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AB-2773 Unclaimed property voluntary disclosure program.(2017-2018)



Current Version: 03/19/18 - Amended Assembly        


AB2773:v98#DOCUMENT

Amended  IN  Assembly  March 19, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2773


Introduced by Assembly Member Acosta

February 16, 2018


An act to amend Section 1033.5 of the Code of Civil Procedure, relating to civil procedure. An act to add and repeal Section 1577.6 of the Code of Civil Procedure, relating to unclaimed property.


LEGISLATIVE COUNSEL'S DIGEST


AB 2773, as amended, Acosta. Civil actions: fee recovery. Unclaimed property voluntary disclosure program.
Under existing law, property held by a person that belongs to another and that is unclaimed for more than specified periods escheats to the state. Existing law requires persons holding unclaimed property to report and deliver it to the Controller within a prescribed time period, and imposes interest payments and penalties for a failure to do so. Existing law also provides that any person who paid or delivered unclaimed property to the Controller on or before December 31, 2002, in accordance with specified requirements, is not subject to statutory interest payments.
This bill would require the Controller to create a program for the voluntary disclosure of unclaimed property consistent with specified requirements. The bill would require the Controller to waive interest and penalty charges for holders who are accepted into the program, complete the voluntary disclosures in good faith, and act consistent with program requirements. The program would repeal on January 1, 2024.

Existing law enumerates the costs that a prevailing party may recover in a civil action.

This bill would make nonsubstantive changes to that provision.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1577.6 is added to the Code of Civil Procedure, to read:

1577.6.
 (a) The Controller shall establish a program for the voluntary disclosure of unclaimed for the purpose of resolving and compromising claims for unclaimed property that is otherwise owing to the state under this chapter.
(b) A holder of unclaimed property that has exceeded its dormancy period that has not reported the property in accordance with applicable reporting deadlines may enroll into the unclaimed property voluntary disclosure program by doing all of the following:
(1) Executing a participation agreement with the Controller in a format accepted by the Controller.
(2) Accurately reviewing its books and records, and reporting all unclaimed property due to the Controller for the past 10 years, starting from the date when the holder’s intent to enter into an agreement under the program was accepted by the Controller.
(3) Making payment of the property in full, or entering into a payment plan, within 12 months from the date the holder’s intent to enter into an agreement under the program was accepted by the Controller, or by another date determined by the Controller.
(c) The Controller shall waive interest and penalty charges otherwise owed under Sections 1576 and 1577 for holders who are accepted into the unclaimed property voluntary disclosure program, complete the voluntary disclosures in good faith, and act consistently with program requirements.
(d) The Controller shall determine eligibility for the unclaimed property voluntary disclosure program. A holder is ineligible to participate in the program if the holder is the subject of an audit or investigation of compliance with this chapter at the time the request for participation is made.
(e) The Controller shall not audit the holder for the periods covered by a voluntary disclosure agreement under this section, unless the Controller reasonable determines that the holder has made a fraudulent or willful misrepresentation as to a voluntary disclosure.
(f) The Controller may adopt regulations for the implementation and enforcement of the unclaimed property voluntary disclosure program.
(g) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.

SECTION 1.Section 1033.5 of the Code of Civil Procedure is amended to read:
1033.5.

(a)The following items are allowable as costs under Section 1032:

(1)Filing, motion, and jury fees.

(2)Juror food and lodging while they are kept together during trial and after the jury retires for deliberation.

(3)(A)Taking, video recording, and transcribing necessary depositions, including an original and one copy of those taken by the claimant and one copy of depositions taken by the party against whom costs are allowed.

(B)Fees of a certified or registered interpreter for the deposition of a party or witness who does not proficiently speak or understand the English language.

(C)Travel expenses to attend depositions.

(4)Service of process by a public officer, registered process server, or other means, as follows:

(A)If service is by a public officer, the recoverable cost is the fee authorized by law at the time of service.

(B)If service is by a process server registered pursuant to Chapter 16 (commencing with Section 22350) of Division 8 of the Business and Professions Code, the recoverable cost is the amount actually incurred in effecting service, including, but not limited to, a stakeout or other means employed in locating the person to be served, unless those charges are successfully challenged by a party to the action.

(C)If service is by publication, the recoverable cost is the sum actually incurred in effecting service.

(D)If service is by a means other than that set forth in subparagraph (A), (B), or (C), the recoverable cost is the lesser of the sum actually incurred, or the amount allowed to a public officer in this state for that service, except that the court may allow the sum actually incurred in effecting service upon application pursuant to paragraph (4) of subdivision (c).

(5)Expenses of attachment including keeper’s fees.

(6)Premiums on necessary surety bonds.

(7)Ordinary witness fees pursuant to Section 68093 of the Government Code.

(8)Fees of expert witnesses ordered by the court.

(9)Transcripts of court proceedings ordered by the court.

(10)Attorney’s fees, when authorized by any of the following:

(A)Contract.

(B)Statute.

(C)Law.

(11)Court reporter fees as established by statute.

(12)Court interpreter fees for a qualified court interpreter authorized by the court for an indigent person represented by a qualified legal services project, as defined in Section 6213 of the Business and Professions Code, or a pro bono attorney, as defined in Section 8030.4 of the Business and Professions Code.

(13)Models, the enlargements of exhibits and photocopies of exhibits, and the electronic presentation of exhibits, including costs of rental equipment and electronic formatting, may be allowed if they were reasonably helpful to aid the trier of fact.

(14)Fees for the electronic filing or service of documents through an electronic filing service provider if a court requires or orders electronic filing or service of documents.

(15)Fees for the hosting of electronic documents if a court requires or orders a party to have documents hosted by an electronic filing service provider. This paragraph shall become inoperative on January 1, 2022.

(16)Any other item that is required to be awarded to the prevailing party pursuant to statute as an incident to prevailing in the action at trial or on appeal.

(b)The following items are not allowable as costs, except when expressly authorized by law:

(1)Fees of experts not ordered by the court.

(2)Investigation expenses in preparing the case for trial.

(3)Postage, telephone, and photocopying charges, except for exhibits.

(4)Costs in investigation of jurors or in preparation for voir dire.

(5)Transcripts of court proceedings not ordered by the court.

(c)An award of costs shall be subject to the following:

(1)Costs are allowable if incurred, whether or not paid.

(2)Allowable costs shall be reasonably necessary to the conduct of the litigation rather than merely convenient or beneficial to its preparation.

(3)Allowable costs shall be reasonable in amount.

(4)Items not mentioned in this section and items assessed upon application may be allowed or denied in the court’s discretion.

(5)(A)If a statute of this state refers to the award of “costs and attorney’s fees,” attorney’s fees are an item and component of the costs to be awarded and are allowable as costs pursuant to subparagraph (B) of paragraph (10) of subdivision (a). A claim not based upon the court’s established schedule of attorney’s fees for actions on a contract shall bear the burden of proof. Attorney’s fees allowable as costs pursuant to subparagraph (B) of paragraph (10) of subdivision (a) may be fixed on any of the following occasions:

(i)Upon a noticed motion.

(ii)At the time a statement of decision is rendered.

(iii)Upon application supported by affidavit made concurrently with a claim for other costs.

(iv)Upon entry of default judgment.

(B)Attorney’s fees allowable as costs pursuant to subparagraph (A) or (C) of paragraph (10) of subdivision (a) shall be fixed either upon a noticed motion or upon entry of a default judgment, unless otherwise provided by stipulation of the parties.

(C)Attorney’s fees awarded pursuant to Section 1717 of the Civil Code are allowable costs under Section 1032 as authorized by subparagraph (A) of paragraph (10) of subdivision (a).