SENATE BILL REPORT

SB 5163

BYSenators McCaslin, DeJarnatt and Kreidler

Allowing local government to hold abandoned property.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 2, 1989

Majority Report:  That Substitute Senate Bill No. 5163 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Desley Brooks (786-7443)

                  February 2, 1989

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 2, 1989

BACKGROUND:

Unclaimed intangible property, such as checks and warrants, in the possession of local governments are subject to the Uniform Unclaimed Property Act.  Under the act, local governments must file a report with the Department of Revenue including the name of the owner of the check or warrant.  Within six months of the report filing, the local government must pay or deliver to the Department of Revenue the abandoned intangible property.

It has been suggested that local governments should be allowed to retain the abandoned intangible property until the owner notifies them and establishes ownership.

SUMMARY:

Local governments may 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.  This act declares an emergency and shall take effect immediately.

EFFECT OF PROPOSED SUBSTITUTE:

Generic terms are used to describe local governments.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Randy Finden, State Auditor's office (pro); Mike Murphy, Thurston County Auditor (pro); Fred Saeger, Washington Association of County Officials (pro)