04/12/2000 01:35 PM Senate HES

         HB 218-MUSEUM ACQUISITION OF UNCLAIMED PROPERTY                                                                    
                                                                                                                                
MR. KEVIN  HAND, legislative  assistant to Representative  Halcro,                                                              
sponsor  of  HB  218,  made  the  following  comments  about  CSHB
(FIN).   Alaska's  museums contain  many artifacts  in need  of                                                              
special  care that  were loaned  by owners  who are  no longer  in                                                              
contact  with  the museums.    Often  lenders  pass away  or  move                                                              
without maintaining  notice to the museum, or  no documentation as                                                              
to  the origin  of some  of  the artifacts  exists.   This  leaves                                                              
museums in  a difficult position  since, without contact  with the                                                              
lender  or defined ownership  by  the museum,  it is difficult  to                                                              
properly  care for  the artifacts  while simultaneously  incurring                                                              
the cost  for storage of the  items.  Some items  have degenerated                                                              
to the point where it is best to  dispose of that property to make                                                              
room for  more valuable  artifacts.   Contamination, insects,  and                                                              
fungi are  often culprits in providing  a serious threat  to other                                                              
artifacts.   Without  ownership or  permission  from the  lenders,                                                              
museums must  care for the artifacts  without the authority  to do                                                              
so.   CSHB 218(FIN)  establishes a  process through which  museums                                                              
can  clarify title  on  unclaimed  property.   The  process is  as                                                              
follows:  at  least 7 years must pass between  the expiration date                                                              
of the  loan with no  contact between  the lender and  the museum;                                                              
the museum  must send a notice  by certified mail to  the lender's                                                              
last known  address; if, after 30  days, no one has  contacted the                                                              
museum,  the museum  must publish  a notice  for four  weeks in  a                                                              
general circulation  newspaper in  the area of  the museum  and in                                                              
the area of  the last known address  of the lender; and,  after 45                                                              
days, the museum may claim title to the property.                                                                               
                                                                                                                                
                                                                                                                                
MR. HAND  stated CSHB  218(FIN) satisfies  more than a  reasonable                                                              
effort  on  behalf  of the  museum  to  contact  missing  property                                                              
owners.   The lender  would still  have legal  recourse through  a                                                              
reclamation period of  two years.  Museums must  notify lenders of                                                              
any  change of  the  location of  the museum  and  they must  also                                                              
notify  all new  lenders of  the  process.   The museum  community                                                              
requested and  strongly supports this  bill and there is  no known                                                              
opposition to it.                                                                                                               
                                                                                                                                
                                                                                                                                
Number 326                                                                                                                      
                                                                                                                                
SENATOR ELTON  asked if  museums will  incur any liability  during                                                              
the two year reclamation period.                                                                                                
                                                                                                                                
MR. HAND  replied when  the museum takes  ownership, it  will have                                                              
title,  therefore  during the  two-year  window  the museum  would                                                              
incur no liability.                                                                                                             
                                                                                                                                
MS. BEA SHEPARD,  a representative of Museums  Alaska, a statewide                                                              
organization  of  museums,  stated   support  for  CSHB  218(FIN).                                                              
Museums Alaska has  been trying for a number of years  to get this                                                              
legislation introduced  because the  museums are unable  to handle                                                              
the abandoned  collections  they have  on hand.   The museums  are                                                              
unable to  do anything with  the collections  if they do  not have                                                              
title  to the  items.   CSHB 218(FIN)  will  provide an  excellent                                                              
method of handling abandoned items.                                                                                             
                                                                                                                                
MR. JOE LEAHY,  the Executive Director of the  Huna Totem Heritage                                                              
Foundation, informed committee members  the Foundation is planning                                                              
to build a new  cultural heritage center facility.   As the former                                                              
director  of the  Last  Chance Mining  Museum  in  Juneau and  the                                                              
Valdez  Museum's  historical  archive  program,  he  knows  it  is                                                              
extremely difficult for museums to  manage their limited resources                                                              
while being burdened  with excess property they have  no title to.                                                              
He believes CSHB 218(FIN) is an excellent piece of legislation.                                                                 
                                                                                                                                
MS. DONNA  MATTHEWS, Executive Director  of Museums  Alaska, which                                                              
represents 70  small and  three large museums  in the  State, said                                                              
she is very eager to see this legislation  enacted to help museums                                                              
clarify what to do with abandoned property.                                                                                     
                                                                                                                                
There  being  no  further  testimony,  SENATOR  ELTON  moved  CSHB
(FIN) from  committee with  individual recommendations  and its                                                              
attached zero  fiscal note.   There  being no objection,  CHAIRMAN                                                              
MILLER announced CSHB 218(FIN) moved from committee.