FINAL BILL REPORT

HB 2262

                                   C 41 L 90

BYRepresentative Walker

Compensating bailee's for services rendered for unclaimed property.

House Committe on Judiciary

Senate Committee on Law & Justice

SYNOPSIS AS ENACTED

BACKGROUND:

A "bailee" is a person to whom personal property has been entrusted for some purpose.  For example, a dry cleaning business is a bailee with respect to clothing left with it.  Sometimes the owner of property fails to reclaim it.

Unclaimed personal property in the hands of a bailee may be sold or donated to charity, unless the parties have agreed otherwise.  If the property has remained unclaimed for 30 days, the bailee must notify the owner that the property may be sold or donated to charity.  If the property remains unclaimed 60 days after notice is given or attempted, and it has an aggregate value of less than $100, then the bailee must donate the property, or the proceeds from the sale of the property, to a charity that is exempt from federal income tax under the federal internal revenue code.  If the property has an aggregate value of $100 or more, the property must be disposed of by the police or sheriff.

No provision is made in the statute for reimbursement of the bailee's costs in disposing of the unclaimed property.

SUMMARY:

A bailee must be reimbursed from the proceeds of sale of unclaimed property for the reasonable costs or charges for goods or services the bailee provided regarding the property, and for the cost of providing notice to the owner of the property.

VOTES ON FINAL PASSAGE:

      House 98   0

      Senate    44     0

EFFECTIVE:June 7, 1990