Unclaimed property: digital financial assets.

Removed all prior amendment history dates (March 25 through September 5, 2025) and replaced them with final passage dates: Passed the Senate September 13, 2025 and Passed the Assembly September 12, 2025.

Removed line numbers throughout the bill text, which are used during the amendment process but stripped for the enrolled version.

The legislative counsel's digest was updated from 'SB 822, as amended, Becker' to 'SB 822, Becker' and the vote/appropriation/fiscal committee line at the end of the digest was removed.

Added enrolled bill formatting elements including Secretary of the Senate, Chief Clerk of the Assembly, Private Secretary of the Governor signature lines, and a blank for the date the bill is received by the Governor.

The enrolled bill header showing Senate passage on September 13, 2025, Assembly passage on September 12, 2025, and a blank Governor receipt date was replaced with the chaptered law header identifying it as Chapter 660, approved by the Governor on October 11, 2025, and filed with the Secretary of State the same day.

Page headers changed from 'SB 822' to 'Ch. 660' and starting page number shifted from 91 to 90, reflecting standard chaptered law pagination.

Line wrapping and indentation of the legislative counsel's digest and statutory text were reformatted to fit the chaptered layout, but no words were added or removed from the substantive provisions.

The definition of 'last known address' in Section 1516.5(d) was restructured from a single broad definition into a two-part hierarchy. Subparagraph (A) now covers an address used for delivering first-class United States mail, and subparagraph (B) covers any description, code, or other indication that identifies the state of last known address even if insufficient for mail delivery. A new conflict rule in paragraph (2) provides that if both types exist, the actual mailing address (subparagraph A) is deemed the last known address. This matters because 'last known address' determines which state has jurisdiction over escheated property, so the change makes it more likely that the owner's actual state of residence will be used rather than a less precise state-level identifier.

The 'last known address' definition (which allows an address to be incomplete as long as it identifies the state) was removed from Section 1501, where it applied to all property types under the Unclaimed Property Law, and instead added as a new subdivision (d) of Section 1516.5, limiting it to digital financial assets only.

The legislative counsel's digest previously stated the bill would specify that an apparent owner's last known address need not be a complete mailing address for 'all types of property.' The amended version limits this to digital financial assets specifically.

Section 1532 corrected two typos: 'crypto currency' was changed to 'cryptocurrency' and a duplicated word 'type type' was corrected to 'type'.

The 'last known address' definition that allowed any description or code identifying the state (without requiring a complete mailing address) was removed from Section 1510, which applies to all property types under the Unclaimed Property Law. It was relocated to Section 1516.5(d), making it applicable only to digital financial assets. This means for traditional property (bank accounts, securities, etc.), the existing stricter standard for determining state jurisdiction continues to apply.

Assembly Member Valencia was added as principal co-author of the bill.

New Section 1568 is added to the Code of Civil Procedure, authorizing the Controller to select one or more custodians for the management and safekeeping of digital financial assets that have escheated to the state, and to convert those assets to fiat currency. A person making a valid claim would be entitled to receive the asset or, if converted, the net proceeds from sale.

A new definition of 'private key' is added: a unique element of cryptographic data used for signing transactions on a blockchain that is known to the owner of the element.

New Section 1516.5(c) defines 'exercise of an act of ownership interest' to include: conducting transactions (buying/selling digital assets, depositing/withdrawing fiat currency), electronically accessing the account, conducting activity with another account or property held by the same holder, or any other action reasonably demonstrating the owner knows the property exists.

Section 1516.5(a) now specifies two concrete triggers for when the three-year escheat period begins: (1) the date a written or electronic communication to the owner is returned undelivered by USPS or electronic means, or (2) the date of last exercise of ownership interest if the owner does not receive communications or the holder lacks means to track nondelivery.

New Section 1516.5(b) provides that the three-year escheat period ceases immediately upon any act of ownership interest or written, oral, or electronic communication with the holder as evidenced by a memorandum or other record on file.

New Section 1516.5(h) requires a holder of any partial key to a digital financial asset subject to escheatment to attempt to obtain the minimum number of keys required to transfer the assets within 60 days of determining the assets are eligible for escheatment.

Section 1532(e) now requires holders to transfer the exact digital financial asset type, private keys, and amount (previously just type and amount). A new paragraph (2) provides that if a holder possesses only a partial private key or is otherwise unable to move the asset, the holder must maintain the asset until additional keys become available or the holder can otherwise transfer it.

The standalone definition of 'virtual currency' is deleted entirely. This definition had described virtual currency as a digital representation of value used as a medium of exchange, unit of account, or store of value without U.S. legal tender status, and explicitly excluded: (A) software or protocols governing transfer, (B) game-related digital content, and (C) loyalty cards or gift cards.

All references throughout the bill to 'virtual currency' are removed, leaving only 'digital financial assets,' which is defined solely by cross-reference to subdivision (g) of Section 3102 of the Financial Code. The scope of covered property now depends entirely on that external definition rather than a self-contained statutory definition with explicit exclusions.

The 'last known address' definition adds the phrase 'for the purpose of determining the jurisdiction over property subject to escheat pursuant to this chapter' to clarify that the definition applies specifically to jurisdictional analysis, not all uses of an owner's address.

In Section 1563(b), the reference to 'established crypto currency digital financial asset exchange' is changed to 'established digital financial asset exchange,' removing the term 'crypto currency.'

The bill went from a single intent statement with no operative provisions to a comprehensive regulatory framework amending five sections of the Code of Civil Procedure and adding one new section (1516.5) governing virtual currency in the unclaimed property system.

Added definition of 'virtual currency' as a digital representation of value used as a medium of exchange, unit of account, or store of value without US legal tender status, explicitly excluding software/protocols governing transfers, game-related digital content, and loyalty or gift cards.

Broadened the definition of 'last known address' in Section 1501 to include any description, code, or indication of location that identifies the state, even if not sufficient to direct first-class US mail delivery. This lowers the threshold for establishing a California connection for escheatment purposes.

New Section 1516.5 establishes that virtual currency escheats after three years of dormancy and requires holders to send notice via certified mail (or electronically if consented) between 6 and 12 months before the property becomes reportable, with specific content requirements including a boldface warning and a Controller-prescribed form the owner can return to restart the escheat period.

New subdivision in Section 1532 requires holders of virtual currency to transfer the exact type and amount unliquidated to the Controller's cryptocurrency custodian (or as designated by regulation) within 30 days after the final report filing date, rather than liquidating it to cash.

Section 1563 was amended to include virtual currency alongside securities in the sale provisions: virtual currency on established crypto exchanges is sold at prevailing exchange prices, other virtual currency may be sold over the counter or by other methods, with a window of no sooner than 18 months and no later than 20 months after report filing. Claimants are entitled to receive the actual virtual currency if still in custody, or net proceeds if already sold.

Extended the Controller's discretion under Section 1533 to decline custody of virtual currency if determined not in the state's interest, with written notice to the holder within 120 days of receiving the report.

The fiscal committee designation changed from 'no' to 'yes,' indicating the amended bill now requires a fiscal note, reflecting its new substantive regulatory obligations on holders and the state.

A new definition is added in Section 1501: 'Digital financial asset' has the same meaning as in subdivision (g) of Section 3102 of the Financial Code. This incorporates an existing statutory definition by reference.

Throughout the bill, references to 'virtual currency' are expanded to 'virtual currency digital financial asset,' broadening the types of property subject to escheatment requirements under the Unclaimed Property Law.

Section 1563(b) now refers to 'an established crypto currency digital financial asset exchange' instead of just 'an established crypto currency exchange,' potentially expanding which exchanges qualify for the prevailing-price sale mechanism.

The fiscal committee recommendation changed from 'no' to 'yes,' indicating the bill now carries a state fiscal impact.

Gender-neutral language corrections: 'his or her' changed to 'their' in definitions of 'Owner' and 'Person,' and 'in his their discretion' corrected to 'in their discretion' in Section 1533(a).