means any transaction originated by the holder and utilizing the international electronic payment system to transfer funds, pursuant to which the holder debits its own bank account, and credits the funds to a United States bank that credits the Unclaimed Property Fund. | |
| 166 | 177 | ||
| 167 | 178 | ||
| 168 | 179 | ||
| 169 | 180 | 1532. (a) Every person filing a report as provided by Section 1530 shall, no sooner than seven months and no later than seven months and 15 days after the final date for filing the report, pay or deliver to the Controller all escheated property specified in the report. Any payment of unclaimed cash in an amount of at least two thousand dollars ($2,000) shall be made by electronic funds transfer pursuant to regulations adopted by the Controller. The Controller may postpone the date for payment or delivery of the property, and the date for any report required by subdivision (b), upon the Controllers own motion or upon written request by any person required to pay or deliver the property or file a report as required by this section. | |
| 170 | 181 | ||
| 171 | 182 | (b) If a person establishes their right to receive any property specified in the report to the satisfaction of the holder before that property has been delivered to the Controller, or it appears that, for any other reason, the property may not be subject to escheat under this chapter, the holder shall not pay or deliver the property to the Controller but shall instead file a report with the Controller, on a form and in a format prescribed or approved by the Controller, containing information pertaining to the property subject to escheat. | |
| 172 | 183 | ||
| 173 | 184 | (c) Any property not paid or delivered pursuant to subdivision (b) that is later determined by the holder to be subject to escheat under this chapter shall not be subject to the interest provision of Section 1577. | |
| 174 | 185 | ||
| 175 | 186 | (d) The holder of any interest under subdivision (b) of Section 1516 shall deliver a duplicate certificate to the Controller or shall register the securities in uncertificated form in the name of the Controller. Upon delivering a duplicate certificate or providing evidence of registration of the securities in uncertificated form to the Controller, the holder, any transfer agent, registrar, or other person acting for or on behalf of the holder in executing or delivering the duplicate certificate or registering the uncertificated securities, shall be relieved from all liability of every kind to any person including, but not limited to, any person acquiring the original certificate or the duplicate of the certificate issued to the Controller for any losses or damages resulting to that person by the issuance and delivery to the Controller of the duplicate certificate or the registration of the uncertificated securities to the Controller. | |
| 176 | 187 | ||
| 177 | - | (e) The holder of any virtual currency digital financial asset that is subject to Section 1516.5 shall, no more than 30 days after the final date for filing the report required by this section, transfer the exact virtual currency digital financial asset type and amount, unliquidated, to the Controllers crypto currency custodian or as the Controller by regulation may designate. | |
| 188 | + | (e) The holder of any virtual currency that is subject to Section 1516.5 shall, no more than 30 days after the final date for filing the report required by this section, transfer the exact virtual currency type and amount, unliquidated, to the Controllers crypto currency custodian or as the Controller by regulation may designate. | |
| 189 | + | ||
| 190 | + | (e) | |
| 191 | + | ||
| 192 | + | ||
| 178 | 193 | ||
| 179 | 194 | (f) Payment of any intangible property to the Controller shall be made at the office of the Controller in Sacramento or at another location as the Controller by regulation may designate. Except as otherwise agreed by the Controller and the holder, tangible personal property shall be delivered to the Controller at the place where it is held. | |
| 180 | 195 | ||
| 196 | + | (f) | |
| 197 | + | ||
| 198 | + | ||
| 199 | + | ||
| 181 | 200 | (g) Payment is deemed complete on the date the electronic funds transfer is initiated if the settlement to the states demand account occurs on or before the banking day following the date the transfer is initiated. If the settlement to the states demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs. | |
| 201 | + | ||
| 202 | + | (g) | |
| 203 | + | ||
| 204 | + | ||
| 182 | 205 | ||
| 183 | 206 | (h) Any person required to pay cash by electronic funds transfer who makes the payment by means other than an authorized electronic funds transfer shall be liable for a civil penalty of 2 percent of the amount of the payment that is due pursuant to this section, in addition to any other penalty provided by law. Penalties are due at the time of payment. If the Controller finds that a holders failure to make payment by an appropriate electronic funds transfer in accordance with the Controllers procedures is due to reasonable cause and circumstances beyond the holders control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that holder shall be relieved of the penalties. | |
| 184 | 207 | ||
| 208 | + | (h) | |
| 209 | + | ||
| 210 | + | ||
| 211 | + | ||
| 185 | 212 | (i) An electronic funds transfer shall be accomplished by an automated clearinghouse debit, an automated clearinghouse credit, a Federal Reserve Wire Transfer (Fedwire), or by an international funds transfer. Banking costs incurred for the automated clearinghouse debit transaction by the holder shall be paid by the state. Banking costs incurred by the state for the automated clearinghouse credit transaction may be paid by the holder originating the credit. Banking costs incurred for the Fedwire transaction charged to the holder and the state shall be paid by the person originating the transaction. Banking costs charged to the holder and to the state for an international funds transfer may be charged to the holder. | |
| 213 | + | ||
| 214 | + | (i) | |
| 215 | + | ||
| 216 | + | ||
| 186 | 217 | ||
| 187 | 218 | (j) For purposes of this section: | |
| 188 | 219 | ||
| 189 | 220 | (1) Electronic funds transfer means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, modem, computer, or magnetic tape, so as to order, instruct, or authorize a financial institution to credit or debit an account. | |
| 190 | 221 | ||
| 191 | 222 | (2) Automated clearinghouse means any federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association or any similar organization, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and that authorizes an electronic transfer of funds between those banks or bank accounts. | |
| 192 | 223 | ||
| 193 | 224 | (3) Automated clearinghouse debit means a transaction in which the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the holders bank account and crediting the states bank account for the amount of payment. | |
| 194 | 225 | ||
| 195 | 226 | (4) Automated clearinghouse credit means an automated clearinghouse transaction in which the holder, through its own bank, originates an entry crediting the states bank account and debiting the holders bank account. | |
| 196 | 227 | ||
| 197 | 228 | (5) Fedwire means any transaction originated by the holder and utilizing the national electronic payment system to transfer funds through federal reserve banks, pursuant to which the holder debits its own bank account and credits the states bank account. | |
| 198 | 229 | ||
| 199 | 230 | (6) International funds transfer means any transaction originated by the holder and utilizing the international electronic payment system to transfer funds, pursuant to which the holder debits its own bank account, and credits the funds to a United States bank that credits the Unclaimed Property Fund. | |
| 200 | 231 | ||
| 201 | - | SEC. 6. Section 1533 of the Code of Civil Procedure is amended to read:1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the Controller, and shall not escheat to the state, if the Controller, in their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of their determination not to take custody of the property.(b) Subdivision (a) also applies to virtual currency | |
| 232 | + | SEC. 6. Section 1533 of the Code of Civil Procedure is amended to read:1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the State Controller, and shall not escheat to the state, if the State Controller, in his their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of his their determination not to take custody of the property.(b) Subdivision (a) also applies to virtual currency that is subject to Section 1516.5. | |
| 202 | 233 | ||
| 203 | 234 | SEC. 6. Section 1533 of the Code of Civil Procedure is amended to read: | |
| 204 | 235 | ||
| 205 | 236 | ### SEC. 6. | |
| 206 | 237 | ||
| 207 | - | 1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the Controller, and shall not escheat to the state, if the Controller, in their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of their determination not to take custody of the property.(b) Subdivision (a) also applies to virtual currency | |
| 238 | + | 1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the State Controller, and shall not escheat to the state, if the State Controller, in his their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of his their determination not to take custody of the property.(b) Subdivision (a) also applies to virtual currency that is subject to Section 1516.5. | |
| 208 | 239 | ||
| 209 | - | 1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the Controller, and shall not escheat to the state, if the Controller, in their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of their determination not to take custody of the property.(b) Subdivision (a) also applies to virtual currency | |
| 240 | + | 1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the State Controller, and shall not escheat to the state, if the State Controller, in his their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of his their determination not to take custody of the property.(b) Subdivision (a) also applies to virtual currency that is subject to Section 1516.5. | |
| 210 | 241 | ||
| 211 | - | 1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the Controller, and shall not escheat to the state, if the Controller, in their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of their determination not to take custody of the property.(b) Subdivision (a) also applies to virtual currency | |
| 242 | + | 1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the State Controller, and shall not escheat to the state, if the State Controller, in his their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of his their determination not to take custody of the property.(b) Subdivision (a) also applies to virtual currency that is subject to Section 1516.5. | |
| 212 | 243 | ||
| 213 | 244 | ||
| 214 | 245 | ||
| 215 | - | 1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the Controller, and shall not escheat to the state, if the Controller, in their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of their determination not to take custody of the property. | |
| 246 | + | 1533. (a) Tangible personal property may be excluded from the notices required by Section 1531, shall not be delivered to the State Controller, and shall not escheat to the state, if the State Controller, in his their discretion, determines that it is not in the interest of the state to take custody of the property and notifies the holder in writing, within 120 days from receipt of the report required by Section 1530, of his their determination not to take custody of the property. | |
| 216 | 247 | ||
| 217 | - | (b) Subdivision (a) also applies to virtual currency | |
| 248 | + | (b) Subdivision (a) also applies to virtual currency that is subject to Section 1516.5. | |
| 218 | 249 | ||
| 219 | - | SEC. 7. 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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 and virtual currency | |
| 250 | + | SEC. 7. 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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 and virtual currency on an established crypto currency exchange shall be sold at the prevailing prices on that exchange. Other securities or virtual currency may be sold over the counter at prevailing prices or by any other method that the Controller may determine to be advisable. These securities and virtual currency shall be sold by the Controller no sooner than 18 months, but no later than 20 months, after the actual date of filing of the report required by Section 1530. If securities or virtual currency 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 securities or virtual currency under this chapter shall be entitled to receive the securities or virtual currency from the Controller. If the securities or virtual currency have been sold, the person shall be entitled to receive the net proceeds received by the Controller from the sale of the securities. its sale. 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. A 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. | |
| 220 | 251 | ||
| 221 | 252 | SEC. 7. Section 1563 of the Code of Civil Procedure is amended to read: | |
| 222 | 253 | ||
| 223 | 254 | ### SEC. 7. | |
| 224 | 255 | ||
| 225 | - | 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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 and virtual currency | |
| 256 | + | 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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 and virtual currency on an established crypto currency exchange shall be sold at the prevailing prices on that exchange. Other securities or virtual currency may be sold over the counter at prevailing prices or by any other method that the Controller may determine to be advisable. These securities and virtual currency shall be sold by the Controller no sooner than 18 months, but no later than 20 months, after the actual date of filing of the report required by Section 1530. If securities or virtual currency 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 securities or virtual currency under this chapter shall be entitled to receive the securities or virtual currency from the Controller. If the securities or virtual currency have been sold, the person shall be entitled to receive the net proceeds received by the Controller from the sale of the securities. its sale. 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. A 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. | |
| 226 | 257 | ||
| 227 | - | 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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 and virtual currency | |
| 258 | + | 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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 and virtual currency on an established crypto currency exchange shall be sold at the prevailing prices on that exchange. Other securities or virtual currency may be sold over the counter at prevailing prices or by any other method that the Controller may determine to be advisable. These securities and virtual currency shall be sold by the Controller no sooner than 18 months, but no later than 20 months, after the actual date of filing of the report required by Section 1530. If securities or virtual currency 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 securities or virtual currency under this chapter shall be entitled to receive the securities or virtual currency from the Controller. If the securities or virtual currency have been sold, the person shall be entitled to receive the net proceeds received by the Controller from the sale of the securities. its sale. 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. A 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. | |
| 228 | 259 | ||
| 229 | - | 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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 and virtual currency | |
| 260 | + | 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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 and virtual currency on an established crypto currency exchange shall be sold at the prevailing prices on that exchange. Other securities or virtual currency may be sold over the counter at prevailing prices or by any other method that the Controller may determine to be advisable. These securities and virtual currency shall be sold by the Controller no sooner than 18 months, but no later than 20 months, after the actual date of filing of the report required by Section 1530. If securities or virtual currency 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 securities or virtual currency under this chapter shall be entitled to receive the securities or virtual currency from the Controller. If the securities or virtual currency have been sold, the person shall be entitled to receive the net proceeds received by the Controller from the sale of the securities. its sale. 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. A 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. | |
| 230 | 261 | ||
| 231 | 262 | ||
| 232 | 263 | ||
| 233 | 264 | 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 the Controllers 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 the Controllers 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 the Controller considers the price bid insufficient. The Controller need not offer any property for sale if, in the Controllers 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. | |
| 234 | 265 | ||
| 235 | - | (b) Securities listed on an established stock exchange and virtual currency | |
| 266 | + | (b) Securities listed on an established stock exchange and virtual currency on an established crypto currency exchange shall be sold at the prevailing prices on that exchange. Other securities or virtual currency may be sold over the counter at prevailing prices or by any other method that the Controller may determine to be advisable. These securities and virtual currency shall be sold by the Controller no sooner than 18 months, but no later than 20 months, after the actual date of filing of the report required by Section 1530. If securities or virtual currency 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 securities or virtual currency under this chapter shall be entitled to receive the securities or virtual currency from the Controller. If the securities or virtual currency have been sold, the person shall be entitled to receive the net proceeds received by the Controller from the sale of the securities. its sale. 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. | |
| 236 | 267 | ||
| 237 | 268 | (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. A person claiming an interest in the escheated property may file a claim to the property pursuant to Article 4 (commencing with Section 1540). | |
| 238 | 269 | ||
| 239 | 270 | (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. | |
| 240 | 271 | ||
| 241 | 272 | (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. | |
| 273 | + | ||
| 274 | + | ||
| 275 | + | ||
| 276 | + | It is the intent of the Legislature to enact legislation in the Code of Civil Procedure relating to cryptocurrency and the unclaimed property program. |