State bill targets abandoned funds. When can California seize your forgotten stocks?
This is read by an automated voice.Please report any issues or inconsistencies here.
See more from the L.A.Times in Google Search.
Set us as preferred Proposed legislation to streamline California’s ability to seize abandoned stocks and mutual funds is drawing opposition from business groups and dividing Democratic lawmakers.State Controller Malia Cohen sponsored Assembly Bill 1447, which seeks to define the process for California to take custody of securities when the owner is deemed absent.Under current law, securities are declared abandoned and able to be confiscated by the state if the owner hasn’t logged onto an account, or shown an interest, such as inquiring about their holding, for three years.
AB 1447 adds new language that includes the requirements for escheatment, the transfer of assets to the state, are that “an owner does not respond to the notice” sent by the securities holder, either by mail or electronically, about their asset.Cohen’s office said in a statement that its bill “clarifies existing law and establishes a consistent, common-sense standard for determining whether an owner remains connected to a securities account.”At least one Democratic lawmaker and several securities companies want any new law to state that securities holders tried to contact the owner through the U.S.Postal Service, and, the mail was returned as undeliverable, which Cohen’s office opposes including in the measure.The state has some $15 billion in unclaimed property, including securities, such as stock holdings, mutual funds, and retirement accounts.The state holds seized securities for 18 months, at which point they are required to be sold and the proceeds transferred into the state’s general fund.
They can be returned the owner after a detailed application process.Assembly Bill 1447, authored by Assemblymember Mike Gipson (D-Carson), is expected to be heard in the Senate Judiciary Committee in the coming days.
In an Aug.11 letter to state...