SB 98 — An Act providing for museum unclaimed loaned property.

PRINTER'S NO.   53

                    THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 98
                                                Session of
                                                  2025

     INTRODUCED BY PHILLIPS-HILL, FONTANA AND STEFANO,
        JANUARY 22, 2025

     REFERRED TO STATE GOVERNMENT, JANUARY 22, 2025


                                      AN ACT
 1   Providing for museum unclaimed loaned property.
 2                              TABLE OF CONTENTS
 3   Section 1.    Short title.
 4   Section 2.    Legislative findings.
 5   Section 3.    Purpose of act.
 6   Section 4.    Definitions.
 7   Section 5.    Museum obligations to lenders.
 8   Section 6.    Lender obligations to museums.
 9   Section 7.    Liability.
10   Section 8.    Termination of loans for unclaimed loaned property.
11   Section 9.    Return or disposition of unclaimed loaned property.
12   Section 10.    Title to unclaimed loaned property.
13   Section 11.    Contractual obligations.
14   Section 12.    Effect on other rights.
15   Section 13.    Title to property acquired from museum.
16   Section 14.    Expenses and conservation or protective measures.
17   Section 15.    Effective date.
 1      The General Assembly of the Commonwealth of Pennsylvania
 2   hereby enacts as follows:
 3   Section 1.   Short title.
 4      This act shall be known and may be cited as the Museum
 5   Unclaimed Loaned Property Act.
 6   Section 2.   Legislative findings.
 7      The General Assembly finds and declares the following:
 8          (1)     The residents of this Commonwealth have an interest
 9      in the growth and maintenance of museum collections and in
10      the preservation and protection of unclaimed loaned property
11      of artistic, historic, cultural or scientific value left in
12      the custody of museums within this Commonwealth.
13          (2)     Loans of property of artistic, historic, cultural or
14      scientific value are made to museums to further educational
15      purposes.
16          (3)     When lenders of property for museums fail to stay in
17      contact, museums must routinely store and care for the loaned
18      property long after the loan periods have expired or should
19      reasonably be deemed expired.
20          (4)     Nevertheless, museums have limited rights to the use
21      and treatment of unclaimed loaned property, all the while
22      bearing substantial costs related to the storage,
23      recordkeeping, climate control, security, periodic
24      inspection, insurance, general overhead and conservation
25      associated with the unclaimed loaned property.
26          (5)     It is in the public's interest to:
27                (i)    Encourage museums and the lenders of property
28          for museums to use due diligence in monitoring the loaned
29          property.
30                (ii)    Allocate fair responsibilities between museums

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 1          and the lenders of property for museums.
 2                 (iii)   Resolve expeditiously the issue of title of
 3          unclaimed loaned property left in the custody of museums.
 4   Section 3.    Purpose of act.
 5      The purpose of this act is to establish uniform rules to
 6   govern the disposition of museum unclaimed loaned property.
 7   Section 4.    Definitions.
 8      The following words and phrases when used in this act shall
 9   have the meanings given to them in this section unless the
10   context clearly indicates otherwise:
11      "Claimant."      An individual, corporation, partnership, trust,
12   estate or similar organization that files notice of intent to
13   preserve an interest in loaned property in the custody of a
14   museum as provided in section 9(b).
15      "Lender."     An individual, corporation, partnership, trust,
16   estate or similar organization whose name appears on the records
17   of a museum as the person legally entitled to control loaned
18   property in the custody of the museum. The term includes a
19   successor of an original lender.
20      "Loan."    A transaction between a lender and a museum
21   regarding property of the lender in which the museum maintains
22   custody of the property.
23      "Loaned property."      Property that is in the possession of a
24   museum, accompanied by evidence that the lender of the property
25   intended to retain title to the property and return to take
26   physical possession of the property in the future.
27      "Museum."     As follows:
28          (1)     A public or private nonprofit agency or institution
29      that is:
30                 (i)   located in this Commonwealth;

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 1                  (ii)    organized on a permanent basis for educational
 2            or aesthetic purposes; and
 3                  (iii)    owns or utilizes tangible objects, cares for
 4            tangible objects and exhibits tangible objects to the
 5            public on a regular basis.
 6            (2)   The term includes a historical society, park,
 7      historic site, historic monument, archive or library.
 8      "Museum records."       Documents that are created or held by a
 9   museum in the regular course of business of the museum.
10      "Property."        A tangible or digital object that is in the
11   custody of a museum and that has intrinsic historical, artistic,
12   scientific or cultural value.
13      "Restricted certified mail."        Certified mail that carries on
14   its face, in a conspicuous place where it will not be
15   obliterated, the endorsement "deliver to addressee only" and for
16   which the post office provides the mailer with a return receipt
17   showing the date of delivery, the place of delivery and the
18   person to whom delivered.
19      "Unclaimed loaned property."        Property:
20            (1)   that is on loan to a museum; and
21            (2)   whose original lender, or any person acting
22      legitimately on behalf of the lender, has not contacted the
23      museum for at least 20 years from the beginning date of the
24      loan of the property, if the loan of the property was for an
25      indefinite or undetermined period or for at least five years
26      after the date upon which the loan of the property for the
27      definite period expired.
28   Section 5.     Museum obligations to lenders.
29      (a)   Recordkeeping for new loaned property.--For property
30   loaned to a museum on or after the effective date of this

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 1   subsection, the museum shall do all of the following at the time
 2   of the loan:
 3            (1)   Make and retain a written record containing at least
 4      all of the following:
 5                  (i)    The name, address and telephone number of the
 6            lender.
 7                  (ii)    A description of the loaned property in
 8            sufficient detail for ready identification.
 9                  (iii)    The beginning date of the loan.
10                  (iv)    The expiration date of the loan.
11            (2)   Provide the lender with a signed receipt or loan
12      agreement containing at least the record specified in
13      paragraph (1).
14            (3)   Inform the lender of the existence of this act and
15      provide the lender with a copy of this act upon request of
16      the lender.
17      (b)   Recordkeeping for existing loaned property.--Regardless
18   of the date of the loan of property to a museum, the museum
19   shall do all of the following:
20            (1)   Update the records of the museum if:
21                  (i)    a lender informs the museum of a change of
22            address or change in ownership of the loaned property; or
23                  (ii)    the lender and museum negotiate a change in the
24            duration of the loan.
25            (2)   Inform the lender of the existence of this act when
26      renewing or updating the records of an existing loan and
27      provide the lender with a copy of this act upon request of
28      the lender.
29   Section 6.     Lender obligations to museums.
30      (a)   Required notices.--Regardless of the date of the loan of

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 1   property in the custody of a museum, a lender shall promptly
 2   notify the museum in writing of the following:
 3            (1)   A change of the address or telephone number of the
 4      lender.
 5            (2)   The name, address and telephone number of the
 6      successor of the lender.
 7            (3)   The name, address and telephone number of the
 8      designated agent of the owner of the loaned property.
 9            (4)   A change of the address or telephone number of the
10      designated agent of the owner of the loaned property.
11            (5)   A change in ownership of the loaned property and the
12      name, address and telephone number of the new owner of the
13      loaned property.
14      (b)   Documentation establishing ownership.--A successor of a
15   lender shall document passage of rights of control to the loaned
16   property in the custody of the museum.
17   Section 7.     Liability.
18      (a)   Prejudice.--Unless there is evidence of bad faith or
19   gross negligence, a museum shall not be prejudiced by reason of
20   any failure to deal with the true owner of loaned property.
21      (b)   Surrender of loaned property.--In a case of disputed
22   ownership of loaned property, a museum shall not be held liable
23   for its refusal to surrender loaned property in its possession
24   except in reliance upon a court order or judgment.
25   Section 8.     Termination of loans for unclaimed loaned property.
26      (a)   Authorization.--A museum may terminate a loan for
27   unclaimed loaned property in the museum's possession in
28   accordance with this section.
29      (b)   Search.--A museum shall make a good faith and reasonable
30   search for the identity and last known address of the lender

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 1   from the museum records and other records reasonably available
 2   to the museum staff.
 3      (c)   Notice.--
 4            (1)   Following a search under subsection (b):
 5                  (i)    If the museum identifies the lender and the
 6            lender's last known address, the museum shall give actual
 7            notice to the lender that the loan is terminated in
 8            accordance with paragraph (2).
 9                  (ii)    If the identity or the last known address of
10            the lender remains unknown, the museum shall give notice
11            by publication in accordance with paragraph (3).
12            (2)   Actual notice of termination by a museum of a loan
13      for unclaimed loaned property shall be provided by a letter
14      to the lender, which shall be sent by restricted certified
15      mail to the last known address of the lender and which shall
16      include the following information:
17                  (i)    The date of notice of termination.
18                  (ii)    The name of the lender.
19                  (iii)    A description of the loaned property in
20            sufficient detail for ready identification.
21                  (iv)    The approximate initiating date of the loan and
22            termination date, if applicable and known.
23                  (v)    The name and address of the designated museum
24            official to be contacted regarding the loan.
25                  (vi)    A statement that within 90 days of the date of
26            the notice of termination, the lender is required to
27            remove the loaned property from the museum or contact the
28            designated museum official to preserve the lender's
29            interests in the loaned property and that failure to do
30            so will result in the loss of all rights in the loaned

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 1            property in accordance with section 10.
 2            (3)   Notice by publication of termination by a museum of
 3      a loan for unclaimed loaned property shall be provided as
 4      follows:
 5                  (i)    This paragraph only applies if:
 6                         (A)   a search under subsection (b) is
 7                  unsuccessful and the museum is unable to send actual
 8                  notice in accordance with paragraph (2); or
 9                         (B)   a signed return receipt of a notice sent by
10                  restricted certified mail under paragraph (2) is not
11                  received by the museum within 30 days after the
12                  notice was mailed.
13                  (ii)    The museum shall publish the notice of
14            termination, which includes all the information that is
15            specified under paragraph (2) and available to the
16            museum, in a publication of general circulation in the
17            county of the last known address of the lender, if known,
18            and the county in which the museum is located. The
19            following apply:
20                         (A)   The notice shall be published at least twice
21                  and at least 60 days apart.
22                         (B)   If the loan of property was made to a branch
23                  of the museum, the museum shall be deemed to be
24                  located in the county in which the branch is located.
25   Section 9.     Return or disposition of unclaimed loaned property.
26      (a)   Written claim by lender.--If a museum receives a written
27   claim of ownership for loaned property for which notice was
28   provided under section 8(c)(2) or (3), the museum shall return
29   the loaned property to the lender or carry out the disposition
30   of the loaned property as the lender requests, not later than 90

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 1   days after receipt of the written claim of ownership. The
 2   following apply:
 3            (1)   The lender shall advise the museum in writing as to
 4      the disposition of the loaned property or how the loaned
 5      property is to be returned to the lender.
 6            (2)   Any costs incurred as a result of returning the
 7      loaned property or the disposition of the loaned property
 8      shall be the responsibility of the lender, unless the lender
 9      and the museum have mutually agreed to alternate
10      arrangements.
11      (b)   Written claim by others.--If a museum receives a written
12   claim of ownership for loaned property for which notice was
13   provided under section 8(c)(2) or (3) from a person other than
14   the lender or lender's agent on record with the museum, the
15   museum shall determine if the ownership claim is valid not later
16   than 90 days after receipt of the written claim of ownership.
17   The following apply:
18            (1)   A claimant shall submit proof of ownership to the
19      museum with the written claim of ownership.
20            (2)   If more than one person submits a written claim of
21      ownership, the museum may delay its determination of
22      ownership until the competing claims are resolved by
23      agreement or legal action.
24            (3)   If the museum determines that the written claim of
25      ownership is valid or if the competing claims are resolved by
26      agreement or legal action, the museum shall return the loaned
27      property to the claimant submitting the valid claim of
28      ownership or dispose of the loaned property as the valid
29      claimant requests.
30            (4)   Any costs incurred as a result of returning the

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 1      loaned property or the disposition of the loaned property
 2      shall be the responsibility of the valid claimant, unless the
 3      valid claimant and the museum have mutually agreed to
 4      alternate arrangements.
 5   Section 10.    Title to unclaimed loaned property.
 6      (a)   Conditions.--As of the effective date of this
 7   subsection, a museum acquires title to unclaimed loaned property
 8   under any of the following circumstances:
 9            (1)   For loaned property for which a museum provides
10      actual notice to a lender in accordance with section 8(c)(2)
11      and a signed receipt is received, if a lender of that loaned
12      property does not contact the museum within 90 days after the
13      date notice was received.
14            (2)   For loaned property for which notice by publication
15      is made in accordance with section 8(c)(3), if a lender or
16      any person claiming a legal interest in that loaned property
17      does not contact the museum within 90 days after the date of
18      the second publication of the notice.
19      (b)   Effect of act.--Nothing in this act shall preclude a
20   museum from availing itself of any other means of establishing
21   or perfecting title to property in the possession of the museum.
22   Section 11.    Contractual obligations.
23      Notwithstanding the other provisions of this act, a lender
24   and museum may bind themselves to different loan provisions by
25   written contract.
26   Section 12.    Effect on other rights.
27      (a)   Escheat.--Property on loan to a museum shall not escheat
28   to the Commonwealth under Article XIII.1 of the act of April 9,
29   1929 (P.L.343, No.176), known as The Fiscal Code, or any other
30   law of this Commonwealth, but shall pass to the museum in

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 1   accordance with section 10.
 2      (b)   Federal law.--This act shall not apply to property in
 3   the possession of a museum under Native American Graves
 4   Protection and Repatriation Act (Public Law 101-601, 104 Stat.
 5   3048).
 6      (c)   Stolen property.--This act shall not apply to property
 7   that is reported as stolen to a law enforcement agency, insurer
 8   or the art loss register, or a successor organization having
 9   similar purposes, no later than three years following the theft
10   or discovery of the theft, or was created before 1945 and
11   changed hands due to theft, seizure, confiscation, forced sale
12   or other involuntary means in Europe during the Nazi era between
13   1933 and 1945.
14      (d)   Other property interests.--Property interests other than
15   those specifically addressed in this act are not altered by this
16   act.
17   Section 13.   Title to property acquired from museum.
18      A museum that acquires title to unclaimed loaned property
19   under this act passes good title to another person when
20   transferring that property with the intent to pass title.
21   Section 14.   Expenses and conservation or protective measures.
22      (a)   Lien authorized.--As of the effective date of this
23   subsection, a museum shall have a lien for expenses for the
24   reasonable care of unclaimed loaned property after the
25   expiration date of the loan.
26      (b)   Conditions required to apply conservation or protective
27   measures.--Unless the written loan agreement for the property
28   provides otherwise, a museum may apply conservation or
29   protective measures to loaned property without the permission of
30   the lender or formal notice to the lender if:

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 1            (1)   Action is required to:
 2                  (i)    protect the loaned property or other property in
 3            the possession of the museum; or
 4                  (ii)    protect the health and safety of the public or
 5            museum staff because the loaned property is a hazard.
 6            (2)   Any of the following applies:
 7                  (i)    The museum is unable to contact the lender at
 8            the address on record for the lender within five business
 9            days before the time in which the museum determines that
10            action is necessary.
11                  (ii)    The lender does not:
12                         (A)   respond or agree to the conservation or
13                  protective measures recommended by the museum; and
14                         (B)   terminate the loan and take possession of
15                  the loaned property on or before the fifth business
16                  day after the museum contacts the lender.
17      (c)   Amount of lien.--If a museum applies conservation or
18   protective measures to loaned property under this act, or with
19   the agreement of the lender, unless the written loan agreement
20   for the loaned property provides otherwise, the museum shall
21   acquire a lien on the loaned property in an amount equal to the
22   costs incurred by the museum for the conservation or protective
23   measures taken.
24      (d)   Liability.--A museum shall not be liable for injury to
25   or loss of loaned property for which conservation or protective
26   measures were taken under this act, if all of the following
27   apply:
28            (1)   The museum had a reasonable belief at the time that
29      the conservation or protective measures were taken that:
30                  (i)    the measures were necessary to protect the

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1          loaned property or other property in the possession of
2          the museum; or
3                 (ii)   the loaned property was a hazard to the health
4          and safety of the public or museum staff.
5          (2)    The museum exercised reasonable care in the choice
6      and application of the conservation or protective measures.
7   Section 15.    Effective date.
8      This act shall take effect in 60 days.




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