Filers of abandoned and unclaimed property in the state of California have to manage an extra influx of responses from owners as a result of due diligence efforts of both holder companies and the State of California. This task is thought to be a bit more robust and demanding in California than in other states, because California is the only state that still has a dual or bifurcated reporting process—and double due diligence.
As late as the 1980s, many states required this type of double reporting of abandoned and unclaimed property. Holders had to report their unclaimed property, then complete due diligence. Any properties returned to their rightful owners were deducted from the unclaimed property report and a final report was filed, along with appropriate remittances.
Most states moved away from the dual reporting process due to the administrative burden it put on unclaimed property holders. However, after class action lawsuits claimed the California unclaimed property program was being operated unconstitutionally, the state controller put new procedures in place, returning to the bifurcated reporting of previous years.