§ 1577.5.California Voluntary Compliance Program

Title 10. Unclaimed Property · Chapter 7. Unclaimed Property Law · Article 6. Compliance and Enforcement · Enacted 2022 · no amendments on record · Last verified July 29, 2026

In one sentenceSection 1577.5 establishes the California Voluntary Compliance Program, letting holders who haven't been reporting unclaimed property enroll to review ten years of records, notify owners, file a report, and pay what's owed, in exchange for a waiver of the interest Section 1577 would otherwise charge.

Full Text of § 1577.5

Text sizeJump to: (a) (b) (c) (d) (e) (f) (g) (h)

(a) This section shall be known, and may be cited, as the "California Voluntary Compliance Program."

(b) The Controller may establish a program for the voluntary compliance of holders for the purpose of resolving unclaimed property that is due and owing to the state under this chapter.

(c) A holder that has not reported unclaimed property in accordance with Section 1530 may request to enroll in the program using a form prescribed by the Controller.

(d) The Controller, in their discretion, may enroll eligible holders in the program. A holder is ineligible to participate in the program if any of the following apply:

(1) At the time the holder's request to enroll is received by the Controller, the holder is the subject of an examination of records or has received notification from the Controller of an impending examination under Section 1571.

(2) At the time the holder's request to enroll is received by the Controller, the holder is the subject of a civil or criminal prosecution involving compliance with this chapter.

(3) The Controller has notified the holder of an interest assessment under Section 1577 within the previous five years, and the interest assessment remains unpaid at the time of the holder's request to enroll. A holder subject to an outstanding interest assessment may file or refile a request to enroll in the program after resolving the outstanding interest assessment.

(4) The Controller has waived interest assessed against the holder under this section within the previous five years. Notwithstanding the foregoing, if a holder acquired or merged with another entity within the five-year period, the holder may request to enroll in the program for the purpose of resolving unclaimed property that may be due and owing to the state as a result of the acquisition or merger.

(e) The Controller shall waive interest assessed under Section 1577 for a holder enrolled in the program if the holder does all the following within the prescribed timeframes and satisfies the other requirements of this section:

(1) Enrolls and participates in an unclaimed property educational training program provided by the Controller within three months after the date on which the Controller notified the holder of their enrollment in the program, unless the Controller sets a different date.

(2) Reviews their books and records for unclaimed property for at least the previous 10 years, starting from June 30 or the fiscal yearend preceding the date on which the report required by paragraph (4) is due.

(3) Makes reasonable efforts to notify owners of reportable property by mail or electronically, as applicable, pursuant to Sections 1513.5, 1514, 1516, or 1520, no less than 30 days prior to submitting the report required by paragraph (4).

(4) Reports to the Controller as required by subdivisions (b), (c), and (e) of Section 1530 within six months after the date on which the Controller notified the holder of their enrollment in the program. Upon written request by the enrolled holder, the Controller may postpone the reporting date for a period not to exceed 18 months after the date on which the Controller notified the holder of their enrollment in the program.

(5) Submits to the Controller an updated report and pays or delivers to the Controller all escheated property specified in the report as required by Section 1532, no sooner than seven months and no later than seven months and 15 days after the Controller received the report submitted pursuant to paragraph (4).

(f) The Controller may reinstate interest waived under subdivision (d) of Section 1577 if the holder does not pay or deliver all escheated property specified in the report submitted pursuant to and within the timeframe prescribed by paragraph (5) of subdivision (e).

(g) The Controller may adopt guidelines and forms that provide specific procedures for the administration of the program.

(h) This section shall become operative only upon an appropriation by the Legislature in the annual Budget Act for this purpose.

End

Plain-English Summary

This section builds the on-ramp that Section 1577 rewards: a formal path for holders who have fallen behind on reporting unclaimed property. A holder that hasn't been filing under Section 1530 can ask to enroll using a Controller-prescribed form, and the Controller decides, case by case, whether to let the holder in. Enrollment isn't available to a holder already facing an examination or notified one is coming, one already in civil or criminal proceedings over compliance, one sitting on an unpaid interest assessment from the past five years, or one whose interest was already waived in the past five years, though a company that acquired or merged with another entity in that window can still enroll to deal with property picked up in the deal.

Once enrolled, a holder earns the interest waiver by working through a set sequence on a schedule: completing the Controller's training program within three months of enrollment, reviewing at least ten years of books and records for unclaimed property, making a genuine effort to notify owners of reportable property before reporting, filing the required report within six months (extendable to eighteen), and then paying or delivering the escheated property seven to seven-and-a-half months after that report goes in. Skip a step in that sequence and the Controller can reinstate the interest that would otherwise have applied. The whole program only exists once the Legislature funds it through the annual budget.

Frequently Asked Questions

Who is eligible to enroll in the California Voluntary Compliance Program?

A holder that hasn't reported unclaimed property as Section 1530 requires, unless the holder is already under examination, in litigation over compliance, sitting on an unpaid interest assessment, or already received a waiver within the past five years.

What does a holder have to do to earn a waiver of interest?

Complete required training, review at least ten years of records, make efforts to notify owners, file the required report within six months, and then pay or deliver the property within the following window the section sets.

Can the Controller take back a waived interest charge?

Yes. If the holder doesn't pay or deliver the escheated property within the prescribed timeframe, the Controller may reinstate the interest that had been waived.

Is the program always available?

No. It becomes operative only once the Legislature appropriates funding for it in the annual Budget Act.

Amendment History

Added by Stats 2022 ch 282 (AB 2280),s 4, eff. 1/1/2023.

Source & verification. Section text is reproduced verbatim from the California Legislative Information. Enacted by the California Legislature. Last verified July 29, 2026. · Official source

Also known as: california voluntary compliance program unclaimed propertyunclaimed property amnesty program holders