The funds would have been deposited in The Housing Rehabilitation Loan Fund, specifically for the construction, rehabilitation, or acquisition of rental housing for low-income seniors. A carefully crafted measure, AB 2786 would have earmarked only funds which have permanently reverted back to the state under current law, which dictates that monies are held in trust for a minimum of 15 years and then they are escheated to the state. The Governor s veto message, which may indicate a misunderstanding of the bill s intent. In his message the Governor wrote, This bill would direct unclaimed funds to the State. These monies do not belong to State.
Unclaimed property belongs to the state of the deceased person.
The Controller should make every effort to return these monies to the rightful owners. I agree with the Governor, the Controller should make every effort to return these funds to the rightful owners. And they already do this. However, after 15 years of searching, the money is turned over to the State s General Fund. My proposal was earmarking the money for senior housing, said Bates.