BILL REQ. #:  S-4106.3 

Read first time 01/13/2006.   Referred to Committee on Financial Institutions, Housing & Consumer Protection.

     AN ACT Relating to unclaimed property locators; amending RCW 63.29.350; adding a new chapter to Title 18 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds it necessary to regulate the practice of offering to reunite the apparent owner or heirs with unclaimed property for a fee. The legislature intends that only individuals who obtain a license under this chapter may represent themselves in this state as heir finders or asset or unclaimed property locators.

NEW SECTION.  Sec. 2   (1) No person may represent himself or herself as an unclaimed property locator without first obtaining a license as required by this chapter.
     (2) A person represents himself or herself to be an unclaimed property locator when the person adopts or uses any title or description of services that incorporates one or more of the following or substantially similar terms: Property locator, asset locator, or heir finder.

NEW SECTION.  Sec. 3   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Department" means the department of financial institutions.
     (2) "Director" means the director of financial institutions.
     (3) "Unclaimed property locator" means a person or business entity that offers to reunite the apparent owners or heirs with unclaimed property for a fee.

NEW SECTION.  Sec. 4   In addition to any other authority provided by law, the director may:
     (1) Adopt rules in accordance with chapter 34.05 RCW that are necessary to implement this chapter;
     (2) Set all renewal, late renewal, duplicate, and verification fees by rule;
     (3) Establish the forms and procedures necessary to administer this chapter;
     (4) Issue a license to any applicant who has met the requirements for licensure;
     (5) Hire clerical and administrative staff as needed to implement and administer this chapter;
     (6) Maintain the official departmental record of all applicants and license holders;
     (7) Establish by rule the procedures for an appeal of a failure to obtain a license; and
     (8) Set the criteria for meeting the standard required for licensure.

NEW SECTION.  Sec. 5   The director and individuals acting on the director's behalf are not civilly liable for any act performed in good faith in the course of their duties.

NEW SECTION.  Sec. 6   An applicant must meet the following minimum requirements to obtain an unclaimed property locator license:
     (1) Be at least eighteen years of age;
     (2) Be a citizen of the United States or a resident alien;
     (3) Not have been convicted of a crime in any jurisdiction, if the director determines that the applicant's particular crime directly relates to his or her capacity to perform the duties of an unclaimed property locator, and the director determines that the license should be withheld to protect the citizens of Washington state. The director shall make her or his determination to withhold a license because of previous convictions notwithstanding the restoration of employment rights act, chapter 9.96A RCW;
     (4) Pay the required nonrefundable fee for each application; and
     (5) Submit a fully completed application that includes proper identification on a form prescribed by the director.

NEW SECTION.  Sec. 7   Applications for a license must be submitted on forms provided by the department. The department may require information and documentation to determine whether the applicant meets the standard for a license as provided in this chapter. Each applicant shall pay a fee determined by the director in rule which shall accompany the application.

NEW SECTION.  Sec. 8   The director shall establish by rule the requirements and the renewal and late renewal fees for a license. Failure to renew the license on or before the expiration date cancels all privileges granted by the license.

NEW SECTION.  Sec. 9   An unclaimed property locator may charge a maximum fee of two and one-half percent of the property value successfully returned or fifty dollars, whichever is greater. An unclaimed property locator may not separately bill for the costs of postage, photocopies, attorney or consultant fees, consultation visits, and other offered services connected with locating or returning the property.

NEW SECTION.  Sec. 10   The director or the director's designee may at any time examine and investigate the business and examine the books, accounts, records, and files, or other information, wherever located, of any licensee or person who the director has reason to believe is engaging in the business governed by this chapter. For these purposes, the director or the director's designee may require the attendance of and examine under oath all persons whose testimony may be required about the business or the subject matter of the investigation. The director or the director's designee may require the production of original books, accounts, records, files, or other information, or may make copies of such original books, accounts, records, files, or other information. The director or the director's designee may issue a subpoena or subpoena duces tecum requiring attendance and testimony, or the production of the books, accounts, records, files, or other information. The director shall collect from the licensee the actual cost of the examination or investigation.

NEW SECTION.  Sec. 11   (1) The director may issue and serve upon a licensee or applicant a statement of charges if, in the opinion of the director, any licensee or applicant:
     (a) Is engaging or has engaged in an unsafe or unsound financial practice in conducting the business of an unclaimed property locator governed by this chapter;
     (b) Is violating or has violated this chapter, including rules, orders, or subpoenas, adopted under this chapter or any condition imposed in writing by the director or the director's designee in connection with the granting of any application or other request by the licensee or any written agreement made with the director;
     (c) Is about to do the acts prohibited in (a) or (b) of this subsection when the opinion that the threat exists is based upon reasonable cause;
     (d) Obtains a license by means of fraud, misrepresentation, concealment, or through mistake or inadvertence of the director;
     (e) Provides false statements or omissions of material information on the application that, if known, would have allowed the director to deny the application for the original license;
     (f) Fails to pay a fee required by the director;
     (g) Commits a crime against the laws of the state of Washington or any other state or government involving moral turpitude, financial misconduct, or dishonest dealings;
     (h) Knowingly commits or is a party to any material fraud, misrepresentation, concealment, conspiracy, collusion, trick, scheme, or device whereby any other person relying upon the word, representation, or conduct acts to his or her injury or damage;
     (i) Converts any money or its equivalent to his or her own use or to the use of his or her principal or of any other person;
     (j) Fails, upon demand by the director or the director's designee, to disclose any information within his or her knowledge to, or to produce any document, book, or record in his or her possession for inspection of, the director or the director's designee;
     (k) Commits any act of fraudulent or dishonest dealing, and a certified copy of the final holding of any court, tribunal, agency, or administrative body of competent jurisdiction regarding that act is conclusive evidence in any hearing under this chapter; or
     (l) Commits an act or engages in conduct that demonstrates incompetence or untrustworthiness, or is a source of injury and loss to the public.
     (2) The statement of charges shall be issued under chapter 34.05 RCW. The director or the director's designee may impose the following sanctions against any licensee or applicant, or any director, officer, sole proprietor, partner, controlling person, or employee of a licensee or applicant:
     (a) Deny, revoke, suspend, or condition the license;
     (b) Order the licensee to cease and desist from practices in violation of this chapter or practices that constitute unsafe and unsound financial practices;
     (c) Impose a fine not to exceed one hundred dollars per day for each day's violation of this chapter;
     (d) Order restitution to clients or other parties damaged by the licensee's violation of this chapter or take other affirmative action as necessary to comply with this chapter; and
     (e) Remove from office or ban from participation in the affairs of any licensee any director, officer, sole proprietor, partner, controlling person, or employee of a licensee.
     (3) The proceedings to impose the sanctions described in subsection (2) of this section, including any hearing or appeal of the statement of charges, are governed by chapter 34.05 RCW.
     Unless the licensee personally appears at the hearing or is represented by a duly authorized representative, the licensee is deemed to have consented to the statement of charges and the sanctions imposed in the statement of charges.

NEW SECTION.  Sec. 12   Whenever the director determines that the acts specified in section 11 of this act or their continuation is likely to cause substantial injury to the public, the director may also issue a temporary cease and desist order requiring the licensee to cease and desist from the violation or practice. The order becomes effective upon service upon the licensee and remains effective unless set aside, limited, or suspended by a court under section 13 of this act pending the completion of the administrative proceedings under the notice and until such time as the director dismisses the charges specified in the notice or until the effective date of the cease and desist order issued against the licensee under section 11 of this act.

NEW SECTION.  Sec. 13   Within ten days after a licensee has been served with a temporary cease and desist order, the licensee may apply to the superior court in the county of its principal place of business for an injunction setting aside, limiting, or suspending the order pending the completion of the administrative proceedings pursuant to the notice served under section 12 of this act. The superior court has jurisdiction to issue the injunction.

NEW SECTION.  Sec. 14   In the case of a violation or threatened violation of a temporary cease and desist order issued under section 12 of this act, the director may apply to the superior court of the county of the principal place of business of the licensee for an injunction.

NEW SECTION.  Sec. 15   Whenever as a result of an examination or report it appears to the director that:
     (1) Any licensee is conducting its business in such an unsafe or unsound manner as to render its further operations hazardous to the public;
     (2) Any licensee has refused to submit its books, papers, and affairs to the inspection of the director or the director's examiner;
     (3) Any officer of any licensee refuses to be examined under oath regarding the business of the licensee; or
     (4) Any licensee neglects or refuses to comply with any order of the director made under this chapter unless the enforcement of such an order is restrained in a proceeding brought by the licensee;
the director may immediately take possession of the property and business of the licensee and retain possession until the licensee resumes business. The licensee may resume business upon such terms as the director may prescribe.

NEW SECTION.  Sec. 16   The legislature finds and declares that any violation of this chapter substantially affects the public interest and is an unfair and deceptive act or practice and an unfair method of competition in the conduct of trade or commerce as set forth in RCW 19.86.020. Remedies available under chapter 19.86 RCW shall not affect any other remedy the injured party may have.

NEW SECTION.  Sec. 17   The director has the power, and broad administrative discretion, to administer and interpret the provisions of this chapter to ensure the protection of the public.

Sec. 18   RCW 63.29.350 and 1983 c 179 s 35 are each amended to read as follows:
     It is unlawful for any person to seek or receive from any person or contract with any person for any fee or compensation for locating or purporting to locate any property which he or she knows has been reported or paid or delivered to the department of revenue pursuant to this chapter in excess of ((five)) two and one-half percent or fifty dollars, whichever is greater, of the value thereof returned to such owner. Any person violating this section is guilty of a misdemeanor and shall be fined not less than the amount of the fee or charge he has sought or received or contracted for, and not more than ten times such amount, or imprisoned for not more than thirty days, or both.

NEW SECTION.  Sec. 19   Sections 1 through 17 of this act constitute a new chapter in Title 18 RCW.