Sacramento - Majority Leader Eloise Gómez Reyes (D-Colton) has introduced AB 2280 which would authorize the State Controller’s Office to establish an Unclaimed Property Voluntary Compliance Program. Currently, the State Controller’s Office administers the Unclaimed Property Program, which safeguards lost or forgotten property and provides a means for returning property to rightful owners.
“While the state has an established process to reclaim unclaimed property, as of 2020, approximately 1.3 million businesses that file taxes have failed to submit an unclaimed property report to the Controller. It is estimated that businesses that are out of compliance could be holding in excess of $17.6 billion in unclaimed property. We need a better way to ensure compliance of these properties so they may be reclaimed by their proper owners. ” – Majority Leader Eloise Gómez Reyes
“Compliance by California businesses in turning over forgotten funds is central to our efforts to reunite unclaimed property with its rightful owners,” said State Controller Betty T. Yee, California’s chief fiscal officer and sponsor of AB 2280. “This measure will build on my team’s continuous efforts to educate business owners about their responsibilities under California’s unclaimed property law, encourage them to be active participants in this process, and get more money back to Californians, strengthening an important consumer protection program.”
AB 2280 would incentivize compliance with the Unclaimed Property Law by allowing the State Controller to waive penalty interest for past due properties reported by holders that voluntarily enroll in and successfully complete the program. The Voluntary Compliance Program created by AB 2280 will increase annual revenues from additional remittances, properties returned to rightful owners, and public awareness of the Unclaimed Property Program.