Notwithstanding Section 13340 of the Government Code, all money in the Unclaimed Property Fund is hereby continuously appropriated to the Controller, without regard to fiscal years, for expenditure for any of the following purposes:
§ 1325.Purposes For Which Money In Fund Continuously Appropriated to Controller For Expenditure
Title 10. Unclaimed Property · Chapter 2. Receipt and Expenditure of Funds · Article 2. Appropriation · Last amended 1994 · Last verified July 29, 2026
In one sentenceSection 1325 continuously appropriates all money in the Unclaimed Property Fund to the Controller, without need for a yearly budget act, for a specific list of purposes including claimant refunds, title searches, property upkeep, tax-agency payments, and paying claimants themselves.
Full Text of § 1325
(a) For refund, to the person making such deposit, of amounts, including overpayments, deposited in error in such fund.
(b) For payment of the cost of title searches and appraisals incurred by the Controller covering real or personal property held in the name of an account in such fund.
(c) For payment of the cost incurred by the Controller covering indemnity bonds required in order to have duplicate certificates of ownership issued in order to replace lost certificates, covering personal property held in the name of an account in such fund.
(d) For payment of amounts required to be paid by the state as trustee, bailee, or successor in interest to the preceding owner, pursuant to the provisions of trust deeds, mortgages, or other liens on real property held in the name of an account in such fund.
(e) For payment of costs incurred by the Controller for the repair, maintenance and upkeep of real and personal property held in the name of an account in such fund.
(f) For payment of costs of official advertising in connection with the sale of real or personal property held in the name of an account in such fund.
(g) For payment to taxing agencies of the amounts deducted by the Controller from allowed and approved claims, in accordance with the provisions of subdivision (c) of Section 4986.5 of the Revenue and Taxation Code.
(h) For transfer to the Inheritance Tax Fund, on order of the Controller, of the amount of any inheritance taxes determined to be due and payable to the state by any claimant, with respect to any real or personal property, including cash, claimed by that person under the provisions of this title.
(i) For payment and delivery to claimants of money or other property held to the credit, or in the name, of an account in such fund, under the provisions of this title.
(j) For transfer to the General Fund, on order of the Controller, of any money or other property in the Unclaimed Property Fund which becomes permanently escheated to the state under the provisions of this title.
Any expenditure made by the Controller pursuant to the provisions of this section shall be charged against any balance credited to the particular account in the Unclaimed Property Fund, in the name of which is held the real or personal property for which the expenditure is made; and if sufficient balance is not available in such account, the expenditure may be made from any appropriation from the General Fund for the support of the Controller, or, in the case of official advertising, from any appropriation available therefor, to be reimbursed from the proceeds of any subsequent sale of the property for which such expenditure is made.
Plain-English Summary
Ordinarily, spending state money requires a fresh appropriation each fiscal year. This section takes the Unclaimed Property Fund out of that cycle. Notwithstanding the Government Code's general appropriation rule, all money in the Fund is continuously appropriated to the Controller, without regard to fiscal years, for spending on a defined list of purposes.
That list covers refunding amounts deposited in error, including overpayments; the cost of title searches and appraisals on real or personal property the Fund holds; bond costs needed to replace lost ownership certificates; payments the state owes as trustee, bailee, or successor under a trust deed, mortgage, or other lien on real property the Fund holds; upkeep and repair of property the Fund holds; official advertising tied to selling that property; payments to taxing agencies out of amounts the Controller deducted from allowed claims; transfers to the Inheritance Tax Fund for taxes a claimant owes; payment and delivery of money or property to claimants themselves; and transfers to the General Fund once property becomes permanently escheated. Each expenditure gets charged against the specific account holding the property involved, and if that account runs short, the shortfall can be covered from the Controller's own General Fund support appropriation or, for advertising costs, from money set aside for that purpose, to be repaid once the property is eventually sold.
Frequently Asked Questions
Does the Controller need a new yearly appropriation to spend from the Unclaimed Property Fund?
No -- this section continuously appropriates money in the Fund to the Controller without regard to fiscal years, for the listed purposes.
Can this money be used to pay a claimant who successfully claims their property?
Yes -- payment and delivery of money or property to claimants under this Title is one of the listed purposes.
What happens if a particular account in the Fund does not have enough balance to cover an expenditure?
The shortfall may be covered from any General Fund appropriation supporting the Controller, or, for official advertising, from any appropriation available for that purpose, to be reimbursed from the eventual sale proceeds of the property.
Amendment History
Amended by Stats. 1993, Ch. 692, Sec. 1. Effective January 1, 1994.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: continuous appropriation unclaimed property fundcontroller expenditure purposes unclaimed property