FINAL BILL REPORT

SSB 6332

                                  C 226 L 88

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

Providing for unclaimed property in museums and historical societies.

Senate Committee on Governmental Operations

House Committe on State Government

SYNOPSIS AS ENACTED

BACKGROUND:

Most museums or historical societies holding loaned property are subject to laws applying to "bailments"--circumstances in which a party holds property on behalf of another.  When property held under the terms of a bailment is not reclaimed, the holder, or "bailee", must take steps to notify the party with rights in the property, or "bailor", that the property should be reclaimed.  Under existing law, if the property is not reclaimed 60 days after notice is given, it may be donated to a charitable organization if it is worth less than $100.  When the bailor is a museum or historical society qualifying as a charitable organization, it may keep the property.  If the property is worth more than $100, it is given to city police or the county sheriff to be sold, retained or destroyed as unclaimed property.

Laws pertaining to unclaimed intangible property (including money, checks and corporate stock) specify that this property is to be transferred to the Department of Revenue and may eventually be sold.

It is suggested that a procedure should be established to enable museums and historical societies to acquire title to unclaimed property that has apparently been abandoned.

SUMMARY:

Any museum or historical society operated by a nonprofit or public agency is authorized to keep unclaimed property that has been lent to it, provided that certain procedures are followed.

Owners of unclaimed property with addresses on record must be notified by certified mail that their property will become the property of the museum or historical society if it is not claimed.  If an address is not available, or if a receipt is not received for the mailed notice, 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 no claim is made for the property within 90 days of the second published notice, it becomes the property of the museum or historical society.

Unless there is an agreement specifying otherwise, property held for five years or more that has remained unclaimed is deemed abandoned and subject to permanent acquisition by the museum or historical society.  In addition, loaned property is deemed to have been donated if no attempt is made to recover it at the termination of the loan.  In both cases, the notice procedure must first be followed.

A loan to a museum or historical society for an indefinite period may be terminated if the property has been held for five years or more.

VOTES ON FINAL PASSAGE:

      Senate    45     0

      House 97   0 (House amended)

      Senate    49     0 (Senate concurred)

EFFECTIVE:June 9, 1988