Wolk bill to give owners more time to claim lost property passes first hurdle
California Political Desk
March 27, 2008
SACRAMENTO–Legislation by Assemblywoman Lois Wolk (D-Davis) to provide Californians more time to claim dormant, lost, forgotten, or abandoned bank accounts, insurance policies, safe deposit boxes, and other types of property before it is turned over to the state, passed its first hurdle yesterday, winning approval of the Assembly Judiciary Committee on a bipartisan 9-0 vote.
State law currently requires that property, such as an inactive bank account, must be turned over to the state three years beyond the date of the last account transaction, or beyond the date upon which an account became payable or reached maturity. Under Wolk´s bill, AB 2221, California would extend the dormancy period from three years to five years and increase notice requirements on the institutions holding the accounts to ensure consumers are made aware their property will be turned over to the state if no action is taken.
"This bill would give property owners more time to claim their rightful property and requires that financial institutions increase their efforts to locate property owners before turning dormant accounts over to the state," said Wolk. "Every year, the State Controller´s Office receives thousands of calls from people who thought their money, stocks, old photographs and keepsakes, and other items of sentimental value were being kept safe by a financial institution, only to be told by that institution that their assets have been turned over to the state."
In addition to providing owners more time to claim their property, AB 2221 improves customer notification by requiring businesses to provide property owners with notices in clear, readable language that their property could be sent to the state.
State Controller John Chiang, sponsor of AB 2221, said, "This legislation will give consumers two extra years and additional notices to reconnect with their banks and financial institutions and make sure their property is protected."
According to State Controller´s Office, more than 742,000 lost, forgotten, or abandoned accounts worth an estimated $522 million were sent to the state for safekeeping in the past fiscal year (06-07). During that year, the state was able to return $336 million in property to the rightful owners. Approximately $200 million in property was transferred to the state´s General Fund.
Wolk encouraged all Californians to check to see if they have unclaimed property being held by the State Controller by visiting the Controller´s website at www.ClaimIt.ca.gov. Wolk also has established a link on her own Assembly website that directs her constituents to the unclaimed property registry: http://democrats.assembly.ca.gov/members/a08/.
"It´s a quick, simple and user-friendly site," said Wolk. "You might be pleasantly surprised to find there is some money or property with your name on it just waiting for you to claim it. The process for claiming your property is also simple and easy. It´s worth taking a few seconds to find out."
Wolk noted that seniors are often the ones whose accounts are turned over to the state without their knowledge. Accordingly, the bill is supported by the Congress of California Seniors. It will next be heard in the Assembly Appropriations Committee.
State law currently requires that property, such as an inactive bank account, must be turned over to the state three years beyond the date of the last account transaction, or beyond the date upon which an account became payable or reached maturity. Under Wolk´s bill, AB 2221, California would extend the dormancy period from three years to five years and increase notice requirements on the institutions holding the accounts to ensure consumers are made aware their property will be turned over to the state if no action is taken.
"This bill would give property owners more time to claim their rightful property and requires that financial institutions increase their efforts to locate property owners before turning dormant accounts over to the state," said Wolk. "Every year, the State Controller´s Office receives thousands of calls from people who thought their money, stocks, old photographs and keepsakes, and other items of sentimental value were being kept safe by a financial institution, only to be told by that institution that their assets have been turned over to the state."
In addition to providing owners more time to claim their property, AB 2221 improves customer notification by requiring businesses to provide property owners with notices in clear, readable language that their property could be sent to the state.
State Controller John Chiang, sponsor of AB 2221, said, "This legislation will give consumers two extra years and additional notices to reconnect with their banks and financial institutions and make sure their property is protected."
According to State Controller´s Office, more than 742,000 lost, forgotten, or abandoned accounts worth an estimated $522 million were sent to the state for safekeeping in the past fiscal year (06-07). During that year, the state was able to return $336 million in property to the rightful owners. Approximately $200 million in property was transferred to the state´s General Fund.
Wolk encouraged all Californians to check to see if they have unclaimed property being held by the State Controller by visiting the Controller´s website at www.ClaimIt.ca.gov. Wolk also has established a link on her own Assembly website that directs her constituents to the unclaimed property registry: http://democrats.assembly.ca.gov/members/a08/.
"It´s a quick, simple and user-friendly site," said Wolk. "You might be pleasantly surprised to find there is some money or property with your name on it just waiting for you to claim it. The process for claiming your property is also simple and easy. It´s worth taking a few seconds to find out."
Wolk noted that seniors are often the ones whose accounts are turned over to the state without their knowledge. Accordingly, the bill is supported by the Congress of California Seniors. It will next be heard in the Assembly Appropriations Committee.
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