CaliforniaUnclaimed personal property: employee benefit plan distributions.
What it does
Under existing law, employee benefit plan distributions and any income or other increment thereon escheats to the state if the owner has not, within 3 years after it becomes payable or distributable, accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or administrator of the plan under which the trust or fund is established. Existing law provides for an exception to escheatment if, at the time the distribution becomes payable to a participant in an employee benefit plan, the plan contains a provision for forfeiture or expressly authorizes the administrator to declare a forfeiture of a distribution to a beneficiary who cannot be found after a period of time specified in the plan, as specified.
More detail
This bill would establish, as an additional condition for the above exception to apply, the requirement that the distribution have been subject to a forfeiture that has not been reversed by the plan.
This bill would also provide that to the extent a court determines the above provisions to be inoperative, preempted, or otherwise limited, in whole or in part, by the federal Employee Retirement Income Security Act of 1974, or any other federal law, the above provisions will be operative in the manner and to the extent allowed pursuant to any federal statute, regulations, or guidance governing this matter that are adopted by the United States Department of Labor. The bill would also provide that if the Controller finds it necessary, the Controller may enter into a multistate collaborative agreement or other contract for the purpose of ensuring that any property delivered to this state that may be subject to the above provisions regarding employee benefit plan distributions complies with federal law.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27Chaptered by Secretary of State. Chapter 711, Statutes of 2026.Latest
- Sep 27Approved by the Governor Gavin Newsom.Became Law
- Aug 21Enrolled and presented to the Governor at 3 p.m.To Governor
- Aug 18In Senate. Ordered to engrossing and enrolling.Minor
- Aug 17Read third time. Passed. (Ayes 74. Noes 0. Page 6208.) Ordered to the Senate.Passed Assembly
- Vote recorded SB 1405 Smallwood-Cuevas Senate Third Reading By Harabedian. Result: pass.Lower
- Aug 10Ordered to third reading.Minor
- Aug 10From consent calendar on motion of Assembly Member Aguiar-Curry.
- Aug 6Read second time. Ordered to consent calendar.Minor
- Aug 5From committee: Do pass. Ordered to consent calendar. (Ayes 15. Noes 0.) (August 5).Minor
- Vote recorded Do pass. To Consent Calendar. Result: pass.Lower
- Jun 23From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (June 23). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar. Result: pass.Lower
- May 18Referred to Com. on JUD.Minor
- May 7In Assembly. Read first time. Held at Desk.Minor
- Vote recorded Consent Calendar 2nd SB1405 Smallwood-Cuevas. Result: pass.Upper
- May 7Read third time. Passed. (Ayes 36. Noes 0. Page 4167.) Ordered to the Assembly.Passed Senate
- May 5Read second time. Ordered to consent calendar.Minor
- May 4From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar.Minor
- Apr 24Set for hearing May 4.
- Apr 22From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 13. Noes 0. Page 3980.) (April 21). Re-referred to Com. on APPR.Minor
- Apr 21
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar. Result: pass.Upper
- Apr 13From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.Major
- Apr 10Set for hearing April 21.
- Apr 8Re-referred to Com. on JUD.Minor
- Mar 24From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.Major
- Mar 4Referred to Com. on RLS.Minor
- Feb 23Read first time.Minor
- Feb 23From printer. May be acted upon on or after March 23.
- Feb 20Introduced. To Com. on RLS. for assignment. To print.Introduced