CERTIFICATION OF ENROLLMENT
SUBSTITUTE SENATE BILL 5565
Chapter 374, Laws of 2023
(partial veto)
68th Legislature
2023 Regular Session
TAXES AND REVENUE—VARIOUS PROVISIONS
EFFECTIVE DATE: July 23, 2023
Passed by the Senate April 18, 2023 CERTIFICATE
Yeas 48 Nays 0
I, Sarah Bannister, Secretary of
the Senate of the State of
DENNY HECK Washington, do hereby certify that
President of the Senate the attached is SUBSTITUTE SENATE
BILL 5565 as passed by the Senate
and the House of Representatives on
the dates hereon set forth.
Passed by the House March 24, 2023
Yeas 96 Nays 0
SARAH BANNISTER
LAURIE JINKINS Secretary
Speaker of the House of
Representatives
Approved May 9, 2023 11:18 AM with FILED
the exception of sections 2, 3, 4, 6,
7, 8, 19, and 24, which are vetoed. May 10, 2023
Secretary of State
JAY INSLEE State of Washington
Governor of the State of Washington
 SUBSTITUTE SENATE BILL 5565
AS AMENDED BY THE HOUSE
Passed Legislature - 2023 Regular Session
State of Washington 68th Legislature 2023 Regular Session
By Senate Ways & Means (originally sponsored by Senators Schoesler,
Rolfes, Dozier, Nobles, and Wellman)
READ FIRST TIME 02/09/23.
1 AN ACT Relating to modifying tax and revenue laws by making
2 technical corrections, clarifying ambiguities, easing compliance
3 burdens for taxpayers, and providing administrative efficiencies;
4 amending RCW 19.150.060, 19.150.080, 19.240.080, 19.240.900,
5 35.90.020, 59.18.312, 59.18.595, 63.30.040, 82.04.4489, 82.14.070,
6 82.32.045, 82.32.105, 82.60.020, 82.60.049, 82.60.060, 82.60.070,
7 82.70.900, 82.73.030, 82.90.080, 84.52.120, 84.52.816, 88.02.620, and
8 88.26.020; reenacting and amending RCW 82.08.0206; creating a new
9 section; repealing RCW 82.12.02088, 82.27.060, and 82.70.050; and
10 providing an expiration date.
11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
12 Sec. 1. RCW 19.150.060 and 2016 sp.s. c 6 s 1 are each amended
13 to read as follows:
14 (1) If a notice has been sent, as required by RCW 19.150.040, and
15 the total sum due has not been paid as of the date specified in the
16 preliminary lien notice, the lien proposed by this notice attaches as
17 of that date and the owner may deny an occupant access to the space,
18 enter the space, inventory the goods therein, and remove any property
19 found therein to a place of safe keeping. The owner must provide the
20 occupant a notice of final lien sale or final notice of disposition
21 by personal service, verified mail, or email to the occupant's last
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 1 known address and alternative address or email address. If the owner
2 sends notice required under this section to the occupant's last known
3 email address and does not receive a reply or receipt of delivery,
4 the owner must send a second notice to the occupant's last known
5 postal address by verified mail. The notice required under this
6 section must state all of the following:
7 (a) That the occupant's right to use the storage space has
8 terminated and that the occupant no longer has access to the stored
9 property.
10 (b) That the stored property is subject to a lien, and the amount
11 of the lien accrued and to accrue prior to the date required to be
12 specified in (c) of this subsection.
13 (c) That all the property, other than personal papers and
14 personal photographs, may be sold to satisfy the lien after a
15 specified date which is not less than ((fourteen)) 14 days from the
16 last date of sending of the final lien sale notice, or a minimum of
17 ((forty-two)) 42 days after the date when any part of the rent or
18 other charges due from the occupants remain unpaid, whichever is
19 later, unless the amount of the lien is paid. The owner is not
20 required to sell the personal property within a maximum number of
21 days of when the rent or other charges first became due. If the total
22 value of property in the storage space is less than three hundred
23 dollars, the owner may, instead of sale, dispose of the property in
24 any reasonable manner, subject to the restrictions of RCW
25 19.150.080(4). After the sale or other disposition pursuant to this
26 section has been completed, the owner shall provide an accounting of
27 the disposition of the proceeds of the sale or other disposition to
28 the occupant at the occupant's last known address and at the
29 alternative address.
30 (d) That any stored vehicles, watercraft, trailers, recreational
31 vehicles, or campers may be towed or removed from the self-service
32 storage facility in lieu of sale pursuant to RCW 19.150.160.
33 (e) That any excess proceeds of the sale or other disposition
34 under RCW 19.150.080(2) over the lien amount and reasonable costs of
35 sale will be retained by the owner and may be reclaimed by the
36 occupant, or claimed by another person, at any time for a period of
37 six months from the sale and that thereafter the proceeds will be
38 turned over to the state as abandoned property as provided in chapter
39 63.30 RCW ((63.29.165)).
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 1 (f) That any personal papers and personal photographs will be
2 retained by the owner and may be reclaimed by the occupant at any
3 time for a period of six months from the sale or other disposition of
4 property and that thereafter the owner may dispose of the personal
5 papers and photographs in a reasonable manner, subject to the
6 restrictions of RCW 19.150.080(3).
7 (g) That the occupant has no right to repurchase any property
8 sold at the lien sale.
9 (2) The owner may not send by email the notice required under
10 this section to the occupant's last known address or alternative
11 address unless:
12 (a) The occupant expressly agrees to notice by email;
13 (b) The rental agreement executed by the occupant specifies in
14 bold type that notices will be given to the occupant by email;
15 (c) The owner provides the occupant with the email address from
16 which notices will be sent and directs the occupant to modify his or
17 her email settings to allow email from that address to avoid any
18 filtration systems; and
19 (d) The owner notifies the occupant of any change in the email
20 address from which notices will be sent prior to the address change.
21 *Sec. 2. RCW 19.150.080 and 2007 c 113 s 5 are each amended to
22 read as follows:
23 (1) After the expiration of the time given in the final notice of
24 lien sale pursuant to RCW 19.150.060, the property, other than
25 personal papers and personal photographs, may be sold or disposed of
26 in a reasonable manner as provided in this section.
27 (2)(a) If the property has a value of ((three hundred dollars))
28 $300 or more, the sale shall be conducted in a commercially
29 reasonable manner, and, after applying the proceeds to costs of the
30 sale and then to the amount of the lien, the owner shall retain any
31 excess proceeds of the sale on the occupant's behalf. The occupant,
32 or any other person having a court order or other judicial process
33 against the property, may claim the excess proceeds, or a portion
34 thereof sufficient to satisfy the particular claim, at any time
35 within six months of the date of sale.
36 (b) If the property has a value of less than ((three hundred
37 dollars)) $300, the property may be disposed of in a reasonable
38 manner.
p. 3 SSB 5565.SL
 1 (3) Personal papers and personal photographs that are not
2 reclaimed by the occupant within six months of a sale under
3 subsection (2)(a) of this section or other disposition under
4 subsection (2)(b) of this section may be disposed of in a reasonable
5 manner.
6 (4) No employee or owner, or family member of an employee or
7 owner, may acquire, directly or indirectly, the property sold
8 pursuant to subsection (2)(a) of this section or disposed of pursuant
9 to subsection (2)(b) of this section, or personal papers and personal
10 photographs disposed of under subsection (3) of this section.
11 (5) The owner is entitled to retain any interest earned on the
12 excess proceeds until the excess proceeds are claimed by another
13 person or are turned over to the state as abandoned property pursuant
14 to chapter 63.30 RCW ((63.29.165)).
*Sec. 2 was vetoed. See message at end of chapter.
15 *Sec. 3. RCW 19.240.080 and 2004 c 168 s 9 are each amended to
16 read as follows:
17 An issuer is not required to honor a gift certificate presumed
18 abandoned under chapter 63.30 RCW ((63.29.110,)) if it is
19 reported((,)) and delivered to the department of revenue in the
20 dissolution of a business association.
*Sec. 3 was vetoed. See message at end of chapter.
21 *Sec. 4. RCW 19.240.900 and 2004 c 168 s 18 are each amended to
22 read as follows:
23 Sections 1 through 12 of this act apply to:
24 (1) Gift certificates issued on or after July 1, 2004; and
25 (2) Those gift certificates presumed abandoned on or after July
26 1, 2004, and not reported as provided in chapter 63.30 RCW
27 ((63.29.170(4))).
*Sec. 4 was vetoed. See message at end of chapter.
28 Sec. 5. RCW 35.90.020 and 2020 c 139 s 59 are each amended to
29 read as follows:
30 (1) Except as otherwise provided in subsection (7) of this
31 section, a city that requires a general business license of any
32 person that engages in business activities within that city must
33 partner with the department to have such license issued, and renewed
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 1 if the city requires renewal, through the business licensing service
2 in accordance with chapter 19.02 RCW.
3 (a) Except as otherwise provided in subsection (3) of this
4 section, the department must phase in the issuance and renewal of
5 general business licenses of cities that required a general business
6 license as of July 1, 2017, and are not already partnering with the
7 department, as follows:
8 (i) Between January 1, 2018, and December 31, 2021, the
9 department must partner with at least six cities per year;
10 (ii) Between January 1, 2022, and December 31, 2027, the
11 department must partner with the remaining cities; or
12 (iii) Between July 1, 2017 and December 31, 2022, the department
13 must partner with all cities requiring a general business license if
14 specific funding for the purposes of this subsection (1)(a)(iii) is
15 appropriated in the omnibus appropriations act.
16 (b) A city that imposes a general business license requirement
17 and does not partner with the department as of January 1, 2018, may
18 continue to issue and renew its general business licenses until the
19 city partners with the department as provided in subsection (4) of
20 this section.
21 (2)(a) A city that did not require a general business license as
22 of July 1, 2017, but imposes a new general business license
23 requirement after that date must advise the department in writing of
24 its intent to do so at least ((ninety)) 90 days before the
25 requirement takes effect.
26 (b) If a city subject to (a) of this subsection (2) imposes a new
27 general business license requirement after July 1, 2017, the
28 department, in its sole discretion, may adjust resources to partner
29 with the imposing city as of the date that the new general business
30 licensing requirement takes effect. If the department cannot
31 reallocate resources, the city may issue and renew its general
32 business license until the department is able to partner with the
33 city.
34 (3) The department may delay assuming the duties of issuing and
35 renewing general business licenses beyond the dates provided in
36 subsection (1)(a) of this section if:
37 (a) Insufficient funds are appropriated for this specific
38 purpose;
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 1 (b) The department cannot ensure the business licensing system is
2 adequately prepared to handle all general business licenses due to
3 unforeseen circumstances;
4 (c) The department determines that a delay is necessary to ensure
5 that the transition to mandatory department issuance and renewal of
6 general business licenses is as seamless as possible; or
7 (d) The department receives a written notice from a city within
8 ((sixty)) 60 days of the date that the city appears on the
9 department's biennial partnership plan, which includes an explanation
10 of the fiscal or technical challenges causing the city to delay
11 joining the system. A delay under this subsection (3)(d) may be for
12 no more than three years.
13 (4)(a) In consultation with affected cities and in accordance
14 with the priorities established in subsection (5) of this section,
15 the department must establish a biennial plan for partnering with
16 cities to assume the issuance and renewal of general business
17 licenses as required by this section. The plan must identify the
18 cities that the department will partner with and the dates targeted
19 for the department to assume the duties of issuing and renewing
20 general business licenses.
21 (b) By January 1, 2018, and January 1st of each even-numbered
22 year thereafter until the department has partnered with all cities
23 that currently impose a general business license requirement and that
24 have not declined to partner with the department under subsection (7)
25 of this section, the department must submit the partnering plan
26 required in (a) of this subsection (4) to the governor; legislative
27 fiscal committees; house local government committee; senate financial
28 institutions, economic development and trade committee; senate local
29 government committee; affected cities; association of Washington
30 cities; association of Washington business; national federation of
31 independent business; and Washington retail association.
32 (c) The department may, in its sole discretion, alter the plan
33 required in (a) of this subsection (4) with a minimum notice of
34 ((thirty)) 30 days to affected cities.
35 (5) When determining the plan to partner with cities for the
36 issuance and renewal of general business licenses as required in
37 subsection (4) of this section, cities that notified the department
38 of their wish to partner with the department before January 1, 2017,
39 must be allowed to partner before other cities.
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 1 (6) A city that partners with the department for the issuance and
2 renewal of general business licenses through the business licensing
3 service in accordance with chapter 19.02 RCW may not issue and renew
4 those licenses.
5 (7)(a) Except as provided in (b) of this subsection, a city may
6 decline to partner with the department for the issuance and renewal
7 of a general business license as provided in subsection (1) of this
8 section if the city participates in the online local business license
9 and tax filing portal known as "FileLocal" as of July 1, 2020.
10 (b) A city that receives at least ((one million nine hundred
11 fifty thousand dollars)) $1,950,000 in fiscal year 2020 for temporary
12 streamlined sales tax mitigation under the 2019 omnibus
13 appropriations act, section 722, chapter 415, Laws of 2019, may
14 decline to partner with the department for the issuance and renewal
15 of a general business license as provided in subsection (1) of this
16 section if the city participates in FileLocal as of July 1, 2021.
17 (c) For the purposes of this subsection (7), a city is considered
18 to be a FileLocal participant as of the date that a business may
19 access FileLocal for purposes of applying for or renewing that city's
20 general business license and reporting and paying that city's local
21 business and occupation taxes. A city that ceases participation in
22 FileLocal after July 1, 2020, or July 1, 2021, in the case of a city
23 eligible for the extension under (b) of this subsection, must partner
24 with the department for the issuance and renewal of its general
25 business license as provided in subsection (1) of this section.
26 (((8) By January 1, 2019, and each January 1st thereafter through
27 January 1, 2028, the department must submit a progress report to the
28 legislature. The report required by this subsection must provide
29 information about the progress of the department's efforts to partner
30 with all cities that impose a general business license requirement
31 and include:
32 (a) A list of cities that have partnered with the department as
33 required in subsection (1) of this section;
34 (b) A list of cities that have not partnered with t