HB 2118 — An Act providing for museum unclaimed loaned property.

PRIOR PRINTER'S NO.

2739 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

3206 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

WILLIAMS, BELLMON,BELLMON AND M.

BROWNBROWN, AND KENYATTA, JANUARY 7, 2026 ASREFERRED AMENDEDTO COMMITTEE ON SECONDJUDICIARY, CONSIDERATION,JANUARY HOUSE8, OF REPRESENTATIVES, APRIL 15, 2026 AN ACT Providing for museum unclaimed loaned property.

(ii) Allocate fair responsibilities between museums 20260HB2118PN320620260HB2118PN2739 - 2 - and the lenders of property for museums.

20260HB2118PN320620260HB2118PN2739 - 3 - (ii) is organized on a permanent basis for educational or aesthetic purposes;

(a) Recordkeeping for new loaned property.--For property loaned to a museum on or after the effective date of this 20260HB2118PN320620260HB2118PN2739 - 4 - subsection, the museum shall do all of the following at the time of the loan:

THE LENDER MAY INCLUDE THE NAME, ADDRESS AND <-- TELEPHONE NUMBER OF UP TO TWO OF THE LENDER'S DESIGNATED AGENTS WITH WHOM CONTACT MAY BE MADE ON BEHALF OF THE LENDER.

(i) a lender informs the museum of a change of IN <-- THE LENDER'S address or,or A change in ownership of the <-- loaned propertyproperty; OR A CHANGE IN THE IDENTITY OR ADDRESS OF <-- THE LENDER'S DESIGNATED AGENT;

(2) Inform the lender of the existence of this act when 20260HB2118PN3206 - 5 - renewing or updating the records of an existing loan and provide the lender with a copy of this act upon request of the lender.

(a) Required notices.--Notwithstanding the date of the loan 20260HB2118PN2739 - 5 - of property in the custody of a museum, a lender shall promptly notify the museum in writing of the following:

20260HB2118PN3206 - 6 - (a) Authorization.--A museum may terminate a loan for unclaimed loaned property in the museum's possession in accordance with this section.

(b) Search.--A museum shall make a good faith and reasonable search for the identity and last known address of the lender OR20260HB2118PN2739 <--- THE6 LENDER'S- DESIGNATED AGENT from the museum records and other records reasonably available to the museum staff.

(i) If the museum identifies the lender OR THE <-- LENDER'S DESIGNATED AGENT and the lender's last known <--address, address OF THE LENDER OR THE LENDER'S DESIGNATED AGENT, <-- the museum shall give actual notice to the lender AND THE <-- LENDER'S DESIGNATED AGENT that the loan is terminated in accordance with paragraph (2).

(ii) If the identity or the last known address of the lender OR THE LENDER'S DESIGNATED AGENT remains <-- unknown, the museum shall give notice by publication in accordance with paragraph (3).

(2) Actual notice of termination by a museum of a loan for unclaimed loaned property shall be provided by a letter to the lenderlender, OR THE LENDER'S DESIGNATED AGENT, which shall <-- be sent by restricted certified mail to the last known address of the lender OR THE LENDER'S DESIGNATED AGENT and <-- which shall include the following information:

(iv) The approximate initiating date of the loan and 20260HB2118PN3206 - 7 - termination date, if applicable and known.

(vi) A statement that within 90 days of the date of the notice of termination, the lender OR THE LENDER'S <-- DESIGNATED AGENT is required to remove the loaned property from the museum or contact the designated museum official to preserve the lender's interests in the loaned property and that failure to do so will result in the loss of all rights in the loaned 20260HB2118PN2739 - 7 - property in accordance with section 10.

(A) The notice shall be published at least twice 20260HB2118PN3206 - 8 - and at least 60 days apart.

(a) Written claim by lender.--If a museum receives a written claim of ownership for loaned property for which notice was provided under section 8(c)(2) or (3), the museum shall return the loaned property to the lender OR THE LENDER'S DESIGNATED <-- AGENT or carry out the disposition of the loaned property as the lender OR THE LENDER'S DESIGNATED AGENT requests, not later than <-- 90 20260HB2118PN2739 - 8 - days after receipt of the written claim of ownership.

(1) The lender OR THE LENDER'S DESIGNATED AGENT shall <-- advise the museum in writing as to the disposition of the loaned property or how the loaned property is to be returned to the lenderlender. OR THE LENDER'S DESIGNATED AGENT.

<-- (2) Any costs incurred as a result of returning the loaned property or the disposition of the loaned property shall be the responsibility of the lenderlender, OR THE LENDER'S <-- DESIGNATED AGENT, unless the lender and the museum have mutually agreed to alternate arrangements.

(b) Written claim by others.--If a museum receives a written claim of ownership for loaned property for which notice was provided under section 8(c)(2) or (3) from a person other than the lender or lender's agent THE LENDER'S DESIGNATED AGENT on <-- record with the museum, the museum shall determine if the ownership claim is valid not later than 90 days after receipt of the written claim of ownership.

(1) A claimant shall submit proof of ownership to the 20260HB2118PN3206 - 9 - museum with the written claim of ownership.

(4) Any costs incurred as a result of returning the 20260HB2118PN2739 - 9 - loaned property or the disposition of the loaned property shall be the responsibility of the valid claimant, unless the valid claimant and the museum have mutually agreed to alternate arrangements.

(1) For loaned property for which a museum provides actual notice to a lender OR THE LENDER'S DESIGNATED AGENT in <-- accordance with section 8(c)(2) and a signed receipt is received, if a lender OR THE LENDER'S DESIGNATED AGENT of <-- that loaned property does not contact the museum within 90 days after the date notice was received.

(2) For loaned property for which notice by publication is made in accordance with section 8(c)(3), if a lender,lender THE <-- LENDER'S DESIGNATED AGENT or any person claiming a legal interest in that loaned property does not contact the museum 20260HB2118PN3206 - 10 - within 90 days after the date of the second publication of the notice.

(a) Escheat.--Property on loan to a museum shall not escheat to the Commonwealth under Article XIII.1 of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, or any other law of this Commonwealth, but shall pass to the museum in 20260HB2118PN2739 - 10 - accordance with section 10.

20260HB2118PN3206 - 11 - A museum that acquires title to unclaimed loaned property under this act passes good title to another person when transferring that property with the intent to pass title.

(b) Conditions required to apply conservation or protective measures.--Unless the written loan agreement for the property provides otherwise, a museum may apply conservation or protective measures to loaned property without the permission of the lender or formal notice to the lender OR THE LENDER'S <-- DESIGNATED AGENT if:

20260HB2118PN2739 - 11 - (i) protect the loaned property or other property in the possession of the museum;

(i) The museum is unable to contact the lender OR <-- THE LENDER'S DESIGNATED AGENT at the address on record for the lender OR THE LENDER'S DESIGNATED AGENT within <-- five business days before the time in which the museum determines that action is necessary.

(ii) The lender OR THE LENDER'S DESIGNATED AGENT <-- does not:

and (B) terminate the loan and take possession of 20260HB2118PN3206 - 12 - the loaned property on or before the fifth business day after the museum contacts the lenderlender. OR THE <-- LENDER'S DESIGNATED AGENT.

(c) Amount of lien.--If a museum applies conservation or protective measures to loaned property under this act, or with the agreement of the lender, unless the written loan agreement <-- for the loaned property provides otherwiseotherwise, OR THE LENDER'S <-- DESIGNATED AGENT, the museum shall acquire a lien on the loaned property in an amount equal to the costs incurred by the museum for the conservation or protective measures taken.

(i) the measures were necessary to protect the loaned property or other property in the possession of 20260HB2118PN2739 - 12 - the museum;

20260HB2118PN320620260HB2118PN2739 - 13 -