SENATE BILL REPORT

                                    HB 2841

             AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS,

                               FEBRUARY 20, 1992

Brief Description:  Exempting donated or worthless property from the uniform unclaimed property act.

SPONSORS: Representatives Mitchell, Appelwick, Wood, Winsley, Broback, Paris, Miller, Brough, Forner and Haugen

HOUSE COMMITTEE ON LOCAL GOVERNMENT

SENATE COMMITTEE ON GOVERNMENTAL OPERATIONS

Majority Report:  Do pass. 

      Signed by Senators McCaslin, Chairman; Roach, Vice Chairman; Madsen, and Sutherland.

Staff:  Barbara Howard (786‑7410)

Hearing Dates: February 20, 1992

BACKGROUND:

In the absence of a specific statutory exemption, most unclaimed property held by a government agency must ultimately be sold at public auction.  The Uniform Unclaimed Property Act requires such property to be turned over to the Department of Revenue for sale, even if it is of negligible value.  The proceeds are deposited in the general fund.

As an example, the Port of Seattle is left with many items of personal belongings such as handbags, gloves, and umbrellas which are of negligible value.  Because there is no specific exemption for the port, such property must be processed under the uniform act at considerable administrative cost.

SUMMARY:

The Uniform Unclaimed Property Act does not apply to used clothing, umbrellas, bags, luggage, or other personal effects of negligible value if the property is donated to a bona fide charity or destroyed.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:

While the property in question is seldom worth the cost of public auction, it frequently can be of considerable benefit to charities.

TESTIMONY AGAINST:  None

TESTIFIED:  No one