HOUSE BILL REPORT
HB 1994
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Passed Legislature
Title: An act relating to overpayments received by courts.
Brief Description: Addressing overpayments received by courts.
Sponsors: By Representatives Curtis, Ericks, Roberts and Quall.
Brief History:
Judiciary: 2/13/07 [DP];
Finance: 3/2/07 [DP].
Floor Activity:
Passed House: 3/10/07, 94-1.
Passed Senate: 4/10/07, 38-9.
Passed Legislature.
Brief Summary of Bill |
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HOUSE COMMITTEE ON JUDICIARY
Majority Report: Do pass. Signed by 11 members: Representatives Lantz, Chair; Goodman, Vice Chair; Rodne, Ranking Minority Member; Warnick, Assistant Ranking Minority Member; Ahern, Flannigan, Kirby, Moeller, Pedersen, Ross and Williams.
Staff: Bill Perry (786-7123).
HOUSE COMMITTEE ON FINANCE
Majority Report: Do pass. Signed by 9 members: Representatives Hunter, Chair; Hasegawa, Vice Chair; Orcutt, Ranking Minority Member; Condotta, Assistant Ranking Minority Member; Conway, Ericks, McIntire, Roach and Santos.
Staff: Mark Matteson (786-7145).
Background:
Under the Unclaimed Property Act (UPA), intangible property held by someone other than
the owner is presumed to be abandoned and subject to the custody of the state if certain
conditions exist. Generally, a presumption of abandonment is created when property remains
unclaimed for three years. There are specific rules that apply to various kinds of intangible
property, including travelers checks, bank accounts, money orders, shares of stock, life
insurance policies, lottery tickets, and other types of intangible property.
The holder of unclaimed property is generally required to supply information annually to the
Department of Revenue (DOR) regarding the property and its owner. Depending on the
holder and the type and value of the property involved, attempts must be made by the holder
and by the DOR to notify the owner of the property.
One specific provision within the UPA applies to property held by courts and other public
agencies. Such property is considered abandoned if it remains unclaimed for more than two
years.
Summary of Bill:
Courts are allowed to retain certain overpayments of $10 or less. The overpayments covered
are those made in connection with any litigation. The retained money is to be deposited into
the local current expense fund.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony: (Judiciary)
(In support) The cost of complying with the current law exceeds the value of the property
turned over. The State Auditor has concluded that courts must comply with the Unclaimed
Property Act even with respect to very small overpayments. When a check is written to pay
back a very small overpayment, 90 percent of the time the check goes uncashed, resulting in
stop payment charges and other processing costs for the courts. Sometimes even a law
enforcement officer's unclear handwriting has resulted in people writing checks for a few
cents more than they should.
(Opposed) None.
Staff Summary of Public Testimony: (Finance)
(In support) It costs more to go through the process of refunding overpayments by defendants
than what the overpayments amount to. It takes roughly $7 to $13 per hour of staff time to
process these overpayments. And that doesn't include charges like stop payment charges.
(Opposed) None.
Persons Testifying: (Judiciary) Melanie Stewart, District and Municipal Court Judges Association; and Yvonne Pettus, District and Municipal Court Management Association.
Persons Testifying: (Finance) Yvonne Pettus, District and Municipal Court Management Association.