HOUSE BILL REPORT

SB 5633

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by House Committee On:

Ways & Means

Title: An act relating to exempting agricultural fair premiums from the unclaimed property act.

Brief Description: Exempting agricultural fair premiums from the unclaimed property act.

Sponsors: Senators Pridemore, Hewitt, Kastama and Swecker.

Brief History:

Committee Activity:

Ways & Means: 3/22/11 [DP].

Brief Summary of Bill

  • Exempts agricultural fairs from reporting unclaimed fair premiums to the Department of Revenue under the unclaimed property program.

HOUSE COMMITTEE ON WAYS & MEANS

Majority Report: Do pass. Signed by 25 members: Representatives Hunter, Chair; Darneille, Vice Chair; Hasegawa, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Carlyle, Chandler, Cody, Dickerson, Haigh, Haler, Hinkle, Hunt, Kagi, Kenney, Ormsby, Parker, Ross, Schmick, Seaquist, Springer, Sullivan and Wilcox.

Minority Report: Do not pass. Signed by 1 member: Representative Hudgins.

Staff: Rick Peterson (786-7150).

Background:

Under the state unclaimed property program, a business that holds unclaimed intangible property must transfer it to the Department of Revenue (DOR) after a holding period set by statute. The holding period varies by type of property, but for most unclaimed property the holding period is three years. After the holding period has passed, the business in possession of the property transfers the property to the DOR. Owners of property transferred to the DOR may file a claim and the DOR will return the property or the amount the DOR received when the property was sold.

There are some exceptions to the reporting requirement: unredeemed Washington lottery pari-mutuel tickets, property held by museums and historical societies, gift certificates subject to the prohibition against expiration, and excess proceeds from foreclosures for delinquent property taxes.

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Summary of Bill:

Unclaimed premiums paid for exhibits and educational contests, displays, and demonstrations of an educational nature at agricultural fairs are not subject to transfer to the DOR under the unclaimed property program. Qualified agricultural fairs are those that promote agriculture by including a variety of exhibits of livestock and agricultural products and related manufactured products and arts including demonstrations designed to train youth and promote the welfare of farmers.

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Appropriation: None.

Fiscal Note: Available on House Bill 1757.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.

Staff Summary of Public Testimony:

(In support) This bill returns funds to fairs where money is sorely lacking. It might seem like a small amount of money but any little bit of help to keep some of these fairs going forward is greatly appreciated.

(Opposed) None.

Persons Testifying: Representative Haigh.

Persons Signed In To Testify But Not Testifying: None.