STAND. COM. REP. NO. 479

Honolulu, Hawaii

, 2005

RE: H.B. No. 769

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 769, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO UNCLAIMED PROPERTY,"

begs leave to report as follows:

The purpose of this measure is to allow the unclaimed property of electric utility cooperative associations (associations) to remain in and benefit the surrounding community. Specifically, this bill:

(1) Exempts associations from the unclaimed property law, which allows the State to take title to property that has been abandoned by its owner for five or more years;

(2) Requires filing of an annual unclaimed property report with the Director of Finance, who administers the unclaimed property law;

(3) Provides that the associations remain responsible for payment of all claims for unclaimed property that has been reported to the Director of Finance;

(4) Requires the associations to transfer unclaimed property to a nonprofit corporation, which is to use any unclaimed property to:

(A) Fund electric energy assistance programs for low-income persons in the associations' service area;

(B) Donate to charitable organizations;

(C) Provide scholarships to persons in the service area; or

(D) Benefit the general membership of the associations.

Kauai Island Utility Cooperative submitted testimony in support of this measure. The Department of Budget and Finance submitted testimony in support of intent and requested amendments.

Your Committee finds that this bill furthers a national trend in which non-profit member-run organizations service their communities. The bill allows funds that would otherwise have escheated to the State, to remain in the community and be used to benefit the associations' service area and members.

Your Committee has amended the bill by:

(1) Expressly providing that associations are exempt from the unclaimed property law;

(2) Clarifying that the associations provide electric utility service as a public utility;

(3) Adding a definition of "unclaimed property"; and

(4) Making numerous technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 769, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 769, H.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

____________________________

KENNETH HIRAKI, Chair