The proposed bill aims to protect consumers in Washington from unreasonable delays in processing retirement account distributions. It establishes a new chapter in Title 21 RCW that mandates financial institutions to transmit funds from valid distribution requests within 15 business days. If a financial institution fails to meet this timeline, it is required to pay the consumer market rate interest on the amount of the distribution, starting from the 16th business day until the funds are successfully transmitted. The bill also clarifies that it does not regulate employee benefit plans governed by federal law but focuses on the practices of financial institutions operating in the state.

Additionally, the bill provides consumers with the right to take civil action against financial institutions that violate these provisions. Consumers can recover interest owed, court costs, reasonable attorney fees, and statutory damages of up to $500 per violation. The Department of Financial Institutions is authorized to adopt rules for the implementation and enforcement of this chapter. The bill includes provisions to ensure that if any part of it is found invalid, the remaining sections will still be effective.