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California bills · 2025-2026 Regular Session

California SB 1405

Unclaimed personal property: employee benefit plan distributions.

  1. Introduced
  2. In committee
  3. Passed Senate
  4. Passed House
  5. To Governor
  6. Became law

Sponsors

Summary

Official abstract published by the California legislature· summary

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. 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.

Text versions

Roll-call votes

State vote data last updated Oct 16, 2026, 12:24 AM.

DateVoteResultYour legislators
Aug 17, 2026
House		SB 1405 Smallwood-Cuevas Senate Third Reading By HarabedianpassSet your home in California to see
Aug 5, 2026
House		Do pass. To Consent Calendar.passSet your home in California to see
Jun 23, 2026
House		Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent CalendarpassSet your home in California to see
May 7, 2026
Senate		Consent Calendar 2nd SB1405 Smallwood-CuevaspassSet your home in California to see
Apr 21, 2026
Senate		Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent CalendarpassSet your home in California to see

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