SENATE BILL REPORT

SB 6332

BYSenators Newhouse and Rasmussen

Providing for unclaimed property in museums and historical societies.

Senate Committee on Governmental Operations

Senate Hearing Date(s):January 28, 1988; February 1, 1988

Majority Report:  That Substitute Senate Bill No. 6332 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McCaslin, Chairman; Zimmerman, Vice Chairman; DeJarnatt, Garrett, Metcalf.

Senate Staff:Sam Thompson (786-7754); Desley Brooks (786-7443)

                  February 1, 1988

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 1, 1988

BACKGROUND:

Under certain circumstances, when property is held by one person on behalf of another, the person holding the property is said to be a "bailee".  Laws specify certain duties required of bailees, including a duty of reasonable care.  A museum or historical society is a bailee of artifacts that have been lent to it.

If personal property deposited with a bailee is not reclaimed by the "bailor", or owner, the bailee must notify the owner that the property should be claimed.  If property is unclaimed 60 days after notice is given, the property may be donated to a charitable organization if it is worth less than $100.  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.

Intangible property--including money, checks and corporate stock--that is unclaimed for five years is presumed abandoned, and may eventually be sold by the state Department of Revenue.

Most museums or historical societies holding loaned artifacts are subject to these laws.  It is suggested that when loaned artifacts are not claimed or cannot be returned to a lender a process should be established to enable a museum or historical society to permanently acquire the property.

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 or lenders 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 lender.  If no claim is made for the property within ninety days of the second published notice, it becomes the property of the museum or historical society.

Unless there is a written 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 for an indefinite period may be terminated at any time by a museum or historical society.

EFFECT OF PROPOSED SUBSTITUTE:

The requirement that a loan agreement be in writing in order to be enforceable against a museum or historical society is eliminated.  A written assertion of title must be presented by an owner in order to reclaim loaned property after notice has been published.  Numerous non-substantive grammatical changes are made.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Roxana Auguszting, The Burke Museum; Derek Valley, Washington State Capitol Museum; Kevin Hughes, Washington Arts Alliance