Assembly committee sends SB 822 to appropriations to treat virtual currency as unclaimed property

The California State Assembly Banking and Finance Committee voted to pass SB 822 as amended and referred the bill to the Appropriations Committee after a presentation by the bill's author, Senator Becker.

SB 822 aims to update California's unclaimed property law to explicitly include virtual currencies, the bill's author said, creating a clear process for holders to report and for the State Controller's Office to receive and manage abandoned digital assets. The author told the committee that virtual currency would follow the same timeline as stocks, and that owners would have an opportunity to reclaim assets.

The bill clarifies that a virtual currency is considered abandoned if it has been dormant for three years; holders would have to make a good-faith effort to contact the owner before turning assets over to the Controller's Office. Under the measure as described to the committee, the state would accept virtual currency in kind, hold it with a custodian that meets criteria set by the Controller, then after a specified holding period liquidate the asset and maintain the net proceeds for the rightful owner in perpetuity. The committee discussion and the Controller's Office presentation said the bill also requires criteria the Controller must consider when selecting a third-party custodian and specifies ways an owner can demonstrate ownership of a crypto asset.

A representative of the State Controller's Office told the committee that the existing unclaimed property program, established in 1959, already covers intangible assets such as bank accounts, securities and insurance policies but that digital assets such as Bitcoin remain undefined in state or federal law. The Controller's Office representative said the bill would bring clarity for holders and for the Controller's Office on whether to liquidate assets or transfer them in kind.

The bill is sponsored by the State Controller's Office and, according to the author, had no opposition on file at the time of the hearing. After questions and brief discussion the committee voted to pass the bill as amended and refer it to the Appropriations Committee. The chair recorded that the bill received nine votes in favor; the roll was left open for absent members.

Votes at a glance: SB 822 ' Motion: do pass as amended and refer to Appropriations Committee; Outcome: passed; Tally (as announced): 9 yes votes; roll left open for absentees.

Background: California's unclaimed property law, administered by the State Controller's Office, directs holders of intangible property to report and remit property to the state after a period of dormancy. Supporters at the hearing said SB 822 modernizes the statute's application to emerging digital assets and establishes administrative safeguards for custody and liquidation.

Next steps: SB 822 will go to the Assembly Appropriations Committee, which will consider fiscal impacts and may hold further hearings before the bill moves to the Assembly floor or is referred to other committees.