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Any trust created under this chapter that has not matured or has not been refunded as provided in RCW 18.39.250 and for which no beneficiary of the prearrangement funeral service contract can be located within the time specified by section 2 of this act must be transferred to the state as unclaimed property under chapter 63.30 RCW.
The proceeds of any prearrangement funeral service contract for which money paid is required to be deposited in a trust, including money required to be deposited in a trust under RCW 18.39.250, is presumed abandoned three years after the earlier of the following:
The date of death of the contract beneficiary.
The date of death of a contract beneficiary may be documented through any source, including a declaration of death, a death certificate, a comparison of the contract seller's records against the United States social security administration death master file, or other equivalent resource.
A funeral establishment may but is under no duty to compare its records to the United States social security administration death master file, or other equivalent resource;
The date the contract beneficiary, if living, would have attained the age of 107 years;
50 years from the date that the contract was executed.
For purposes of this section:
The amount reportable for an abandoned prearrangement funeral service contract is determined under the laws of the state where the contract was executed. For contracts entered under the laws of this state, the amount reportable for an abandoned prearrangement funeral service contract is the trust balance, inclusive of accrued interest or income, less any amounts authorized by law under RCW 18.39.250.
The apparent owner of an unclaimed prearrangement funeral service contract is determined under the laws of the state where the contract was executed. For contracts entered under the laws of this state, the apparent owner is the contract purchaser, the contract beneficiary, or the estate or heirs; however, with respect to an irrevocable contract for which money paid was deposited into a trust under RCW 18.39.250, the apparent owner is the department of social and health services, office of financial recovery.
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"Contract beneficiary" means the person for whom the prearrangement funeral service contract is purchased and will be the recipient of the funeral merchandise or services at the time of the person's death.
"Contract purchaser" means the person who purchases the prearrangement funeral service contract either on the person's behalf or on behalf of the contract beneficiary.
"Funeral establishment" means a place of business licensed in accordance with RCW 18.39.145 that provides for any aspect of the care, shelter, transportation, embalming, preparation, and arrangements for the disposition of human remains and includes all areas of such entity and all equipment, instruments, and supplies used in the care, shelter, transportation, preparation, and embalming of human remains.
"Prearrangement funeral service contract" means any contract under which, for a specified consideration, a funeral establishment promises to furnish funeral merchandise or services upon the death of the person named or implied in the contract.
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 RCW 63.30.570 through 63.30.690 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 RCW 63.30.820.
"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 industrial insurance. The term does not include governmental agencies that provide industrial insurance.
"Internal revenue code" means the United States internal revenue code of 1986, as amended, as of January 1, 2023, or such subsequent date as the department of revenue may provide by rule consistent with the purpose of this chapter unless the context clearly indicates otherwise.
"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 January 1, 2023.
"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 RCW 63.30.080 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 Title 26 U.S.C. Sec. 529A of the internal revenue code;
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 any type of digital unit, including cryptocurrency, 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.
Subject to RCW 63.30.120, 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, not held by a government entity or governmental subdivision, agency, or instrumentality, 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 later of maturity, if applicable, of the deposit or the owner's last indication of interest in 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;
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, or bonuses 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;
Payroll card, one year after the amount becomes payable;
Excess proceeds from the sale of property by an owner of a self-service storage facility conducted pursuant to RCW 19.150.080, one year from the date of sale;
Excess income from the sale of tenant property by a landlord conducted pursuant to RCW 59.18.312 and 59.18.595, one year from the date of the sale;
Excess funds from the sale of an abandoned vessel by an operator of a private moorage facility conducted pursuant to RCW 88.26.020, one year from the date of the sale;
A gift certificate issued with an expiration date, three years after the amount becomes payable or distributable; and
Property not specified in this section or RCW 63.30.050 through 63.30.100, 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 RCW 63.30.120, 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 if the apparent owner is required to take a distribution to avoid a tax penalty:
The date the apparent owner reaches the required minimum distribution age to avoid a tax penalty under Title 26 U.S.C. Sec. 4974 of the internal revenue code, if determinable by the holder; or
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 must 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 must 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 must 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 RCW 63.30.120, the net card value of a stored value card, other than a payroll card, is presumed abandoned on the latest of three years after:
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.
The report required under RCW 63.30.220 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 RCW 63.30.810 through 63.30.880;
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 $5 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 RCW 63.30.370;
Contain the commencement date for determining abandonment under RCW 63.30.040 through 63.30.140;
State that the holder has complied with the notice requirements of RCW 63.30.280; and
i.
Contain other information the administrator prescribes by rules.
A report under RCW 63.30.220 may include in the aggregate items valued under $5 each. If the report includes items in the aggregate valued under $5 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 RCW 63.30.220 may include personal information as defined in RCW 63.30.810(1) 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 RCW 63.30.220 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 RCW 63.30.220 must be filed and paid on or before October 31st of each year and cover the 12 months preceding July 1st of that year.
Subject to subsection (3) of this section, the report under RCW 63.30.220 to be filed by an insurance company must be filed and paid on or before April 30th of each year for the immediately preceding calendar year.
Before the date for filing the report under RCW 63.30.220, 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.
Subject to subsection (2) of this section, the holder of property presumed abandoned must send to the apparent owner notice by first-class United States mail that complies with RCW 63.30.290 in a format acceptable to the administrator not more than 180 days nor less than 60 days before filing the report under RCW 63.30.220 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 $50 or more.
If an apparent owner has consented to receive email delivery from the holder, the holder must 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.
The administrator must 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 must:
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 $50 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 must:
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 RCW 63.30.220;
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.
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;
The holder regularly imposes the charge and regularly does not reverse or otherwise cancel the charge; and
The holder notifies the apparent owner three months before ceasing interest payments or charging dormancy fees.
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. A deduction of $10 a year for maintaining property valued at $50 or less, or $20 per year for maintaining property valued at more than $50, or other amounts established by the administrator by rule, is not unconscionable. However, if permitted under subsection (1) of this section, a higher charge may be appropriate considering all relevant factors.
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Except as otherwise provided in this section, on filing a report under RCW 63.30.220, the holder must 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 RCW 63.30.220 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.
3.
If property reported to the administrator under RCW 63.30.220 is a security, the administrator may:
a. 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
b. Dispose of the security under RCW 63.30.430.
If the holder of that property reported to the administrator under RCW 63.30.220 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 must 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 must deliver the security on the next regular date prescribed for delivery of securities under this chapter. The holder must make a determination annually whether a security identified in a report filed under RCW 63.30.220 as a nonfreely transferable security is no longer a nonfreely transferable security.
If the property reported to the administrator is virtual currency, the holder must liquidate the virtual currency within 30 days before filing the report under RCW 63.30.220. The report and liquidated proceeds must be submitted according to the due dates under RCW 63.30.240. The owner will not have recourse against the holder or the administrator to recover any gain in value after the virtual currency's liquidation under this subsection.
A holder that under this chapter pays money to the administrator may file a claim for a refund from the administrator of the amount paid if the holder:
Paid the money in error to the administrator; 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 a refund 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 the payment was made to a person the holder reasonably believed was entitled to the payment. The holder may claim a refund even if the payment was made to a person whose claim was made after the 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 paid by the administrator under subsection (1)(b) of this section, and the property was an interest-bearing demand, savings, or time deposit, the holder may also recover from the administrator interest under RCW 63.30.380 that would have been paid to the owner if the money had been claimed from the administrator by the owner to the extent the interest 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 to the administrator 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 must 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 a refund or to recover property under this section.
A holder is not required to pay a fee or other charge for a refund 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 must allow or deny the claim and give the holder 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.
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If, upon receipt of an application under this section for a refund or return of property, or an examination conducted under RCW 63.30.580, it is determined by the administrator that any amount, interest, or penalty has been paid in excess of what was properly due under this chapter or that any property was delivered to the administrator under this chapter in error, then except for amounts delivered by the administrator to a claimant under RCW 63.30.540 and 63.30.550, the excess amount must be refunded to the holder, or the property delivered in error returned to the holder, as the case may be.
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Except as otherwise provided in this section, no refund or return of property may be made for any amount or property paid or delivered, or for any interest or penalty paid, more than six years after the end of the calendar year in which the payment or delivery occurred.
The expiration of the limitations period in (b)(i) of this subsection will not restrict a refund or the return of property if the administrator received a complete application for such refund or return of property before the expiration of such limitations period.
The execution of a written waiver signed by the holder and the administrator will extend the time for making a refund of any amounts paid, or a return of property delivered in error, during, or attributable to, the years covered by the waiver if, before the expiration of the waiver, a complete application for refund or return of such amounts or property is made by the holder or the administrator discovers a refund is due or a return of property under this section is required.
For purposes of this section, an application for a refund or return of property is complete if it includes information the administrator deems sufficient to substantiate the holder's claim for a refund or return of property. If the administrator receives an incomplete application before the expiration of the limitations period in subsection (9)(b)(i) of this section, the administrator must provide the holder written notice of the deficiencies of information in the application and grant the holder 90 days from the date of such notice to provide sufficient documentation to substantiate the holder's claim for a refund or return of property.
Interest as provided under RCW 82.32.050 (1)(c) and (2) must be added to the amount of any refund allowed by the administrator or any court. Interest must be computed from the date the administrator received the excess payment until the date the refund is issued.
Decisions under this section are subject to review under RCW 63.30.730 and 63.30.740.
Expiration, before, on, or after January 1, 2023, 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.
If a holder files a report meeting the requirements under RCW 63.30.220, the administrator, absent a showing of fraud, may not issue a determination of liability under RCW 63.30.680 more than six years after the holder filed the report. The parties may agree in a record to extend the limitation in this subsection.
The administrator may not issue a determination of liability under RCW 63.30.680 or otherwise commence an action, proceeding, or examination with respect to a reporting obligation or other duty of a holder under this chapter more than 10 years after the duty arose, including circumstances where the holder:
Fails to file a report with the administrator;
Files an incomplete report with the administrator; or
Files a fraudulent report with the administrator.
Except as otherwise provided in RCW 63.30.430, the administrator may sell the property not earlier than two years after receipt of property stored in a safe deposit box and presumed abandoned.
Before selling property under subsection (1) of this section, the administrator must 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.
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;
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.
Not later than 30 days after a claim is allowed under RCW 63.30.540(2), the administrator must 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 RCW 63.30.380.
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 must 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 must 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 RCW 63.30.530 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 must 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 must notify the apparent owner of the payment.
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 RCW 63.30.570 through 63.30.640 and 63.30.660 through 63.30.690. 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.
4.
If the administrator contracts with a person under subsection (2) of this section:
a. The contract may provide for compensation of the person based on a fixed fee, hourly fee, or contingent fee;
b. 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
c. On request by a person subject to examination by a contractor, the administrator must deliver to the person a complete and unredacted copy of the contract.
If the administrator determines from an examination conducted under RCW 63.30.580 that a holder failed or refused to pay or deliver to the administrator property which is reportable under this chapter, the administrator must issue a determination of the holder's liability to pay or deliver and give notice in a record to the holder of the determination.
A holder 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 holder'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 holder 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 holder's request and was for the sole convenience of the administrator.
If a holder 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 holder fails to pay or deliver to the administrator by the due date any amounts or property due under a determination issued by the administrator to the holder, 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 holder's control sufficient for waiver or cancellation of penalties under RCW 82.32.105; or
The holder requests the waiver for a report required to be filed under RCW 63.30.220 and has timely filed as provided by RCW 63.30.240 all reports due under RCW 63.30.220 and paid or delivered all property associated with those reports for a period of 24 months immediately preceding the period covered by the report for which the waiver is being requested.
If a holder 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 63.30.220, or failed to pay electronically any amounts due under the report as required by RCW 63.30.340, the administrator must assess a penalty equal to five percent of the amount payable or deliverable under the report, unless the administrator grants the holder 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.
Any putative holder having been issued a determination 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 on or before 90 days after the holder receives the determination from the administrator pursuant to RCW 63.30.680 or from 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 putative holder 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 putative holder 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 putative holder 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 RCW 63.30.730.
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.
a provision in the agreement applies to mineral proceeds for which compensation is to be paid to the other person based in whole or in part of the underlying minerals or mineral proceeds not then presumed abandoned.
An agreement under RCW 63.30.780 that provides for compensation in an amount that exceeds five percent of the value of the property reasonably expected to be recovered, is unenforceable .
An apparent owner or the administrator may assert that an agreement under RCW 63.30.780 is void on a ground other than it provides for payment of unconscionable compensation in an amount that exceeds five percent of the value of the property reasonably expected to be recovered.
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.
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;
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; and
Correspondence sent by the administrator or the administrator's agent to holders concerning past, current, pending, or potential examinations.
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.
Sections 1 and 2 of this act apply to prearrangement funeral service contracts executed before, on, or after the effective date of this section.
Sections 3 through 6, 13 through 16, and 19 through 22 of this act apply retroactively and prospectively to January 1, 2023.
Sections 7 and 9 through 11 of this act take effect January 1, 2026.