By Senator Padden

ADOPTED 6/29/2015

On page 106, after line 12 of the amendment, insert the following:

NEW SECTION.  Sec. 2109.  "A new section is added to chapter 63.29 RCW to read as follows:

(1) Except as otherwise provided in subsections (2) through (4) of this section, the department must waive all penalties and interest on amounts payable or property deliverable under this chapter if before November 1, 2016, the holder:

(a) Completes an application for a penalty and interest waiver under this section in the form and manner prescribed by the department;

(b) Files a report as required by this chapter that includes all property for which the penalty and interest wavier is requested; and

(c) Pays and delivers all amounts and property identified on that report.

(2) This section does not apply to any amounts or property that have been paid, delivered, or reported to the department before July 1, 2015.

(3) This section does not apply to any amounts or property included in an assessment or that have otherwise been identified through an investigation or examination.

(4) Except as authorized under RCW 63.29.200, a holder may not seek a refund for any amounts or property paid or delivered to the department under this section, or otherwise challenge whether such amounts or property were properly due under this chapter.

(5) All amounts reported, paid, and delivered under this section are subject to verification by the department. A grant by the department of any waiver under this section does not preclude assessment for amounts due or property deliverable that have not been paid or delivered to the department.

(6) After October 31, 2016, if the department determines it is unable to effectively implement any of the mandatory penalty provisions of RCW 63.29.340 as amended by section 2108 of this act, the department may waive all mandatory penalties and interest under RCW 63.29.340 for all holders until October 31, 2017.

(7) The department must publicize the availability of the penalty waivers provided in this section.

(8) This section expires January 1, 2018."

Renumber the remaining sections consecutively and correct any internal references accordingly.

EFFECT: (1) Provides immunity for interest and late penalties for holders that voluntarily report and pay or deliver unclaimed property to the Department of Revenue before November 1, 2016. The holder must file a completed waiver request with the Department before November 1, 2016.

(2) Precludes immunity for penalties and interest on amounts that have previously been reported or paid by the holder, or to amounts identified through investigation or audit. Holders may not seek a refund for amounts reported and paid under the immunity provisions, or otherwise challenge whether such amounts were properly reportable and payable under chapter 63.29 RCW.

(3) Authorizes the Department to waive penalties and interest for an additional eleven months if it is unable to implement the provisions of section 2108 of this act by November 1, 2016.

(4) Clarifies the notification requirements by the Department of Revenue with respect to a holder filing a deficient application for a refund or return of unclaimed property within the six-year limitations period.