Unclaimed Property LawPayment of Claims

Section § 1540

Explanation

If you think you owned property that the state Controller has taken, you can file a claim to get it back. This must be done using a specific form and within 180 days, the Controller decides if you're the rightful owner. If your claim is denied, you'll receive a written notice, but don't expect any interest on the returned property if your claim is approved. 'Owner' includes various representatives and organizations, not just individuals. The Controller will provide guidelines to help with claims, and special rules apply for state or local agencies to reclaim property without filing a claim.

(a)CA Civil Procedure Code § 1540(a) Any person, excluding another state, who claims to have been the owner, as defined in subdivision (d), of property paid or delivered to the Controller under this chapter may file a claim to the property or to the net proceeds from its sale. The claim shall be on a form prescribed by the Controller and shall be verified by the claimant.
(b)CA Civil Procedure Code § 1540(b) The Controller shall consider each claim within 180 days after it is filed to determine if the claimant is the owner, as defined in subdivision (d), and may hold a hearing and receive evidence. The Controller shall give written notice to the claimant if the Controller denies the claim in whole or in part. The notice may be given by mailing it to the address, if any, stated in the claim as the address to which notices are to be sent. If no address is stated in the claim, the notice may be mailed to the address, if any, of the claimant as stated in the claim. A notice of denial need not be given if the claim fails to state either an address to which notices are to be sent or an address of the claimant.
(c)CA Civil Procedure Code § 1540(c) Interest shall not be payable on any claim paid under this chapter.
(d)CA Civil Procedure Code § 1540(d) Notwithstanding subdivision (g) of Section 1501, for purposes of filing a claim pursuant to this section, “owner” means the person who had legal right to the property before its escheat, the person’s heirs or estate representative, the person’s guardian or conservator, or a public administrator acting pursuant to the authority granted in Sections 7660 and 7661 of the Probate Code. An “owner” also means a nonprofit civic, charitable, or educational organization that granted a charter, sponsorship, or approval for the existence of the organization that had the legal right to the property before its escheat but that has dissolved or is no longer in existence, if the charter, sponsorship, approval, organization bylaws, or other governing documents provide that unclaimed or surplus property shall be conveyed to the granting organization upon dissolution or cessation to exist as a distinct legal entity. Only an owner, as defined in this subdivision, may file a claim with the Controller pursuant to this article.
(e)CA Civil Procedure Code § 1540(e) Following a public hearing, the Controller shall adopt guidelines and forms that shall provide specific instructions to assist owners in filing claims pursuant to this article.
(f)CA Civil Procedure Code § 1540(f) Notwithstanding any other provision, property reported to, and received by, the Controller pursuant to this chapter in the name of a state agency, including the University of California and the California State University, or a local agency, including a school district and community college district, may be transferred by the Controller directly to the state or local agency without the filing of a claim. Property transferred pursuant to this subdivision is immune from suit pursuant to Section 1566 in the same manner as if the state or local agency had filed a claim to the property. For purposes of this subdivision, “local agency” means a city, county, city and county, or district.
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Section § 1541

Explanation

If you've submitted a claim to the Controller and you're unhappy with their decision, or if they haven't decided within 180 days, you can sue them. You need to do this in a superior court in a place where the Attorney General has an office. You have 90 days from the unfavorable decision or 270 days from when you first filed your claim if no decision was made. You'll need to serve the lawsuit papers to both the Controller and the Attorney General, and the Controller has 60 days to respond. The case will be decided by a judge, not a jury.

Any person aggrieved by a decision of the Controller or as to whose claim the Controller has failed to make a decision within 180 days after the filing of the claim, may commence an action, naming the Controller as a defendant, to establish his or her claim in the superior court in any county or city and county in which the Attorney General has an office. The action shall be brought within 90 days after the decision of the Controller or within 270 days from the filing of the claim if the Controller fails to make a decision. The summons and a copy of the complaint shall be served upon the Controller and the Attorney General and the Controller shall have 60 days within which to respond by answer. The action shall be tried without a jury.
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Section § 1542

Explanation

This law explains how another state can claim property that has already been handed over to California's Controller if it was wrongly escheated to California instead of that state. Basically, if property like funds, checks, or insurance money ended up with California but should have gone to another state because of the owner's last known address or where a purchase happened, that state can ask to get the property back. Claims need to be submitted in writing, and California's Controller will review them within 180 days, possibly holding a hearing to decide if the claim is valid. Some types of property, like travelers checks or life insurance funds, have specific rules that do not follow all the general ones.

(a)CA Civil Procedure Code § 1542(a) At any time after property has been paid or delivered to the Controller under this chapter, another state is entitled to recover the property if:
(1)CA Civil Procedure Code § 1542(a)(1) The property escheated to this state under subdivision (b) of Section 1510 because no address of the apparent owner of the property appeared on the records of the holder when the property was escheated under this chapter, the last known address of the apparent owner was in fact in that other state, and, under the laws of that state, the property escheated to that state.
(2)CA Civil Procedure Code § 1542(a)(2) The last known address of the apparent owner of the property appearing on the records of the holder is in that other state and, under the laws of that state, the property has escheated to that state.
(3)CA Civil Procedure Code § 1542(a)(3) The property is the sum payable on a travelers check, money order, or other similar instrument that escheated to this state under Section 1511, the travelers check, money order, or other similar instrument was in fact purchased in that other state, and, under the laws of that state, the property escheated to that state.
(4)CA Civil Procedure Code § 1542(a)(4) The property is funds held or owing by a life insurance corporation that escheated to this state by application of the presumption provided by subdivision (b) of Section 1515, the last known address of the person entitled to the funds was in fact in that other state, and, under the laws of that state, the property escheated to that state.
(b)CA Civil Procedure Code § 1542(b) The claim of another state to recover escheated property under this section shall be presented in writing to the Controller, who shall consider the claim within 180 days after it is presented. The Controller may hold a hearing and receive evidence. The Controller shall allow the claim upon determination that the other state is entitled to the escheated property.
(c)CA Civil Procedure Code § 1542(c) Paragraphs (1) and (2) of subdivision (a) do not apply to property described in paragraph (3) or (4) of that subdivision.
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Section § 1543

Explanation

This law allows the Controller to make it easier and faster for people to claim property or money they're owed. For claims under $5,000, the claimant might not need to provide as many documents. People can also send in their documents online, and if their claim is approved, they can get paid directly into their bank account through electronic transfer.

Notwithstanding Section 1540, the Controller may do any of the following to streamline the secure payment of claims:
(a)CA Civil Procedure Code § 1543(a) Minimize the number of documents a claimant is required to submit for property valued at less than five thousand dollars ($5,000).
(b)CA Civil Procedure Code § 1543(b) Allow electronic submission of documentation to the Controller’s internet website for any claim deemed appropriate by the Controller.
(c)CA Civil Procedure Code § 1543(c) Authorize direct deposit by electronic fund transfer for the payment of an approved claim.
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