HOUSE BILL REPORT

SSB 6332

As Amended by the House

BYSenate Committee on Governmental Operations (originally sponsored by Senators Newhouse and Rasmussen)

Providing for unclaimed property in museums and historical societies.

House Committe on State Government

Majority Report:  Do pass with amendment.  (9)

      Signed by Representatives H. Sommers, Chair; Anderson, Vice Chair; Baugher, Chandler, Hankins, O'Brien, Peery, Taylor and Walk.

House Staff:Ken Conte (786-7135)

AS PASSED HOUSE MARCH 1, 1988

BACKGROUND:

Under existing law, a museum or a historical society is considered a "bailee" in connection with loaned property which it is holding.  The significance of being a bailee is that 1) certain standards of care are required and 2) property under the care of a bailee which is unclaimed is to be disposed of in the following manner:

            oThe person holding the property is to notify the owner that the property should be claimed,

            oIf the property is unclaimed 60 days after notice is given and it is worth less than $100, then it is to be donated to a charitable organization, and

            oIf the property is unclaimed 60 days after notice is given and it is worth more than $100, then it is to be given to the city police or county sheriff to be sold, retained, or destroyed as unclaimed property.

Intangible property such as money, checks, or corporate stock that is unclaimed for 5 years is presumed abandoned, and may eventually be sold by the State Department of Revenue.

The Burke Museum at the University of Washington has a unique authority to acquire unclaimed documents and materials which have been loaned to it.  Under this authority, the Museum must notify the owner by certified mail and if that fails a notice must be published in a newspaper which circulates in Seattle and King County during two successive weeks.  If the owner is not located within 90 days of the mailing of the certified letter or within 60 days of the second published notice, then the title of the property is transferred to the Museum.

SUMMARY:

Procedures are established under which a museum or historical society may gain title to unclaimed property which it is holding.

Prior to gaining title to unclaimed property, a museum or historical society must give notice of either abandonment of the property or termination of the loan.  Notice is to be made in the following manner:

            oOwners of unclaimed property with addresses on record are to be notified by certified mail that their property will become the property of the museum or society if it is not claimed,

            oIf an address is not available, or if a receipt is not received for the mailed notice, a notice must be published in a newspaper of general circulation for two consecutive weeks in the county in which the museum is located and in the county of the last known address of the owner.

If the museum or historical society receives no written assertion of title from the owner within 90 days of the second published notice, title to the property will be vested in the museum or historical society.

The procedure outlined above for gaining title of unclaimed property may be initiated by a museum or historical society under the following circumstances:

            oThere is no loan agreement and the property has remained unclaimed for 5 years or more,

            oUnder a loan agreement, the property is on permanent loan or has been loaned for an indefinite term, the museum or society has held the property for 5 years or more, and the property has not been claimed, or

            oUnder a loan agreement, the property has been loaned for a specified term, that specified term has expired, and the property has not been claimed.

When a museum or historical society accepts a loan of property it is required to inform the owner in writing of the procedures regarding the transfer of ownership of unclaimed property.  The owners of property on loan to a museum or historical society are responsible for notifying the museum or historical society of changes in address or ownership.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Robert Gruhn, Washington Museum Association; Derek Valley, Washington State Capitol Museum; and Kevin Hughes, Washington State Arts Alliance.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This legislation attempts to solve a nagging problem plaguing museums because they don't know whether they have proper title to abandoned property in their care, or title to property for which the loan agreement has expired but no one claims ownership.  This would allow museums flexibility in deciding how best to dispose of or relocate such property once ownership was made clear.

House Committee - Testimony Against:      None Presented.