H-3861              _______________________________________________

                                                   HOUSE BILL NO. 2794

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Horn, Haugen, Ferguson, Nelson, Holland, Van Luven, Betrozoff, Fuhrman, Phillips, Kirby, Cooper, Nealey, Wood, Wolfe, Zellinsky, Rayburn, Nutley, Raiter, May, Winsley, Smith and Silver

Read first time 1/22/90 and referred to Committee on Local Government.

AN ACT Relating to abandoned property held by local governments; amending RCW 63.29.190; adding new sections to chapter 63.29 RCW; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 63.29 RCW to read as follows:

          A local government holding abandoned intangible property that is not forwarded to the department of revenue, as authorized under RCW 63.29.170, shall not be required to maintain current records of this property for longer than five years after the property is presumed to be abandoned, and at that time may archive records of this intangible property and transfer the intangible property to its general fund.  However, the local government shall remain liable to pay the intangible property to a person or entity subsequently establishing its ownership of this intangible property.

        Sec. 2.  Section 19, chapter 179, Laws of 1983 and RCW 63.29.190 are each amended to read as follows:

          (1) Except as otherwise provided in subsections (2) and (3) of this section, a person who is required to file a report under RCW 63.29.170, within six months after the final date for filing the report as required by RCW 63.29.170, shall pay or deliver to the department all abandoned property required to be reported.  Counties, cities, towns, and other municipal and quasi-municipal corporations which hold funds representing warrants canceled pursuant to RCW 36.22.100 and 39.56.040, checks which are uncashed, unredeemed bonds and coupons, excess proceeds from property tax and irrigation district foreclosures, and property tax overpayments, may retain such funds until the owner notifies them and establishes ownership.

          (2) If the owner establishes the right to receive the abandoned property to the satisfaction of the holder before the property has been delivered or it appears that for some other reason the presumption of abandonment is erroneous, the holder need not pay or deliver the property to the department, and the property will no longer be presumed abandoned.  In that case, the holder shall file with the department a verified written explanation of the proof of claim or of the error in the presumption of abandonment.

          (3) Property reported under RCW 63.29.170 for which the holder is not required to report the name of the apparent owner must be delivered to the department at the time of filing the report.

          (4) The holder of an interest under RCW 63.29.100 shall deliver a duplicate certificate or other evidence of ownership if the holder does not issue certificates of ownership to the department.  Upon delivery of a  duplicate certificate to the department, the holder and any transfer agent, registrar, or other person acting for or on behalf of a holder in executing or delivering the duplicate certificate is relieved of all liability of every kind in accordance with RCW 63.29.200 to every person, including any person acquiring the original certificate or the duplicate of the certificate issued to the department, for any losses or damages resulting to any person by the issuance and delivery to the department of the duplicate certificate.

NEW SECTION. Sec. 3.   A new section is added to chapter 63.29 RCW to read as follows:

          Any funds covered by RCW 63.29.190 that were received by the state prior to the effective date of this act shall be retained by the state of Washington, and any such funds not remitted to the state prior to the effective date of this act may be retained as provided for under RCW 63.29.190.

NEW SECTION. Sec. 4.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.