September 7, 1990
TO: SEC RULES MEMBERS NO. 64-90
CLOSED-END FUND MEMBERS NO. 34-90
UNIT INVESTMENT TRUST MEMBERS NO. 60-90
OPERATIONS MEMBERS NO. 26-90
ABANDONED PROPERTY TASK FORCE
RE: CALIFORNIA REVISES ABANDONED PROPERTY LAW
__________________________________________________________
The California abandoned property law was recently revised
by the State legislature and signed by the governor on July 31,
1990. The revised law is effective immediately and a copy is
attached.
The legislation reduced the period for determining
abandonment for all types of property (including dividend
reinvestment accounts) from 5 to 3 years. No other substantive
changes were made to the existing law. Thus, as we understand
the California statute, as long as the location of the owner of a
dividend reinvestment account is known to the mutual fund, the
account is not deemed abandoned, regardless of the level of
activity in the account.
We understand that the California Controller's office
intends to require the initial abandoned property report under
the new rule to be filed by April 1, 1991 for the period
beginning July 1, 1989 and ending June 30, 1990. Thereafter,
payment and reporting of escheated accounts will be due on
November 1.
The Controller's office anticipates delivering notices
regarding the new law within the next few weeks. In the interim,
questions should be directed to the Controller's office at
916/323-2845.
W. Richard Mason
Assistant General Counsel
Attachment