This chapter may be cited as the revised uniform unclaimed property act.
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
"Administrator" means the department of revenue established under RCW 82.01.050.
"Administrator's agent" means a person with which the administrator contracts to conduct an examination under sections 1001 through 1013 of this act on behalf of the administrator. The term includes an independent contractor of the person and each individual participating in the examination on behalf of the person or contractor.
"Apparent owner" means a person whose name appears on the records of a holder as the owner of property held, issued, or owing by the holder.
"Business association" means a corporation, joint stock company, investment company other than an investment company registered under the investment company act of 1940, as amended, 15 U.S.C. Secs. 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.
"Confidential information" means records, reports, and information that are confidential under section 1402 of this act.
"Domicile" means:
For a corporation, the state of its incorporation;
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 principal place of business is located, unless determined to be otherwise by a court of competent jurisdiction;
For a federally chartered entity or an investment company registered under the investment company act of 1940, as amended, 15 U.S.C. Secs. 80a-1 through 80a-64, the state of its home office; and
For any other holder, the state of its principal place of business.
"Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
"Email" means a communication by electronic means which is automatically retained and stored and may be readily accessed or retrieved.
"Financial organization" means a savings and loan association, building and loan association, savings bank, industrial bank, bank, banking organization, or credit union.
"Game-related digital content" means digital content that exists only in an electronic game or electronic game platform. The term:
Includes:
Game-play currency such as a virtual wallet, even if denominated in United States currency; and
The following if for use or redemption only within the game or platform or another electronic game or electronic game platform:
(A) Points sometimes referred to as gems, tokens, gold, and similar names; and
(B) Digital codes; and
b. Does not include an item that the issuer:
i. Permits to be redeemed for use outside a game or platform for:
(A) Money; or
(B) Goods or services that have more than minimal value; or
ii. Otherwise monetizes for use outside a game or platform.
"Gift certificate" means a record described in RCW 19.240.010, and includes both gift cards and gift certificates, including both tangible instruments and electronic records.
"Holder" means a person obligated to hold for the account of, or to deliver or pay to, the owner, property subject to this chapter.
"Insurance company" means an association, corporation, or fraternal or mutual benefit organization, whether or not for profit, engaged in the business of providing life endowments, annuities, or insurance, including accident, burial, casualty, credit life, contract performance, dental, disability, fidelity, fire, health, hospitalization, illness, life, malpractice, marine, mortgage, surety, wage protection, and worker compensation insurance.
"Loyalty card" means a record given without direct monetary consideration under an award, reward, benefit, loyalty, incentive, rebate, or promotional program which may be used or redeemed only to obtain goods or services or a discount on goods or services. The term does not include a record that may be redeemed for money or otherwise monetized by the issuer.
"Mineral" means gas, oil, coal, oil shale, other gaseous liquid or solid hydrocarbon, cement material, sand and gravel, road material, building stone, chemical raw material, gemstone, fissionable and nonfissionable ores, colloidal and other clay, steam and other geothermal resources, and any other substance defined as a mineral by law of this state other than this chapter.
"Mineral proceeds" means an amount payable for extraction, production, or sale of minerals, or, on the abandonment of the amount, an amount that becomes payable after abandonment. The term includes an amount payable:
For the acquisition and retention of a mineral lease, including a bonus, royalty, compensatory royalty, shut-in royalty, minimum royalty, and delay rental;
For the extraction, production, or sale of minerals, including a net revenue interest, royalty, overriding royalty, extraction payment, and production payment; and
Under an agreement or option, including a joint operating agreement, unit agreement, pooling agreement, and farm-out agreement.
"Money order" means a payment order for a specified amount of money. The term includes an express money order and a personal money order on which the remitter is the purchaser.
"Municipal bond" means a bond or evidence of indebtedness issued by a municipality or other political subdivision of a state.
"Net card value" means the original purchase price or original issued value of a stored value card, plus amounts added to the original price or value, minus amounts used and any service charge, fee, or dormancy charge permitted by law.
"Nonfreely transferable security" means a security that cannot be delivered to the administrator by the depository trust clearing corporation or similar custodian of securities providing posttrade clearing and settlement services to financial markets or cannot be delivered because there is no agent to effect transfer. The term includes a worthless security.
"Owner" means a person that has a legal, beneficial, or equitable interest in property subject to this chapter or the person's legal representative when acting on behalf of the owner. The term includes:
A depositor, for a deposit;
A beneficiary, for a trust other than a deposit in trust;
A creditor, claimant, or payee, for other property; and
The lawful bearer of a record that may be used to obtain money, a reward, or a thing of value.
"Payroll card" means a record that evidences a payroll card account as defined in Regulation E, 12 C.F.R. Part 1005, as it existed on the effective date of this section.
"Person" means an individual, estate, business association, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity.
"Property" means tangible property described in section 205 of this act or a fixed and certain interest in intangible property held, issued, or owed in the course of a holder's business or by a government, governmental subdivision, agency, or instrumentality. The term:
Includes all income from or increments to the property;
Includes property referred to as or evidenced by:
Money, virtual currency, interest, or a dividend, check, draft, deposit, or payroll card;
A credit balance, customer's overpayment, stored value card, security deposit, refund, credit memorandum, unpaid wage, unused ticket for which the issuer has an obligation to provide a refund, mineral proceeds, or unidentified remittance;
A security except for:
(A) A worthless security; or
(B) A security that is subject to a lien, legal hold, or restriction evidenced on the records of the holder or imposed by operation of law, if the lien, legal hold, or restriction restricts the holder's or owner's ability to receive, transfer, sell, or otherwise negotiate the security;
iv. A bond, debenture, note, or other evidence of indebtedness;
v. Money deposited to redeem a security, make a distribution, or pay a dividend;
vi. An amount due and payable under an annuity contract or insurance policy; and
vii. An amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit-sharing, employee savings, supplemental unemployment insurance, or a similar benefit; and
c. Does not include:
i. Property held in a plan described in section 529A of the internal revenue code, as it existed on the effective date of this section, 26 U.S.C. Sec. 529A;
ii. Game-related digital content;
iii. A loyalty card;
iv. A gift certificate complying with chapter 19.240 RCW;
v. Store credit for returned merchandise; and
vi. A premium paid by an agricultural fair by check. For the purposes of this subsection, the following definitions apply:
(A) "Agricultural fair" means a fair or exhibition that is intended to promote agriculture by including a balanced variety of exhibits of livestock and agricultural products, as well as related manufactured products and arts, including products of the farm home and educational contests, displays, and demonstrations designed to train youth and to promote the welfare of farmers and rural living; and
(B) "Premium" means an amount paid for exhibits and educational contests, displays, and demonstrations of an educational nature. A "premium" does not include judges' fees and expenses; livestock sale revenues; or prizes or amounts paid for promotion or entertainment activities such as queen contests, parades, dances, rodeos, and races.
"Putative holder" means a person believed by the administrator to be a holder, until the person pays or delivers to the administrator property subject to this chapter or the administrator or a court makes a final determination that the person is or is not a holder.
"Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
"Security" means:
A security as defined in RCW 62A.8-102;
A security entitlement as defined in RCW 62A.8-102, including a customer security account held by a registered broker-dealer, to the extent the financial assets held in the security account are not:
Registered on the books of the issuer in the name of the person for which the broker-dealer holds the assets;
Payable to the order of the person; or
Specifically indorsed to the person; or
An equity interest in a business association not included in (a) or (b) of this subsection.
"Sign" means, with present intent to authenticate or adopt a record:
To execute or adopt a tangible symbol; or
To attach to or logically associate with the record an electronic symbol, sound, or process.
"State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
"Stored value card" means a record evidencing a promise made for consideration by the seller or issuer of the record that goods, services, or money will be provided to the owner of the record to the value or amount shown in the record. The term:
Includes:
A record that contains or consists of a microprocessor chip, magnetic strip, or other means for the storage of information, which is prefunded and whose value or amount is decreased on each use and increased by payment of additional consideration; and
A payroll card; and
Does not include a loyalty card, gift certificate, or game-related digital content.
"Utility" means a person that owns or operates for public use a plant, equipment, real property, franchise, or license for the following public services:
Transmission of communications or information;
Production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas; or
Provision of sewage or septic services, or trash, garbage, or recycling disposal.
"Virtual currency" means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States. The term does not include:
The software or protocols governing the transfer of the digital representation of value;
Game-related digital content; or
A loyalty card or gift certificate.
"Worthless security" means a security whose cost of liquidation and delivery to the administrator would exceed the value of the security on the date a report is due under this chapter.
This chapter does not apply to property held, due, and owing in a foreign country if the transaction out of which the property arose was a foreign transaction.
The administrator may adopt rules under chapter 34.05 RCW to implement and administer this chapter.
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:
A traveler's check, 15 years after issuance;
A money order, five years after issuance;
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;
A debt of a business association, three years after the obligation to pay arises;
A 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;
Money or a credit owed to a customer as a result of a retail business transaction, three years after the obligation arose, except if evidenced by a physical or electronic gift certificate;
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:
With respect to an amount owed on a life or endowment insurance policy, three years after the earlier of the date:
The insurance company has knowledge of the death of the insured; or
The insured has attained, or would have attained if living, the limiting age under the mortality table on which the reserve for the policy is based; and
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;
Property distributable by a business association in the course of dissolution, one year after the property becomes distributable;
Property held by a court, including property received as proceeds of a class action, one year after the property becomes distributable;
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;
Wages, commissions, bonuses, or reimbursements to which an employee is entitled, or other compensation for personal services, one year after the amount becomes payable;
A deposit or refund owed to a subscriber by a utility, one year after the deposit or refund becomes payable; and
Payroll card, one year after the amount becomes payable; and
Property not specified in this section or section 202 through 207 of this act, the earlier of three years after the owner first has a right to demand the property or the obligation to pay or distribute the property arises.
Subject to section 209 of this act, property held in a pension account or retirement account that qualifies for tax deferral under the income tax laws of the United States is presumed abandoned if it is unclaimed by the apparent owner three years after the later of:
The following dates:
Except as in (a)(ii) of this subsection, the date a second consecutive communication sent by the holder by first-class United States mail to the apparent owner is returned to the holder undelivered by the United States postal service; or
If the second communication is sent later than 30 days after the date the first communication is returned undelivered, the date the first communication was returned undelivered by the United States postal service; or
The earlier of the following dates:
The date the apparent owner becomes 70.5 years of age, if determinable by the holder; or
If the internal revenue code, as it existed on the effective date of this section, 26 U.S.C. Sec. 1 et seq., requires distribution to avoid a tax penalty, two years after the date the holder:
(A) Receives confirmation of the death of the apparent owner in the ordinary course of its business; or
(B) Confirms the death of the apparent owner under subsection (2) of this section.
If a holder in the ordinary course of its business receives notice or an indication of the death of an apparent owner and subsection (1)(b) of this section applies, the holder shall attempt not later than 90 days after receipt of the notice or indication to confirm whether the apparent owner is deceased.
If the holder does not send communications to the apparent owner of an account described in subsection (1) of this section by first-class United States mail, the holder shall attempt to confirm the apparent owner's interest in the property by sending the apparent owner an email communication not later than two years after the apparent owner's last indication of interest in the property. However, the holder promptly shall attempt to contact the apparent owner by first-class United States mail if:
The holder does not have information needed to send the apparent owner an email communication or the holder believes that the apparent owner's email address in the holder's records is not valid;
The holder receives notification that the email communication was not received; or
The apparent owner does not respond to the email communication not later than 30 days after the communication was sent.
If first-class United States mail sent under subsection (3) of this section is returned to the holder undelivered by the United States postal service, the property is presumed abandoned three years after the later of:
Except as in (b) of this subsection, the date a second consecutive communication to contact the apparent owner sent by first-class United States mail is returned to the holder undelivered;
If the second communication is sent later than 30 days after the date the first communication is returned undelivered, the date the first communication was returned undelivered; or
The date established by subsection (1)(b) of this section.
This section does not apply to property held in a pension account or retirement account established by the state of Washington or any local governmental entity under chapter 41.28 RCW.
Subject to section 209 of this act and except for property described in section 202 of this act and property held in a plan described in section 529A of the internal revenue code, as it existed on the effective date of this section, 26 U.S.C. Sec. 529A, property held in an account or plan, including a health savings account, that qualifies for tax deferral under the income tax laws of the United States is presumed abandoned if it is unclaimed by the apparent owner three years after the earlier of:
The date, if determinable by the holder, specified in the income tax laws and regulations of the United States by which distribution of the property must begin to avoid a tax penalty, with no distribution having been made; or
Thirty years after the date the account was opened.
Subject to section 209 of this act, property held in an account established under a state's uniform gifts to minors act or uniform transfers to minors act is presumed abandoned if it is unclaimed by or on behalf of the minor on whose behalf the account was opened three years after the later of:
Except as in (b) of this subsection, the date a second consecutive communication sent by the holder by first-class United States mail to the custodian of the minor on whose behalf the account was opened is returned undelivered to the holder by the United States postal service;
If the second communication is sent later than 30 days after the date the first communication is returned undelivered, the date the first communication was returned undelivered; or
The date on which the custodian is required to transfer the property to the minor or the minor's estate in accordance with the uniform gifts to minors act or uniform transfers to minors act of the state in which the account was opened.
If the holder does not send communications to the custodian of the minor on whose behalf an account described in subsection (1) of this section was opened by first-class United States mail, the holder shall attempt to confirm the custodian's interest in the property by sending the custodian an email communication not later than two years after the custodian's last indication of interest in the property. However, the holder promptly shall attempt to contact the custodian by first-class United States mail if:
The holder does not have information needed to send the custodian an email communication or the holder believes that the custodian's email address in the holder's records is not valid;
The holder receives notification that the email communication was not received; or
The custodian does not respond to the email communication not later than 30 days after the communication was sent.
If first-class United States mail sent under subsection (2) of this section is returned undelivered to the holder by the United States postal service, the property is presumed abandoned three years after the later of:
The date a second consecutive communication to contact the custodian by first-class United States mail is returned to the holder undelivered by the United States postal service; or
The date established by subsection (1)(c) of this section.
When the property in the account described in subsection (1) of this section is transferred to the minor on whose behalf an account was opened or to the minor's estate, the property in the account is no longer subject to this section.
Tangible property held in a safe deposit box and proceeds from a sale of the property by the holder permitted by law of this state other than this chapter are presumed abandoned if the property remains unclaimed by the apparent owner five years after the earlier of the:
Expiration of the lease or rental period for the box; or
Earliest date when the lessor of the box is authorized by law of this state other than this chapter to enter the box and remove or dispose of the contents without consent or authorization of the lessee.
Subject to section 209 of this act, the net card value of a stored value card, other than a payroll card, is presumed abandoned on the latest of three years after:
December 31st of the year in which the card is issued or additional funds are deposited into it;
The most recent indication of interest in the card by the apparent owner; or
A verification or review of the balance by or on behalf of the apparent owner.
The amount presumed abandoned in a stored value card is the net card value at the time it is presumed abandoned.
Subject to section 209 of this act, a security is presumed abandoned three years after:
The date a second consecutive communication sent by the holder by first-class United States mail to the apparent owner is returned to the holder undelivered by the United States postal service; or
If the second communication is made later than 30 days after the first communication is returned, the date the first communication is returned undelivered to the holder by the United States postal service.
If the holder does not send communications to the apparent owner of a security by first-class United States mail, the holder shall attempt to confirm the apparent owner's interest in the security by sending the apparent owner an email communication not later than two years after the apparent owner's last indication of interest in the security. However the holder promptly shall attempt to contact the apparent owner by first-class United States mail if:
The holder does not have information needed to send the apparent owner an email communication or the holder believes that the apparent owner's email address in the holder's records is not valid;
The holder receives notification that the email communication was not received; or
The apparent owner does not respond to the email communication not later than 30 days after the communication was sent.
If first-class United States mail sent under subsection (2) of this section is returned to the holder undelivered by the United States postal service, the security is presumed abandoned three years after the date the mail is returned.
At and after the time property is presumed abandoned under this chapter, any other property right or interest accrued or accruing from the property and not previously presumed abandoned is also presumed abandoned.
The period after which property is presumed abandoned is measured from the later of:
The date the property is presumed abandoned under this section and sections 201 through 208, 210, and 211 of this act; or
The latest indication of interest by the apparent owner in the property.
Under this chapter, an indication of an apparent owner's interest in property includes:
A record communicated by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held;
An oral communication by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held, if the holder or its agent contemporaneously makes and preserves a record of the fact of the apparent owner's communication;
Presentment of a check or other instrument of payment of a dividend, interest payment, or other distribution, or evidence of receipt of a distribution made by electronic or similar means, with respect to an account, underlying security, or interest in a business association;
Activity directed by an apparent owner in the account in which the property is held, including accessing the account or information concerning the account, or a direction by the apparent owner to increase, decrease, or otherwise change the amount or type of property held in the account;
A deposit into or withdrawal from an account at a financial organization, including an automatic deposit or withdrawal previously authorized by the apparent owner other than an automatic reinvestment of dividends or interest;
Subject to subsection (5) of this section, payment of a premium on an insurance policy; and
Any other action by the apparent owner which reasonably demonstrates to the holder that the apparent owner knows that the property exists.
An action by an agent or other representative of an apparent owner, other than the holder acting as the apparent owner's agent, is presumed to be an action on behalf of the apparent owner.
A communication with an apparent owner by a person other than the holder or the holder's representative is not an indication of interest in the property by the apparent owner unless a record of the communication evidences the apparent owner's knowledge of a right to the property.
If the insured dies or the insured or beneficiary of an insurance policy otherwise becomes entitled to the proceeds before depletion of the cash surrender value of the policy by operation of an automatic premium loan provision or other nonforfeiture provision contained in the policy, the operation does not prevent the policy from maturing or terminating.
In this section, "death master file" means the United States social security administration death master file or other database or service that is at least as comprehensive as the United States social security administration death master file for determining that an individual reportedly has died.
With respect to a life or endowment insurance policy or annuity contract for which an amount is owed on proof of death, but which has not matured by proof of death of the insured or annuitant, the company has knowledge of the death of an insured or annuitant when:
The company receives a death certificate or court order determining that the insured or annuitant has died;
Due diligence, performed as required under chapter 48.23 RCW and rules promulgated thereunder to maintain contact with the insured or annuitant or determine whether the insured or annuitant has died, validates the death of the insured or annuitant;
The company conducts a comparison for any purpose between a death master file and the names of some or all of the company's insureds or annuitants, finds a match that provides notice that the insured or annuitant has died, and validates the death;
The administrator or the administrator's agent conducts a comparison for the purpose of finding matches during an examination conducted under sections 1001 through 1013 of this act between a death master file and the names of some or all of the company's insureds or annuitants, finds a match that provides notice that the insured or annuitant has died, and the company validates the death; or
The company:
Receives notice of the death of the insured or annuitant from an administrator, beneficiary, policy owner, relative of the insured, or trustee or from a personal representative or other legal representative of the insured's or annuitant's estate; and
Validates the death of the insured or annuitant.
The following rules apply under this section:
A death master file match under subsection (2)(c) or (d) of this section occurs if the criteria for an exact or partial match are satisfied as provided by:
Law of this state other than this chapter;
A rule or policy adopted by the office of the insurance commissioner; or
Absent a law, rule, or policy under (a)(i) or (ii) of this subsection standards in the national conference of insurance legislators' "model unclaimed life insurance benefits act" as published in 2014.
The death master file match does not constitute proof of death for the purpose of submission to an insurance company of a claim by a beneficiary, annuitant, or owner of the policy or contract for an amount due under an insurance policy or annuity contract.
The death master file match or validation of the insured's or annuitant's death does not alter the requirements for a beneficiary, annuitant, or owner of the policy or contract to make a claim to receive proceeds under the terms of the policy or contract.
If no provision in Title 48 RCW or rules promulgated thereunder establishes a time for validation of a death of an insured or annuitant, the insurance company shall make a good faith effort using other available records and information to validate the death and document the effort taken not later than 90 days after the insurance company has notice of the death.
This chapter does not affect the determination of the extent to which an insurance company before the effective date of this section had knowledge of the death of an insured or annuitant or was required to conduct a death master file comparison to determine whether amounts owed by the company on a life or endowment insurance policy or annuity contract were presumed abandoned or unclaimed.
If proceeds payable under a life or endowment insurance policy or annuity contract are deposited into an account with check or draft writing privileges for the beneficiary of the policy or contract and, under a supplementary contract not involving annuity benefits other than death benefits, the proceeds are retained by the insurance company or the financial organization where the account is held, the policy or contract includes the assets in the account.
In this section and sections 302 through 307 of this act, the following rules apply:
The last known address of an apparent owner is any description, code, or other indication of the location of the apparent owner which identifies the state, even if the description, code, or indication of location is not sufficient to direct the delivery of first-class United States mail to the apparent owner.
If the United States postal zip code associated with the apparent owner is for a post office located in this state, this state is deemed to be the state of the last known address of the apparent owner unless other records associated with the apparent owner specifically identify the physical address of the apparent owner to be in another state.
If the address under subsection (2) of this section is in another state, the other state is deemed to be the state of the last known address of the apparent owner.
The address of the apparent owner of a life or endowment insurance policy or annuity contract or its proceeds is presumed to be the address of the insured or annuitant if a person other than the insured or annuitant is entitled to the amount owed under the policy or contract and the address of the other person is not known by the insurance company and cannot be determined under section 302 of this act.
The administrator may take custody of property that is presumed abandoned, whether located in this state, another state, or a foreign country if:
The last known address of the apparent owner in the records of the holder is in this state; or
The records of the holder do not reflect the identity or last known address of the apparent owner, but the administrator has determined that the last known address of the apparent owner is in this state.
Except as in subsection (2) of this section, if records of a holder reflect multiple addresses for an apparent owner and this state is the state of the most recently recorded address, this state may take custody of property presumed abandoned, whether located in this state or another state.
If it appears from records of the holder that the most recently recorded address of the apparent owner under subsection (1) of this section is a temporary address and this state is the state of the next most recently recorded address that is not a temporary address, this state may take custody of the property presumed abandoned.
Except as in subsection (2) of this section or section 302 or 303 of this act, the administrator may take custody of property presumed abandoned, whether located in this state, another state, or a foreign country, if the holder is domiciled in this state or is this state or a governmental subdivision, agency, or instrumentality of this state, and:
Another state or foreign country is not entitled to the property because there is no last known address of the apparent owner or other person entitled to the property in the records of the holder; or
The state or foreign country of the last known address of the apparent owner or other person entitled to the property does not provide for custodial taking of the property.
Property is not subject to custody of the administrator under subsection (1) of this section if the property is specifically exempt from custodial taking under the law of this state or the state or foreign country of the last known address of the apparent owner.
If a holder's state of domicile has changed since the time property was presumed abandoned, the holder's state of domicile in this section is deemed to be the state where the holder was domiciled at the time the property was presumed abandoned.
Except as in section 302, 303, or 304 of this act, the administrator may take custody of property presumed abandoned whether located in this state or another state if:
The transaction out of which the property arose took place in this state;
The holder is domiciled in a state that does not provide for the custodial taking of the property, except that if the property is specifically exempt from custodial taking under the law of the state of the holder's domicile, the property is not subject to the custody of the administrator; and
The last known address of the apparent owner or other person entitled to the property is unknown or in a state that does not provide for the custodial taking of the property, except that if the property is specifically exempt from custodial taking under the law of the state of the last known address, the property is not subject to the custody of the administrator.
The administrator may take custody of sums payable on a traveler's check, money order, or similar instrument presumed abandoned to the extent permissible under 12 U.S.C. Secs. 2501 through 2503, as it existed on the effective date of this section.
If the administrator asserts a right to custody of unclaimed property, the administrator has the burden to prove:
The existence and amount of the property;
The property is presumed abandoned; and
The property is subject to the custody of the administrator.
A holder of property presumed abandoned and subject to the custody of the administrator shall report in a record to the administrator concerning the property.
A holder may contract with a third party to make the report required under subsection (1) of this section.
Whether or not a holder contracts with a third party under subsection (2) of this section, the holder is responsible:
To the administrator for the complete, accurate, and timely reporting of property presumed abandoned; and
For paying or delivering to the administrator property described in the report.
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Reports due under this section must be filed electronically in a form or manner provided or authorized by the administrator. However, the administrator, upon request or its own initiative, may relieve any holder or class of holders from the electronic filing requirement under this subsection for good cause as determined by the administrator.
For purposes of this subsection, "good cause" means:
A circumstance or condition exists that, in the administrator's judgment, prevents the holder from electronically filing the report due under this section; or
The administrator determines that relief from the electronic filing requirement under this subsection supports the efficient or effective administration of this chapter.
The report required under section 401 of this act must:
Be signed by or on behalf of the holder and verified as to its completeness and accuracy;
If filed electronically, be in a secure format approved by the administrator which protects confidential information of the apparent owner in the same manner as required of the administrator and the administrator's agent under sections 1401 through 1408 of this act;
Describe the property;
Except for a traveler's check, money order, or similar instrument, contain the name, if known, last known address, if known, and social security number or taxpayer identification number, if known or readily ascertainable, of the apparent owner of property with a value of $50 or more;
For an amount held or owing under a life or endowment insurance policy or annuity contract, contain the name and last known address of the insured, annuitant, or other apparent owner of the policy or contract and of the beneficiary;
For property held in or removed from a safe deposit box, indicate the location of the property, where it may be inspected by the administrator, and any amounts owed to the holder under section 606 of this act;
Contain the commencement date for determining abandonment under sections 201 through 211 of this act;
State that the holder has complied with the notice requirements of section 501 of this act;
Identify property that is a nonfreely transferable security and explain why it is a nonfreely transferable security; and
Contain other information the administrator prescribes by rules.
A report under section 401 of this act may include in the aggregate items valued under $50 each. If the report includes items in the aggregate valued under $50 each, the administrator may not require the holder to provide the name and address of an apparent owner of an item unless the information is necessary to verify or process a claim in progress by the apparent owner.
A report under section 401 of this act may include personal information as defined in section 1401(1) of this act about the apparent owner or the apparent owner's property to the extent not otherwise prohibited by federal law.
If a holder has changed its name while holding property presumed abandoned or is a successor to another person that previously held the property for the apparent owner, the holder must include in the report under section 401 of this act its former name or the name of the previous holder, if any, and the known name and address of each previous holder of the property.
Except as otherwise provided in subsection (2) of this section and subject to subsection (3) of this section, the report under section 401 of this act must be filed before May 1st of each year and cover the 12 months preceding July 1st of that year.
Subject to subsection (3) of this section, the report under section 401 of this act to be filed by an insurance company must be filed before May 1st of each year for the immediately preceding calendar year.
Before the date for filing the report under section 401 of this act, the holder of property presumed abandoned may request the administrator to extend the time for filing. The administrator may grant an extension. If the extension is granted, the holder may pay or make a partial payment of the amount the holder estimates ultimately will be due. The payment or partial payment terminates accrual of interest on the amount paid.
A holder required to file a report under section 401 of this act must retain records for six years after the later of the date the report was filed or the last date a timely report was due to be filed, unless a shorter period is provided by rule of the administrator. The holder may satisfy the requirement to retain records under this section through an agent. The records must contain:
The information required to be included in the report;
The date, place, and nature of the circumstances that gave rise to the property right;
The amount or value of the property;
The last address of the apparent owner, if known to the holder; and
If the holder sells, issues, or provides to others for sale or issue in this state traveler's checks, money orders, or similar instruments, other than third-party bank checks, on which the holder is directly liable, a record of the instruments while they remain outstanding indicating the state and date of issue.
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.
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.
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.
Subject to subsection (2) of this section, the holder of property presumed abandoned shall send to the apparent owner notice by first-class United States mail that complies with section 502 of this act in a format acceptable to the administrator not more than 180 days nor less than 60 days before filing the report under section 401 of this act if:
The holder has in its records an address for the apparent owner which the holder's records do not disclose to be invalid and is sufficient to direct the delivery of first-class United States mail to the apparent owner; and
The value of the property is $75 or more.
If an apparent owner has consented to receive email delivery from the holder, the holder shall send the notice described in subsection (1) of this section both by first-class United States mail to the apparent owner's last known mailing address and by email, unless the holder believes that the apparent owner's email address is invalid.
"Notice
The state of Washington requires us to notify you that your property may be transferred to the custody of the department of revenue if you do not contact us before (insert date that is 30 days after the date of this notice)."
The notice under section 501 of this act must:
Identify the nature and, except for property that does not have a fixed value, the value of the property that is the subject of the notice;
State that the property will be turned over to the administrator;
State that after the property is turned over to the administrator an apparent owner that seeks return of the property must file a claim with the administrator;
State that property that is not legal tender of the United States may be sold by the administrator; and
Provide instructions that the apparent owner must follow to prevent the holder from reporting and paying or delivering the property to the administrator.
The administrator shall give notice to an apparent owner that property presumed abandoned and appears to be owned by the apparent owner is held by the administrator under this chapter.
In providing notice under subsection (1) of this section, the administrator shall:
Except as otherwise provided in (b) of this subsection, send written notice by first-class United States mail to each apparent owner of property valued at $75 or more held by the administrator, unless the administrator determines that a mailing by first-class United States mail would not be received by the apparent owner, and, in the case of a security held in an account for which the apparent owner had consented to receiving email from the holder, send notice by email if the email address of the apparent owner is known to the administrator instead of by first-class United States mail; or
Send the notice to the apparent owner's email address if the administrator does not have a valid United States mail address for an apparent owner, but has an email address that the administrator does not know to be invalid.
In addition to the notice under subsection (2) of this section, the administrator shall:
Publish every 12 months in the printed or online version of a newspaper of general circulation within this state, which the administrator determines is most likely to give notice to the apparent owner of the property, notice of property held by the administrator which must include:
The total value of property received by the administrator during the preceding 12-month period, taken from the reports under section 401 of this act;
The total value of claims paid by the administrator during the preceding 12-month period;
The internet web address of the unclaimed property website maintained by the administrator;
A telephone number and email address to contact the administrator to inquire about or claim property; and
A statement that a person may access the internet by a computer to search for unclaimed property and a computer may be available as a service to the public at a local public library; and
Maintain a website or database accessible by the public and electronically searchable which contains the names reported to the administrator of all apparent owners for whom property is being held by the administrator.
The website or database maintained under subsection (3)(b) of this section must include instructions for filing with the administrator a claim to property and a printable claim form with instructions for its use.
In addition to giving notice under subsection (2) of this section, publishing the information under subsection (3)(a) of this section and maintaining the website or database under subsection (3)(b) of this section, the administrator may use other printed publication, telecommunications, the internet, or other media to inform the public of the existence of unclaimed property held by the administrator.
Unless prohibited by law of this state other than this chapter, on request of the administrator, each officer, agency, board, commission, division, and department of this state, any body politic and corporate created by this state for a public purpose, and each political subdivision of this state shall make its books and records available to the administrator and cooperate with the administrator to determine the current address of an apparent owner of property held by the administrator under this chapter.
In this section and sections 602 through 610 of this act, payment or delivery of property is made in good faith if a holder:
Had a reasonable basis for believing, based on the facts then known, that the property was required or permitted to be paid or delivered to the administrator under this chapter; or
Made payment or delivery:
In response to a demand by the administrator or administrator's agent; or
Under a guidance or ruling issued by the administrator which the holder reasonably believed required or permitted the property to be paid or delivered.
A holder may deduct a dormancy charge from property required to be paid or delivered to the administrator if:
A valid contract between the holder and the apparent owner authorizes imposition of the charge for the apparent owner's failure to claim the property within a specified time; and
The holder regularly imposes the charge and regularly does not reverse or otherwise cancel the charge.
The amount of the deduction under subsection (1) of this section is limited to an amount that is not unconscionable considering all relevant factors, including the marginal transactional costs incurred by the holder in maintaining the apparent owner's property and any services received by the apparent owner.
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Except as otherwise provided in this section, on filing a report under section 401 of this act, the holder shall pay or deliver to the administrator the property described in the report. Holders who are required to file a report electronically under this chapter must remit payments under this section by electronic funds transfer or other form of electronic payment acceptable to the administrator. However, the administrator, upon request or its own initiative, may relieve any holder or class of holders from the electronic payment requirement under this subsection for good cause as determined by the administrator.
For purposes of this subsection, "good cause" means:
A circumstance or condition exists that, in the administrator's judgment, prevents the holder from remitting payments due under this section electronically; or
The administrator determines that relief from the electronic payment requirement under this subsection supports the efficient or effective administration of this chapter.
If property in a report under section 401 of this act is an automatically renewable deposit and a penalty or forfeiture in the payment of interest would result from paying the deposit to the administrator at the time of the report, the date for payment of the property to the administrator is extended until a penalty or forfeiture no longer would result from payment, if the holder informs the administrator of the extended date.
Tangible property in a safe deposit box may not be delivered to the administrator until 180 days after filing the report under section 401 of this act.
If property reported to the administrator under section 401 of this act is a security, the administrator may:
Make an endorsement, instruction, or entitlement order on behalf of the apparent owner to invoke the duty of the issuer, its transfer agent, or the securities intermediary to transfer the security; or
Dispose of the security under section 702 of this act.
If the holder of that property reported to the administrator under section 401 of this act is the issuer of a certificated security, the administrator may obtain a replacement certificate in physical or book-entry form under RCW 62A.8-405. An indemnity bond is not required.
The administrator shall establish procedures for the registration, issuance, method of delivery, transfer, and maintenance of securities delivered to the administrator by a holder.
An issuer, holder, and transfer agent or other person acting under this section under instructions of and on behalf of the issuer or holder is not liable to the apparent owner for, and must be indemnified by the state against, a claim arising with respect to property after the property has been delivered to the administrator.
A holder is not required to deliver to the administrator a security identified by the holder as a nonfreely transferable security. If the administrator or holder determines that a security is no longer a nonfreely transferable security, the holder shall deliver the security on the next regular date prescribed for delivery of securities under this chapter. The holder shall make a determination annually whether a security identified in a report filed under section 401 of this act as a nonfreely transferable security is no longer a nonfreely transferable security.
On payment or delivery of property to the administrator under this chapter, the administrator as agent for the state assumes custody and responsibility for safekeeping the property. A holder that pays or delivers property to the administrator in good faith and substantially complies with sections 501 and 502 of this act is relieved of liability arising thereafter with respect to payment or delivery of the property to the administrator.
This state shall defend and indemnify a holder against liability on a claim against the holder resulting from the payment or delivery of property to the administrator made in good faith and after the holder substantially complied with sections 501 and 502 of this act.
A holder that under this chapter pays money to the administrator may file a claim for reimbursement from the administrator of the amount paid if the holder:
Paid the money in error; or
After paying the money to the administrator, paid money to a person the holder reasonably believed was entitled to the money.
If a claim for reimbursement under subsection (1) of this section is made for a payment made on a negotiable instrument, including a traveler's check, money order, or similar instrument, the holder must submit proof that the instrument was presented and payment was made to a person the holder reasonably believed was entitled to payment. The holder may claim reimbursement even if the payment was made to a person whose claim was made after expiration of a period of limitation on the owner's right to receive or recover property, whether specified by contract, statute, or court order.
If a holder is reimbursed by the administrator under subsection (1)(b) of this section, the holder may also recover from the administrator income or gain under section 607 of this act that would have been paid to the owner if the money had been claimed from the administrator by the owner to the extent the income or gain was paid by the holder to the owner.
A holder that under this chapter delivers property other than money to the administrator may file a claim for return of the property from the administrator if:
The holder delivered the property in error; or
The apparent owner has claimed the property from the holder.
If a claim for return of property under subsection (4) of this section is made, the holder shall include with the claim evidence sufficient to establish that the apparent owner has claimed the property from the holder or that the property was delivered by the holder to the administrator in error.
The administrator may determine that an affidavit submitted by a holder is evidence sufficient to establish that the holder is entitled to reimbursement or to recover property under this section.
A holder is not required to pay a fee or other charge for reimbursement or return of property under this section.
Not later than 90 days after a claim is filed under subsection (1) or (4) of this section, the administrator shall allow or deny the claim and give the claimant notice of the decision in a record. If the administrator does not take action on a claim during the 90-day period, the claim is deemed denied.
Decisions under this section are subject to review under sections 1103 and 1104 of this act.
Property removed from a safe deposit box and delivered to the administrator under this chapter is subject to the holder's right to reimbursement for the cost of opening the box and a lien or contract providing reimbursement to the holder for unpaid rent charges for the box. The administrator shall reimburse the holder from the proceeds remaining after deducting the expense incurred by the administrator in selling the property.
If property other than money is delivered to the administrator, the owner is entitled to receive from the administrator income or gain realized or accrued on the property before the property is sold. If the property was an interest-bearing demand, savings, or time deposit, the administrator shall pay interest at the rate the property earned while in possession of the holder. Interest begins to accrue when the property is delivered to the administrator and ends on the earlier of the expiration of 10 years after its delivery or the date on which payment is made to the owner.
The administrator may decline to take custody of property reported under section 401 of this act if the administrator determines that:
The property has a value less than the estimated expenses of notice and sale of the property; or
Taking custody of the property would be unlawful.
A holder may pay or deliver property to the administrator before the property is presumed abandoned under this chapter if the holder:
Sends the apparent owner of the property notice required by section 501 of this act and provides the administrator evidence of the holder's compliance with this subsection (2)(a);
Includes with the payment or delivery a report regarding the property conforming to section 402 of this act; and
First obtains the administrator's consent in a record to accept payment or delivery.
A holder's request for the administrator's consent under subsection (2)(c) of this section must be in a record. If the administrator fails to respond to the request not later than 30 days after receipt of the request, the administrator is deemed to consent to the payment or delivery of the property and the payment or delivery is considered to have been made in good faith.
On payment or delivery of property under subsection (2) of this section, the property is presumed abandoned.
If the administrator takes custody of property delivered under this chapter and later determines that the property has no substantial commercial value or that the cost of disposing of the property will exceed the value of the property, the administrator may return the property to the holder or destroy or otherwise dispose of the property.
An action or proceeding may not be commenced against the state, an agency of the state, the administrator, another officer, employee, or agent of the state, or a holder for or because of an act of the administrator under this section, except for intentional misconduct or malfeasance.
Expiration, before, on, or after the effective date of this section, of a period of limitation on an owner's right to receive or recover property, whether specified by contract, statute, or court order, does not prevent the property from being presumed abandoned or affect the duty of a holder under this chapter to file a report or pay or deliver property to the administrator.
The administrator may not commence an action or proceeding to enforce this chapter with respect to the reporting, payment, or delivery of property more than six years after the holder filed a nonfraudulent report under section 401 of this act with the administrator. The parties may agree in a record to extend the limitation in this subsection.
The administrator may not commence an action, proceeding, or examination with respect to a duty of a holder under this chapter more than 10 years after the duty arose.
Except as otherwise provided in section 702 of this act, not earlier than three years after receipt of property presumed abandoned, the administrator may sell the property.
Before selling property under subsection (1) of this section, the administrator shall give notice to the public of:
The date of the sale; and
A reasonable description of the property.
A sale under subsection (1) of this section must be to the highest bidder:
At public sale at a location in this state which the administrator determines to be the most favorable market for the property;
On the internet; or
On another forum the administrator determines is likely to yield the highest net proceeds of sale.
The administrator may decline the highest bid at a sale under this section and reoffer the property for sale if the administrator determines the highest bid is insufficient.
The administrator must publish at least one notice of the sale, at least three weeks but not more than five weeks before the sale, in a newspaper of general circulation in the county in which the property is sold.
Except as otherwise provided in this subsection, the administrator must sell all securities delivered to the administrator as required by this chapter as soon as practicable after taking custody, in the judgment of the administrator, after receipt by the administrator. However, this subsection does not apply with respect to any securities that, in the judgment of the administrator, cannot be sold, are worthless, or are not cost-effective to sell.
Securities listed on an established stock exchange must be sold at prices prevailing at the time of sale on the exchange. Other securities may be sold over the counter at prices prevailing at the time of sale or by any other method the administrator considers advisable. All securities may be sold over the counter at prices prevailing at the time of the sale, or by any other method the administrator deems advisable.
Except as otherwise provided in this section, a person making a claim under this chapter with respect to securities is only entitled to receive the proceeds received from sale, even if the sale of the securities has not been completed at the time the administrator receives the claim. However, if the administrator receives a claim for securities and the administrator has not ordered those securities to be sold as of the time the claim is received by the administrator, the claimant is entitled to receive either the securities delivered to the administrator by the holder, or the proceeds received from the sale, less any amounts deducted pursuant to section 803 of this act.
With respect to securities that, in the judgment of the administrator, cannot be sold or are not cost-effective to sell and that remain in the possession of the administrator, a person making a claim under this chapter is only entitled to receive the securities delivered to the administrator by the holder.
A purchaser of property at a sale conducted by the administrator under this chapter takes the property free of all claims of the owner, a previous holder, or a person claiming through the owner or holder. The administrator shall execute documents necessary to complete the transfer of ownership to the purchaser.
The administrator may not sell a medal or decoration awarded for military service in the armed forces of the United States.
The administrator, with the consent of the respective organization under (a) of this subsection, agency under (b) of this subsection, or entity under (c) of this subsection, may deliver a medal or decoration described in subsection (1) of this section to be held in custody for the owner, to:
A military veterans organization qualified under the internal revenue code, as it existed on the effective date of this section, 26 U.S.C. Sec. 501(c)(19);
The agency that awarded the medal or decoration; or
A governmental entity.
On delivery under subsection (2) of this section, the administrator is not responsible for safekeeping the medal or decoration.
Except as otherwise provided by this section, the administrator shall promptly deposit in the general fund of this state all funds received under this chapter, including the proceeds from the sale of property under sections 701 through 705 of this act. The administrator shall retain in a separate trust fund, the nonappropriated unclaimed personal property account, an amount not less than $750,000 from which prompt payment of claims duly allowed must be made by the administrator.
The administrator may pay from the trust fund provided in subsection (1) of this section any costs of administering this chapter including those costs set forth in section 803 of this act. Such amounts may be expended without appropriation.
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.
The administrator shall:
Record and retain the name and last known address of each person shown on a report filed under section 401 of this act to be the apparent owner of property delivered to the administrator;
Record and retain the name and last known address of each insured or annuitant and beneficiary shown on the report;
For each policy of insurance or annuity contract listed in the report of an insurance company, record and retain the policy or account number, the name of the company, and the amount due or paid; and
For each apparent owner listed in the report, record and retain the name of the holder that filed the report and the amount due or paid.
The administrator may expend from the unclaimed personal property account for the following purposes:
Expenses of disposition of property delivered to the administrator under this chapter;
Costs of mailing and publication in connection with property delivered to the administrator under this chapter;
Reasonable service charges; and
Expenses incurred in examining records of or collecting property from a putative holder or holder.
Property received by the administrator under this chapter is held in custody for the benefit of the owner and is not owned by the state.
If the administrator knows that property held by the administrator under this chapter is subject to a superior claim of another state, the administrator shall:
Report and pay or deliver the property to the other state; or
Return the property to the holder so that the holder may pay or deliver the property to the other state.
The administrator is not required to enter into an agreement to transfer property to the other state under subsection (1) of this section.
Property held under this chapter by the administrator is subject to the right of another state to take custody of the property if:
The property was paid or delivered to the administrator because the records of the holder did not reflect a last known address in the other state of the apparent owner and:
The other state establishes that the last known address of the apparent owner or other person entitled to the property was in the other state; or
Under the law of the other state, the property has become subject to a claim by the other state of abandonment;
The records of the holder did not accurately identify the owner of the property, the last known address of the owner was in another state, and, under the law of the other state, the property has become subject to a claim by the other state of abandonment;
The property was subject to the custody of the administrator of this state under section 305 of this act and, under the law of the state of domicile of the holder, the property has become subject to a claim by the state of domicile of the holder of abandonment; or
The property:
Is a sum payable on a traveler's check, money order, or similar instrument that was purchased in the other state and delivered to the administrator under section 306 of this act; and
Under the law of the other state, has become subject to a claim by the other state of abandonment.
A claim by another state to recover property under this section must be presented in a form prescribed by the administrator, unless the administrator waives presentation of the form.
The administrator shall decide a claim under this section not later than 90 days after it is presented. If the administrator determines that the other state is entitled under subsection (1) of this section to custody of the property, the administrator shall allow the claim and pay or deliver the property to the other state.
The administrator may require another state, before recovering property under this section, to agree to indemnify this state and its agents, officers, and employees against any liability on a claim to the property.
A person claiming to be the owner of property held under this chapter by the administrator may file a claim for the property on a form prescribed by the administrator. The claimant must verify the claim as to its completeness and accuracy.
The administrator may waive the requirement in subsection (1) of this section and may pay or deliver property directly to a person if:
The person receiving the property or payment is shown to be the apparent owner included on a report filed under section 401 of this act;
The administrator reasonably believes the person is entitled to receive the property or payment; and
The property has a value of less than $250.
The administrator shall pay or deliver property to a claimant under section 903(1) of this act if the administrator receives evidence sufficient to establish to the satisfaction of the administrator that the claimant is the owner of the property.
Not later than 90 days after a claim is filed under section 903(1) of this act, the administrator shall allow or deny the claim and give the claimant notice in a record of the decision.
If the claim is denied under subsection (2) of this section:
The administrator shall inform the claimant of the reason for the denial and specify what additional evidence, if any, is required for the claim to be allowed;
The claimant may file an amended claim with the administrator or commence an action under section 906 of this act; and
The administrator shall consider an amended claim filed under (b) of this subsection as an initial claim.
If the administrator does not take action on a claim during the 90-day period following the filing of a claim under section 903(1) of this act, the claim is deemed denied.
Not later than 30 days after a claim is allowed under section 904(2) of this act, the administrator shall pay or deliver to the owner the property or pay to the owner the net proceeds of a sale of the property, together with income or gain to which the owner is entitled under section 607 of this act. On request of the owner, the administrator may sell or liquidate a security and pay the net proceeds to the owner, even if the security had been held by the administrator for less than three years or the administrator has not complied with the notice requirements under section 702 of this act.
Property held under this chapter by the administrator is subject to a claim for the payment of an enforceable debt the owner owes in this state for:
Child support arrearages, including child support collection costs and child support arrearages that are combined with maintenance;
A civil or criminal fine or penalty, court costs, a surcharge, or restitution imposed by a final order of an administrative agency or a final court judgment; or
State or local taxes, penalties, and interest that have been determined to be delinquent.
Before delivery or payment to an owner under subsection (1) of this section of property or payment to the owner of net proceeds of a sale of the property, the administrator first shall apply the property or net proceeds to a debt under subsection (2) of this section the administrator determines is owed by the owner. The administrator shall pay the amount to the appropriate state or local agency and notify the owner of the payment.
The administrator may make periodic inquiries of state and local agencies in the absence of a claim filed under section 903 of this act to determine whether an apparent owner included in the unclaimed property records of this state has enforceable debts described in subsection (2) of this section. The administrator first shall apply the property or net proceeds of a sale of property held by the administrator to a debt under subsection (2) of this section of an apparent owner which appears in the records of the administrator and deliver the amount to the appropriate state or local agency. The administrator shall notify the apparent owner of the payment.
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 904 of this act.
If a person does not file a report required by section 401 of this act or the administrator believes that a person may have filed an inaccurate, incomplete, or false report, the administrator may require the person to file a verified report in a form prescribed by the administrator. The verified report must:
State whether the person is holding property reportable under this chapter;
Describe property not previously reported or about which the administrator has inquired;
Specifically identify property described under subsection (2) of this section about which there is a dispute whether it is reportable under this section; and
State the amount or value of the property.
The administrator, at reasonable times and on reasonable notice, may:
Examine the records of a person, including examination of appropriate records in the possession of an agent of the person under examination, if the records are reasonably necessary to determine whether the person has complied with this chapter;
Issue an administrative subpoena requiring the person or agent of the person to make records available for examination; and
Bring an action seeking judicial enforcement of the subpoena.
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.
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.
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:
The examination must include a review of the person's records.
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 administrator for examination.
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.
Records obtained and records, including work papers, compiled by the administrator in the course of conducting an examination under section 1002 of this act:
Are subject to the confidentiality and security provisions of sections 1401 through 1408 of this act and are not public records;
May be used by the administrator in an action to collect property or otherwise enforce this chapter;
May be used in a joint examination conducted with another state, the United States, a foreign country or subordinate unit of a foreign country, or any other governmental entity if the governmental entity conducting the examination is legally bound to maintain the confidentiality and security of information obtained from a person subject to examination in a manner substantially equivalent to sections 1401 through 1408 of this act;
Must be disclosed, on request, to the person that administers the unclaimed property law of another state for that state's use in circumstances equivalent to circumstances described in this section and sections 1001 through 1003 and 1005 through 1013 of this act, if the other state is required to maintain the confidentiality and security of information obtained in a manner substantially equivalent to sections 1401 through 1408 of this act;
Must be produced by the administrator under an administrative or judicial subpoena or administrative or court order; and
Must be produced by the administrator on request of the person subject to the examination in an administrative or judicial proceeding relating to the property.
A record of a putative holder showing an unpaid debt or undischarged obligation is prima facie evidence of the debt or obligation.
A putative holder may establish by a preponderance of the evidence that there is no unpaid debt or undischarged obligation for a debt or obligation described in subsection (1) of this section or that the debt or obligation was not, or no longer is, a fixed and certain obligation of the putative holder.
A putative holder may overcome prima facie evidence under subsection (1) of this section by establishing by a preponderance of the evidence that a check, draft, or similar instrument was:
Issued as an unaccepted offer in settlement of an unliquidated amount;
Issued but later was replaced with another instrument because the earlier instrument was lost or contained an error that was corrected;
Issued to a party affiliated with the issuer;
Paid, satisfied, or discharged;
Issued in error;
Issued without consideration;
Issued but there was a failure of consideration;
Voided within a reasonable time after issuance for a valid business reason set forth in a contemporaneous record; or
Issued but not delivered to the third-party payee for a sufficient reason recorded within a reasonable time after issuance.
In asserting a defense under this section, a putative holder may present evidence of a course of dealing between the putative holder and the apparent owner or of custom and practice.
If a person subject to examination under section 1002 of this act does not retain the records required by section 404 of this act, the administrator may determine the value of property due using a reasonable method of estimation based on all information available to the administrator, including extrapolation and use of statistical sampling when appropriate and necessary, consistent with examination procedures and standards adopted under section 1003(1) of this act and in accordance with section 1003(2) of this act.
At the conclusion of an examination under section 1002 of this act, the administrator shall provide to the person whose records were examined a complete and unredacted examination report that specifies:
The work performed;
The property types reviewed;
The methodology of any estimation technique, extrapolation, or statistical sampling used in conducting the examination;
Each calculation showing the value of property determined to be due; and
The findings of the person conducting the examination.
If a person subject to examination under section 1002 of this act believes the person conducting the examination has made an unreasonable or unauthorized request or is not proceeding expeditiously to complete the examination, the person in a record may ask the administrator to intervene and take appropriate remedial action, including countermanding the request of the person conducting the examination, imposing a time limit for completion of the examination, or reassigning the examination to another person.
If a person in a record requests a conference with the administrator to present matters that are the basis of a request under subsection (1) of this section, the administrator shall hold the conference not later than 30 days after receiving the request. The administrator may hold the conference in person, by telephone, or by electronic means.
If a conference is held under subsection (2) of this section, not later than 30 days after the conference ends, the administrator shall provide a report in a record of the conference to the person that requested the conference.
In this section, "related to the administrator" refers to an individual who is:
The administrator's spouse, partner in a civil union, domestic partner, or reciprocal beneficiary;
The administrator's child, stepchild, grandchild, parent, stepparent, sibling, stepsibling, half-sibling, aunt, uncle, niece, or nephew;
A spouse, partner in a civil union, domestic partner, or reciprocal beneficiary of an individual under (b) of this subsection; or
Any individual residing in the administrator's household.
The administrator may contract with a person to conduct an examination under this section and sections 1001 through 1008 and 1010 through 1013 of this act. The contract may be awarded only under chapter 39.26 RCW.
If the person with which the administrator contracts under subsection (2) of this section is:
An individual, the individual may not be related to the administrator; or
A business entity, the entity may not be owned in whole or in part by the administrator or an individual related to the administrator.
At least 60 days before assigning a person under contract with the administrator under subsection (2) of this section to conduct an examination, the administrator shall demand in a record that the person to be examined submit a report and deliver property that is previously unreported.
If the administrator contracts with a person under subsection (2) of this section:
The contract may provide for compensation of the person based on a fixed fee, hourly fee, or contingent fee;
A contingent fee arrangement may not provide for a payment that exceeds 10 percent of the amount or value of property paid or delivered as a result of the examination; and
On request by a person subject to examination by a contractor, the administrator shall deliver to the person a complete and unredacted copy of the contract.
A contract under subsection (2) of this section is subject to public disclosure without redaction under chapter 42.56 RCW.
The administrator or an individual employed by the administrator who participates in, recommends, or approves the award of a contract under section 1009(2) of this act on or after the effective date of this section may not be employed by, contracted with, or compensated in any capacity by the contractor or an affiliate of the contractor for two years after the latest of participation in, recommendation of, or approval of the award or conclusion of the contract.
Not later than three months after the end of the state fiscal year, the administrator shall compile and submit a report to the governor and legislature. The report must contain the following information about property presumed abandoned for the preceding fiscal year for the state:
The total amount and value of all property paid or delivered under this chapter to the administrator, separated into:
The part voluntarily paid or delivered; and
The part paid or delivered as a result of an examination under section 1002 of this act, separated into the part recovered as a result of an examination conducted by:
(A) A state employee; and
(B) A contractor under section 1009 of this act;
b. The name of and amount paid to each contractor under section 1009 of this act and the percentage the total compensation paid to all contractors under section 1009 of this act bears to the total amount paid or delivered to the administrator as a result of all examinations performed under section 1009 of this act;
c. The total amount and value of all property paid or delivered by the administrator to persons that made claims for property held by the administrator under this chapter and the percentage the total payments made and value of property delivered to claimants bears to the total amounts paid and value delivered to the administrator; and
d. The total amount of claims made by persons claiming to be owners which:
i. Were denied;
ii. Were allowed; and
iii. Are pending.
If the administrator determines from an examination conducted under section 1002 of this act that a putative holder failed or refused to pay or deliver to the administrator property which is reportable under this chapter, the administrator shall issue a determination of the putative holder's liability to pay or deliver and give notice in a record to the putative holder of the determination.
A person who fails to pay or deliver property when due is required to pay to the administrator interest at the rate as computed under RCW 82.32.050(1)(c) and set under RCW 82.32.050(2). However, the administrator must waive or cancel interest imposed under this subsection if:
The administrator finds that the failure to pay or deliver the property within the time prescribed by this chapter was the result of circumstances beyond the person's control sufficient for waiver or cancellation of interest under RCW 82.32.105;
The failure to timely pay or deliver the property within the time prescribed by this chapter was the direct result of written instructions given to the person by the administrator; or
The extension of a due date for payment or delivery under an assessment issued by the administrator was not at the person's request and was for the sole convenience of the administrator.
If a person fails to file any report or to pay or deliver any amounts or property when due under a report required under this chapter, there is assessed a penalty equal to 10 percent of the amount unpaid and the value of any property not delivered.
If an examination results in an assessment for amounts unpaid or property not delivered, there is assessed a penalty equal to 10 percent of the amount unpaid and the value of any property not delivered.
If a person fails to pay or deliver to the administrator by the due date any amounts or property due under an assessment issued by the administrator to the person, there is assessed an additional penalty of five percent of the amount unpaid and the value of any property not delivered.
If a holder makes a fraudulent report under this chapter, the administrator may require the holder to pay the administrator, in addition to interest under this section, a civil penalty of $1,000 for each day from the date the report was made until corrected, up to a cumulative maximum amount of $25,000, plus 25 percent of the amount or value of any property that should have been reported or was underreported.
Penalties under subsections (2) through (4) of this section may be waived or canceled only if the administrator finds that the failure to pay or deliver within the time prescribed by this chapter was the result of circumstances beyond the person's control sufficient for waiver or cancellation of penalties under RCW 82.32.105.
If a person willfully fails to file a report or to provide written notice to apparent owners as required under this chapter, the administrator may assess a civil penalty of $100 for each day the report is withheld or the notice is not sent, but not more than $5,000.
If a holder, having filed a report, failed to file the report electronically as required by RCW 63.29.170, or failed to pay electronically any amounts due under the report as required by RCW 63.29.190, the administrator must assess a penalty equal to five percent of the amount payable or deliverable under the report, unless the administrator grants the taxpayer relief from the electronic filing and payment requirements. Total penalties assessed under this subsection may not exceed five percent of the amount payable and value of property deliverable under the report.
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 this section, a civil penalty of $1,000 for each day the obligation is evaded or the duty not performed, up to a cumulative maximum amount of $25,000, plus 25 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.
The penalties imposed in this section are cumulative.
The administrator may waive, in whole and in part, interest under section 1013 of this act and penalties under section 1013 (5) and (9) of this act.
Not later than 30 days after receipt of a notice under section 1012 of this act, the putative holder may request an informal conference with the administrator to review the determination. Except as otherwise provided in this section, the administrator may designate an employee to act on behalf of the administrator.
If a putative holder makes a timely request under subsection (1) of this section for an informal conference:
Not later than 20 days after the date of the request, the administrator shall set the time and place of the conference;
The administrator shall give the putative holder notice in a record of the time and place of the conference;
The conference may be held in person, by telephone, or by electronic means, as determined by the administrator;
The request tolls the 90-day period under sections 1103 and 1104 of this act until notice of a decision under (g) of this subsection has been given to the putative holder or the putative holder withdraws the request for the conference;
The conference may be postponed, adjourned, and reconvened as the administrator determines appropriate;
The administrator or administrator's designee with the approval of the administrator may modify a determination made under section 1012 of this act or withdraw it; and
The administrator shall issue a decision in a record and provide a copy of the record to the putative holder and examiner not later than 20 days after the conference ends.
A conference under subsection (2) of this section is not an administrative remedy and is not a contested case subject to chapter 34.05 RCW. An oath is not required and rules of evidence do not apply in the conference.
At a conference under subsection (2) of this section, the putative holder must be given an opportunity to confer informally with the administrator and the person that examined the records of the putative holder to:
Discuss the determination made under section 1012 of this act; and
Present any issue concerning the validity of the determination.
If the administrator fails to act within the period prescribed in subsection (2)(a) or (g) of this section, the failure does not affect a right of the administrator, except that interest does not accrue on the amount for which the putative holder was determined to be liable under section 1012 of this act during the period in which the administrator failed to act until the earlier of:
The date under section 1103 of this act the putative holder initiates administrative review or files an action under section 1104 of this act; or
Ninety days after the putative holder received notice of the administrator's determination under section 1012 of this act if no review was initiated under section 1103 of this act and no action was filed under section 1104 of this act.
The administrator may hold an informal conference with a putative holder about a determination under section 1012 of this act without a request at any time before the putative holder initiates administrative review under section 1103 of this act or files an action under section 1104 of this act.
Interest and penalties under section 1013 of this act continue to accrue on property not reported, paid, or delivered as required by this chapter after the initiation, and during the pendency, of an informal conference under this section.
A putative holder may seek relief from a determination under section 1012 of this act by:
Administrative review under section 1103 of this act; or
Judicial review under section 1104 of this act.
Any person having been issued an assessment by the administrator, or a denial of an application for a refund or return of property, under the provisions of this chapter is entitled to a review by the administrator conducted in accordance with the provisions of RCW 34.05.410 through 34.05.494, subject to judicial review under RCW 34.05.510 through 34.05.598. A petition for review under this section is timely if received in writing by the administrator before the due date of the assessment, including any extension of the due date granted by the administrator, or in the case of a refund or return application, 30 days after the administrator rejects the application in writing, regardless of any subsequent action by the administrator to reconsider its initial decision. The period for filing a petition for review under this section may be extended as provided in a rule adopted by the administrator under chapter 34.05 RCW or upon a written agreement signed by the holder and the administrator.
Any person who has paid or delivered property to the administrator under the provisions of this chapter, except one who has failed to keep and preserve records as required in this chapter, feeling aggrieved by such payment or delivery, may appeal to the Thurston county superior court. The person filing a notice of appeal under this section is deemed the plaintiff, and the administrator, the defendant.
An appeal under this section must be made within 30 days after the administrator rejects in writing an application for refund or return of property, regardless of any subsequent action by the administrator to reconsider its initial decision.
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In an appeal filed under this section, the plaintiff must set forth the amount or property, if any, payable or deliverable on the report or assessment that the plaintiff is contesting, which the holder concedes to be the correct amount payable or deliverable, and the reason why the amount payable or deliverable should be reduced or abated.
The appeal is perfected only by serving a copy of the notice of appeal upon the administrator and filing the original with proof of service with the clerk of the superior court of Thurston county, within the time specified in subsection (2) of this section.
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The trial in the superior court on appeal must be de novo and without the necessity of any pleadings other than the notice of appeal. At trial, the burden is on the plaintiff to (i) prove that the amount paid by that person is incorrect, either in whole or in part, or the property in question was delivered in error to the administrator, and (ii) establish the correct amount payable or the property required to be delivered to the administrator, if any.
Both parties are entitled to subpoena the attendance of witnesses as in other civil actions and to produce evidence that is competent, relevant, and material to determine the correct amount due, if any, that should be paid by the plaintiff.
Either party may seek appellate review in the same manner as other civil actions are appealed to the appellate courts.
An appeal may be maintained under this section without the need for the plaintiff to first:
Protest against the payment of any amount due or reportable under this chapter or to make any demand to have such amount refunded or returned; or
Petition the administrator for a refund, return of property, or a review of its action as authorized in section 1103 of this act.
No court action or proceeding of any kind may be maintained by the plaintiff to recover any amount paid, delivered, or reported to the administrator under this chapter, except as provided in this section or as may be available to the plaintiff under RCW 34.05.510 through 34.05.598.
No appeal may be maintained under this section with respect to matters reviewed by the administrator under the provisions of chapter 34.05 RCW.
If a determination under section 1012 of this act becomes final and is not subject to administrative or judicial review, the administrator may commence an action in superior court or in an appropriate court of another state to enforce the determination and secure payment or delivery of past due, unpaid, or undelivered property. The action must be brought not later than one year after the determination becomes final.
In an action under subsection (1) of this section, if no court in this state has jurisdiction over the defendant, the administrator may commence an action in any court having jurisdiction over the defendant.
Subject to subsection (2) of this section, the administrator may:
Exchange information with another state or foreign country relating to property presumed abandoned or relating to the possible existence of property presumed abandoned; and
Authorize in a record another state or foreign country or a person acting on behalf of the other state or country to examine its records of a putative holder as provided in sections 1001 through 1013 of this act.
An exchange or examination under subsection (1) of this section may be done only if the state or foreign country has confidentiality and security requirements substantially equivalent to those in sections 1401 through 1408 of this act or agrees in a record to be bound by this state's confidentiality and security requirements.
The administrator may join another state or foreign country to examine and seek enforcement of this chapter against a putative holder.
On request of another state or foreign country, the attorney general may commence an action on behalf of the other state or country to enforce, in this state, the law of the other state or country against a putative holder subject to a claim by the other state or country, if the other state or country agrees to pay costs incurred by the attorney general in the action.
The administrator may request the official authorized to enforce the unclaimed property law of another state or foreign country to commence an action to recover property in the other state or country on behalf of the administrator. This state shall pay the costs, including reasonable attorneys' fees and expenses, incurred by the other state or foreign country in an action under this subsection.
The administrator may pursue an action on behalf of this state to recover property subject to this chapter but delivered to the custody of another state if the administrator believes the property is subject to the custody of the administrator.
The administrator may retain an attorney in this state, another state, or a foreign country to commence an action to recover property on behalf of the administrator and may agree to pay attorneys' fees based in whole or in part on a fixed fee, hourly fee, or a percentage of the amount or value of property recovered in the action.
Expenses incurred by this state in an action under this section may be paid from property received under this chapter or the net proceeds of the property. Expenses paid to recover property may not be deducted from the amount that is subject to a claim under this chapter by the owner.
An agreement by an apparent owner and another person, the primary purpose of which is to locate, deliver, recover, or assist in the location, delivery, or recovery of property held by the administrator, is enforceable only if the agreement:
Is in a record that clearly states the nature of the property and the services to be provided;
Is signed by or on behalf of the apparent owner; and
States the amount or value of the property reasonably expected to be recovered, computed before and after a fee or other compensation to be paid to the person has been deducted.
Subject to subsection (2) of this section, an agreement under section 1301 of this act is void if it is entered into during the period beginning on the date the property was paid or delivered by a holder to the administrator and ending 24 months after the payment or delivery.
If a provision in an agreement described in subsection (1) of this section applies to mineral proceeds for which compensation is to be paid to the other person based in whole or in part on a part of the underlying minerals or mineral proceeds not then presumed abandoned, the provision is void regardless of when the agreement was entered into.
An agreement under subsection (1) of this section which provides for compensation in an amount that is unconscionable is unenforceable except by the apparent owner. An apparent owner that believes the compensation the apparent owner has agreed to pay is unconscionable or the administrator, acting on behalf of an apparent owner, or both, may file an action in superior court to reduce the compensation to the maximum amount that is not unconscionable.
An apparent owner or the administrator may assert that an agreement described in this section is void on a ground other than it provides for payment of unconscionable compensation.
This section does not apply to an apparent owner's agreement with an attorney to pursue a claim for recovery of specifically identified property held by the administrator or to contest the administrator's denial of a claim for recovery of the property.
An apparent owner that contracts with another person to locate, deliver, recover, or assist in the location, delivery, or recovery of property of the apparent owner which is held by the administrator may designate the person as the agent of the apparent owner. The designation must be in a record signed by the apparent owner.
The administrator shall give the agent of the apparent owner all information concerning the property which the apparent owner is entitled to receive, including information that otherwise is confidential information under section 1402 of this act.
If authorized by the apparent owner, the agent of the apparent owner may bring an action against the administrator on behalf of and in the name of the apparent owner.
In this section and sections 1402 through 1408 of this act, "personal information" means:
Information that identifies or reasonably can be used to identify an individual, such as first and last name in combination with the individual's:
Social security number or other government-issued number or identifier;
Date of birth;
Home or physical address;
Email address or other online contact information or internet provider address;
Financial account number or credit or debit card number;
Biometric data, health or medical data, or insurance information; or
Passwords or other credentials that permit access to an online or other account;
Personally identifiable financial or insurance information, including nonpublic personal information defined by applicable federal law; and
Any combination of data that, if accessed, disclosed, modified, or destroyed without authorization of the owner of the data or if lost or misused, would require notice or reporting under chapter 19.255 RCW and federal privacy and data security law, whether or not the administrator or the administrator's agent is subject to the law.
A provision of this section or sections 1402 through 1408 of this act that applies to the administrator or the administrator's records applies to an administrator's agent.
Except as otherwise provided in this chapter, the following are confidential and exempt from public inspection or disclosure:
Reports and records of a holder in the possession of the administrator or the administrator's agent; and
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.
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.
When reasonably necessary to enforce or implement this chapter, the administrator may disclose confidential information concerning property held by the administrator or the administrator's agent only to:
An apparent owner or the apparent owner's personal representative, attorney, other legal representative, relative, or agent designated under section 1303 of this act to have the information;
The personal representative, other legal representative, relative of a deceased apparent owner, agent designated under section 1303 of this act by the deceased apparent owner, or a person entitled to inherit from the deceased apparent owner;
Another department or agency of this state or the United States;
The person that administers the unclaimed property law of another state, if the other state accords substantially reciprocal privileges to the administrator of this state if the other state is required to maintain the confidentiality and security of information obtained in a manner substantially equivalent to this section and sections 1401, 1402, and 1404 through 1408 of this act; or
A person subject to an examination as required by section 1004(6) of this act.
Except as otherwise provided in section 1402(1) of this act, the administrator shall include on the website or in the database required by section 503(3)(b) of this act the name of each apparent owner of property held by the administrator. The administrator may include in published notices, printed publications, telecommunications, the internet, or other media and on the website or in the database additional information concerning the apparent owner's property if the administrator believes the information will assist in identifying and returning property to the owner and does not disclose personal information except the home or physical address of an apparent owner.
The administrator and the administrator's agent may not use confidential information provided to them or in their possession except as expressly authorized by this chapter or required by law other than this chapter.
A person to be examined under section 1002 of this act may require, as a condition of disclosure of the records of the person to be examined, that each person having access to the records disclosed in the examination execute and deliver to the person to be examined a confidentiality agreement that:
Is in a form that is reasonably satisfactory to the administrator; and
Requires the person having access to the records to comply with the provisions of this section and sections 1401 through 1403 and 1405 through 1408 of this act applicable to the person.
Except as otherwise provided in sections 501 and 502 of this act, a holder is not required under this chapter to include confidential information in a notice the holder is required to provide to an apparent owner under this chapter.
If a holder is required to include confidential information in a report to the administrator, the information must be provided by a secure means.
If confidential information in a record is provided to and maintained by the administrator or administrator's agent as required by this chapter, the administrator or agent shall:
Implement administrative, technical, and physical safeguards to protect the security, confidentiality, and integrity of the information required by chapter 19.255 RCW and federal privacy and data security law whether or not the administrator or the administrator's agent is subject to the law;
Protect against reasonably anticipated threats or hazards to the security, confidentiality, or integrity of the information; and
Protect against unauthorized access to or use of the information which could result in substantial harm or inconvenience to a holder or the holder's customers, including insureds, annuitants, and policy or contract owners and their beneficiaries.
The administrator:
After notice and comment, shall adopt and implement a security plan that identifies and assesses reasonably foreseeable internal and external risks to confidential information in the administrator's possession and seeks to mitigate the risks; and
Shall ensure that an administrator's agent adopts and implements a similar plan with respect to confidential information in the agent's possession.
The administrator and the administrator's agent shall educate and train their employees regarding the plan adopted under subsection (3) of this section.
The administrator and the administrator's agent shall in a secure manner return or destroy all confidential information no longer reasonably needed under this chapter.
Except to the extent prohibited by law other than this chapter, the administrator or administrator's agent shall notify a holder as soon as practicable of:
A suspected loss, misuse, or unauthorized access, disclosure, modification, or destruction of confidential information obtained from the holder in the possession of the administrator or an administrator's agent; and
Any interference with operations in any system hosting or housing confidential information which:
Compromises the security, confidentiality, or integrity of the information; or
Creates a substantial risk of identity fraud or theft.
Except as necessary to inform an insurer, attorney, investigator, or others as required by law, the administrator and an administrator's agent may not disclose, without the express consent in a record of the holder, an event described in subsection (1) of this section to a person whose confidential information was supplied by the holder.
If an event described in subsection (1) of this section occurs, the administrator and the administrator's agent shall:
Take action necessary for the holder to understand and minimize the effect of the event and determine its scope; and
Cooperate with the holder with respect to:
Any notification required by law concerning a data or other security breach; and
A regulatory inquiry, litigation, or similar action.
If a claim is made or action commenced arising out of an event described in section 1407(1) of this act relating to confidential information possessed by the administrator, this state shall indemnify, defend, and hold harmless a holder and the holder's affiliates, officers, directors, employees, and agents as to:
Any claim or action; and
A liability, obligation, loss, damage, cost, fee, penalty, fine, settlement, charge, or other expense, including reasonable attorneys' fees and costs, established by the claim or action.
If a claim is made or action commenced arising out of an event described in section 1407(1) of this act relating to confidential information possessed by an administrator's agent, the administrator's agent shall indemnify, defend, and hold harmless a holder and the holder's affiliates, officers, directors, employees, and agents as to:
Any claim or action; and
A liability, obligation, loss, damage, cost, fee, penalty, fine, settlement, charge, or other expense, including reasonable attorneys' fees and costs, established by the claim or action.
The administrator shall require an administrator's agent that will receive confidential information required under this chapter to maintain adequate insurance for indemnification obligations of the administrator's agent under subsection (2) of this section. The agent required to maintain the insurance shall provide evidence of the insurance to:
The administrator not less frequently than annually; and
The holder on commencement of an examination and annually thereafter until all confidential information is returned or destroyed under section 1406(5) of this act.
In applying and construing this uniform chapter and this act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
This chapter modifies, limits, or supersedes the electronic signatures in global and national commerce act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or supersede section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of any of the notices described in section 103(b) of that act, 15 U.S.C. Sec. 7003(b).
An initial report filed under this chapter for property that was not required to be reported before the effective date of this section, but that is required to be reported under this chapter, must include all items of property that would have been presumed abandoned during the six-year period preceding the effective date of this section as if this chapter had been in effect during that period.
This chapter does not relieve a holder of a duty that arose before the effective date of this section to report, pay, or deliver property. Subject to section 610 (2) and (3) of this act, a holder that did not comply with the law governing unclaimed property before the effective date of this section is subject to applicable provisions for enforcement and penalties in effect before the effective date of this section.
If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.