AB 1447 California Assembly · 2025-2026 Regular Session

Unclaimed property: escheat to the state.

Summary

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.

Bill status passed both 4 of 5 stages cleared

Introduction

Feb 2025

Committee Review

Aug 2026

Assembly Passage

May 2025

Senate Passage

Aug 2026

Governor

Introduced Feb 21, 2025 Last action Aug 10, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

04/09/25 - Amended Assembly → 08/10/26 - Amended Senate · 6 edits · Aug 10, 2026

MODERATE

The Senate amendment significantly expands AB 1447 from a bill that only addressed post-escheat notice procedures to one that also rewrites the pre-escheat process for securities and intangible interests in business associations. It adds a mandatory pre-escheat notice requirement with specific content rules, sets a de minimis reporting threshold ($0.01 per share or $1,000 aggregate), and clarifies what does and does not count as owner activity (automatic deposits and reinvestments do not). The original Section 1531 notice provisions are preserved but renumbered as Section 2.

SCOPE

New Section 1 amends Code of Civil Procedure Section 1516 to explicitly include securities and other intangible interests in business associations within the escheatment framework, applying regardless of whether held directly or through a brokerage account (excluding digital financial assets).

A de minimis threshold is added: interests are not reportable to the Controller unless the per-share value is $0.01 or greater, or the aggregate value of the security held exceeds $1,000.

REQUIREMENT

Holders must send a pre-escheat notice to owners of securities or intangible interests not less than 6 nor more than 12 months before the interest becomes reportable. The notice must include specific heading language, boldface disclosures about inactivity, a form for the owner to confirm their address, and information about the effects of escheat.

ELIGIBILITY

A new condition for escheatment: the owner must not respond to the pre-escheat notice or otherwise indicate an interest within six months after the notice is given (or within six months after the end of the three-year dormancy period if no notice was sent).

DEFINITION

New rules clarifying what constitutes owner activity: owner-initiated electronic, verbal, written, or in-person contact counts; negotiating or redeeming a dividend counts as both a claim and indication of interest; automatic deposits of dividends do NOT count; automatic reinvestment of dividends does NOT count.

TECHNICAL

The original Section 1 (amending CCP Section 1531 on post-escheat notice) is renumbered as Section 2 with no substantive changes to its content.

02/21/25 - Introduced → 03/24/25 - Amended Assembly · 6 edits · Mar 24, 2025

MODERATE

AB 1447 was substantially expanded from a nonsubstantive cleanup of Civil Code Section 3 into a bill that also amends the Unclaimed Property Law (Code of Civil Procedure Section 1531). The new provisions require the Controller to publish and mail notices about unclaimed property, but only when the address is a 'valid deliverable address,' and add a mechanism to request current addresses from the Franchise Tax Board using social security numbers. This matters because it changes how California notifies potential owners of escheated property and adds publication requirements with specific funding restrictions.

SCOPE

The bill now amends Section 1531 of the Code of Civil Procedure (Unclaimed Property Law) in addition to the original nonsubstantive change to Civil Code Section 3, expanding its scope from a single technical fix to a substantive policy change on unclaimed property notifications.

REQUIREMENT

New subsection (a) requires the Controller to publish a notice within one year after payment or delivery of escheated property, in a manner the Controller determines reasonable (newspapers, websites, radio, TV, or other media). The Controller is prohibited from using audit program funds, exceeding legislative appropriations for this purpose, including photographs, or including an elected official's name in the notice.

New subsection (b) requires the Controller to mail a notice within 165 days after the final report filing date to each person appearing entitled to property of $50 or more, but only if the address is a 'valid deliverable address.' If the report includes a social security number, the Controller must request a current address from the Franchise Tax Board and mail there if different (and valid).

New subsection (c) specifies three required contents of the mailed notice: a statement that property is being held to which the addressee appears entitled, the name and address of the holder with information on changes, and a warning that if proof of claim is not presented by the specified date, the property will be placed in the Controller's custody and may be sold or destroyed.

DEFINITION

The concept of a 'valid deliverable address' is introduced as a condition for mailing notices. The Controller is not required to send notice to addresses that are not valid deliverable, which could reduce the number of notices sent compared to prior law.

FISCAL

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now has fiscal implications due to the new notice publication and mailing requirements.

Floor votes · Senate Jul 17, 2025 · Assembly May 8, 2025

How they voted

35–0

Passed · 5 other

Total votes 40

Jul 17, 2025

D Democratic30

26 Yea 4

86% Yea

R Republican10

9 Yea 1

90% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 10, 2026

Senate · Reported by committee

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

Senate · Referred to committee

Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(b).

Aug 10, 2026

Senate · Amendment adopted

Read third time and amended. Ordered to second reading.

Aug 10, 2026

Senate · Passed

Action rescinded whereby the bill was read third time, passed, and to Assembly.

Jul 17, 2025

Assembly · Reported by committee

In Assembly. Ordered to Engrossing and Enrolling.

Jul 17, 2025

Senate · Passed

Read third time. Passed. Ordered to the Assembly. (Ayes 35. Noes 0. Page 2138.).

Jul 14, 2025

Senate · Reported by committee

From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.

Jul 2, 2025

Senate · Reported by committee

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (July 1). Re-referred to Com. on APPR.

May 21, 2025

Senate · Referred to committee

Referred to Com. on JUD.

May 8, 2025

Assembly · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1487.)

Apr 30, 2025

Assembly · Reported by committee

From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (April 30).

Apr 10, 2025

Assembly · Referred to committee

Re-referred to Com. on APPR.

Apr 9, 2025

Assembly · Amendment adopted

Read second time and amended.

Apr 8, 2025

Assembly · Amendment offered

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 8).

Mar 25, 2025

Assembly · Referred to committee

Re-referred to Com. on JUD.

Mar 24, 2025

Assembly · Amendment offered

From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

Mar 24, 2025

Assembly · Referred to committee

Referred to Com. on JUD.

Feb 22, 2025

Assembly · Reported by committee

From printer. May be heard in committee March 24.

Feb 21, 2025

Assembly · Introduced

Introduced. To print.

1 primary · 0 co-sponsors