HB 2486 — Enacting the revised uniform unclaimed property act.

H-4612.1SECONDZ-0754.3HOUSE SUBSTITUTE HOUSE BILL 2486State of Washington65th Legislature2018 Regular SessionBy House Appropriations (originally sponsored by Representative Graves;

by request of Uniform Law Commission)READCommissionRead FIRSTfirst TIMEtime 02/06/18.AN01/10/18. ACT Relating to the revised uniform unclaimed property act;

Referred to Committee on Finance.AN ACT Relating to the revised uniform unclaimed property act;

80a-1 through 80a-64, partnership, unincorporated association, joint venture, limited liability company, business trust, trust company, land bank, safe deposit company, safekeeping depository, financial organization, insurance company, federally chartered entity, utility, sole proprietorship, or other business entity, whether or not for profit.(5) "Confidential information" means records, reports, and information that are confidential under section 1402 of this act.(6) "Domicile" means:(a) For a corporation, the state of its incorporation;(b) For a business association whose formation requires a filing with a state, other than a corporation, the state of the principal place of business of such a business association, if formed under the laws of a state other than the state in which its principalfiling;(c) place of business is located, unless determined to be otherwise by a court of competent jurisdiction;(c) For a federally chartered entity or an investment company registered under the investment company act of 1940, as amended, 15 U.S.C.

Subject to section 209 of this act, the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified below:(1) A traveler's check, fifteen years after issuance;(2) A money order, fiveseven years after issuance;(3) A state or municipal bond, bearer bond, or original issue discount bond, three years after the earliest of the date the bond matures or is called or the obligation to pay the principal of the bond arises;(4) A debt of a business association, three years after the obligation to pay arises;(5) A payroll card or demand, savings, or time deposit, including a deposit that is automatically renewable, three years after the maturity of the deposit, except a deposit that is automatically renewable is deemed matured on its initial date of maturity unless the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal;(6) Money or a credit owed to a customer as a result of a retail business transaction, three years after the obligation arose;(7) An amount owed by an insurance company on a life or endowment insurance policy or an annuity contract that has matured or terminated, three years after the obligation to pay arose under the terms of the policy or contract or, if a policy or contract for which an amount is owed on proof of death has not matured by proof of the death of the insured or annuitant, as follows:(a) With respect to an amount owed on a life or endowment insurance policy, three years after the earlier of the date:(i) The insurance company has knowledge of the death of the insured;

and(b) With respect to an amount owed on an annuity contract, three years after the date the insurance company has knowledge of the death of the annuitant;(8) Property distributable by a business association in the course of dissolution, one year after the property becomes distributable;(9) Property held by a court, including property received as proceeds of a class action, one year after the property becomes distributable;(10) Property held by a government or governmental subdivision, agency, or instrumentality, including municipal bond interest and unredeemed principal under the administration of a paying agent or indenture trustee, one year after the property becomes distributable;(11) Wages, payroll cards, commissions, bonuses, or reimbursements to which an employee is entitled, or other compensation for personal services, other than amounts held in a payroll card, one year after the amount becomes payable;(12) A deposit or refund owed to a subscriber by a utility, one year after the deposit or refund becomes payable;

Property is reportable and payable or deliverable under this chapter even if the owner fails to make demand or present an instrument or document otherwise required to obtain payment.NEWpayment.PART SECTION.  Sec. 406.  ABANDONED5NOTICE INTANGIBLETO APPARENT OWNER OF PROPERTY HELDPRESUMED BYABANDONEDNEW ASECTION.  Sec. 501.  NOTICE LOCALTO GOVERNMENT.APPARENT OWNER BY HOLDER.

(1) A local government holding abandoned intangible property that is not forwarded to the department of revenue in subsection (2) of this section is not required to maintain current records of this property for longer than five years after the property is presumed abandoned, and at that time may archive records of this intangible property and transfer the intangible property to its general fund.

However, the local government remains liable to pay the intangible property to a person or entity subsequently establishing its ownership of this intangible property.(2) Counties, cities, towns, and other municipal and quasi-municipal corporations that hold funds representing warrants canceled pursuant to RCW 36.22.100 and 39.56.040, uncashed checks, and property tax overpayments or refunds may retain the funds until the owner notifies them and establishes ownership as provided in this chapter. Counties, cities, towns, or other municipal and quasi-municipal corporations must provide to the administrator a report of property it is holding pursuant to this section. The report must identify the property and owner in the manner provided in this part 4 and the administrator must publish the information as provided in section 503 of this act.PART 5NOTICE TO APPARENT OWNER OF PROPERTY PRESUMED ABANDONEDNEW SECTION.  Sec. 501.  NOTICE TO APPARENT OWNER BY HOLDER.

(1) Except as otherwise provided byin this section, the administrator shall promptly deposit in the general fund of thisthe state all funds received under this chapter, including the proceeds from the sale of property under sections 701 through 705 of this act.act.(2) The administrator shall maintain an account with an amount of funds the administrator reasonably estimates is sufficient to pay claims allowed under this chapter in each fiscal year.

TheIf administrator shall retain in a separate trust fund, the nonappropriatedaggregate unclaimed personal property account, an amount not less than seven hundred fifty thousand dollars from which prompt payment of claims dulyby owners allowed mustat beany madetime byexceeds the administrator.(2)amount Theheld administratorin maythe payaccount, froman theexcess trustclaim fundmust providedbe inpaid subsectionout (1) of thisthe sectiongeneral anyfund costs of administeringthe thisstate.NEW chapterSECTION.  Sec. 802.  ADMINISTRATOR includingTO thoseRETAIN costsRECORDS setOF forthPROPERTY. in section 803 of this act.

Such amounts may be expended without appropriation.(3) The treasurer may periodically transfer from the general fund of this state to the unclaimed personal property account amounts necessary to accommodate the requirements of this section.NEW SECTION.  Sec. 802.  ADMINISTRATOR TO RETAIN RECORDS OF PROPERTY.

TheBefore administratormaking maya expenddeposit fromof funds received under this chapter to the unclaimedgeneral personalfund propertyof accountthe forstate, the followingadministrator purposes:(1)may deduct:(1) Expenses of disposition of property delivered to the administrator under this chapter;(2) Costs of mailing and publication in connection with property delivered to the administrator under this chapter;(3) Reasonable service charges;

Not later than one year after filing a claim under section 904(1) of this act, the claimant may commence an action against the administrator in Thurston county superior court to establish a claim that has been denied or deemed denied under section 904903(4) of this act.PART 10VERIFIED REPORT OF PROPERTY—EXAMINATION OF RECORDSNEW SECTION.  Sec. 1001.  VERIFIED REPORT OF PROPERTY.

(1) The administrator shall adopt rules governing procedures and standards for an examination under section 1002 of this act, including rules for use of an estimation, extrapolation, and statistical sampling in conducting an examination.(2) An examination under section 1002 of this act must be performed under rules adopted under subsection (1) of this section and with generally accepted examination practices and standards applicable to an unclaimed property examination.(3) If a person subject to examination under section 1002 of this act has filed the reports required under sections 401 and 1001 of this act and has retained the records required by section 404 of this act, the following rules apply:(a) The examination must include a review of the person's records.(b) The examination may not be based on an estimate unless the person expressly consents in a record to the use of an estimate or the person has failed to make its records available to the administratordepartment for examination.(c) The person conducting the examination shall consider the evidence presented in good faith by the person in preparing the findings of the examination under section 1007 of this act.NEW SECTION.  Sec. 1004.  RECORDS OBTAINED IN EXAMINATION.

(1) If a holder enters into a contract or other arrangement for the purpose of evading an obligation under this chapter or otherwise willfully fails to perform a duty imposed on the holder under this chapter, the administrator may require the holder to pay the administrator, in addition to interest as provided in section 12041204(1) of this act, a civil penalty of one thousand dollars for each day the obligation is evaded or the duty is not performed, up to a cumulative maximum amount of twenty-five thousand dollars, plus twenty-five percent of the amount or value of property that should have been but was not reported, paid, or delivered as a result of the evasion or failure to perform.(2) If a holder makes a fraudulent report under this chapter, the administrator may require the holder to pay to the administrator, in addition to interest under section 12041204(1) of this act, a civil penalty of one thousand dollars for each day from the date the report was made until corrected, up to a cumulative maximum amount of twenty-five thousand dollars, plus twenty-five percent of the amount or value of any property that should have been reported but was not included in the report or was underreported.NEW SECTION.  Sec. 1206.  WAIVER OF INTEREST AND PENALTY.

The administrator:administrator:(1) May waive, in whole or in part, interest under section 1204(1) of this act and penalties under section 1204(2) or 1205 of this act;

Mayand(2) waive,Shall inwaive wholea orpenalty in part, interest under section 12041204(2) of this act andif penaltiesthe underadministrator sectiondetermines 1205that ofthe thisholder act.PARTacted in good faith and without negligence.PART 13AGREEMENT TO LOCATE PROPERTY OF APPARENT OWNER HELD BY ADMINISTRATORNEW SECTION.  Sec. 1301.  WHEN AGREEMENT TO LOCATE PROPERTY ENFORCEABLE.

(1) Except as otherwise provided in this chapter, the following are confidential and exempt from public inspection or disclosure:(a) Records of the administrator and the administrator's agent related to the administration of this chapter;(b) Reports and records of a holder in the possession of the administrator or the administrator's agent;

and(b)and(c) Personal information and other information derived or otherwise obtained by or communicated to the administrator or the administrator's agent from an examination under this chapter of the records of a person.(2) A record or other information that is confidential under law of this state other than this chapter, another state, or the United States continues to be confidential when disclosed or delivered under this chapter to the administrator or administrator's agent.NEW SECTION.  Sec. 1403.  WHEN CONFIDENTIAL INFORMATION MAY BE DISCLOSED.