HOUSE BILL REPORT

SB 6476

BYSenators McCaslin, Halsan, Zimmerman and Garrett

Revising provisions for abandoned property held by local governments.

House Committe on Local Government

Majority Report:  Do pass with amendments.  (14)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Butterfield, Dorn, Ferguson, Hine, Jones, Nealey, Nelson, Nutley, Rayburn and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT FEBRUARY 25, 1988

BACKGROUND:

The Uniform Unclaimed Property Act requires each person or entity holding intangible property that is presumed to be abandoned, and subject to the provisions of that act, must make annual reports to the department of revenue concerning the property.  Such a person or entity must deliver or pay this property to the department of revenue within six months of filing the report.

Various statutes for local governments provide that warrants are to be cancelled one year after they are issued if they are not presented for payment.  The funds are to be retained as if the warrant had not been issued.

SUMMARY:

BILL AS AMENDED:  Counties, cities, towns, and junior taxing districts may retain the following funds relating to unclaimed intangible property instead of transferring such property to the department of revenue, until the owner of the property claims the property:  (1) warrants that have been cancelled because they were not presented for payment; (2) uncashed checks; (3) unredeemed bonds and coupons; (4) excess proceeds from property tax and irrigation district foreclosures; and (5) property tax overpayments.

Such property that has been transferred to the department of revenue under the Uniform Unclaimed Property Act remains with the department.  Such property that has not been remitted to the department prior to the effective date of the act may be retained locally.

AMENDED BILL COMPARED TO ORIGINAL:  Five specific types of unclaimed intangible property are mentioned, instead of any type of unclaimed intangible property.  Provisions were added concerning the dispositions of such property prior to the effective date of the act.  An emergency clause was added.

Fiscal Note:      Requested February 25, 1988.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    Fred Saeger, Washington State Association of County Officials; and Mike Murphy, Thurston Co. Treasurer.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This settles a dispute between local governments and the department of revenue.  The actual owners of the intangible property still can claim the property.  The issue is who gets to hold the property until it is claimed.

House Committee - Testimony Against:      None Presented.