Assembly BillPassed both housesCivil Procedure
AB 1447: Unclaimed property: escheat to the state.
What AB 1447 does, verified August 12, 2026
The bill aims to amend the unclaimed property law in California. Currently, the law requires a notice to be mailed to individuals who appear to be entitled to unclaimed property valued at $50 or more. The notice must be sent to the individual's last known address. The proposed law would change this to only require the notice to be sent to a valid deliverable address, either from the report or obtained from the franchise tax board. If the address listed in the report is not valid, but the controller finds a corrected valid address, the notice must be sent to that corrected address. This change would simplify the process of sending notices to individuals who are entitled to unclaimed property.
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Last action: From committee: Be re-referred to Com. on JUD. pursuant to Senate Rule 29.10(b). (Ayes 5. Noes 0.) Re-referred to Com. on JUD. (2026-08-10)Alert me
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| Aug. 10, 2026 | From committee: Be re-referred to Com. on JUD. pursuant to Senate Rule 29.10(b). (Ayes 5. Noes 0.) Re-referred to Com. on JUD. |
| Aug. 10, 2026 | Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(b). |
| Aug. 10, 2026 | Read third time and amended. Ordered to second reading. |
| Aug. 10, 2026 | Ordered to third reading. |
| Aug. 10, 2026 | (Ayes 29. Noes 9.) |
Latest bill textAmended version, August 10, 2026 · 1,808 words
| Amended IN Senate August 10, 2026 |
| Amended IN Assembly April 09, 2025 |
| Amended IN Assembly March 24, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 1447
| Introduced by Assembly Member Gipson |
February 21, 2025 |
An act to amend Section Sections 1516 and 1531 of the Code of Civil Procedure, relating to unclaimed property.
LEGISLATIVE COUNSEL'S DIGEST
AB 1447, as amended, Gipson. Unclaimed property: notice. escheat to the state.
Existing law, the Unclaimed Property Law, governs the disposition of unclaimed property, including the escheat of certain property to the state. Existing law requires every person holding funds or other property that escheated to the state to submit a report to the Controller that includes, among other items, the name and last known address of each person appearing to be the owner of any property, as specified. Existing law requires the Controller, within 165 days of the final date for filing such a report, to mail a notice to each person who appears to be entitled to property valued $50 or more and whose address is listed in the report or is obtained from the Franchise Tax Board, as specified.
This bill would provide that the notice described above need only be sent to an address listed in the report or obtained from the Franchise Tax Board when it is a valid deliverable address. The bill would specify that if the address listed in the report is not a valid deliverable address, but the Controller identifies a corrected valid deliverable address, the Controller must mail the notice to the corrected valid deliverable address.
Under existing law, the Unclaimed Property Law, if the property holder does not claim or correspond regarding any dividend, distribution, or other item, as specified, held or owing to the holder by a business association, the item escheats to the state within 3 years after the date prescribed for payment or delivery of the item. Under existing law, any intangible interest in a business association escheats to the state if both (1) the interest in the association is owned by a person who for more than 3 years has neither claimed a dividend or other sum nor corresponded in writing or indicated an interest in the item, as specified, and (2) the association does not know the location of the owner at the end of the 3-year period.
This bill would expand the provisions regarding the escheatment of intangible interests to include securities and include in the requirements for escheatment that the owner does not respond to the required notice or otherwise indicate an interest within the prescribed time period, as specified. The bill would also amend the notice to be sent to the owners of securities or other intangible interests before they escheat to the state.
The people of the State of California do enact as follows:
SECTION 1.
Section 1516 of the Code of Civil Procedure is amended to read:1516.
(a) Subject to Section 1510, any dividend, profit, distribution, interest, payment on principal, or other sum held or owing by a business association for or to its shareholder, certificate holder, member, bondholder, or other security holder, or a participating patron of a cooperative, who has not claimed it, or corresponded in writing with the business association concerning it, within three years after the date prescribed for payment or delivery, escheats to this state.(b) Subject to Section 1510, any security or other intangible interest in a business association, as evidenced by the stock records or membership records of the association, holder, escheats to this state if all the following: (1) the
(1) The
interest in the association is owned by a person who for more than three years has neither claimed a dividend or other sum referred to in subdivision (a) nor corresponded in writing with the(2) The holder
does not know the location of the(3) The owner does not respond to the notice required by subdivision (d), or otherwise indicate an interest as evidenced by a memorandum or other record on file with the holder, within six months after the date the notice is given or, if the notice is not given within the time prescribed by subdivision (d), within six months after the end of the three-year period described in paragraph (1) of subdivision (b).
(c) Subject to Section 1510, any dividends or other distributions held for or owing to a person at the time the stock or other security to which they attach escheats to this state also escheat to this state as of the same time.
(d) If the business association holder has in its records an address for the apparent owner, which the business association’s holder’s records do not disclose to be inaccurate, with respect to any interest that may escheat pursuant to as described in subdivision (b), the business association and if no further action is taken by the owner by the deadline for the period described in paragraph (1) of subdivision (b), the holder shall make reasonable efforts to notify the owner by mail or, if the owner has consented to electronic notice, electronically, that the owner’s interest in the business association will escheat to the state. The notice shall be given not less than 6 nor more than 12 months before the time the interest in the business association becomes reportable to the Controller in accordance with this chapter. The notice from the holder shall be given after the end of the three-year period described in paragraph (1) of subdivision (b), and not more than six months after that date. 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 SHALL 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 that the interest will escheat and the effects of escheat, including the necessity for filing a claim for the return of the interest. 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; regarding the securities; (2) identify the deposit, account, shares, or other interest securities by number or identifier, which need not exceed four digits; (3) indicate that the deposit, account, shares, or other interest is securities are in danger of escheating to the state; and (4) specify that the Unclaimed Property Law requires business associations holders to transfer funds of a deposit, account, shares, or other interest if it securities to the state if the owner has been inactive for three years. years and the owner does not respond to the notice within six months after the date the notice is given. It shall also include a form, as prescribed by the Controller, by which the owner may confirm the owner’s current address. If that form is filled out, signed by the owner, and returned to the holder, it shall be deemed that the business association knows the location of the owner. In lieu of returning the form, the business association holder may provide a telephone number or other electronic means to enable the owner to contact the association. With that contact, as evidenced by a memorandum or other record on file with the business association, the business association shall be deemed to know the location of the owner. The business association holder. The holder may impose a service charge on the deposit, account, shares, or other interest owner for this notice and form 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).
(e) In addition to the notice required pursuant to subdivision (d), the holder may give additional notice as described in subdivision (d) at any time between the date of last activity by, or communication with, the owner and the date the holder transfers the deposit, shares, or other interest to the Controller.
(f) The interest that escheats pursuant to An interest described in subdivision (b) shall not be reportable pursuant to Section 1530 unless and until the per share value, as set forth in Section 1172.80 of Title 2 of the California Code of Regulations, is equal to or greater than one cent ($0.01) or the aggregate value of the security held exceeds one thousand dollars ($1,000).
(g) All the following apply to securities and other interests subject to escheat pursuant to this section:
(1) For purposes of paragraph (2) of subdivision (b), the location of the owner shall be deemed unknown at the end of the three-year period described in paragraph (1) of subdivision (b) if, during that period, the owner has neither claimed a dividend or other sum referred to in subdivision (a), nor corresponded in writing with the holder, nor otherwise indicated an interest as evidenced by a memorandum or other record on file with the holder.
(2) (A) An owner may indicate interest in a security or other interest described in this subdivision through owner-initiated electronic, verbal, written, or in-person contact with the holder.
(B) The negotiation or redemption by the owner of a dividend or other distribution issued by the business association or its agent to the owner constitutes both a claim of the dividend or other sum and an indication of interest by the owner.
(C) The making of automatic deposits of dividends or other distributions to an account of the owner maintained by any bank, financial institution, or other business association does not constitute a claim, correspondence, or indication of interest by the owner, and the absence of a returned or rejected deposit does not, by itself, establish that the holder knows the location of the owner.
(D) The automatic reinvestment of dividends or other distributions in the account of the owner, and the crediting of securities or other interests resulting from that reinvestment, do not constitute a claim, correspondence, or indication of interest by the owner.
(h) This section applies to all interests in business associations, other than digital financial assets as defined in Section 3102 of the Financial Code, regardless of whether they are held by the owner directly, through a brokerage account, or otherwise.
Text of AB 1447 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions