TO: Board of Supervisors
FROM: Bob Minahen, Treasurer-Tax Collector
REPORT BY: Bob Minahen, Treasurer-Tax Collector
SUBJECT: Adopt a Resolution Authorizing the Treasurer-Tax Collector to Perform Certain Acts Related to the Escheatment of Stale-Dated Warrants and Funds less than $5,000 that Remain Unclaimed in the County Treasury
RECOMMENDATION
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Adopt a Resolution authorizing the Treasurer-Tax Collector to perform, on behalf of the Board of Supervisors, any act required or authorized to be performed by Board of Supervisors under Government Code Sections 50050, 50053 and 50055 related to the escheatment of stale-dated warrants and funds that remain unclaimed in the County Treasury less than $5,000. (No Fiscal Impact; Discretionary)
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BACKGROUND
Government Code section 50050 et seq. establishes guidelines for returning unclaimed funds held in the County Treasury, which includes stale dated warrants, to the County General Fund. This process is known as escheatment. Government Code states that money which remains unclaimed in the Treasury for a period of time becomes the property of the County, and places specific requirements on this process, including publishing a notice of unclaimed funds in a publication of general circulation.
Government Code section 50057 allows the Board of Supervisors to adopt a resolution delegating certain functions for unclaimed funds of $5,000 or less to the county treasurer while requiring the county auditor to be informed of each act performed under this authorization.
Government Code separates unclaimed funds into four distinct categories:
1. Less than fifteen dollars ($15.00)
2. The depositor’s name is unknown
3. Five thousand dollars ($5,000) or less
4. Greater than five thousand dollars ($5,000)
Categories 1 & 2, items less than $15.00 or when the depositor’s name is not known, can be escheated to the General Fund after one year without public notification or further Board approval should the Board delegate its authority to the County Treasurer.
Category 3 & 4, items greater than $15.00 and where the depositor is known can be escheated to the General Fund after three years. Public notification is required to be made in a local newspaper and the funds will become the property of the County forty-five days (45) after publication if the funds remain unclaimed. Adoption of the resolution included would invoke Government Code section 50057 and delegate the authority to escheat funds to the General Fund to the Treasurer-Tax Collector, without requiring Board of Supervisors approval. Amounts over $5,000 will continue to be brought to the Board of Supervisors for approval prior to transfer to the General Fund.
Parties making claim on these funds will be directed to the County website containing claim forms and instructions. Treasurer-Tax Collector staff will also be available to assist claimants with the process.
Requested Action: Adopt the Resolution.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Delegating the ministerial requirements of Government Code sections 50050 et seq. will allow for a more efficient escheatment process. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Negligible revenues will result from the escheatment of unclaimed funds moved to the County General Fund. |
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Consequences if not approved: |
If not approved the ministerial process of escheating funds held in the Treasury will fall on the Board of Supervisors. |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.