Unclaimed property: escheat to the state.

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.

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.

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).

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.

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

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.

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.

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.

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.

Removed the nonsubstantive amendment to Civil Code Section 3 (the provision stating the Civil Code is not retroactive unless expressly declared). This was a cleanup change with no practical effect on policy.

Added a new subsection (b)(2) requiring the Controller to mail the unclaimed property notice to a corrected valid deliverable address when the address in the original report is not valid but the Controller identifies a correction. This gives owners an additional path to receive notice even if the reporting holder provided a bad address.

Fiscal committee review changed from 'no' to 'yes,' indicating the bill now has identifiable state spending implications, likely due to the new obligation to mail notices to corrected addresses.

Consolidated redundant language 'Internet Web sites, internet websites' to simply 'internet websites' in the list of acceptable media for public notice.