SENATE BILL REPORT

HB 2262

BYRepresentative Walker

Compensating bailee's for services rendered for unclaimed property.

House Committe on Judiciary

Senate Committee on Law & Justice

Senate Hearing Date(s):February 12, 1990; February 14, 1990

Majority Report:  Do pass.

      Signed by Senators Nelson, Chairman; McCaslin, Vice Chairman; Patrick, Rasmussen, Talmadge, Thorsness.

Senate Staff:Jon Carlson (786-7459)

                  February 14, 1990

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, FEBRUARY 14, 1990

BACKGROUND:

Unclaimed personal property in the hands of a bailee may be sold or donated to charity, unless the parties agree 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 has an aggregate value of less than $100, the bailee must donate the property, or the proceeds from the sale of the property, to a charity which 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:

The bailee must be reimbursed from the proceeds of sale of unclaimed property for (1) the reasonable costs or charges for goods or services the bailee provided regarding the property; and (2) the cost of providing notice to the owner of the property.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: No one