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Key: (1) language to be deleted (2) new language

                            CHAPTER 213-H.F.No. 1645 
                  An act relating to museums and archives repositories; 
                  regulating loans to and abandoned property of museums 
                  and archives repositories; providing a process for 
                  establishing ownership of property loaned to museums 
                  and archives repositories; proposing coding for new 
                  law in Minnesota Statutes, chapter 345. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [345.70] [MINNESOTA MUSEUM PROPERTY ACT.] 
           Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
        the terms defined in this subdivision have the meanings given 
        them. 
           (b) "Archives repository" means a nonprofit organization or 
        a public agency whose primary functions include selecting, 
        preserving, and making available records of historical or 
        enduring value, and that is open to the public on a regular 
        basis.  Archives repository does not include a public library. 
           (c) "Loan" means the placement of property with a museum or 
        archives repository that is not accompanied by a transfer of 
        title of the property to the museum or archives repository and 
        for which there is some record that the owner intended to retain 
        title to the property.  Loan does not include transfers between 
        museums, between archives repositories, or between museums and 
        archives repositories unless the transferring institution 
        specifically provides in writing that the transfer is a loan 
        under this section. 
           (d) "Museum" means a nonprofit organization or a public 
        agency that is operated primarily for the purpose of collecting, 
        cataloging, preserving, or exhibiting property of educational, 
        scientific, historic, cultural, or aesthetic interest and that 
        is open to the public on a regular basis.  Museum does not 
        include a public library. 
           (e) "Property" means personal property. 
           Sec. 2.  [345.71] [LOANS OF PROPERTY TO A MUSEUM OR 
        ARCHIVES REPOSITORY.] 
           Subdivision 1.  [OWNERSHIP RECORDS.] Each museum or 
        archives repository shall keep accurate records of all property 
        on loan to the museum or archives repository, including the name 
        and address of the owner, if known, and the beginning and ending 
        date of the loan period.  At the time that a person makes a loan 
        to a museum or archives repository, the museum or archives 
        repository shall give the owner of the property a copy of this 
        section.  If a museum or archives repository is notified of a 
        change in the ownership of any property loaned to a museum or 
        archives repository, the museum or archives repository shall 
        inform the new owner of the provisions of the loan agreement and 
        shall send the new owner a copy of this section.  Not less than 
        90 days before a museum or archives repository changes its 
        address or dissolves, the museum or archives repository shall 
        notify all owners of that change of address or dissolution.  If 
        a museum or archives repository becomes the owner of property 
        under section 345.72 or 345.73, the museum or archives 
        repository shall maintain any records that the museum or 
        archives repository has regarding the property for not less than 
        two years after the date on which the museum or archives 
        repository becomes the owner of the property. 
           Subd. 2.  [CHANGE IN ADDRESS OR OWNERSHIP.] The owner of 
        property loaned to a museum or archives repository shall provide 
        the museum or archives repository with written notice of any 
        change of the owner's address, of the owner's designated agent, 
        of the designated agent's address, and of the name and address 
        of the new owner if there is a change in the ownership of the 
        property loaned to the museum or archives repository. 
           Sec. 3.  [345.72] ACQUIRING TITLE TO ABANDONED PROPERTY.] 
           Subdivision 1.  [ACQUISITION.] Property loaned to a museum 
        or archives repository whose loan has an expiration date is 
        abandoned when there has not been written contact between the 
        owner and the museum or archives repository for at least seven 
        years after that expiration date.  If the loan has no expiration 
        date, the property is abandoned when there has not been written 
        contact between the owner and the museum or archives repository 
        for at least seven years after the museum or archives repository 
        took possession of the property. 
           Subd. 2.  [NOTICE.] (a) If a museum or archives repository 
        wishes to acquire title to abandoned property, the museum or 
        archives repository shall, not less than 60 days after property 
        is abandoned under subdivision 1, send a notice by certified 
        mail with return receipt requested to the owner's last known 
        address.  The notice shall contain all of the following: 
           (1) a statement that the loan is terminated and that the 
        property is abandoned; 
           (2) a description of the property; 
           (3) a statement that the museum or archives repository will 
        become the owner of the property if the present owner does not 
        submit a written claim to the property to the museum or archives 
        repository within 60 days after receipt of the notice; and 
           (4) a statement that the museum or archives repository will 
        make arrangements with the owner to return the property to the 
        owner or dispose of the property as the owner requests if the 
        owner submits a written claim to the property to the museum or 
        archives repository within 60 days after receipt of the notice. 
           (b) The notice in paragraph (a) shall be substantially in 
        the following form: 
                      NOTICE OF ABANDONMENT OF PROPERTY
                          To:.....  (name of owner)
                             ......  (address of owner)
           Please be advised that the loan agreement is terminated for 
        the following property (describe the property in sufficient 
        detail to identify the property): 
           ............................ 
           ............................ 
           The above described property that you loaned to .... (name 
        and address of museum or archives repository) will be considered 
        abandoned by you and will become the property of ..... (name of 
        museum or archives repository) if you fail to submit to the 
        museum or archives repository a written claim to the property 
        within 60 days after receipt of this notice. 
           If you do submit a written claim to the property within 60 
        days after receipt of this notice, ..... (name of museum or 
        archives repository) will arrange to return the property to you 
        or dispose of the property as you request.  The cost of 
        returning the property to you or disposing of the property is 
        your responsibility unless you have made other arrangements with 
        the museum or archives repository. 
                               .....
                               (name of person to contact at
                               museum or archives repository
                               and address of museum or
                               archives repository)
           Subd. 3.  [PUBLICATION.] If the notice sent by the museum 
        or archives repository under subdivision 2 is returned to the 
        museum or archives repository undelivered, the museum or 
        archives repository shall give notice of the abandoned property 
        by publication, and the organization's Web site, if applicable, 
        containing the following: 
           (1) the name and last known address of the present owner; 
           (2) a description of the property; 
           (3) a statement that the property is abandoned and that the 
        museum or archives repository will become the owner of the 
        property if no person can prove their ownership of the property; 
           (4) a statement that a person claiming ownership of the 
        property shall notify the museum or archives repository in 
        writing of that claim within 60 days after publication of the 
        last legal notice; and 
           (5) the name and mailing address of the person who may be 
        contacted at the museum or archives repository if a person wants 
        to submit a written claim to the property. 
           Subd. 4.  [CLAIMS FOR THE PROPERTY.] (a) If the museum or 
        archives repository receives a timely written claim for the 
        property from the owner or the owner's agent in response to the 
        notice sent under subdivision 2 or 3, the museum or archives 
        repository shall return the property to the owner or dispose of 
        the property as the owner requests.  The owner shall advise the 
        museum or archives repository in writing as to how the property 
        shall be disposed of or returned to the owner.  Costs of 
        returning the property or disposing of the property shall be the 
        responsibility of the owner unless the owner and the museum or 
        archives repository have made other arrangements. 
           (b) If the museum or archives repository receives a timely 
        written claim for the property from a person other than the 
        person who loaned the property to the museum or archives 
        repository in response to the notice sent under subdivision 2 or 
        3, the museum or archives repository shall, within 60 days after 
        receipt of the written claim, determine if the claim is valid.  
        A claimant shall submit proof of ownership with the claim.  If 
        more than one person submits a timely written claim, the museum 
        or archives repository may delay its determination of ownership 
        until the competing claims are resolved by agreement or legal 
        action.  If the museum or archives repository determines that 
        the claim is valid, or if the competing claims are resolved by 
        agreement or judicial action, the museum or archives repository 
        shall return the property to the claimant submitting the valid 
        claim or dispose of the property as the valid claimant 
        requests.  Costs of returning the property or disposing of the 
        property shall be the responsibility of the valid claimant. 
           (c) If the museum or archives repository does not receive a 
        timely written claim to the property or if the museum or 
        archives repository determines that no valid timely claim to the 
        property was submitted, the museum or archives repository 
        becomes the owner of the property.  The museum or archives 
        repository becomes the owner of the property on the day after 
        the period for submitting a written claim ends or on the day 
        after the museum or archives repository determines that no valid 
        timely written claim was submitted.  The museum or archives 
        repository owns the property free from all claims. 
           Sec. 4.  [345.73] [ACQUIRING TITLE TO UNDOCUMENTED 
        PROPERTY.] 
           Subdivision 1.  [ACQUISITION.] Property in the possession 
        of a museum or archives repository which the museum or archives 
        repository has reason to believe may be on loan and, for which 
        the museum or archives repository does not know the owner, or 
        have any reasonable means of determining the owner, becomes the 
        property of the museum or archives repository if no person has 
        claimed the property within seven years after the museum or 
        archives repository took possession of the property.  The museum 
        or archives repository becomes the owner of the property on the 
        day after the seven-year period ends, and after following the 
        notification process outlined in subdivision 2, free from all 
        claims. 
           Subd. 2.  [NOTIFICATION.] The museum or archives repository 
        that wishes to acquire title to undocumented property described 
        in subdivision 1 shall provide public notice in the manner 
        described in section 345.72. 
           Subd. 3.  [PRESUMPTION OF GIFT TO MUSEUM.] Effective August 
        1, 2004, property that:  (1) is found in or on property 
        controlled by the museum; (2) is from an unknown source; and (3) 
        might reasonably be assumed to have been intended as a gift to 
        the museum, is conclusively presumed to be a gift to the museum 
        if ownership of the property is not claimed by a person within 
        90 days of its discovery. 
           Sec. 5.  [345.74] [CONSERVATION OF MUSEUM PROPERTY.] 
           Subdivision 1.  [PROTECTION OF LOANED PROPERTY.] Unless 
        there is a written loan agreement to the contrary, a museum may 
        apply conservation measures to property on loan to the museum 
        without the lender's permission or formal notice if action is 
        required to protect the property on loan or other property in 
        the custody of the museum, or the property on loan is a hazard 
        to the health and safety of the public or the museum staff, and 
        either: 
           (1) the museum is unable to reach the lender at the 
        lender's last known address within three days before the time 
        the museum determines action is necessary; or 
           (2) the lender does not respond or will not agree to the 
        protective measures the museum recommends and does not terminate 
        the loan and retrieve the property within three days. 
           Subd. 2.  [LIEN.] If a museum applies conservation measures 
        to property under this section, or with the agreement of the 
        lender, unless the agreement provides otherwise, the museum 
        acquires a lien on the property in the amount of the costs 
        incurred by the museum. 
           Subd. 3.  [LIABILITY.] The museum is not liable for injury 
        to or loss of the property if the museum: 
           (1) had a reasonable belief at the time the action was 
        taken that the action was necessary to protect the property on 
        loan or other property in the custody of the museum, or that the 
        property on loan was a hazard to the health and safety of the 
        public or the museum staff; and 
           (2) exercised reasonable care in the choice and application 
        of conservation measures. 
           Sec. 6.  [TITLE.] 
           This act shall be known as "The Minnesota Museum Property 
        Act." 
           Presented to the governor May 15, 2004 
           Signed by the governor May 19, 2004, 9:45 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes