2013 -- S 0676 AS AMENDED

=======

LC01645

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

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:

1-1

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

1-2

adding thereto the following chapter:

1-3

     CHAPTER 44.1

1-4

THE RHODE ISLAND MUSEUM PROPERTY ACT

1-5

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

1-6

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

1-7

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

1-8

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

1-9

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

1-10

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

1-11

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

1-12

monuments, archives and libraries;

1-13

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

1-14

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

1-15

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

1-16

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

1-17

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

1-18

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

1-19

such deposit is made;

2-20

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

2-21

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

2-22

entitled to, or claiming to be legally entitled to, property held by the museum or, if such person is

2-23

deceased, the legal heirs of such person.

2-24

     (5) “Undocumented property” means property under a museum’s care whose ownership

2-25

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

2-26

have a reasonable means of determining the owner.

2-27

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

2-28

established pursuant to section 33-21.1-18.

2-29

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

2-30

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

2-31

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

2-32

or lender after termination or expiration of the loan; and

2-33

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

2-34

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

2-35

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

2-36

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

2-37

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

2-38

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

2-39

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

2-40

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

2-41

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

2-42

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

2-43

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

2-44

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

2-45

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

2-46

subsection shall be deemed donated to the museum.

2-47

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

2-48

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

2-49

agent, of the designated agent’s address, and of the name of the new owner or lender if there is a

2-50

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

2-51

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

2-52

writing of the provisions of this chapter.

2-53

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

2-54

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

3-1

if:

3-2

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

3-3

unclaimed property for at least five (5) years;

3-4

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

3-5

and

3-6

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

3-7

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

3-8

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

3-9

such museum.

3-10

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

3-11

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

3-12

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

3-13

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

3-14

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

3-15

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

3-16

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

3-17

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

3-18

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

3-19

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

3-20

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

3-21

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

3-22

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

3-23

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

3-24

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

3-25

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

3-26

museum.

3-27

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

3-28

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

3-29

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

3-30

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

3-31

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

3-32

included in the notice:

3-33

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

3-34

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

4-1

the custody of the museum;

4-2

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

4-3

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

4-4

lender provide written notice to the museum;

4-5

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

4-6

regarding the property; and

4-7

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

4-8

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

4-9

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

4-10

become the property of the museum.

4-11

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

4-12

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

4-13

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

4-14

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

4-15

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

4-16

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

4-17

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

4-18

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

4-19

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

4-20

arrangements.

4-21

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

4-22

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

4-23

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

4-24

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

4-25

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

4-26

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

4-27

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

4-28

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

4-29

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

4-30

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

4-31

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

4-32

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

4-33

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

4-34

agreed to alternate arrangements.

5-1

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

5-2

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

5-3

title to the property shall vest in the museum.

5-4

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

5-5

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

5-6

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

5-7

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

5-8

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

5-9

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

5-10

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

5-11

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

5-12

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

5-13

staff, and if one of the following applies:

5-14

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

5-15

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

5-16

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

5-17

     (2) The museum is unable to contact the lender at the address on record for the lender

5-18

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

5-19

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

5-20

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

5-21

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

5-22

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

5-23

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

5-24

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

5-25

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

5-26

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

5-27

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

5-28

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

5-29

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

5-30

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

5-31

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

5-32

conservation and protective measures.

5-33

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

6-34

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

6-35

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

6-36

been fulfilled;

6-37

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

6-38

perfecting title to property in the possession of the museum.

6-39

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

6-40

the effective date of the chapter.

6-41

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

6-42

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

6-43

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

6-44

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

6-45

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

6-46

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

6-47

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

6-48

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

6-49

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

6-50

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

6-51

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

6-52

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

6-53

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

6-54

the report and entitled to notice within the state;

6-55

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

6-56

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

6-57

addressing an inquiry to the administrator; and

6-58

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

6-59

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

6-60

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

6-61

directed to the administrator.

6-62

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

6-63

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

6-64

subject to chapter 34-44.1.

6-65

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

6-66

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

6-67

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

7-68

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

7-69

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

7-70

museum;

7-71

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

7-72

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

7-73

lender provide written notice to the museum;

7-74

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

7-75

regarding the property; and

7-76

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

7-77

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

7-78

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

7-79

the property of the museum.

7-80

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

7-81

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

7-82

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

7-83

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

7-84

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

7-85

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

7-86

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

7-87

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

7-88

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

7-89

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

7-90

(c).

7-91

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

7-92

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

7-93

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

7-94

property publication.

7-95

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

7-96

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

7-97

     SECTION 3. This act shall take effect upon passage.

=======

LC01645

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PROPERTY -- THE RHODE ISLAND MUSEUM PROPERTY ACT

***

8-1

     This act would create a procedure for museums to resolve ownership of unclaimed

8-2

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

8-3

     This act would take effect upon passage.

=======

LC01645

=======