The requirements local governments must follow related to lost property can be found in RCW 63.21.060, which states:
Any governmental entity that acquires lost property shall attempt to notify the apparent owner of the property. If the property is not returned to a person validly establishing ownership or right to possession of the property, the governmental entity shall forward the lost property within thirty days but not less than ten days after the time the governmental entity acquires the lost property to the chief law enforcement officer, his or her designated representative, or other designated entity under *RCW 63.32.060, of the county in which the property was found, except that if the property is found within the borders of a city or town the property shall be forwarded to the chief law enforcement officer of the city or town, his or her designated representative, or other entity of the city or town so designated under RCW 63.21.090. A governmental entity may elect to retain property which it acquires and dispose of the property as provided by chapter 63.32 or 63.40 RCW.
*Reviser's note: The reference to RCW 63.32.060 appears to be erroneous. RCW 63.21.090 was apparently intended.
The last sentence of the above statutory provision gives the city the option of disposing of the property in the same manner that the police or sheriff departments dispose of property instead of forwarding the property to these departments (see chapter 63.32 RCW and chapter 63.40 RCW). These statutes appear to be procedurally identical, so either one would be useful for your purposes. The statutes are pretty lengthy so it would be worth your time to read them in full. Here is the summary version for personal property in the hands of police:
1. Provide written notice to the owner, if known.
2. 60 days from notice, if the property is not claimed, the agency can:
a) Sell the property at a public auction to highest bidder.
b) Retain the property for agency use; except the owner has the right to reclaim the property within 1 year of receipt of notice.
c) Destroy the property if it has no commercial value or the cost of the sale exceeds its value and other factors are met.
d) Donate the property to nonprofit charitable organization.
With respect to the wallet, see these requirements in RCW 63.21.090:
Designation of alternate entity to accept, store, retain, and dispose of found property.
(1) Except as provided in subsection (2) of this section, a county, city, or town may designate an alternate department or governmental entity to accept, store, retain, and dispose of found property as required under this chapter, rather than the chief law enforcement officer or his or her designee, so long as the alternate department or governmental entity complies with the requirements and procedures under this chapter.
(2) Regardless of whether a county, city, or town designates an alternate department or governmental entity under subsection (1) of this section, the chief law enforcement officer or his or her designated representative is responsible for retaining any of the following types of property in accordance with the requirements of this chapter: A bank card; charge or credit card; cash; government-issued document, financial document, or legal document; firearm; evidence in a judicial or other official proceeding; or an item that is not legal for the finder to possess. A county, city, or town designating an alternate department or governmental entity under subsection (1) of this section shall establish procedures for ensuring these types of property are directed to the chief law enforcement officer or his or her designated representative.
MRSC also recommends that you discuss this matter with your attorney who will be in the best position to advise you further. Our guidance is general and not a substitute for the advice of legal counsel.
