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	<ns0:Description>
		<ns0:Id>20250SB__084998AMD</ns0:Id>
		<ns0:VersionNum>98</ns0:VersionNum>
		<ns0:History>
			<ns0:Action>
				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-21</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-03-26</ns0:ActionDate>
			</ns0:Action>
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		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
			<ns0:SessionNum>0</ns0:SessionNum>
			<ns0:MeasureType>SB</ns0:MeasureType>
			<ns0:MeasureNum>849</ns0:MeasureNum>
			<ns0:MeasureState>AMD</ns0:MeasureState>
		</ns0:LegislativeInfo>
		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Weber Pierson</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>SENATE</ns0:House>
				<ns0:Name>Weber Pierson</ns0:Name>
			</ns0:Legislator>
		</ns0:Authors>
		<ns0:Title>An act to add Section 1517.5 to the Code of Civil Procedure, relating to unclaimed property, and making an appropriation therefor.</ns0:Title>
		<ns0:RelatingClause>unclaimed property, and making an appropriation therefor</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Unclaimed property: class action settlements.</ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>Existing law, the Unclaimed Property Law (UPL), prescribes the circumstances under which personal property escheats to the state and prescribes the manner in which escheated property must be delivered to the State Controller. Existing law establishes the Unclaimed Property Fund, a continuously appropriated fund, for the purpose of receiving money under the UPL. Existing law requires all money received under the Unclaimed Property Law to be deposited into the Abandoned Property Account of the Unclaimed Property Fund, which includes the proceeds of abandoned and escheated property as well as interest and penalties related to the failure to deliver or the untimely delivery of such property.</html:p>
			<html:p>This bill would deem a class action settlement payment to be abandoned if a
			 class member cannot be located, does not file a claim for payment, or does not cash the settlement payment, as specified. The bill would provide that abandoned payments escheat to the state 90 days after their abandonment. The bill would make all class action settlements subject to these provisions. By increasing the revenue to a continuously appropriated fund, the bill would make an appropriation.</html:p>
		</ns0:DigestText>
		<ns0:DigestKey>
			<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
			<ns0:Appropriation>YES</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
			<ns0:LocalProgram>NO</ns0:LocalProgram>
		</ns0:DigestKey>
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			<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
			<ns0:ImmediateEffectFlags>
				<ns0:Urgency>NO</ns0:Urgency>
				<ns0:TaxLevy>NO</ns0:TaxLevy>
				<ns0:Election>NO</ns0:Election>
				<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
				<ns0:BudgetBill>NO</ns0:BudgetBill>
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	</ns0:Description>
	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_E438F790-F8B9-404A-8157-F1DF38841EF2">
			<ns0:Num>SECTION 1.</ns0:Num>
			<ns0:Content>
				<html:p>The Legislature finds and declares as follows:</html:p>
				<html:p>
					(a)
					<html:span class="EnSpace"/>
					Every year, millions of dollars from class action lawsuits go unclaimed. In some cases, consumers have no idea they are a class member or otherwise entitled to compensation. Moreover, in many instances attorneys working on the case have no way to gather the contact information of people who could claim part of a final settlement.
				</html:p>
				<html:p>
					(b)
					<html:span class="EnSpace"/>
					Class members may also be confused about the settlement process, including procedures for when and
				how to file a claim, what proof is necessary, or where to find the claim form.
				</html:p>
				<html:p>
					(c)
					<html:span class="EnSpace"/>
					Class action lawsuits are designed to hold companies accountable. However, often when a case settles, not all individuals entitled to compensation receive payment resulting in undistributed funds being returned to the defendant.
				</html:p>
				<html:p>
					(d)
					<html:span class="EnSpace"/>
					Consequently, in an effort to safeguard unclaimed money which is otherwise subject to distribution in accordance with the terms of the settlement, the Legislature finds it necessary to provide a mechanism for the state to take custody of any unclaimed proceeds and to process those payments through the unclaimed property program.
				</html:p>
			</ns0:Content>
		</ns0:BillSection>
		<ns0:BillSection id="id_1B40269A-8AD1-48F0-9A46-76A40DD23751">
			<ns0:Num>SEC. 2.</ns0:Num>
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				Section 1517.5 is added to the 
				<ns0:DocName>Code of Civil Procedure</ns0:DocName>
				, to read:
			</ns0:ActionLine>
			<ns0:Fragment>
				<ns0:LawSection id="id_C0F9C6D5-C99C-4DA7-8633-EFCEA36952CD">
					<ns0:Num>1517.5.</ns0:Num>
					<ns0:LawSectionVersion id="id_B271C428-E9FC-42E6-A0FE-96C4B63C6BA6">
						<ns0:Content>
							<html:p>
								(a)
								<html:span class="EnSpace"/>
								All class action settlements whether court-ordered or court-approved are subject to this section. Settlement agreements in all class action settlements shall include a reference to this section.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								Property distributable in the course of a court-ordered or court-approved settlement in a class action is deemed abandoned:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								On the date the settlement is executed, whether or not the class member has opted in, if notice is not mailed to the class member or potential class member because there is no known address for the class member or potential class member or their address is known to be incorrect.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								On the
						first date specified for distribution to class members or potential class members, if the settlement payment remains unclaimed or unissued at the claim expiration date.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								On the 180th day after the issuance of a settlement payment that remains uncashed.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								All property payable pursuant to a class action shall escheat to the state and be delivered to the state no later than 90 days after its abandonment.
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								Settlements subject to this section are not subject to any notice provisions required by this chapter.
							</html:p>
							<html:p>
								(e)
								<html:span class="EnSpace"/>
								This section does not prohibit the use of these procedures in an action pending in a federal court, if that court determines that use of these procedures is appropriate and consistent with the requirements of Rule 23 of the Federal Rules of
						Civil Procedure.
							</html:p>
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