Unclaimed property: interest assessments and disclosure of records.

(1) Under existing law, property held by a person that belongs to another and that is unclaimed for more than specified periods escheats to the state. Existing law requires persons holding unclaimed property to report and pay or deliver it to the Controller within a prescribed time period, except as specified, and imposes interest payments for a failure to do so. Existing law requires the holder, if the property is not subject to escheat after the report is filed and before payment or delivery is made, to file another report instead of paying or delivering the property. Existing law limits the interest payable to $10,000 if a holder pays or delivers unclaimed property in a timely manner, but files a report that is not in substantial compliance with certain statutory requirements. Existing law provides that a holder is not subject to interest payments if the holder's failure to report in substantial compliance with the requirements described above is due to reasonable cause. This bill would, in addition, impose the limit of $10,000 on interest payable if a holder files a report, after the initial report and before payment or delivery is made for property that may not be subject to escheat, that is not in substantial compliance with statutory requirements. The bill would authorize the Controller to waive interest payable if the holder's failure to report in substantial compliance with specified requirements is due to reasonable cause. The bill would require the Controller to waive interest payable if the holder participates in and completes all of the requirements of the California Voluntary Compliance Program, subject to the Controller's right to reinstate, as specified. This bill would, upon appropriation by the Legislature, allow the Controller to establish the California Voluntary Compliance Program, for the voluntary compliance of holders for the purpose of resolving unclaimed property that is due and owing to the state under the Unclaimed Property Law. The bill would prescribe the requirements for a holder to participate in the program and for a Controller to waive interest assessments, including participation in training and education, review of books and records for unclaimed property, and reporting and payment or delivery of unclaimed property within specified timeframes. The bill would allow the Controller to reinstate interest that had been waived under the program if the property is not timely paid or delivered. The bill would allow the Controller to adopt guidelines and forms for the administration of the program. The bill would delete obsolete provisions. (2) Under existing law, an agreement to locate, deliver, recover, or assist in the recovery of escheated property reported to the Controller is not valid if it is made between the time the property is reported to the Controller and the Controller gives notice of the existence of the property, or if the fee or compensation pursuant to the agreement exceeds a specified amount. Existing law requires an agreement made after the Controller gives notices to be in writing and signed by the owner after disclosure in the agreement of the nature and value of the property and the name and address of the person or entity in possession of the property. This bill would recast these provisions. The bill would invalidate an agreement if it is made between the time the property is reported to the Controller and the property is paid or delivered or if it would require the owner to pay a fee or compensation prior to approval of the claim and payment of the recovered property to the owner by the Controller. The bill would require an agreement made after the property is paid or delivered to include a disclosure of the nature and value of the property, that the Controller is in possession of the property, and the address where the owner can directly claim the property from the Controller. (3) Existing law, the California Public Records Act, requires public records, as defined, to be open to the public for inspection and made promptly available to any person, except as specified. This bill would add exemptions from disclosure under the California Public Records Act for records and information of the Controller obtained pursuant to the Unclaimed Property Law, including financial records obtained as a result of an examination of records of persons reasonably believed to be holders of unclaimed property, records related to statements of personal worth or personal financial data, and personal information, as defined. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.