CA’s Use of Unclaimed Cash OK’d by Supreme Court

FRESNO, Calif. (KMJ) — California’s practice of seizing and spending so-called unclaimed cash from shuttered businesses, mutual funds, and back accounts, has survived a Supreme Court challenge.

Plaintiffs had argued that the Golden State doesn’t do an adequate job of trying to get in contact with the rightful owners, before the seizure occurs.

However, justices have declined to hear the case.

Funds from an account can be taken, if the financial institution hasn’t been able to track down the owner, for at least 3 years.

California has about $8 billion is unclaimed assets right now; about $450 million a year goes towards the state budget.