Personal property refers to property other than land and its attachments. Thus, a hospital district’s personal property refers to equipment, vehicles, supplies, and on occasion, uncashed checks or warrants. Even more so than with respect to real property (land and buildings), there are few special laws which apply to hospital districts in the ownership and management of personal property. The special topics covered in this section are hospital district purchasing requirements (including bid requirements, purchase contract possibilities, and the need for plans for purchasing recycled products); managing unclaimed property, and disposing surplus personal property.

Hospital districts are authorized to purchase personal property under general powers clauses [RCW 70.44.060]. Hospital districts are also authorized to use conditional sales contracts for such purposes.

In general, hospital districts may purchase personal property using the same procedures as private hospitals. Two unique issues which do arise relate to bid requirements and obligations in terms of the purchase of recycled products.

Most local governments are required to follow public bidding procedures for the purchase of supplies and equipment. However, hospital districts are required to follow specific procedures for contracting only with respect to “materials purchased and work ordered, the estimated cost of which is in excess of five thousand dollars…”. Because the legislature clearly distinguishes among materials, supplies, and equipment, there is no legal requirement that hospital districts bid contracts for equipment or supplies. Thus, the bid requirements only apply to the construction and public works areas discussed later in this chapter. [RCW 70.44.140]

During the 1991 legislative session, a bill was enacted which creates new responsibilities for local governments in the area of purchasing recycled products. The purpose of the law is to “substantially increase the procurement of recycled content products by all local and state governmental agencies and public schools, and provide a model to encourage a comparable commitment by Washington state citizens and businesses in their purchasing practices”.

The act goes on to specify that by January 1, 1993, each local government (including hospital districts) must review its existing procurement policies to determine whether recycled products are intentionally or unintentionally excluded. By January 1, 1994, each local government must adopt a minimum purchasing goal for recycled content as a total dollar value of supplies purchased, and, as an interim step, each government must adopt a strategy by January 1, 1993 and submit a summary to the State Department of General Administration. The local government must designate a procurement officer as the primary contact for the recycled products program and has the option of using model policies which will be developed by the state. The law only applies to local governments with supply purchases (excluding capital goods, electricity, water, and gas for resale) exceeding $500,000 in fiscal year 1989.

Hospital districts may also be eligible for special purchase programs, as a local government. For example, Public Hospital Districts may buy state and federal surplus property, new vehicles through the state, and food through the U.S. Department of Agriculture. Public hospital districts may also license vehicles at a reduced rate through exempt plates.

On occasion, a hospital district may have in its possession property which belongs to someone else. Chapter 63.21 RCW addresses lost and found property generally, including lost and found property at local governments. While there are a number of circumstances which the law treats similarly in all hospitals, such as holding the valuables of a patient upon admission to the hospital, there are special rules which apply to hospital districts in the area of unclaimed property.

Unclaimed property is intangible personal property in the possession of a “holder” which the rightful owner has failed to come forward and claim. Intangible personal property refers to such things as cash, checks, deposits, dividends, interest, stocks, credit balances, unpaid wages, unused airline tickets, and the like. The “unclaimed” situation arises with respect to these financial vehicles when customers or clients fail to cash refunds or, in the bank setting, fail to close an account and move away. Hospital districts encounter instances where a patient fails to cash a refund check or warrant.

The Uniform Unclaimed Property Act sets forth a process for reporting the existence of unclaimed property and establishes the legal presumption that property which goes unclaimed for more than five years is presumed “abandoned”. See Chapter 63.29 RCW.

Once “abandoned,” funds in the possession of a local government, revert to the general fund of the local government. The government must report the property to the Department of Revenue and attempt to locate the rightful owner. Also, the government must give the property to the rightful owner even if they appear after the five year presumption period.

RCW 63.29.170 governs the reporting of unclaimed property to the state. Hospital districts are also governed by specific provisions within RCW 63.29.135.

As with unneeded real property as discussed in Section D, the hospital district must make certain determinations before disposing of personal property of the district. Similar to the leasing of unneeded real property, the board is given broad discretion in determining the terms and conditions of the disposal. However, the board must first determine, by resolution, that the property is no longer required for public hospital district purposes. [RCW 70.44.320]

Procedures for selling such surplus property are specified in statute. [RCW 70.44.320]

      A RESOLUTION OF THE BOARD OF COMMISSIONERS OF PUBLIC HOSPITAL DISTRICT NO. ________ OF _______________ COUNTY, WASHINGTON DECLARING CERTAIN EQUIPMENT IN THE DISTRICT'S HOSPITAL OR HEALTH CARE FACILITIES AS SURPLUS TO THE NEEDS OF THE DISTRICT, AND DIRECTING THE ADMINISTRATOR OF THE DISTRICT TO EFFECT A SALE OF SUCH SURPLUS PROPERTY AT A PUBLIC OR PRIVATE SALE, AS PROVIDED BY STATUTE.

      BE IT RESOLVED by the Board of Commissioners of Public Hospital District No______ of ____________ County, Washington, that the following described equipment is not and will not be needed for the District's Hospital or other health care facilities and the Administrator [or superintendent] of the district is hereby authorized to proceed to effect a public or private sale of such property as provided by RCW 70.44.320 to wit:

      [describe the property specifically or refer to an attachment to this resolution]

      ADOPTED by the Board of Commissioners of Public Hospital District No. ______ of ____________ County, Washington, at a meeting of the Board on the _____ day of __________________, _______, the following Commissioners being present and voting:

      [each commissioner voting should sign the resolution]