SENATE BILL REPORT

EHB 1909

BYRepresentatives Horn, Haugen, Ferguson, Cooper, Silver, May, Raiter, Holland, Nelson, Phillips, K. Wilson, Betrozoff, Brumsickle, Walker, Wood, Nealey, Wolfe, Nutley, Rayburn, Zellinsky, Todd, D. Sommers, Rector and Winsley

Authorizing local government to file abandoned intangible property records in archives after five years and transfer the property to its general fund.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 27, 1989

Majority Report:  Do pass as amended.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; Conner, Sutherland.

Senate Staff:Barbara Howard (786-7410)

                  March 27, 1989

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 27, 1989

BACKGROUND:

Various statutes require local governments to retain funds indefinitely to pay a warrant or other instrument that was issued by the local government.

The Uniform Unclaimed Property Act requires most unclaimed intangible property to be forwarded to the Department of Revenue.  In a few instances, local governments retain abandoned property not subject to the provisions of the Unclaimed Property Act.  It has been suggested that local governments be allowed to retain the funds after a time certain.

SUMMARY:

A local government holding abandoned intangible property that is not required to be forwarded to the Department of Revenue shall not be required to maintain current records of such property for more than five years.  At that time, the unit of government may archive such records and transfer the money to its current expense fund.  However, the local government remains liable to pay the intangible property to a person or entity which subsequently establishes its ownership of the intangible property.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE STRIKING AMENDMENT:

Local governments may also retain the following funds, instead of transferring the funds to the Department of Revenue as required by the Uniform Unclaimed Property Act:  (1) warrants that have been canceled because they were not presented; (2) uncashed checks; (3) unredeemed bonds and coupons; (4) excess proceeds from property tax and irrigation district foreclosures; (5) property tax overpayments.  Any funds, under this act, which were received by the state prior to the effective date of this act shall be retained by the state.  Funds which were not remitted to the state prior to the effective date of this act may be retained by the local government.  An emergency is clause is added.

Senate Committee - Testified: Fred Saeger, Washington Association of County Officials (pro); Mike Murphy, Thurston County Treasurer (pro)