HOUSE BILL REPORT

ESB 5119

BYSenators Pullen, Talmadge, Madsen and Rasmussen; by request of Washington State Patrol

Providing a procedure for unclaimed property in the hands of the Washington state patrol.

House Committe on Judiciary

Majority Report:  Do pass with amendments.  (14)

      Signed by Representatives Appelwick, Chair; Crane, Vice Chair; Padden, Ranking Republican Member; Belcher, Dellwo, Hargrove, Inslee, P. King, Moyer, H. Myers, Patrick, Schmidt, D. Sommers and Tate.

House Staff:Bill Perry (786-7123)

AS REPORTED BY COMMITTEE ON JUDICIARY MARCH 7, 1989

BACKGROUND:

The state's Uniform Unclaimed Property Act generally governs the disposition of intangible property that remains unclaimed by its owner while in the hands of another party.  That law requires the holders of intangible property to turn the property over to the department of revenue after specified periods of time and specified attempts to notify the owner.  The state thereafter holds the property, and may liquidate it, with the proceeds of liquidation going to the state general fund.  The owner of the property may claim it or the proceeds at any time.

Governmental agencies that come into possession of intangible property are generally subject to the unclaimed property law.

Law enforcement agencies often hold property as the result of criminal investigations or other activities.  The property may range from intangible property such as money or securities to tangible items such as cars or weapons. Special statutes have been enacted for local law enforcement agencies to exempt them from the unclaimed property law with respect to intangible property and to provide procedures for handling tangible property.  Agencies may keep, sell or destroy property.  Proceeds from the sale of property go first to pay expenses of holding and selling the property and then to the county or city current expense fund.

Special rules apply to the disposition of firearms that have been forfeited to law enforcement agencies under the state's firearms statute.  These rules also apply to unclaimed firearms in the possession of local agencies. Illegal firearms are to be destroyed.  Up to 10 percent of forfeited firearms may be kept for use by local law enforcement agencies.  Other firearms are to be auctioned.  The local agency may keep enough of the proceeds of sale to cover the agency's costs.  The remainder of the proceeds go to the Department of Wildlife for firearms training programs.

SUMMARY:

BILL AS AMENDED:  The Washington State Patrol is given authority similar to that possessed by local law enforcement agencies with respect to disposing of unclaimed personal property.  The authority differs from that of local agencies in one respect.  The proceeds of the sale of patrol-held property go to a state patrol account, whereas such proceeds from a local agency sale go to the local government's current expense fund.

The patrol is exempted from the Uniform Unclaimed Property Act.

If tangible or intangible personal property remains in the possession of the patrol for 60 days after written personal notice by mail or delivery to any known owner, the patrol may keep, sell, trade or destroy the property. Property may be sold, retained or traded after 10 days notice by publication in a newspaper.  If property is kept by the patrol, an inventory must be sent to the Office of Financial Management.  The property may be destroyed if it has no value and is illegal or unsafe.  (If the property remains unclaimed for a year, it may be destroyed under any circumstances.)

Money from the sale of unclaimed property goes first to pay the expenses of sale and handling of the property.  Any remaining money goes to the Washington State Patrol's highway account.

The owner of property sold by the patrol has up to three years to claim any proceeds of the sale, plus interest, that were deposited in the highway account.

The statute on disposition of forfeited or unclaimed firearms is amended.  The seizing agency may sell the firearms, trade them for police equipment or give them to the state wildlife department.

AMENDED BILL COMPARED TO ENGROSSED BILL:  The amendments allow the seizing agencies to trade weapons or give them to the wildlife department.  The amendments restore a provision that gives the proceeds of weapons sales to the Department of Wildlife and remove a provision giving those proceeds to the seizing agency.

Fiscal Note:      Available.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.