Chapter 160
2013 -- S 0676 AS AMENDED
Enacted 07/11/13
A N A C T
RELATING TO
PROPERTY -- THE
Introduced By: Senators Paiva Weed, Goldin, Goodwin, Felag, and DiPalma
Date Introduced: March 06, 2013
It is enacted by the
General Assembly as follows:
SECTION 1. Title 34 of the General Laws entitled
"PROPERTY" is hereby amended by
adding thereto the following chapter:
CHAPTER
44.1
THE
34-44.1-1.
Definitions. -- As used in this chapter, the
following words and terms shall
have the following meanings, unless the context indicates
another or different meaning or intent:
(1)
"Museum" means an organized and permanent nonprofit or public
institution in
Rhode Island operated by, or a division of, of
nonprofit corporation, trust, association,
educational institution or public agency, which is primarily
educational, scientific, historic or
aesthetic in purpose, and which owns, borrows, cares for, studies,
archives or exhibits property.
Museums may include, but not be limited to, historical
societies, parks, historic sites and
monuments, archives and libraries;
(2)
"Property" means any tangible object in the possession of and under a
museum's care
that has intrinsic educational, scientific, historical,
artistic, aesthetic or cultural value;
(3) "Loan"
or “loaned” means a deposit with a museum that: (i)
Title to the property is
not transferred to the museum, (ii) The loan agreement
for such deposit does not include a
provision that the museum acquire title at some time after such
deposit is made; or (iii) The loan
agreement for such deposit includes an option for the museum to
acquire title at some time after
such deposit is made;
(4)
"Lender" means a person (an individual, association, partnership,
corporation, trust,
estate, or other entity) whose name appears on the records
of a museum as the person legally
entitled to, or claiming to be legally entitled to, property held
by the museum or, if such person is
deceased, the legal heirs of such person.
(5) “Undocumented
property” means property under a museum’s care whose ownership
cannot be determined by reference to the museum’s records,
and for which the museum does not
have a reasonable means of determining the owner.
(6) “Publication”
means inclusion in the online publication of lists of abandoned property
established pursuant to section 33-21.1-18.
34-44.1-2. Property
held subject to a loan agreement. -- (a) Any
property on loan to a
museum that is subject to a loan agreement shall be deemed
to be donated to the museum if:
(1) No claim of
ownership is made or action filed to recover such property by the owner
or lender after termination or expiration of the loan;
and
(2) The museum has
given notice, in accordance with the provisions of section 34-44.1-5
of this chapter, and no claim of ownership is made or
action to recover such property is filed on
or before sixty (60) days after the publication of the
notice.
(b) A museum may
terminate a loan of property for any property that was loaned to the
museum for an indefinite term if the property has been in
the possession of the museum for at
least five (5) years. Any property on loan to a museum and
whose loan agreement indicates that
such property is on permanent loan to the museum shall be
considered loaned for an indefinite
term for purposes of this subsection. The property for any
loan of property that has been
terminated pursuant to this subsection shall be deemed donated
to the museum.
(c) A museum may
terminate a loan of property for any property that was loaned to the
museum for a specified term after the expiration of such
specified term, provided the museum
provides notice of such termination in accordance with the
provisions of section 34-44.1-5 of this
chapter. The property for any loan of property that has been
terminated pursuant to this
subsection shall be deemed donated to the museum.
(d) It shall be the
responsibility of the lender of property loaned to a museum to provide
the museum with written notice of any change of the
lender’s address, of the lender’s designated
agent, of the designated agent’s address, and of the name
of the new owner or lender if there is a
change in the ownership of the property loaned to the
museum.
(e) A museum
accepting a loan of property shall inform the lender of such property in
writing of the provisions of this chapter.
34-44.1-3.
Property held without a loan agreement. -- (a) Any
property in the
possession of a museum that is not subject to a loan agreement
shall be deemed to be abandoned
if:
(1) The property is unclaimed
and has been in the possession of the museum as
unclaimed property for at least five (5) years;
(2) The museum has
given notice, in accordance with the provisions of section 34-44.1-5;
and
(3) No claim of
ownership is made or action to recover such property is filed on or before
sixty (60) days after the publication of the notice.
(b) Any abandoned
property in the possession of a museum shall become the property of
such museum.
34-44.1-4.
Maintenance of records. -- On or after the
effective date of this chapter, each
museum shall maintain a record of all property on loan to
the museum which shall include, if
known, the name and address of the lender and the dates
that the property is to be on loan to the
museum and a copy of the loan agreement for the property.
The museum shall provide a copy of
the record and the loan agreement to the lender of
property at the time that the lender makes the
loan of property to the museum. If a museum is notified of
a change in ownership of any property
on loan to the museum, the museum shall create a new
record for the property and update the
existing loan agreement and shall provide a written copy of
the new record and the updated loan
agreement to the new owner of the property. A museum shall
retain all written records regarding
property acquired under this chapter for at least ten (10)
years from the date that the museum
acquired title to the property or until dissolution of the
museum, whichever occurs first.
34-44.1-5.
Notice requirements. -- (a) Prior to a museum
accepting donated property
pursuant to section 34-44.1-2, or taking ownership of
abandoned property pursuant to section 34-
44.1-3, the museum shall make a reasonable good faith
effort to find the address of the lender and
provide notice that the museum may become the owner of the
property. The notice shall be sent
by certified mail, return receipt requested, to the
address of the lender on record with the
museum.
(b) If the museum does
not have an address on record for the lender of the property, or
the museum does not receive written proof of receipt of
the mailed notice within thirty (30) days
after the date the notice was mailed, notice shall be
published for a duration of six (6) months in
the lists of abandoned property advertised by the general
treasurer as prescribed in section 33-
21.1-18. The museum shall
provide to the general treasurer the following information to be
included in the notice:
(1) The name and
address of the museum and a brief and general description of the
unclaimed property, including date of the property or the
approximate date the property came into
the custody of the museum;
(2) If known, the
name and address of the lender on record with the museum, if any;
(3) A request that
all persons who may have any knowledge of the whereabouts of the
lender provide written notice to the museum;
(4) The name and
contact information of the person at the museum to be contacted
regarding the property; and
(5) A statement that
if no claim of ownership is made or action to recover the property is
filed with the museum on or before sixty (60) days from the
last day that the notice is included in
the unclaimed property publication, the property shall be
deemed donated or abandoned and shall
become the property of the museum.
34-44.1-6.
Property vested in museum. -- (a) If a
museum receives a timely written
claim of ownership for any property for which notice of
donation or abandonment was made,
pursuant to section 34-44.1-5, from the lender on record with
the museum, or the designated
agent of such lender, the museum shall return the property
to the lender or carry out the
disposition of such property as the lender requests not later
than sixty (60) days after receipt of
such written claim of ownership, provided the lender shall
advise the museum in writing as to the
disposition of such property or how such property is to be
returned to the lender. Any costs
incurred as a result of returning such property or the
disposition of such property shall be the
responsibility of the lender unless the lender and the museum have
mutually agreed to alternate
arrangements.
(b) If a museum receives
a written claim of ownership for any property for which notice
of donation or abandonment was made, pursuant to section
34-44.1-5, from a person other than
the lender on record with the museum, the museum shall,
not later than sixty (60) days after
receipt of such written claim of ownership, determine if such
ownership claim is valid. A
claimant shall submit proof of ownership to the museum with
such written claim of ownership. If
more than one person submits a written claim of ownership,
the museum may delay its
determination of ownership until the competing claims are resolved
by agreement or legal action.
A museum shall not be obligated to initiate legal
action to resolve competing claims. If the
museum determines that the written claim of ownership is
valid or if the competing claims are
resolved by agreement or judicial action, the museum shall
return the property to the claimant
submitting the valid claim of ownership or dispose of the
property as the valid claimant requests.
Any costs incurred as a result of returning the
property or the disposition of the property shall be
the responsibility of the valid claimant unless the valid
claimant and the museum have mutually
agreed to alternate arrangements.
(c) If no written
claim of ownership is presented to the museum on or before sixty (60)
days after the publication of the notice, the property
shall be deemed donated or abandoned and
title to the property shall vest in the museum.
(d) Any person who
purchases or otherwise acquires property from a museum that
obtained the property by donation or abandonment pursuant to
this section and sections 34-44.1-2
and 34-44.1-3, shall acquire good title to such property.
34-44.1-7.
Application of conservation measures to property on loan to a museum. --
(a) Unless a written loan agreement provides
otherwise, a museum may apply conservation or
protective measures to, or dispose of, undocumented property or
property on loan to the museum
without the lender’s or claimant’s permission or formal
notice if immediate action is required to
protect the property on loan or other property in the custody
of the museum, or because the
property on loan has become a hazard to the health and safety
of the public or to the museum’s
staff, and if one of the following applies:
(1) The property
poses an immediate risk of harm to the museum’s staff or collection or
to the general public, in which case the museum may
dispose of the property without delay and
shall notify the lender or claimant of the action taken
within thirty (30) days; or
(2) The museum is
unable to contact the lender at the address on record for the lender
within three (3) days before the time the museum determines
action is necessary; or
(3) The lender does
not: (i) Respond or agree to the conservation or
protective measures
recommended by the museum; and (ii) Does not or is unable to
terminate the loan and take
possession of such property within the time the museum
determines that action is necessary.
(b) If a museum
applies conservation or protective measures to any property on loan to
the museum under this section, unless the written loan
agreement for the property provides
otherwise, the museum shall acquire a lien on the property in
an amount equal to the costs
incurred by the museum for any conservation or protective
measures taken.
(c) The museum shall
not be liable for injury to or loss of any property that was on loan
to the museum and for which conservation or protective
measures were taken under this section,
if the museum: (1) Had a reasonable belief at the time
the conservation or protective measures
were taken that such measures were necessary to protect
the property or other property in the
possession of the museum, or that the property was a hazard to
the health and safety of the public
or museum staff, and (2) Exercised reasonable care in
the choice and application of the
conservation and protective measures.
34-44.1-8.
Scope. -- (a) The provisions
of this chapter shall:
(1) Not be construed
to abrogate the rights and obligations of a lender, claimant or
museum identified in a written loan agreement, unless the
requirements of section 34-44.1-2 have
been fulfilled;
(2) Not preclude a
museum from availing itself of any other means of establishing or
perfecting title to property in the possession of the museum.
(b) This chapter
applies to all property held by or in the custody of a museum on or after
the effective date of the chapter.
SECTION 2. Section 33-21.1-18 of the General Law in Chapter
31-21.1 entitled
"Unclaimed Intangible
and Tangible Property" is hereby amended to read as follows:
33-21.1-18. Notice and publication of lists of abandoned
property. -- (a) The
administrator shall place an advertisement, twice a year, one not
later than March 1 and one not
later than October 15, at least once a week for two (2)
consecutive weeks in a newspaper or
combination of newspapers of general circulation that reach each
county in the state. The
advertisement shall: (1) Not exceed one quarter (1/4) of a
newspaper page; and (2) List a phone
number citizens can call to request a written copy of the
unclaimed property publication; and (3)
List a website that provides the information contained
in the unclaimed property publication. The
unclaimed property publication shall consist of two (2) parts.
(b) Part
one of The the
unclaimed property publication must be entitled "Names of
Persons Appearing to be Owners of Abandoned
Property" and contain:
(1)
The names in alphabetical order and last known address, if any, of persons
listed in
the report and entitled to notice within the state;
(2) A
statement that information concerning the property and the name and last known
address of the holder may be obtained by any person
possessing an interest in the property by
addressing an inquiry to the administrator; and
(3) A
statement that if proof of claim is not presented by the owner to the holder
and
the owner's right to receive the property is not
established to the holder's satisfaction the property
will be placed in the custody of the administrator and all
further claims must thereafter be
directed to the administrator.
(4) This section is
not applicable to sums payable on travelers checks,
money orders,
and other written instruments presumed abandoned under
section 33-21.1-4 or museum property
subject to chapter 34-44.1.
(c)(1) Part two (2)
of the unclaimed property publication must be entitled "Names of
Persons Appearing to be Owners of
information that a museum, as defined in chapter 34-44.1, has
provided to the administrator:
(i)
The name and address of the museum and brief and general description of the
unclaimed property, including the approximate date the property
came into the custody of the
museum;
(ii) If known, the
name and address of the lender on record with the museum;
(iii) A request that
all persons who may have any knowledge of the whereabouts of the
lender provide written notice to the museum;
(iv)
The name, and contact information of the person at the museum to
be contacted
regarding the property; and
(v) Language
providing that if a written assertion of title is not presented by the lender
to
the museum within sixty (60) days from the last day that
the notice is included in the unclaimed
property publication, the property shall be considered
abandoned and donated and shall become
the property of the museum.
(2) After notice has
been posted in part two (2) of the unclaimed property publication for
six (6) months, the administrator shall provide in
writing to each museum confirmation of the
dates that the properties were included in the unclaimed
property publication.
(3) The administrator
shall have the authority to establish procedures to implement the
provisions of this subsection (c); provided however, that at no
time shall any property be placed
in the custody of the administrator and provided further
that the administrator shall have no
authority to determine any claim of ownership. All claims shall
be directed to the museum that
has custody of the property and any claim of ownership
shall be determined in accordance with
the provisions of chapter 34-44.1. The administrator, and
the administrator’s employees and
agents, shall not be liable for any actions taken in
carrying out the requirements of this subsection
(c).
(c) (d) The administrator is not required to publish in the
unclaimed property publication
any items of less than fifty dollars ($50.00) unless the
administrator considers their publication to
be in the public interest or a museum's requests that
an item be published in the unclaimed
property publication.
(d) This section is
not applicable to sums payable on travelers checks, money orders, and
other written instruments presumed abandoned under §
33-21.1-4.
SECTION 3. This act shall take effect upon passage.
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LC01645
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