AN ACT Relating to
unclaimed property; amending RCW 63.29.100, 63.29.170, 63.29.220, and
63.29.340; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 63.29.100 and 1983 c
179 s 10 are each amended to read as follows:
(1) Except as provided
in subsections (2) and (5) of this section, stock or other intangible ownership
interest in a business association, the existence of which is evidenced by
records available to the association, is presumed abandoned and, with respect
to the interest, the association is the holder, if a dividend, distribution, or
other sum payable as a result of the interest has remained unclaimed by the
owner for ((seven)) five years and the owner within ((seven))
five years has not:
(a) Communicated in
writing with the association regarding the interest or a dividend,
distribution, or other sum payable as a result of the interest; or
(b) Otherwise
communicated with the association regarding the interest or a dividend,
distribution, or other sum payable as a result of the interest, as evidenced by
a memorandum or other record on file with the association prepared by an
employee of the association.
(2) At the expiration of
a ((seven-year)) five-year period following the failure of the
owner to claim a dividend, distribution, or other sum payable to the owner as a
result of the interest, the interest is not presumed abandoned unless there
have been at least ((seven)) five dividends, distributions, or
other sums paid during the period, none of which has been claimed by the
owner. If ((seven)) five dividends, distributions, or other sums
are paid during the ((seven-year)) five-year period, the period
leading to a presumption of abandonment commences on the date payment of the
first such unclaimed dividend, distribution, or other sum became due and
payable. If ((seven)) five dividends, distributions, or other
sums are not paid during the presumptive period, the period continues to run
until there have been ((seven)) five dividends, distributions, or
other sums that have not been claimed by the owner.
(3) The running of the
((seven-year)) five-year period of abandonment ceases immediately
upon the occurrence of a communication referred to in subsection (1) of this
section. If any future dividend, distribution, or other sum payable to the
owner as a result of the interest is subsequently not claimed by the owner, a
new period of abandonment commences and relates back to the time a subsequent
dividend, distribution, or other sum became due and payable.
(4) At the time any
interest is presumed abandoned under this section, any dividend, distribution,
or other sum then held for or owing to the owner as a result of the interest, and
not previously presumed abandoned, is presumed abandoned.
(5) This chapter shall
not apply to any stock or other intangible ownership interest enrolled in a
plan that provides for the automatic reinvestment of dividends, distributions,
or other sums payable as a result of the interest unless:
(a) The records
available to the administrator of the plan show, with respect to any intangible
ownership interest not enrolled in the reinvestment plan, that the owner has
not within ((seven)) five years communicated in any manner
described in subsection (1) of this section; or
(b) Five years have
elapsed since the location of the owner became unknown to the association, as
evidenced by the return of official shareholder notifications or communications
by the postal service as undeliverable, and the owner has not within those five
years communicated in any manner described in subsection (1) of this section.
The five-year period from the return of official shareholder notifications or
communications shall commence from the earlier of the return of the second such
mailing or the date the holder discontinues mailings to the shareholder.
Sec. 2. RCW 63.29.170 and 1993 c
498 s 7 are each amended to read as follows:
(1) A person holding property
presumed abandoned and subject to custody as unclaimed property under this
chapter shall report to the department concerning the property as provided in
this section.
(2) The report must be
verified and must include:
(a) Except with respect
to travelers checks and money orders, the name, if known, and last known
address, if any, of each person appearing from the records of the holder to be
the owner of property of the value of twenty-five dollars or more presumed
abandoned under this chapter;
(b) In the case of
unclaimed funds of twenty-five dollars or more held or owing under any life or
endowment insurance policy or annuity contract, the full name and last known
address of the insured or annuitant and of the beneficiary according to the
records of the insurance company holding or owing the funds;
(c) In the case of the
contents of a safe deposit box or other safekeeping repository or in the case
of other tangible property, a description of the property and the place where
it is held and where it may be inspected by the department, and any amounts
owing to the holder;
(d) The nature and
identifying number, if any, or description of the property and the amount
appearing from the records to be due, but items of value under twenty-five
dollars each may be reported in the aggregate;
(e) The date the
property became payable, demandable, or returnable, and the date of the last
transaction with the apparent owner with respect to the property; and
(f) Other information
the department prescribes by rule as necessary for the administration of this
chapter.
(3) If the person
holding property presumed abandoned and subject to custody as unclaimed
property is a successor to other persons who previously held the property for
the apparent owner or the holder has changed his name while holding the
property, he shall file with his report all known names and addresses of each
previous holder of the property.
(4) The report must be
filed before November 1 of each year and shall include all property presumed
abandoned and subject to custody as unclaimed property under this chapter that
is in the holder's possession as of the preceding June 30th. On written
request by any person required to file a report, the department may postpone
the reporting date.
(5) ((Not more than
one hundred twenty days before filing the report)) After May 1, but
before August 1, of each year in which a report is required by this
section, the holder in possession of property presumed abandoned and subject to
custody as unclaimed property under this chapter shall send written notice to
the apparent owner at his last known address informing him that the holder is
in possession of property subject to this chapter if:
(i) The holder has in
its records an address for the apparent owner which the holder's records do not
disclose to be inaccurate,
(ii) The claim of the
apparent owner is not barred by the statute of limitations, and
(iii) The property has
a value of seventy-five dollars or more.
Sec. 3. RCW 63.29.220 and 1993 c
498 s 10 are each amended to read as follows:
(1) Except as provided
in subsections (2) ((and)) ,(3), and (6) of this section
the department, within five years after the receipt of abandoned property,
shall sell it to the highest bidder at public sale in whatever city in the
state affords in the judgment of the department the most favorable market for
the property involved. The department may decline the highest bid and reoffer
the property for sale if in the judgment of the department the bid is
insufficient. If in the judgment of the department the probable cost of sale
exceeds the value of the property, it need not be offered for sale. Any sale
held under this section must be preceded by a single publication of notice, at
least three weeks in advance of sale, in a newspaper of general circulation in
the county in which the property is to be sold.
(2) 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 department
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 department deems
advisable.
(3) Unless the
department considers it to be in the best interest of the state to do
otherwise, all securities, other than those presumed abandoned under RCW
63.29.100, delivered to the department must be held for at least one year before
being sold.
(4) Unless the
department considers it to be in the best interest of the state to do
otherwise, all securities presumed abandoned under RCW 63.29.100 and delivered
to the department must be held for at least three years before being sold. If
the department sells any securities delivered pursuant to RCW 63.29.100 before
the expiration of the three-year period, any person making a claim pursuant to
this chapter before the end of the three-year period is entitled to either the
proceeds of the sale of the securities or the market value of the securities at
the time the claim is made, whichever amount is greater, less any deduction for
fees pursuant to RCW 63.29.230(2). A person making a claim under this chapter
after the expiration of this period is entitled to receive either the
securities delivered to the department by the holder, if they still remain in
the hands of the department, or the proceeds received from sale, less any
amounts deducted pursuant to RCW 63.29.230(2), but no person has any claim
under this chapter against the state, the holder, any transfer agent,
registrar, or other person acting for or on behalf of a holder for any
appreciation in the value of the property occurring after delivery by the
holder to the department.
(5) The purchaser of
property at any sale conducted by the department pursuant to this chapter takes
the property free of all claims of the owner or previous holder thereof and of
all persons claiming through or under them. The department shall execute all documents
necessary to complete the transfer of ownership.
(6) The department
shall not sell any stock or other intangible ownership interest enrolled in a
plan that provides for the automatic reinvestment of dividends, distributions,
or other sums payable as a result of the interest.
Sec. 4. RCW 63.29.340 and 1983 c
179 s 34 are each amended to read as follows:
(1) A person who fails
to pay or deliver property within the time prescribed by this chapter shall be
required to pay to the department interest at the maximum rate permitted under
RCW 19.52.020 from the date the property should have been paid or delivered,
unless the department 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.
(2) A person who willfully
fails to render any report, to pay or deliver property, or to perform other
duties required under this chapter shall pay a civil penalty of one hundred
dollars for each day the report is withheld or the duty is not performed, but
not more than five thousand dollars, plus one hundred percent of the value of
the property which should have been reported, paid or delivered.
(3) A person who willfully
refuses after written demand by the department to pay or deliver property to
the department as required under this chapter or who enters into a contract to
avoid the duties of this chapter is guilty of a gross misdemeanor and upon
conviction may be punished by a fine of not more than one thousand dollars or
imprisonment for not more than one year, or both.
NEW SECTION. Sec.
5. This act shall take
effect July 1, 1996.
