Any property delivered to the Controller pursuant to this chapter that has no apparent commercial value shall be retained by the Controller for a period of not less than seven years from the date the property is delivered to the Controller. If the Controller determines that any property delivered to him or her pursuant to this chapter has no apparent commercial value, he or she may at any time thereafter destroy or otherwise dispose of the property, and in that event no action or proceeding shall be brought or maintained against the state or any officer thereof, or against the holder for, or on account of any action taken by, the Controller pursuant to this chapter with respect to the property.
§ 1565.Property of No Apparent Commercial Value Delivered to Controller
Title 10. Unclaimed Property · Chapter 7. Unclaimed Property Law · Article 5. Administration of Unclaimed Property · Last amended 2012 · Last verified July 29, 2026
In one sentenceSection 1565 requires the Controller to hold property with no apparent commercial value for at least seven years before destroying or otherwise disposing of it, and shields the state, its officers, and the original holder from any lawsuit over that disposal.
Full Text of § 1565
Plain-English Summary
Some property that escheats to the state isn't worth keeping around indefinitely, things with no apparent commercial value, and Section 1565 tells the Controller how long to wait before letting go of it. Any such property has to be retained for at least seven years from the date it's delivered to the Controller, giving an owner a real window of time to come forward even for items that seem worthless on their face.
Once that period passes, if the Controller still determines the property has no apparent commercial value, the Controller can destroy or otherwise dispose of it. And once that happens, the section closes off any comeback: no action can be brought against the state, any state officer, or the original holder over what the Controller did with the property under this section. That protection lets the Controller clear out truly worthless items without exposing anyone involved to open-ended liability.
Frequently Asked Questions
How long must the Controller hold property with no apparent commercial value?
At least seven years from the date the property is delivered to the Controller.
Can the Controller destroy the property after that seven-year period?
Yes, if the Controller determines the property still has no apparent commercial value, the Controller may destroy or otherwise dispose of it at any time after the retention period.
Can someone sue the state or the original holder after the property is destroyed?
No. Section 1565 bars any action or proceeding against the state, any state officer, or the holder on account of the Controller's disposal of the property under this section.
Does this section apply to property that clearly has value?
No. It's limited to property the Controller determines has no apparent commercial value.
Amendment History
Amended by Stats 2011 ch 305 (SB 495),s 8, eff. 1/1/2012. Amended by Stats 2007 ch 179 (SB 86),s 6, eff. 8/24/2007.
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: destruction of worthless unclaimed property californiaseven year retention period escheated property