Unclaimed property: digital financial assets.

Senator Becker's legislation expands California's Unclaimed Property Law to incorporate digital financial assets, establishing new procedures for their management and eventual transfer to state custody. The bill defines digital financial assets as unclaimed property subject to escheatment after three years of owner inactivity.

Under the new provisions, holders of digital financial assets must notify apparent owners via certified mail or electronic communication 6-12 months before escheatment. These notices must include specific formatting requirements, prominently display warning language about potential state transfer, and provide a Controller-prescribed form allowing owners to confirm their current address and restart the escheatment period.

The legislation outlines precise transfer mechanisms, requiring holders to deliver digital assets to the state Controller's designated cryptocurrency custodian within 30 days of filing their unclaimed property report. For assets listed on established exchanges, sales must occur at prevailing market prices between 18 and 20 months after reporting. The Controller maintains discretion to decline custody of digital assets deemed not in the state's interest, provided written notice is given to holders within 120 days.

The bill also modifies existing notification requirements, clarifying that an apparent owner's last known address need not be complete if it sufficiently identifies California residency. These changes align the state's unclaimed property system with modern financial technologies while maintaining established protections for property owners.