Unclaimed property: digital financial assets.

Senator Becker's legislation expands California's Unclaimed Property Law to encompass digital financial assets, establishing new protocols for how these assets are identified, reported, and transferred to state custody. The bill creates specific notification requirements for holders of unclaimed digital assets, mandating they contact apparent owners via certified mail or electronic means 6-12 months before escheatment.

The legislation requires holders to transfer unclaimed digital assets to the state Controller's designated cryptocurrency custodian within 30 days of filing their unclaimed property report. Digital assets listed on established exchanges must be sold at prevailing market prices between 18-20 months after reporting. The Controller maintains discretion to decline custody of digital assets deemed not in the state's interest to manage.

The bill modifies how the state determines jurisdiction over unclaimed property by clarifying that an apparent owner's last known address need not be complete, only sufficient to identify California residency. It also aligns notification procedures for digital assets with existing requirements for other forms of unclaimed property, including specific content and formatting standards for owner communications.

For implementation, the Controller must create standardized forms for owner interaction and establish secure custody arrangements for digital assets. Holders face civil penalties of 2% for failing to execute required electronic funds transfers. The legislation preserves owners' ability to reclaim their property, with provisions allowing them to restart the three-year escheatment period by confirming their current contact information or demonstrating interest in the assets.