HOUSE BILL REPORT

HB 1043

As Amended by the Senate

BYRepresentatives Inslee, R. Meyers, Schmidt, Heavey, Baugher, Rayburn, Ballard, Winsley, P. King, Gallagher and Phillips; by request of Washington State Patrol

Providing a procedure for unclaimed property in the hands of the Washington state patrol.

House Committe on Judiciary

Majority Report:  Do pass.  (19)

      Signed by Representatives Appelwick, Chair; Crane, Vice Chair; Padden, Ranking Republican Member; Belcher, Brough, Dellwo, Hargrove, Inslee, P. King, Locke, R. Meyers, Moyer, H. Myers, Patrick, Schmidt, Scott, Tate, Van Luven and Wineberry.

House Staff:Bill Perry (786-7123)

Rereferred House Committee on Transportation

Majority Report:  Do pass.  (24)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Schmidt, Ranking Republican Member; Wood, Assistant Ranking Republican Member; Betrozoff, Cantwell, Cooper, G. Fisher, R. Fisher, Gallagher, Hankins, Haugen, Heavey, Jones, R. Meyers, Patrick, Prentice, Prince, Smith, D. Sommers, Todd, Walker, S. Wilson and Zellinsky.

House Staff:      Robin Rettew (786-7306)

AS PASSED HOUSE MARCH 6, 1989

BACKGROUND:

The state's Uniform Unclaimed Property Act generally governs the disposition of intangible property that remains unclaimed by its owner while in the hands of another party.  That law requires the holders of intangible property to turn the property over to the department of revenue after specified periods of time and specified attempts to notify the owner.  The state thereafter holds the property, and may liquidate it, with the proceeds of liquidation going to the state general fund.  The owner of the property may claim it or the proceeds at any time.

Governmental agencies that come into possession of intangible property are generally subject to the unclaimed property law.

Law enforcement agencies often hold property as the result of criminal investigations or other activities.  The property may range from intangible property such as money or securities to tangible items such as cars or weapons. Special statutes have been enacted for local law enforcement agencies to exempt them from the unclaimed property law with respect to intangible property and to provide procedures for handling tangible property.  Agencies may keep, sell or destroy property.  Proceeds from the sale of property go first to pay expenses of holding and selling the property and then to the county or city current expense fund.

Special rules apply to the disposition of firearms that have been forfeited to law enforcement agencies under the state's firearms statute.  These rules also apply to unclaimed firearms in the possession of local agencies. Illegal firearms are to be destroyed.  Other firearms are to be auctioned.  Up to ten percent of forfeited firearms may be kept for use by local law enforcement agencies.

SUMMARY:

The Washington State Patrol is given authority similar to that possessed by local law enforcement agencies with respect to disposing of unclaimed personal property.  The authority differs from that of local agencies in one respect.  The proceeds of the sale of patrol-held property go to a state patrol account, whereas such proceeds from a local agency sale go to the local government's current expense fund.

The patrol is exempted from the Uniform Unclaimed Property Act.

If tangible or intangible personal property remains in the possession of the patrol for 60 days after written personal notice by mail or delivery to any known owner, the patrol may keep, sell, trade or destroy the property. Property may be sold, retained or traded after 10 days notice by publication in a newspaper.  If property is kept by the patrol, an inventory must be sent to the Office of Financial Management.  The property may be destroyed if it has no value and is illegal or unsafe.  (If the property remains unclaimed for a year, it may be destroyed under any circumstances.)

Money from the sale of unclaimed property goes first to pay the expenses of sale and handling the property.  Any remaining money goes to the Washington State Patrol's highway account.

The owner of property sold by the patrol has up to three years to claim any proceeds of the sale, plus interest, that were deposited in the highway account.

The statute on disposition of forfeited or unclaimed firearms is amended to require sale once a year, or whenever 10 weapons have been acquired by an agency, whichever occurs first.  Agencies may conduct joint auctions.  The Washington State Patrol is given the same authority as local law enforcement agencies to retain up to ten percent of forfeited or unclaimed firearms.

CHANGES PROPOSED BY COMMITTEE ON TRANSPORTATION:  None.

EFFECT OF SENATE AMENDMENTS:  Agencies will have to auction firearms only when they have accumulated ten or more in a year.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Judiciary)  Rick Jensen, Washington State Patrol.

(Transportation)  Rick Jensen, Washington State Patrol.

House Committee - Testified Against:      (Judiciary)  None Presented.

(Transportation)  None Presented.

House Committee - Testimony For:    (Judiciary)  There currently is no system for the Washington State Patrol to dispose of abandoned property.

(Transportation)  There currently is no system for the Washington State Patrol to dispose of abandoned property.

House Committee - Testimony Against:      (Judiciary)  None Presented.

(Transportation)  None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 96; Absent 1; Excused 1

Absent:     Representative Sommers, H.

Excused:    Representative Appelwick