Official Summary Text
AB 2031, as amended, Petrie-Norris.
Public utilities: property, franchises, and permits: exemption.
Unclaimed property.
Existing law, the Unclaimed Property Law, governs the disposition of unclaimed property, including the escheat of certain property to the state. Existing law provides that any intangible interest in a business association escheats to this state if (1) the interest in the association is owned by a person who for more than 3 years has neither claimed a dividend or other sum nor corresponded in writing with the association or otherwise indicated an interest, as specified, and (2) the association does not know the location of the owner.
This bill would apply the 2 conditions above to any security or other intangible interest in a business association. The bill would provide that a security or interest does not escheat if either (1) the business association issues to
the owner a dividend or other distribution that is, at least once every 3 years, negotiated, redeemed, or automatically deposited in an owner’s account, as specified, or (2) the business association does not issue dividends or other distributions, or issues dividends that are automatically reinvested in the owner’s account, and the holder’s communication to the owner is not returned as undeliverable. The security or interest would escheat to the state, as specified, if the holder’s communication to the owner is returned as undeliverable. The security or interest would also escheat to the state if the business association or its agent issues a dividend or other distribution to the owner at least once per year, and over a 3-year period none of that dividend or other distribution is negotiated, redeemed, or automatically deposited in an owner’s account, except as specified. The bill would clarify that its provisions do not apply to a digital financial asset.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities. Existing law prohibits public utilities, other than certain common carriers, from selling, leasing, assigning, mortgaging, or otherwise disposing of, or encumbering, its assets that are necessary or useful in the performance of its duties to the public, unless the public utility has secured an order from the commission to do so for a qualified transaction above $5,000,000 or an approval from the commission through the filing of an advice letter for a qualified transaction at or below $5,000,000. Absent protest or incomplete documentation, existing law requires the commission to approve or deny the advice letter within 120 days of its filing by the applicant public utility.
This bill would reduce the time the commission has to approve or deny the
advice letter from 120 days to 90 days.