SECTIONS 1570-1577.5 - California Statutes

CODE OF CIVIL PROCEDURE

SECTION 1570-1577.5

1570. The expiration of any period of time specified by statute or
court order, during which an action or proceeding may be commenced or
enforced to obtain payment of a claim for money or recovery of
property from the holder, does not prevent the money or property from
being escheated, nor affect any duty to file a report required by
this chapter or to pay or deliver escheated property to the State
Controller.

1571. (a) The Controller may at reasonable times and upon
reasonable notice examine the records of any person if the Controller
has reason to believe that the person is a holder who has failed to
report property that should have been reported pursuant to this
chapter.
(b) When requested by the Controller, the examination shall be
conducted by any licensing or regulating agency otherwise empowered
by the laws of this state to examine the records of the holder. For
the purpose of determining compliance with this chapter, the
Commissioner of Financial Institutions is vested with full authority
to examine the records of any banking organization and any savings
association doing business within this state but not organized under
the laws of or created in this state.
(c) Following a public hearing, the Controller shall adopt
guidelines as to the policies and procedures governing the activity
of third-party auditors who are hired by the Controller.
(d) Following a public hearing, the Controller shall adopt
guidelines, on or before July 1, 1999, establishing forms, policies,
and procedures to enable a person to dispute or appeal the results of
any record examination conducted pursuant to this section.

1572. (a) The State Controller may bring an action in a court of
appropriate jurisdiction, as specified in this section, for any of
the following purposes:
(1) To enforce the duty of any person under this chapter to permit
the examination of the records of such person.
(2) For a judicial determination that particular property is
subject to escheat by this state pursuant to this chapter.
(3) To enforce the delivery of any property to the State
Controller as required under this chapter.
(b) The State Controller may bring an action under this chapter in
any court of this state of appropriate jurisdiction in any of the
following cases:
(1) Where the holder is any person domiciled in this state, or is
a government or governmental subdivision or agency of this state.
(2) Where the holder is any person engaged in or transacting
business in this state, although not domiciled in this state.
(3) Where the property is tangible personal property and is held
in this state.
(c) In any case where no court of this state can obtain
jurisdiction over the holder, the State Controller may bring an
action in any federal or state court with jurisdiction over the
holder.

1573. The State Controller may enter into an agreement to provide
information needed to enable another state to determine unclaimed
property it may be entitled to escheat if such other state or an
official thereof agrees to provide this state with information needed
to enable this state to determine unclaimed property it may be
entitled to escheat. The State Controller may, by regulation, require
the reporting of information needed to enable him to comply with
agreements made pursuant to this section and may, by regulation,
prescribe the form, including verification, of the information to be
reported and the times for filing the reports.

1574. At the request of another state, the Attorney General of this
state may bring an action in the name of the other state, in any
court of appropriate jurisdiction of this state or federal court
within this state, to enforce the unclaimed property laws of the
other state against a holder in this state of property subject to
escheat by the other state, if:
(a) The courts of the other state cannot obtain jurisdiction over
the holder;
(b) The other state has agreed to bring actions in the name of
this state at the request of the Attorney General of this state to
enforce the provisions of this chapter against any person in the
other state believed by the State Controller to hold property subject
to escheat under this chapter, where the courts of this state cannot
obtain jurisdiction over such person; and
(c) The other state has agreed to pay reasonable costs incurred by
the Attorney General in bringing the action.

1575. (a) If the State Controller believes that a person in another
state holds property subject to escheat under this chapter and the
courts of this state cannot obtain jurisdiction over that person, the
Attorney General of this state may request an officer of the other
state to bring an action in the name of this state to enforce the
provisions of this chapter against such person.
(b) This state shall pay all reasonable costs incurred by the
other state in any action brought under the authority of this
section. The State Controller may agree to pay to any state bringing
such an action a reward not to exceed fifteen percent of the value,
after deducting reasonable costs, of any property recovered for this
state as a direct or indirect result of such action. Any costs or
rewards paid pursuant to this section shall be paid from the
Abandoned Property Account in the Unclaimed Property Fund and shall
not be deducted from the amount that is subject to be claimed by the
owner in accordance with this chapter.

1576. (a) Any person who willfully fails to render any report or
perform other duties, including use of the report format described in
Section 1530, required under this chapter shall be punished by a
fine of one hundred dollars ($100) for each day such report is
withheld or such duty is not performed, but not more than ten
thousand dollars ($10,000).
(b) Any person who willfully refuses to pay or deliver escheated
property to the Controller as required under this chapter shall be
punished by a fine of not less than five thousand dollars ($5,000)
nor more than fifty thousand dollars ($50,000).
(c) No person shall be considered to have willfully failed to
report, pay, or deliver escheated property, or perform other duties
unless he or she has failed to respond within a reasonable time after
notification by certified mail by the Controller's office of his or
her failure to act.

1577. In addition to any damages, penalties, or fines for which a
person may be liable under other provisions of law, any person who
fails to report, pay, or deliver unclaimed property within the time
prescribed by this chapter, unless that failure is due to reasonable
cause, shall pay to the Controller interest at the rate of 12 percent
per annum on that property or value thereof from the date the
property should have been reported, paid, or delivered. If a holder
pays or delivers unclaimed property in a timely manner, but files a
report that is not in substantial compliance with the requirements of
Section 1530, the interest payable shall not exceed ten thousand
dollars ($10,000). The holder shall not be subject to any interest
payment if the holder's failure to report in substantial compliance
with the requirements of Section 1530 is due to reasonable cause.

1577.5. (a) Section 1577 does not apply to, and interest may not be
imposed upon, any escheated property paid or delivered to the
Controller at any time on or before December 31, 2002.
(b) Subdivision (a) shall apply only if the following requirements
are met:
(1) On or before January 1, 2003, the holder of the property was
not the subject of an investigation by the Attorney General or a
party to litigation with the Controller, relating to the property.
"Investigation by the Attorney General" means an investigation being
conducted under any law authorizing the investigation, including, but
not limited to, investigations authorized by or conducted pursuant
to Article 2 (commencing with Section 11180) of Chapter 2 of Part 1
of Division 3 of Title 2 of the Government Code by the office of the
Attorney General relating to the escheat of property subject to
subdivision (a).
(2) On or before January 3, 2000, the holder of the property was
not the subject of an audit by the Controller relating to the
property. "Audit by the Controller" means a formal field audit of the
propertyholder's books and records by audit personnel of the
Controller's office for the purpose of determining compliance with
this chapter.
(3) The property was required to be reported on or before November
1, 1999.
(4) The property is surrendered directly to the state or its
authorized agent.
(5) Reports respecting the property are reported by electronic
media satisfactory to the Controller, provided that paper reports
shall be permitted with respect to holders reporting fewer than 50
accounts or other items.
(6) All property reported after the effective date of this act
shall be reported on a report separate from property currently
reportable, and may not be reported with property not eligible for
the amnesty program.
(7) The property is paid or delivered to the Controller at the
time the report is made.
(8) Securities are remitted in accordance with Section 1532.
(9) Records shall be maintained in a manner satisfactory to the
Controller, to permit verification and compliance audits.
(c) Nothing in subdivision (a) shall create an entitlement to a
refund of interest paid to the Controller prior to the effective date
of this section.
(d) The Controller shall conduct an outreach and publicity program
regarding the provisions of this section.
(e) The Controller shall submit a report to the Legislature on the
amnesty program. The report shall include a comprehensive accounting
of all unclaimed property surrendered under the amnesty program, the
date the property was surrendered, and the identities of the holders
of surrendered unclaimed property. The report shall be published no
later than July 31, 2003.
(f) Nothing in this section shall preclude liability pursuant to
Article 9 (commencing with Section 12650) of Chapter 6 of Title 2 of
Division 3 of the Government Code regarding false claims. Reporting
or filing extensions shall not be granted for property under this
section.