SF 119 (LSB 1151XS (4) 88)

SENATE FILE 119

BY  DAWSON

A BILL FOR

An Act relating to documentation of loans and gifts to museums and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 305B.2, Code 2019, is amended to read as follows:
   305B.2  Definitions.
   As used in this chapter, unless the context requires otherwise:
   1.  “Claimant” means a person who files a notice of intent to preserve an interest in property on loan to a museum as provided in section 305B.8.
   2.  “Claimant’s address” means the most recent address as shown on a notice of intent to preserve an interest in property on loan to a museum, or notice of change of address, which notice is on file with the museum.
   3.  “Donor” means a person who gives a gift to a museum.
   4.  “Gift” means a voluntary, gratuitous conveyance of property to a museum.
   3.  5.  “Lender” means a person who has temporarily transferred custody of property to a museum and whose name appears on the records of the museum or in the registry of museum loans and gifts as the person legally entitled to property held or owing by the museum.
   4.  6.  “Lender’s address” means the most recent address as shown on the a museum’s records, or in the registry of museum loans and gifts, pertaining to the property on loan from the lender.
   5.  7.  “Loan” or “loaned” means a deposit temporary transfer of custody of property that is not accompanied by a transfer of title to the property.
   6.  8.  “Museum” means an institution located in Iowa operated by a nonprofit corporation or a public agency, primarily for educational, scientific, historic preservation, or aesthetic purposes, which owns, borrows, cares for, exhibits, studies, archives, or catalogs property. “Museum” includes, but is not limited to, historical societies, historic sites or landmarks, parks, monuments, and libraries.
   7.  9.  “Property” means a tangible object, animate or inanimate, under a museum’s care which has intrinsic historic, artistic, scientific, or cultural value.
   10.  “Registry of museum loans and gifts” means a record of loans and gifts made to museums that is maintained by the state historical society pursuant to section 305B.2A, subsection 4.
   8.  11.  “Undocumented property” means property in the possession of a museum for which the museum cannot determine the property’s owner by reference to the museum’s records the property’s owner or to the registry of museum loans and gifts.
    Sec. 2.  NEW SECTION.  305B.2A  Documentation of gifts and loans.
   1.  A museum shall complete a gift form or a loan form, available from the state historical society, documenting each gift and loan made to the museum.
   2.  Each gift or loan form shall include all of the following:
   a.  The name of the donor or lender of the property.
   b.  The address, email address, and telephone number of the donor or lender.
   c.  A detailed description of the property being gifted or loaned.
   d.  The date of the gift or the loan.
   e.  If a loan, the duration of the loan.
   f.  Any terms or restrictions governing the gift or loan.
   g.  The name and work telephone number of the individual responsible for receiving the gift or loan on behalf of the museum.
   h.  The name, address, and main phone number of the museum receiving the gift or loan.
   i.  The physical address where the gift or loan will be housed if different than the address in paragraph “h”.
   3.  A copy of the completed form shall be submitted by the museum to the state historical society within thirty calendar days of the date of the loan or the gift to the museum.
   4.  The state historical society shall maintain such forms in a registry of museum loans and gifts. A gift form shall be maintained for twenty-five years from the date of such gift. A loan form shall be maintained for ten years after the date of any of the following:
   a.  The property is returned to the lender or claimant.
   b.  The property is disposed of pursuant to section 305B.4.
   c.  The museum acquires title to the property pursuant to section 305B.6 or 305B.7.
   5.  The director of the department of cultural affairs shall adopt rules pursuant to chapter 17A as necessary to administer this section.
    Sec. 3.  Section 305B.3, subsections 2 and 3, Code 2019, are amended to read as follows:
   2.  Mailed notice.  All notices given by a museum pursuant to this chapter shall be mailed to the lender’s, and any claimant’s, last known address by restricted certified mail, as defined in section 618.15.  The last known address shall be determined by a review of the museum’s records and the registry of museum loans and gifts. Notice is deemed given if the United States post offices provides the museum receives proof of receipt within thirty days of mailing the notice.
   3.  Published notice.  If the museum does not know the identity of the lender, or does not have an address for the lender, or if proof of receipt is not received by the museum from the United States post office within thirty days of mailing a notice under subsection 2, notice is deemed given if the museum publishes notice at least once a week for three consecutive weeks in a newspaper of general circulation in both of the following:
   a.  The county in which the museum is located.
   b.  The county of the lender’s or claimant’s address, if any.
    Sec. 4.  Section 305B.4, subsection 1, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   Unless there is a written loan agreement to the contrary, a museum may apply conservation measures to or dispose of property on loan to the museum without the lender’s or claimant’s permission, or and without formal notice to the lender or claimant, if immediate action is required to protect the property on loan or other property in the custody of the museum, or if the property on loan is determined to be a hazard to the health and safety of the public or the museum staff and if any of the following apply:
    Sec. 5.  Section 305B.4, subsection 1, paragraphs a and b, Code 2019, are amended to read as follows:
   a.  The museum is unable to reach the lender or claimant at the lender’s or claimant’s last known address or phone number, as determined by a review of the museum’s records and the registry of museum loans and gifts, if action is to be taken within more than three days but less than one week between four and six calendar days from the time the museum determined determines action was is necessary.
   b.  The museum is unable to reach the lender or claimant at the lender’s or claimant’s last known phone number, as determined by a review of the museum’s records and the registry of museum loans and gifts, prior to taking action if the action is to be taken within three days or less from the time the museum determined determines action was is necessary.
    Sec. 6.  Section 305B.4, subsection 2, paragraph a, Code 2019, is amended to read as follows:
   a.  Has a lien on the property and on the proceeds of any disposition of the property for the costs incurred by the museum for the conservation measures or the disposal of the property.
    Sec. 7.  Section 305B.4, subsection 2, paragraph b, subparagraph (2), Code 2019, is amended to read as follows:
   (2)  Exercised reasonable care in the choice selection and application of conservation measures.
    Sec. 8.  Section 305B.5, Code 2019, is amended to read as follows:
   305B.5  Notice of injury damage or loss.
   A museum shall give a lender or claimant prompt notice of any known injury damage to or loss of property on loan. The on a notice of damage or loss form adopted by the department of cultural affairs shall adopt by rule a form for notice of injury or loss, no later than January 1, 1989, and shall distribute the rule and form to all identified museums in Iowa within sixty days after adoption of the rule. The notice shall be mailed to the lender’s or claimant’s last known address in event of injury or loss of property on loan to the museum as determined by a review of the museum’s records and the registry of museum loans and gifts. Published notice of injury damage or loss of undocumented property shall not be required.
    Sec. 9.  Section 305B.6, subsections 2 and 3, Code 2019, are amended to read as follows:
   2.  If the lender or claimant does not respond to the notice of termination provided under subsection 1 within one year by filing a notice of intent to preserve an interest in property on loan, the museum acquires shall acquire title to the property.
   3.  A notice of intent to terminate a loan must include a statement containing substantially the following information:
  The records of (name of museum) indicate that you have property on loan to it. The institution wishes to terminate the loan. You must contact the institution, establish your ownership of the property pursuant to Code section 305B.8, and make arrangements to collect the property. If you fail to do so promptly, you will be considered to have donated the property will be considered a gift to the institution.
    Sec. 10.  Section 305B.7, subsections 1 and 3, Code 2019, are amended to read as follows:
   1.  A museum may acquire title to undocumented property held by a museum for seven years or longer with no valid claim or written contact by any person, all verifiable as verified through the museum’s written records, by giving published notice pursuant to section 305B.3, subsection 3, of acquisition of intent to acquire title to undocumented property.
   3.  A notice of acquisition of intent to acquire title to undocumented property must include a statement containing substantially the following information:
  The records of (name of museum) fail to indicate the owner of record of certain property in its possession. The museum intends to acquire title to the below described property:  (general description of the property detailed enough to allow a party to identify the property). If you claim ownership or other legal interest in this property you must contact the institution, establish your ownership of the property pursuant to Code section 305B.8, and make arrangements to collect the property. If you fail to do so promptly, you will be considered to have waived any claim you may have had to the property.
    Sec. 11.  Section 305B.8, subsection 1, Code 2019, is amended to read as follows:
   1.  A notice of intent to preserve an interest in property on loan to a museum filed pursuant to this chapter shall be in writing, or on a form available from the department of cultural affairs pursuant to subsection 3, and contain all of the following information:
   a.  A description of the property adequate to enable the museum to identify the property.
   b.  Documentation sufficient to establish the claimant as owner of the property.
   c.  The claimant’s address and phone number.
   c.  d.  A statement attesting to the truth, to the best of the signer’s knowledge, of all information included in or with the notice.
   d.  e.  The signature, under penalty of perjury, of the claimant or a person authorized to act on behalf of the claimant.
    Sec. 12.  Section 305B.9, subsections 1, 6, and 7, Code 2019, are amended to read as follows:
   1.  An action shall not be brought against a museum for damages because of injury damage to or loss of property loaned to the museum more than three years from the date the museum gives the lender or claimant notice of the injury damage or loss, or ten years from the date of the injury damage or loss, whichever occurs earlier.
   6.  Notwithstanding subsections 3 and 4, a lender or claimant who was is not given notice as provided in this chapter that the a museum intended intends to terminate a loan, as provided in pursuant to section 305B.6, and who proves that the museum received an adequate notice of intent to preserve an interest in loaned property, which satisfies all of the requirements of pursuant to section 305B.8, within the seven years immediately preceding the filing of an action to recover the property, may recover the property or, if the property has been disposed of, recover the reasonable value of the property at the time it was disposed of plus interest at the legal rate.
   7.  A museum is not liable at any time immune from civil liability, in the absence of a court order, for returning property to the original lender, even if a claimant other than the lender has filed a notice of intent to preserve an interest in property. If persons claim competing interests in property in the possession of a museum, the burden is upon the claimants a claimant to prove their the claimant’s interest in an action in equity initiated by a claimant. A museum is not liable at any time immune from civil liability for returning property to an uncontested claimant who produced reasonable proof of ownership pursuant to section 305B.8.
    Sec. 13.  Section 305B.10, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   In order to take title to property pursuant to this chapter a museum has the following obligations to a lender or claimant:
    Sec. 14.  Section 305B.10, subsection 3, Code 2019, is amended to read as follows:
   3.  A museum accepting a loan of property on or after January 1, 1989, shall inform the lender in writing at the time of the loan of the provisions of this chapter. A copy of the form for notice prescribed in of intent to preserve an interest in property pursuant to section 305B.8, or a citation to this chapter, is adequate for this purpose.
    Sec. 15.  Section 305B.11, subsection 1, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   On or after January 1, 1989, a A museum shall at minimum maintain and retain the following records, either originals or accurate copies, for a period of not less than twenty-five years:
    Sec. 16.  Section 305B.11, subsection 1, paragraphs b and c, Code 2019, are amended to read as follows:
   b.  The A loan agreement, if any, and a receipt or ledger for property on loan.
   c.  A receipt or ledger for property delivered returned to an owner or claimant.
    Sec. 17.  Section 305B.12, subsection 1, Code 2019, is amended to read as follows:
   1.  The lender or claimant of property on loan to a museum shall notify the museum of a change of address or change in ownership of the property.  Within thirty calendar days of receipt, the museum shall submit a copy of such notice to the state historical society. The state historical society shall file the notice with the corresponding loan form on file in the registry of museum loans and gifts. Failure to notify the museum of these changes may result in the lender’s or claimant’s loss of rights in the property.
    Sec. 18.  Section 305B.13, subsection 1, Code 2019, is amended to read as follows:
   1.  Sections 305B.1, 305B.2, and 305B.3 through 305B.8 are retroactively applicable to all property in the possession of a museum within the state on or after January 1, 1988.
    Sec. 19.  APPLICABILITY.  The following applies to all gifts and loans to a museum on or after July 1, 2019: 
   The section of this Act enacting section 305B.2A.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to documentation of loans and gifts to museums.
   The bill requires a museum to fill out a gift form or a loan form, available from the state historical society, documenting each gift and loan made to the museum. The form is required to include the name, address, email address, and phone number of the lender or donor, a detailed description of and the date of the loan or gift, the duration of a loan, any terms governing the gift or loan, the name and phone number of the individual receiving the gift or loan on behalf of the museum, the name, address, and phone number of the museum receiving the gift or loan, and the physical address where the gift or loan will be housed. “Donor” and “gift” are defined in the bill.
   The bill requires the museum to submit a copy of the completed form to the state historical society. The historical society must maintain all of the forms in a registry of museum loans and gifts. A gift form must be maintained for 25 years from the date of the gift. A loan form must be maintained for 10 years after the date the property is returned to the lender or claimant, or the property is disposed of, or the museum acquires title to the property due to termination of a loan or certain circumstances where a legal owner of the property cannot be identified. The director of the department of cultural affairs shall adopt rules to administer the forms and the registry of museum loans and gifts.
   If a lender or claimant of property on loan to a museum notifies the museum of a change of address, or a change in ownership of the property, the bill requires the museum to submit a copy of the notice to the historical society. The historical society must file the notice with the corresponding loan form on file in the registry of museum loans and gifts.
   The bill provides that a museum must check its records, as well as the registry of museum loans and gifts, prior to declaring property undocumented, or providing any notice required pursuant to Code chapter 305B. “Undocumented property” is defined in the bill as property in the possession of a museum for which the museum cannot determine the property’s owner. 
   The section of the bill enacting new Code section 305B.2A is applicable to all gifts and loans to a museum on or after July 1, 2019.