Assembly BillPassed first houseCivil Procedure
AB 2335: Unclaimed property: digital financial assets.
What AB 2335 does, verified August 15, 2026
The bill creates a digital asset reserve fund where digital financial assets will be deposited. The state controller will convert escheated digital assets into high-quality digital assets after a specified holding period, not sooner than 18 months or later than 20 months. A person who makes a valid claim before the conversion can receive the digital assets in their native form or fiat currency. The controller is authorized to use the fund's assets to pay for administration and management. A quarterly report will be published by the controller. A digital asset reserve board will be assigned tasks related to the fund's administration.
Bill journey
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Last action: In committee: Held under submission. (2026-08-13)Alert me
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Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions22 total · showing 5
| Aug. 13, 2026 | In committee: Held under submission. |
| Aug. 03, 2026 | In committee: Referred to APPR. suspense file. |
| Jul. 02, 2026 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul. 02, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (June 30). |
| Jun. 22, 2026 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. |
Latest bill textAmended version, July 2, 2026 · 5,427 words
| Amended IN Senate July 02, 2026 |
| Amended IN Senate June 22, 2026 |
| Amended IN Assembly May 18, 2026 |
| Amended IN Assembly April 22, 2026 |
| Amended IN Assembly March 26, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 2335
| Introduced by Assembly Member Valencia |
February 19, 2026 |
An act to amend Sections 1501, 1516.5, 1532, and 1563 of, and to add Sections 1563.5 and 1564.6 to, the Code of Civil Procedure, relating to unclaimed property, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2335, as amended, Valencia. Unclaimed property: digital financial assets.
(1) The Unclaimed Property Law (UPL) prescribes the circumstances under which intangible property, including digital financial assets, 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. Existing law also requires that business associations holding a financial asset that is potentially subject to escheatment provide notice to the owners of that asset as specified.
This bill would establish mechanisms for the management of digital financial assets, as defined, that escheat to the state. The bill would create the Digital Asset Claims Reserve Account and the Digital Asset Reserve Fund for these purposes. The bill would require the Controller to hold an escheated digital financial asset in its native form no earlier than 18 months and no later than 20 months after it is reported to the Controller by the holder of the asset, and, if it is not claimed by the owner within that time, to liquidate the asset and deposit the net proceeds in the Digital Asset Claims Reserve Account. The bill would require the Treasurer to invest moneys in the Digital Asset Claims Reserve Account pursuant to the Treasurer’s existing authority to invest surplus money. The bill would require the Controller to transfer all interest, earnings, and investment income credited to the Digital Asset Claims Reserve Account to the Digital Asset Reserve Fund on a quarterly basis. The bill would create the Digital Asset Reserve Board, which would be assigned specified tasks relating to administration of the Digital Asset Reserve Fund, including establishing investment policies to be followed by the Controller when investing moneys in the fund by converting them into high-quality digital assets. The bill would authorize the Controller to take specified actions related to digital financial assets and would require the Controller to publish a quarterly report, as specified. Under the bill, a person who makes a valid claim before the disposition of the digital financial assets is entitled to receive the digital financial assets in their native form or in fiat currency, as specified, or in cash if the digital financial assets were liquidated. The bill would authorize the Controller to use assets within the Digital Asset Reserve Fund to pay for the administration and management of the fund, thereby making an appropriation.
(2) Under existing law, a person holding funds or other property escheated to the state must file a report with the Controller and pay or deliver the escheated property to the Controller within a specified time, unless another person establishes their right to the property. Existing law requires any payment to the Controller of at least $2,000 in unclaimed cash to be made by electronic funds transfer.
The bill would permit the Controller to direct the holder of a digital financial asset to sell or to otherwise liquidate the digital financial asset and deliver the net proceeds in lieu of the native digital financial asset, as specified. The bill would require a holder of funds or other property escheated to the state that is directed to sell or liquidate the digital financial asset to do so for no less than the prevailing market price of the digital financial asset at the time of sale.
The people of the State of California do enact as follows:
SECTION 1.
It is the intent of the legislature to clarify that digital financial assets are intangible property that are 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) “Digital Asset Reserve Fund” means a fund consisting of high-quality digital assets purchased with interest, earnings, and investment income credited to the Digital Asset Claims Reserve Account established under Section 1564.6.
(e) “Digital financial asset” has the same meaning as in subdivision (g) of Section 3102 of the Financial Code.
(f) “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 that receives for distribution residuals on behalf of employees working under collective-bargaining agreements.
(g) “Financial organization” means any federal or state savings and loan association, building and loan association, credit union, investment company, or any similar organization.
(h) “High-quality digital asset” means a digital financial asset with an average market capitalization of at least one hundred billion dollars ($100,000,000,000) over the most recent 12-month period.
(i) “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.
(j) “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.
(k) “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.
(l) “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.
(m) “Private key” means a unique element of cryptographic data used for signing transactions on a blockchain that is known to the owner of the element.
(n) “Residuals” means payments pursuant to a collective bargaining agreement of additional compensation for domestic and foreign uses of recorded materials.
(o) “Digital Asset Claims Reserve Account” means the segregated account established within the State Controller under Section 1564.6.
(p) “Net proceeds” means the amount received following the sale of the financial asset after all necessary administrative costs are deducted.
SEC. 3.
Section 1516.5 of the Code of Civil Procedure is amended to read:1516.5.
(a) Pursuant to Section 1510, any digital financial asset held or owing by a business association escheats to the state if unclaimed by the owner for more than three years from either of the following:(1) The date a written or electronic communication to the owner is returned undelivered by the United States Postal Service or by electronic mail or other electronic messaging method, as applicable.
(2) The date of the last exercise of an act of ownership interest by the owner in the digital asset account if the owner does not receive written or electronic communications from the holder or the holder does not have the means of systematically tracking or monitoring the nondelivery of those communications.
(b) The running of the three-year period under paragraph (1) of subdivision (a) shall cease immediately upon the exercise of an act of ownership interest in the digital asset account or written, oral, or electronic communication with the holder as evidenced by a memorandum or other record on file with the holder or its agents.
(c) For purposes of this section, an “exercise of an act of ownership interest” includes any of the following actions by the owner regarding the digital asset account:
(1) Conducting a transaction regarding the digital asset account, including buying or selling digital assets, depositing into or withdrawing from the account fiat currency or other property whether by a one-time transaction or a recurring transaction previously authorized by the owner.
(2) Electronically accessing the digital asset account.
(3) Conducting any activity with respect to another digital asset account or any other property owned by the owner with the same holder.
(4) Taking any other action that reasonably demonstrates to the holder that the owner knows that the property exists.
(d) (1) The last known address of an apparent owner, for the purpose of determining the jurisdiction over property subject to escheat pursuant to this section, is either of the following:
(A) The address used for purposes of delivering first-class United States mail.
(B) Any description, code, or other indication of the location of the apparent owner that 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 Postal Service mail to the apparent owner.
(2) If there is a conflict between the address identified in subparagraph (A) of paragraph (1) and any description, code, or other indication identified in subparagraph (B) of paragraph (1), the address identified in subparagraph (A) shall be deemed as the last known address of the apparent owner.
(e) (1) The business association shall send the notice required by this section to the apparent owner of a digital financial asset by electronic means. The business association may also send the notice by United States mail if the business association sends physical correspondence to the apparent owner in the ordinary course of business, or if it is the preferred method of contact for the apparent owner as indicated in the business association’s records.
(2) The business association shall satisfy the electronic notification requirement by using the apparent owner’s preferred method of contact as indicated in the business association’s records, and thereafter by using at least two of the following methods:
(A) Push notifications.
(B) Text messages.
(C) Email correspondence.
(f) Subdivision (e) shall apply regardless of the value of the digital financial asset and whether the apparent owner has consented to electronic service.
(g) Notice pursuant to this subdivision shall be sent not less than 6 nor more than 12 months before the time the digital financial asset 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 digital financial asset will escheat and the effects of escheat, including the need to file a claim for the return of the digital financial asset.
(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 digital financial asset.
(B) Identify the digital financial asset by number or identifier, which need not exceed four digits.
(C) Indicate that the digital financial asset is in danger of escheating to the state.
(D) Specify that the Unclaimed Property Law requires business associations to transfer a digital financial asset if it has been unclaimed for three years.
(E) Specify that digital financial assets will be transferred to the Controller, held in their native form during the period required by subdivision (b) of Section 1563, liquidated to fiat currency under subdivision (b) of Section 1563 thereafter, and that the net proceeds of any liquidation will be deposited into the Digital Asset Claims Reserve Account established under Section 1564.6.
(4) The notice shall include a form, prescribed by the Controller, by which the owner may confirm the owner’s current address. If that form is completed, signed by the owner, and returned to the holder of the digital financial asset, or other device in which the owner’s 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 digital financial asset and restarts the escheat period.
(h) 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 digital financial asset to the Controller.
(i) The holder of any partial key to any digital financial asset that is subject to Section 1516.5 shall attempt to obtain the minimum number of keys required to transfer the digital financial assets within 60 days of determination that the digital financial assets are eligible for escheatment.
SEC. 4.
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 Controller’s 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 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) (1) The holder of any 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 digital financial asset type, private keys, and amount, unliquidated, to the Controller’s cryptocurrency custodian or as the Controller by regulation may designate.
(2) If the holder possess possesses only a partial private key to the digital financial asset or is otherwise unable to move the digital financial asset to the Controller, the holder shall maintain the digital financial asset until the additional keys required to transfer the digital financial asset become available to the holder or the holder is otherwise able to transfer the digital financial asset to the Controller.
(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 state’s demand account occurs on or before the banking day following the date the transfer is initiated. If the settlement to the state’s 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 holder’s failure to make payment by an appropriate electronic funds transfer in accordance with the Controller’s procedures is due to reasonable cause and circumstances beyond the holder’s 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 holder’s bank account and crediting the state’s 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 state’s bank account and debiting the holder’s 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 state’s 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.
(k) Notwithstanding subdivision (e), the Controller may direct the holder of a digital financial asset to sell or to otherwise liquidate the digital financial asset and deliver the net proceeds in lieu of the native digital financial asset if any of the following conditions are met:
(1) The digital financial asset cannot reasonably be accepted for custody due to technological, security, or regulatory limitations.
(2) The costs of custody, administration, or security of the digital financial asset would exceed its value.
(l) A holder directed to liquidate a digital financial asset under subdivision (f) shall sell or liquidate the digital financial asset by any commercially reasonable method for no less than the prevailing market price of the digital financial asset at the time of sale.
SEC. 5.
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 Controller’s 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 Controller’s 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 Controller’s 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 shall be sold at the prevailing prices on that exchange. Other securities may be sold over the counter at prevailing prices or by any other method that the Controller may determine to be advisable. These securities 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 delivered to the Controller remain in the custody of the Controller, a person making a valid claim for those securities under this chapter shall be entitled to receive the securities from the Controller. If the securities or digital financial assets have been sold, the person shall be entitled to receive the net proceeds received by the Controller from 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) Digital financial assets delivered to the Controller shall be held in their native form for the period required by subdivision (b), and thereafter shall be liquidated and deposited by the Controller into the Digital Asset Claims Reserve Account established under Section 1564.6.
(2) Any person making a valid claim before the disposition of the digital financial assets under subdivision (b) is entitled to receive the digital financial assets in their native form. Alternatively, if the person elects, the Controller shall instead convert the digital financial assets to fiat currency at the prevailing market price at the time the claim is determined to be valid, and the person is entitled to receive the net proceeds from that conversion. If instead the digital financial assets have been disposed of under subdivision (b), the person is entitled to receive the net proceeds from that disposition, paid in cash from the Digital Asset Claims Reserve Account.
(3) Notwithstanding paragraph (1), during the period that the digital financial assets are held by the Controller in their native form, the Controller may sell or otherwise liquidate the digital financial assets before the end of the period required by subdivision (b) if any of the following conditions are met:
(A) The digital financial asset cannot reasonably be maintained in custody due to technological, security, or regulatory limitations.
(B) The costs of custody, administration, or security of the digital financial asset would exceed its value.
(4) Net proceeds from a sale or liquidation under paragraph (3) shall be deposited into the Digital Asset Claims Reserve Account established under Section 1564.6.
(5) The Legislature may, through subsequent legislation, direct the Controller to deposit 10 percent of the digital financial assets held in the Digital Asset Reserve Fund into the General Fund.
(6) The Controller may spend digital financial assets in the Digital Asset Reserve Fund or may sell digital financial assets and spend the net proceeds from the sale to pay reasonable costs associated with administering and managing the Digital Asset Reserve Fund.
(7) The Controller shall publish a quarterly report on its internet website that includes:
(A) The amount of each digital financial asset held in the Digital Financial Asset Reserve Fund.
(B) An estimate of the monetary value of each digital financial asset in the Digital Asset Reserve Fund.
(C) Any change in the amount and estimated monetary value of digital financial assets in the Digital Asset Reserve Fund.
(D) The balance of the Digital Asset Claims Reserve Account at the end of the reporting period.
(E) The amount of the net proceeds deposited into the account during the reporting period.
(F) The amount of interest, earnings, and investment income credited to the account and transferred to the Digital Asset Reserve Fund during the reporting period.
(G) The amount of cash paid out of the account in satisfaction of verified claims during the reporting period.
(8) The Controller may hire or engage the services of an investment analyst to assist in such investment decisions.
(9) All interest, earnings, and investment income credited to the Digital Asset Claims Reserve Account during a calendar quarter shall be transferred to the Digital Asset Reserve Fund within 30 days after the end of that quarter. The Controller, consistent with the investment policies established by the Digital Asset Reserve Fund Board pursuant to Section 1563.5, shall may use the transferred amounts to purchase high-quality digital assets for the Digital Asset Reserve Fund. The Controller may make purchases under this paragraph at any time consistent with the Board’s investment policy.
(d) (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.
(e) 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.
SEC. 6.
Section 1563.5 is added to the Code of Civil Procedure, to read:1563.5.
(a) A governing board, the Digital Asset Reserve Fund Board, shall be established. The Digital Asset Reserve Fund Board shall:(1) Create guidelines for valuing assets in the Digital Asset Reserve Fund.
(2) Establish prudent investment policies relating to the investment objectives of and asset allocation in the Digital Asset Reserve Fund.
(b) The Digital Asset Reserve Fund Board shall consist of:
(1) The Controller.
(2) The State Treasurer.
(3) The Director of the Department of Finance.
(4) One member appointed by the Speaker of the Assembly.
(5) One member appointed by the Senate Committee on Rules.
(6) Two members appointed by the Governor.
(c) The appointed members of the governing board shall have expertise in digital financial asset investments.
(d) The members of the board shall serve without compensation but shall be reimbursed for actual and necessary expenses incurred through service on the board.
(e) The members of the Digital Asset Reserve Board are subject to the Political Reform Act of 1974, Title 9 (commencing with Section 81001) of the Government Code.
(f) The members appointed by the Senate Committee on Rules, the Speaker of the Assembly, and the two members appointed by the Governor shall have three-year staggered terms. The initial appointees of the Senate Committee on Rules and the Speaker of the Assembly shall serve two-year terms. Any vacancy occurring during an unexpired term shall be filled by appointment for the unexpired term.
SEC. 7.
Section 1564.6 is added to the Code of Civil Procedure, to read:1564.6.
(a) The Digital Asset Claims Reserve Account and the Digital Asset Reserve Fund are hereby established within the State Controller.(b) Notwithstanding Section 1564 or any other law, the net proceeds received by the Controller from the disposition or liquidation of any digital financial asset under this chapter, including pursuant to subdivision (f) of Section 1532, subdivision (b) of Section 1563, and paragraphs (1) and (3) of subdivision (c) of Section 1563, shall be deposited into the Digital Asset Claims Reserve Account.
(c) Notwithstanding Section 13340 of the Government Code, money in the Digital Asset Claims Reserve Account is continuously appropriated to the Controller, without regard to fiscal year, for the following purposes:
(1) The payment of valid claims under Article 4 (commencing with Section 1540) for digital financial assets that have been disposed of or liquidated under this chapter, in the amount of the net proceeds received by the Controller from the disposition or liquidation of those digital financial assets.
(2) The transfer of interest, earnings, and investment income credited to the Digital Asset Claims Reserve Account to the Digital Asset Reserve Fund pursuant to paragraph (9) of subdivision (c) of Section 1563.
(d) Money in the Digital Asset Claims Reserve Account shall be invested by the State Treasurer pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. All interest, earnings, and investment income shall be credited to the Digital Asset Claims Reserve Account.
(e) This section applies only to net proceeds from the disposition or liquidation of digital financial assets that occurs on or after the effective date of this act. Net proceeds from the disposition or liquidation of digital financial assets that occurred before the effective date of this act shall not be redeposited or transferred to the Digital Asset Claims Reserve Account.
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