Unclaimed personal property: employee benefit plan distributions.

Fixed a drafting error in subdivision (e)(1) of Section 1521: removed the redundant 'statute or regulations' that appeared before 'statute, regulations, or guidance,' correcting the phrase to read simply 'any federal statute, regulations, or governing this matter that are adopted by the United States Department of Labor.'

Standard enrolled-bill formatting changes: updated header to reflect passage dates (Senate May 7, 2026; Assembly August 17, 2026), removed line-number annotations, removed fiscal/vote summary block, and adjusted page numbering.

A new condition is added requiring that the distribution has been subjected to a forfeiture that has not been reversed by the plan before the escheatment exception applies. This means the plan must have actually declared the forfeiture, not merely had the authority to do so.

The federal preemption savings clause is expanded from 'any federal statute or regulations' to 'any federal statute, regulations, or guidance,' broadening the types of federal Department of Labor outputs that can limit the state provisions.

The fiscal committee vote changed from 'no' to 'yes,' indicating the bill now has fiscal committee support. Subsections were reordered for clarity but without substantive effect.

New subdivision (e)(1) provides that if a court determines the section is inoperative, preempted, or otherwise limited by ERISA or other federal law, the section will still be operative to the extent allowed by federal statutes or regulations adopted by the U.S. Department of Labor.

New subdivision (e)(2) authorizes the Controller to enter into a multistate collaborative agreement or other contract to ensure that property delivered to California that may be subject to this section complies with federal law.

Definitions of 'fiduciary' and 'administrator' were moved from being embedded in subdivision (a) into a new standalone subdivision (d), reorganizing the structure without changing the defined terms.