HOUSE BILL REPORT

HB 1284

BYRepresentatives Haugen, Ferguson, Jones, Kremen, Wood, Horn and Sprenkle

Allowing local government to hold abandoned property.

House Committe on Local Government

Majority Report:  Do pass with amendment.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn, Todd, Wood and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT FEBRUARY 2, 1989

BACKGROUND:

The Uniform Unclaimed Property Act requires each person or entity holding intangible property that is presumed to be abandoned, and is subject to the provisions of the act, to make annual reports to the department of revenue concerning the property.  Such a person or entity must deliver or pay this property to the department of revenue within six months of filing the report.

Various statutes for local governments provide that warrants are to be cancelled one year after they are issued, if they are not presented for payment.  The funds are to be retained as if the warrant had not been issued.

SUMMARY:

BILL AS AMENDED:  Counties, cities, towns, municipal corporations, and quasi-municipal corporations may retain the following funds, instead of transferring the funds to the department of revenue under the Uniform Unclaimed Property Act: (1) warrants that have been canceled because they were not presented for payment; (2) uncashed checks; (3) unredeemed bonds and coupons; (4) excess proceeds from property tax and irrigation district foreclosures; and (5) property tax over- payments.

Any funds received by the department of revenue under the Uniform Unclaimed Property Act prior to the effective date of this act shall be retained by the state, and any funds not remitted to the department may be retained as authorized in this act.

An emergency clause is included.

AMENDED BILL COMPARED TO ORIGINAL:  All local governments were included by dropping the term "junior taxing district" and adding "towns, and other municipal and quasi-municipal corporations."

Fiscal Note:      Requested February 2, 1989.

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

House Committee ‑ Testified For:    Randy Finden, State Auditor's Office; Kent Swisher, Association of Washington Cities; Fred Saeger, Washington Association of County Officials; and Mike Murphy, Thurston County Treasurer; (NEUTRAL:  Barney McClure, Department of Revenue.)

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    We felt our own specific statutes were not altered inferentially by enactment of the Uniform Unclaimed Property Act. The dispute over whether they do has gone on for several years. This clarifies the law.

House Committee - Testimony Against:      None Presented.