AN ACT Relating to unclaimed property in museums and historical societies; amending RCW 63.24.160 and 63.29.020; and adding a new chapter to Title 63 RCW.

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

Sec. 1. Section 5, chapter 154, Laws of 1981 and RCW 63.24.160 are each amended to read as follows:

If property not covered by chapter 63.-- RCW (sections 3 through 7 of this 1988 act) remains unclaimed sixty days after notice is given, or, if the owner's identity or address is unknown, sixty days from when notice was attempted, the bailee shall:

(1) If the reasonable aggregate value of the unclaimed property is less than one hundred dollars, donate the property, or proceeds thereof, to a charitable organization exempt from federal income tax under the federal internal revenue code; or

(2) If the reasonable aggregate value of the unclaimed property is one hundred dollars or more, forward the property to the chief of police or sheriff for disposition as unclaimed property under chapter 63.32 or 63.40 RCW.

Sec. 2. Section 2, chapter 179, Laws of 1983 and RCW 63.29.020 are each amended to read as follows:

(1) Except as otherwise provided by this chapter, all intangible property, including any income or increment derived therefrom, less any lawful charges, that is held, issued, or owing in the ordinary course of the holder's business and has remained unclaimed by the owner for more than five years after it became payable or distributable is presumed abandoned.

(2) Property, with the exception of unredeemed Washington state lottery tickets and unpresented winning parimutuel tickets, is payable and distributable for the purpose of this chapter notwithstanding the owner's failure to make demand or to present any instrument or document required to receive payment.

(3) This chapter does not apply to claims drafts issued by insurance companies representing offers to settle claims unliquidated in amount or settled by subsequent drafts or other((s)) means.

(4) This chapter does not apply to property covered by chapter 63.-- RCW (sections 3 through 7 of this 1988 act).

NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Museum or historical society" means an institution operated by a nonprofit corporation, nonprofit association, or public agency, primarily educational, scientific, historic, or aesthetic in purpose, which owns, borrows, or cares for and studies archives or exhibits property.

(2) "Property" includes all documents and tangible objects, animate and inanimate, under the care of a museum or historical society which have intrinsic value to science, history, art, or culture.

NEW SECTION. Sec. 4. Any property held by a museum or historical society within the state, other than by terms of a written loan agreement, that has been held for five years or more and has remained unclaimed shall be deemed to be abandoned. Such property shall become the property of the museum or society, provided that the museum or society has given notice as required by section 6 of this act.

NEW SECTION. Sec. 5. Property on loan to a museum or historical society shall be deemed to have been donated to the museum or society if no claim is made or action filed to recover the property after termination or expiration of the loan, provided that the museum or society has given notice as required by section 6 of this act.

(1) A museum or society may terminate a loan of property at any time if the property was loaned to the museum or society for an indefinite term. Property on "permanent loan" shall be deemed to be loaned for an indefinite term.

(2) If property was loaned to the museum or society for a specified term, the museum or society may give notice of termination of the loan at any time after expiration of the specified term.

(3) It is the responsibility of the owner of property on loan to a museum or society to notify the museum or society promptly in writing of any change of address or change in ownership of the property.

(4) When a museum or society accepts a loan of property, the museum or society shall inform the lender in writing of the provisions of this chapter.

NEW SECTION. Sec. 6. (1) When a museum or historical society is required to give notice of abandonment of property or of termination of a loan, the museum or historical society shall mail such notice by certified mail, return receipt requested, to the last known owner or to the lender at the most recent address of such owner or lender as shown on the museum's or society's records. If the museum or society has no address on its records, or the museum or society does not receive written proof of receipt of the mailed notice within thirty days of the date the notice was mailed, the museum or society shall publish notice, at least once each week for two consecutive weeks, in a newspaper of general circulation in both the county in which the museum is located and the county in which the last known address of the owner or lender is located.

(2) The notice shall contain:

(a) A description of the unclaimed property;

(b) The name and last known address of the owner or lender;

(c) A request that all persons who may have any knowledge of the whereabouts of the owner or lender contact the office of the museum or society; and

(d) A statement that if proof of claim is not presented by the owner to the museum or society and if the owner's right to receive such property is not established within ninety days from the second published notice, the property shall be deemed abandoned or donated and shall become the property of the museum or society.

(3) For purposes of this chapter, if the loan of property was made to a branch of a museum or society, the museum or society is deemed to be located in the county where the branch is located. Otherwise the museum or society is located in the county in which it has its principal place of business.

NEW SECTION. Sec. 7. (1) If no claim has been made for the property within ninety days from the date of the second published notice, title to the property shall vest in the museum or historical society, free of all claims of the owner and of all persons claiming under the owner.

(2) One who purchases property from a museum or historical society acquires good title to the property if the museum represents that it has acquired title to the property under this chapter.

NEW SECTION. Sec. 8. Sections 3 through 7 of this act shall constitute a new chapter in Title 63 RCW.