Unclaimed property: class action settlements.

Senator Weber Pierson's proposal to reform California's handling of unclaimed class action settlement funds would redirect millions in abandoned payments to the state's Unclaimed Property Fund rather than returning them to defendants. The legislation establishes specific timelines for when settlement payments are deemed abandoned: immediately upon settlement if class members cannot be located, at the claim filing deadline if payments remain unclaimed, or 180 days after issuance if checks go uncashed.

The measure requires all class action settlements to incorporate these provisions and mandates that abandoned funds escheat to California within 90 days. According to the bill's findings, this addresses a persistent challenge where settlement funds go unclaimed because class members are unaware of their eligibility or face barriers in the claims process. The legislation exempts these settlements from existing notice requirements while preserving compatibility with federal court proceedings that align with Rule 23 of the Federal Rules of Civil Procedure.

This change to the Code of Civil Procedure would expand the scope of California's Unclaimed Property Law, which currently governs how personal property escheats to the state. The bill includes an appropriation to the Unclaimed Property Fund to manage the anticipated increase in escheated settlement payments. While settlement agreements must reference these new requirements, the provisions maintain flexibility for implementation in both state and federal courts.