2012 -- H 8154

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LC02590

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PROPERTY -- THE RHODE ISLAND MUSEUM PROPERTY ACT

     Introduced By: Representatives Lally, and Keable

     Date Introduced: May 09, 2012

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by

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adding thereto the following chapter:

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     CHAPTER 44.1

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THE RHODE ISLAND MUSEUM PROPERTY ACT

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     34-44.1-1. Definitions. – As used in this chapter, the following words shall, unless, the

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context clearly requires otherwise, have the following meanings:

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     (1) "Documented property" means property under a museum’s care for which the

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museum has a reasonable means of determining the owner.

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     (2) "Lender" means a person (an individual, association, partnership, corporation, trust,

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estate, or other entity) whose name appears on the records of a museum as the person legally

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entitled to, or claiming to be legally entitled, or who establishes legal entitlement to, property held

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by the museum or, if such person is deceased, the heirs of such person as determined by a court.

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     (3) "Loan" or "loaned" means a deposit with or deposited with a museum for a specified

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period of time if title to the property is not transferred to the museum or if the agreement for the

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deposit does not include a provision that the museum acquires title at some time after the deposit

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is made or an option for the museum to acquire title at some time after the deposit is made, but

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does not include a consignment of property for sale.

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     (4) "Museum" means an organized and permanent nonprofit or public institution in

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Rhode Island operated by, or a division of, a nonprofit corporation, trust, association, educational

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institution or a public agency, which is primarily educational, scientific, historic preservation,

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cultural or aesthetic in purpose and which owns, borrows, collects, and cares for, studies,

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archives, catalogs, or exhibits property. Museums shall include, but not be limited to, historical

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societies, parks, historic sites, landmarks, monuments, botanical gardens, arboreta, zoos, nature

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centers, planetariums, aquaria, technology centers, archives and libraries, and art, history, science

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and natural history museums.

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     (5) "Property" means a tangible animate or inanimate object under a museum's care that

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has intrinsic, educational, scientific, historical, artistic, aesthetic, or cultural value.

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     (6) "Undocumented property" means property under a museum’s care whose ownership

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cannot be determined by reference to the museum’s records, and for which the museum does not

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have a reasonable means of determining the owner.

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     34-44.1-2. Property held subject to a loan agreement. – (a) Property subject to a loan

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agreement which is on loan to a museum shall be deemed to be donated to the museum provided:

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     (1) No claim is made or action filed by the lender to recover the property after

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termination or expiration of the loan;

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     (2) The museum has given notice as required under section 34-44.1-5; and

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     (3) No assertion of title has been filed within sixty (60) days from the date of the second

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(2nd) published notice.

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     (b) A museum may terminate a loan of property if the property was loaned to the museum

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for an indefinite term by providing notice to terminate pursuant to section 34-44.1-5. Property on

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"permanent loan'' shall be considered loaned for an indefinite term.

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     (c) If property was loaned to the museum for a specified term, the museum may give

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notice of termination pursuant to section 34-44.1-5 of the loan at any time after expiration of the

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specified term or earlier if permitted by the loan agreement.

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     (d) It shall be the responsibility of a lender of property loaned to a museum to provide the

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museum with written notice of any change of the lender’s address, of the lender’s designated

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agent, of the designated agent's address, and of the name and address of the new owner if there is

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a change in the ownership of the property loaned to the museum.

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     (e) When a museum accepts a loan of property, the museum shall inform the lender of the

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property, in writing, of the provisions of this chapter.

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     34-44.1-3. Property held without a loan agreement. – (a) Any property held by a

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museum within the state, other than by terms of a written loan agreement, that has been held by

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the museum for five (5) years or more and has remained unclaimed shall be deemed to be

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abandoned and donated to the museum. Such property shall become the property of the museum,

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provided:

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     (1) The museum has given notice pursuant to section 34-44.1-5; and

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     (2) No assertion of title has been filed for the property within sixty (60) days from the

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date of the second (2nd) published notice.

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     34-44.1-4. Accuracy of museum records. – (a) Any museum applying section 34-44.1-2

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or 34-44.1-3 to property in its possession shall, from the date of such application, keep accurate

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records of all property on loan to the museum, including the name and address of the lender, if

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known, and the beginning and ending date of the loan period in accordance with regulations

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adopted under section 34-44.1-9.

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     (b) It shall be the responsibility of a lender, a lender’s heir or legal agent, or a claimant to

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notify the museum promptly, in writing, of a change in ownership of loaned property or if there is

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a change in the name or address of the lender or claimant. If a museum is notified of a change in

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the ownership of any property loaned to a museum, the museum shall inform the new owner of

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the provisions of the loan agreement and shall send the new owner written notice as prescribed in

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section 34-44.1-5 or in regulations adopted under section 34-44.1-9.

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     (c) A museum shall notify the lender or claimant of the museum’s change of address or

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dissolution. A museum shall retain all written records regarding property acquired under this

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chapter for at least ten (10) years from the date that the museum acquired title to the property or

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until dissolution of the museum, whichever occurs first.

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     34-44.1-5. Notice requirements. – (a) A museum shall give notice of abandonment of

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property or of termination of a property mailing such notice by certified mail, return receipt

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requested, to the last known lender at the most recent address of such lender as shown on the

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museum's records.

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     (b) If the museum has no lender’s name or no lender’s address on record, or the museum

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does not receive written proof of receipt of the mailed notice within thirty (30) days of the date

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the notice was mailed, the museum shall publish a notice, at least once each week for two (2)

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consecutive weeks, in a newspaper of general circulation in both the municipality in which the

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museum is located and the municipality in which the most recent address shown on the museum’s

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records, if available, of the lender is located, or by other means as may be provided by regulations

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issued under section 34-44.1-9.

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     (c) The published notice shall contain:

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     (1) The notice shall be entitled: “Notice of Abandonment”;

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     (2) A brief and general description (including date of the property or the approximate

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date the property came into the custody of the museum) of the unclaimed property;

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     (3) The lender’s name, if known, and last known address;

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     (4) A request that all persons who may have any knowledge of the whereabouts of the

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lender provide written notice to the museum;

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     (5) The name and address of the museum;

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     (6) The name, address, and contact information of the person to be contacted regarding

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the property; and

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     (7) A statement that if written assertion of title is not presented by the lender to the

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museum within sixty (60) days from the date of the second (2nd) published notice, the property

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shall be considered abandoned and donated and shall become the property of the museum.

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     (d) For purposes of this section, if the loan of property was made to a branch of a

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museum, the museum shall be considered to be located in the municipality in which the branch is

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located. Otherwise the museum is located in the municipality in which it has its principal place of

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business.

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     (e) A lender or claimant may file with the museum a written claim to the property held by

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the museum. A written claim to the property shall:

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     (1) Contain an adequate description of the property to enable the museum to identify the

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property;

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     (2) Be accompanied by documentation sufficient to establish the lender or claimant as

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owner of the property; and

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     (3) Be signed under penalty or perjury by the lender or claimant, or by a person

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authorized to act on behalf of the lender or claimant.

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     34-44.1-6. Property vested in museum. – (a) If the museum receives a timely written

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claim to the property from the lender or the lender’s agent in response to the notice provided

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under section 34-44.1-5, the museum shall, within sixty (60) days after receipt of the written

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claim, determine if the claim is valid. If the museum determines such claim to be valid, the

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museum shall return the property to the lender or carry out the disposition of the property as the

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lender requests. The lender/owner shall advise the museum in writing as to the disposition of the

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property or how the property is to be returned to the lender/owner. Costs of returning the property

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or the disposition of the property shall be the responsibility of the lender unless the lender/owner

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and the museum have made other arrangements.

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     (b) If the museum receives a timely written claim to the property, as defined in subsection

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34-44.1-5(e), from a person other than the person who loaned the property to the museum in

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response to the notice provided under section 34-44.1-5, the museum shall, within sixty (60) days

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after receipt of the written claim, determine if the claim is valid. If more than one person submits

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a timely written claim, the museum may delay its determination of ownership until the competing

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claims are resolved by agreement or judicial action. The museum shall not be obligated to initiate

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legal action to resolve competing claims; legal action may be initiated by one of the claimants. If

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the museum determines that a sole claim is valid, or if competing claims are resolved by

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agreement or judicial action, the museum shall return the property to the claimant submitting the

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valid claim or dispose of the property shall be the responsibility of the valid claimant unless the

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lender/owner and the museum have made other arrangements.

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     (c) If no written claim to the property has been presented by the lender or owner or any

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other claimant to the museum within sixty (60) days from the date of the second (2nd) published

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notice, title to the property shall vest in the museum, free of all claims of the lender and of all

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persons claiming under the lender.

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     (d) One who purchases or otherwise acquires property from a museum acquires good

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title to the property if the museum has acquired title to the property under this chapter.

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     34-44.1-7. Application of conservation measures to property on loan to a museum. –

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     (a) Unless a written loan agreement provides otherwise, a museum may apply

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conservation measures to, or dispose of, undocumented property or property on loan to the

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museum without the lender’s or claimant’s permission or formal notice if immediate action is

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required to protect the property on loan or other property in the custody of the museum, or

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because the property on loan has become a hazard to the health and safety of the public or to the

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museum’s staff, and if one of the following applies;

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     (1) The property poses an immediate risk of harm to the museum’s staff or collection or

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to the general public, in which case the museum may dispose of the property without delay and

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shall notify the lender or claimant of the action taken within thirty (30) days; or

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     (2) The museum is unable to reach the lender or claimant at the lender’s or claimant’s

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address or phone number and is required to take action within thirty (30) days; or

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     (3) The museum contacts the lender or claimant and the lender or claimant does not agree

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to the protective measures the museum recommends and does not, or is unable to terminate the

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loan and collect the property within the time the museum determines the action is necessary.

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     (b) Unless a written loan agreement provides otherwise, a museum that applies

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conservation measures to or disposes of loaned property in accordance with subsection (a):

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     (1) Acquires and may enforce a lien on the loaned property in the amount of the costs

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incurred by the museum; and

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     (2) Is not liable to the lender or claimant for damage to, or loss of, the loaned property so

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long as the museum had:

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     (i) A reasonable belief at the time the action was taken that the action was necessary: and

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     (ii) Exercised reasonable care in choosing and applying such conservation measures.

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     34-44.1-8. Scope. – This chapter applies to all property held by or in the custody of a

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museum on or after the effective date of the act creating this chapter. This chapter does not

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preclude a museum from availing itself of any other statutory or judicial method of establishing

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or perfecting title to property in the museum's custody.

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     34-44.1-9. Regulations. – The Rhode Island state council on the arts may only adopt

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regulations in accordance with this chapter relative to the form of notification to persons loaning

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property under section 34-44.1-5.

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     SECTION 2. This act shall take effect upon passage.

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LC02590

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PROPERTY -- THE RHODE ISLAND MUSEUM PROPERTY ACT

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     This act would create a procedure for museums to dispose of certain items of property

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that they no longer wish to retain.

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     This act would take effect upon passage.

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LC02590

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