AB 2209: Unclaimed property: time frames.

The Unclaimed Property Law (UPL) prescribes the circumstances under which unclaimed personal property held by a banking or financial organization, business association, or other holder of personal property escheats to the state. The UPL specifies that any demand, savings, or matured time deposit, or account subject to a negotiable order of withdrawal, made with a banking organization escheats to the state if the owner, for more than 3 years, has not had specified activity on the account, except as specified.

This bill would extend this 3-year period to 5 years.

The UPL requires a banking or financial organization, if it has in its records an address for the apparent owner, which the records do not disclose to be inaccurate, to make reasonable efforts to notify by mail any owner that the owner deposit, account, shares, or other interest in the banking or financial organization will escheat to the state, as specified. Existing law requires the notice be given either not less than 2 years nor more than 2 ¹/₂ years after the last activity by or with the owner, with respect to the account, deposit, shares, or other interest, or not less than 6 nor more than 12 months before the time the account, deposit, shares, or other interest becomes reportable to the Controller, as specified.

This bill would extend the initial time frame, described above, of 2 years and nor more than 2 ¹/₂ years after the last activity, to not less than 3 nor more than 3 ¹/₂ years.