2013 -- S 0676

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LC01645

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO PROPERTY -- THE RHODE ISLAND MUSEUM PROPERTY ACT

     Introduced By: Senators Paiva Weed, Goldin, Goodwin, Felag, and DiPalma

     Date Introduced: March 06, 2013

     Referred To: Senate Finance

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 and terms shall

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have the following meanings, unless the context indicates another or different meaning or intent:

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

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

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

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aesthetic in purpose, and which owns, borrows, cares for, studies, archives or exhibits property.

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Museums may include, but not be limited to, historical societies, parks, historic sites and

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monuments, archives and libraries;

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     (2) "Property" means any tangible object in the possession of and under a museum's care

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that has intrinsic educational, scientific, historical, artistic, aesthetic or cultural value;

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     (3) "Loan" or “loaned” means a deposit with a museum that: (i) Title to the property is

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not transferred to the museum, (ii) The loan agreement for such deposit does not include a

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provision that the museum acquire title at some time after such deposit is made; or (iii) The loan

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agreement for such deposit includes an option for the museum to acquire title at some time after

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such deposit is made;

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     (4) "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 to, property held by the museum or, if such person is

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deceased, the legal heirs of such person.

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     (5) “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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     (6) “Publication” means inclusion in the online publication of lists of abandoned property

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established pursuant to section 33-21.1-18.

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     34-44.1-2. Property held subject to a loan agreement. -- (a) Any property on loan to a

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museum that is subject to a loan agreement shall be deemed to be donated to the museum if:

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     (1) No claim of ownership is made or action filed to recover such property by the owner

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or lender after termination or expiration of the loan; and

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     (2) The museum has given notice, in accordance with the provisions of section 34-44.1-5

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of this chapter, and no claim of ownership is made or action to recover such property is filed on

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or before sixty (60) days after the publication of the notice.

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     (b) A museum may terminate a loan of property for any property that was loaned to the

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museum for an indefinite term if the property has been in the possession of the museum for at

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least five (5) years. Any property on loan to a museum and whose loan agreement indicates that

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such property is on permanent loan to the museum shall be considered loaned for an indefinite

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term for purposes of this subsection. The property for any loan of property that has been

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terminated pursuant to this subsection shall be deemed donated to the museum.

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     (c) A museum may terminate a loan of property for any property that was loaned to the

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museum for a specified term after the expiration of such specified term, provided the museum

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provides notice of such termination in accordance with the provisions of section 34-44.1-5 of this

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chapter. The property for any loan of property that has been terminated pursuant to this

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subsection shall be deemed donated to the museum.

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

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the 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 of the new owner or lender if there is a

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

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     (e) A museum accepting a loan of property shall inform the lender of such property in

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writing of the provisions of this chapter.

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     34-44.1-3. Property held without a loan agreement. -- (a) Any property in the

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possession of a museum that is not subject to a loan agreement shall be deemed to be abandoned

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if:

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     (1) The property is unclaimed and has been in the possession of the museum as

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unclaimed property for at least five (5) years;

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     (2) The museum has given notice, in accordance with the provisions of section 34-44.1-5;

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and

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     (3) No claim of ownership is made or action to recover such property is filed on or before

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sixty (60) days after the publication of the notice.

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     (b) Any abandoned property in the possession of a museum shall become the property of

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such museum.

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     34-44.1-4. Maintenance of records. -- On or after the effective date of this chapter, each

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museum shall maintain a record of all property on loan to the museum which shall include, if

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known, the name and address of the lender and the dates that the property is to be on loan to the

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museum and a copy of the loan agreement for the property. The museum shall provide a copy of

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the record and the loan agreement to the lender of property at the time that the lender makes the

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loan of property to the museum. If a museum is notified of a change in ownership of any property

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on loan to the museum, the museum shall create a new record for the property and update the

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existing loan agreement and shall provide a written copy of the new record and the updated loan

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agreement to the new owner of the property. A museum shall retain all written records regarding

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property acquired under this chapter for at least ten (10) years from the date that the museum

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acquired title to the property or until dissolution of the museum, whichever occurs first.

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     34-44.1-5. Notice requirements. -- (a) Prior to a museum accepting donated property

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pursuant to section 34-44.1-2, or taking ownership of abandoned property pursuant to section 34-

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44.1-3, the museum shall make a reasonable good faith effort to find the address of the lender and

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provide notice that the museum may become the owner of the property. The notice shall be sent

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by certified mail, return receipt requested, to the address of the lender on record with the

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museum.

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     (b) If the museum does not have an address on record for the lender of the property, or

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

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after the date the notice was mailed, notice shall be published for a duration of six (6) months in

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the lists of abandoned property advertised by the general treasurer as prescribed in section 33-

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21.1-18. The museum shall provide to the general treasurer the following information to be

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included in the notice:

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     (1) The name and address of the museum and a brief and general description of the

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unclaimed property, including date of the property or the approximate date the property came into

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the custody of the museum;

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     (2) If known, the name and address of the lender on record with the museum, if any;

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     (3) 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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     (4) The name and contact information of the person at the museum to be contacted

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regarding the property; and

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     (5) A statement that if no claim of ownership is made or action to recover the property is

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filed with the museum on or before sixty (60) days from the last day that the notice is included in

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the unclaimed property publication, the property shall be deemed donated or abandoned and shall

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become the property of the museum.

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

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claim of ownership for any property for which notice of donation or abandonment was made,

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pursuant to section 34-44.1-5, from the lender on record with the museum, or the designated

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agent of such lender, the museum shall return the property to the lender or carry out the

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disposition of such property as the lender requests not later than sixty (60) days after receipt of

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such written claim of ownership, provided the lender shall advise the museum in writing as to the

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disposition of such property or how such property is to be returned to the lender. Any costs

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incurred as a result of returning such property or the disposition of such property shall be the

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responsibility of the lender unless the lender and the museum have mutually agreed to alternate

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arrangements.

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     (b) If a museum receives a written claim of ownership for any property for which notice

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of donation or abandonment was made, pursuant to section 34-44.1-5, from a person other than

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the lender on record with the museum, the museum shall, not later than sixty (60) days after

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receipt of such written claim of ownership, determine if such ownership claim is valid. A

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claimant shall submit proof of ownership to the museum with such written claim of ownership. If

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more than one person submits a written claim of ownership, the museum may delay its

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determination of ownership until the competing claims are resolved by agreement or legal action.

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A museum shall not be obligated to initiate legal action to resolve competing claims. If the

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museum determines that the written claim of ownership is valid or if the competing claims are

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

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submitting the valid claim of ownership or dispose of the property as the valid claimant requests.

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Any costs incurred as a result of returning the property or the disposition of the property shall be

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the responsibility of the valid claimant unless the valid claimant and the museum have mutually

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agreed to alternate arrangements.

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     (c) If no written claim of ownership is presented to the museum on or before sixty (60)

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days after the publication of the notice, the property shall be deemed donated or abandoned and

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title to the property shall vest in the museum.

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     (d) Any person who purchases or otherwise acquires property from a museum that

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obtained the property by donation or abandonment pursuant to this section and sections 34-44.1-2

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and 34-44.1-3, shall acquire good title to such property.

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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 conservation or

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protective measures to, or dispose of, undocumented property or property on loan to the museum

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

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

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property on loan has become a hazard to the health and safety of the pubic or to the museum’s

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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 contact the lender at the address on record for the lender

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within three (3) days before the time the museum determines action is necessary; or

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     (3) The lender does not: (i) Respond or agree to the conservation or protective measures

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recommended by the museum; and (ii) Does not or is unable to terminate the loan and take

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possession of such property within the time the museum determines that action is necessary.

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     (b) If a museum applies conservation or protective measures to any property on loan to

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the museum under this section, unless the written loan agreement for the property provides

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otherwise, the museum shall acquire a lien on the property in an amount equal to the costs

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incurred by the museum for any conservation or protective measures taken.

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     (c) The museum shall not be liable for injury to or loss of any property that was on loan

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to the museum and for which conservation or protective measures were taken under this section,

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if the museum: (1) Had a reasonable belief at the time the conservation or protective measures

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were taken that such measures were necessary to protect the property or other property in the

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possession of the museum, or that the property was a hazard to the health and safety of the public

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or museum staff, and (2) Exercised reasonable care in the choice and application of the

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conservation and protective measures.

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     34-44.1-8. Scope. -- (a) The provisions of this chapter shall:

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     (1) Not be construed to abrogate the rights and obligations of a lender, claimant or

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museum identified in a written loan agreement, unless the requirements of section 34-44.1-2 have

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been fulfilled;

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     (2) Not preclude a museum from availing itself of any other means of establishing or

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perfecting title to property in the possession of the museum.

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     (b) This chapter applies to all property held by or in the custody of a museum on or after

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the effective date of the chapter.

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     SECTION 2. Section 33-21.1-18 of the General Law in Chapter 31-21.1 entitled

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"Unclaimed Intangible and Tangible Property" is hereby amended to read as follows:

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     33-21.1-18.  Notice and publication of lists of abandoned property. -- (a) The

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administrator shall place an advertisement, twice a year, one not later than March 1 and one not

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later than October 15, at least once a week for two (2) consecutive weeks in a newspaper or

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combination of newspapers of general circulation that reach each county in the state. The

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advertisement shall: (1) Not exceed one quarter (1/4) of a newspaper page; and (2) List a phone

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number citizens can call to request a written copy of the unclaimed property publication; and (3)

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List a website that provides the information contained in the unclaimed property publication. The

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unclaimed property publication shall consist of two (2) parts.

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        (b) Part one of The the unclaimed property publication must be entitled "Names of

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Persons Appearing to be Owners of Abandoned Property" and contain:

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        (1) The names in alphabetical order and last known address, if any, of persons listed in

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the report and entitled to notice within the state;

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        (2) A statement that information concerning the property and the name and last known

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address of the holder may be obtained by any person possessing an interest in the property by

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addressing an inquiry to the administrator; and

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        (3) A statement that if proof of claim is not presented by the owner to the holder and

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the owner's right to receive the property is not established to the holder's satisfaction the property

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will be placed in the custody of the administrator and all further claims must thereafter be

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directed to the administrator.

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      (4) This section is not applicable to sums payable on travelers checks, money orders,

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and other written instruments presumed abandoned under section 33-21.1-4 or museum property

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subject to chapter 34-44.1.

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     (c)(1) Part two (2) of the unclaimed property publication must be entitled "Names of

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Persons Appearing to be Owners of Abandoned Museum Property" and contain the following

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information that a museum, as defined in chapter 34-44.1, has provided to the administrator:

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      (i) The name and address of the museum and brief and general description of the

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unclaimed property, including the approximate date the property came into the custody of the

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museum;

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     (ii) If known, the name and address of the lender on record with the museum;

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     (iii) 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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     (iv) The name, and contact information of the person at the museum to be contacted

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regarding the property; and

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     (v) Language providing that if a written assertion of title is not presented by the lender to

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the museum within sixty (60) days from the last day that the notice is included in the unclaimed

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property publication, the property shall be considered abandoned and donated and shall become

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the property of the museum.

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     (2) After notice has been posted in part two (2) of the unclaimed property publication for

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six (6) months, the administrator shall provide in writing to each museum confirmation of the

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dates that the properties were included in the unclaimed property publication.

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     (3) The administrator shall have the authority to establish procedures to implement the

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provisions of this subsection (c); provided however, that at no time shall any property be placed

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in the custody of the administrator and provided further that the administrator shall have no

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authority to determine any claim of ownership. All claims shall be directed to the museum that

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has custody of the property and any claim of ownership shall be determined in accordance with

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the provisions of chapter 34-44.1. The administrator, and the administrator’s employees and

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agents, shall not be liable for any actions taken in carrying out the requirements of this subsection

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(c).

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       (c) (d) The administrator is not required to publish in the unclaimed property publication

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any items of less than fifty dollars ($50.00) unless the administrator considers their publication to

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be in the public interest or a museum's requests that an item be published in the unclaimed

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property publication.

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     (d) This section is not applicable to sums payable on travelers checks, money orders, and

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other written instruments presumed abandoned under § 33-21.1-4.

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     SECTION 3. This act shall take effect upon passage.

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LC01645

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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 resolve ownership of unclaimed

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property on loan to a museum, and undocumented property in the possession of a museum.

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     This act would take effect upon passage.

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LC01645

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