Report Title:

Unclaimed property; Electric utility cooperative associations

Description:

Mandates electric utility cooperative associations to issue an annual report of unclaimed property and establishes the disposition of non-escheat patronage refunds.

HOUSE OF REPRESENTATIVES

H.B. NO.

769

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to unclaimed property.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 421C, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§421C-A Annual report of unclaimed property. The provisions of chapter 523A shall not apply to electric utility cooperative associations; provided that each such electric utility cooperative association shall file with the director of finance an annual report of the property in its possession that would otherwise be subject to the provisions of chapter 523A. The report shall be filed within one hundred twenty days after the close of the association's fiscal year in a form prescribed by the director of finance.

§421C-B Disposition of non-escheat patronage refunds. (a) An electric utility cooperative association shall transfer all non-escheat patronage refunds which it has properly reported to the director of finance under section 421C-A to a Hawaii nonprofit corporation under chapter 414D created by the electric utility cooperative association pursuant to chapter 414D for that purpose.

(b) The Hawaii nonprofit corporation created in subsection (a) shall use all non-escheat patronage refunds to:

(1) Fund electric energy assistance programs for low-income persons who reside in the service area of the electric utility cooperative association;

(2) Make donations to other nonprofit charitable and community organizations, as authorized by the board of directors of the Hawaii nonprofit corporation created in subsection (a);

(3) Grant educational scholarships to individuals who reside in the service area of the electric utility cooperative association; or

(4) Support other appropriate uses for the benefit of the general membership of the electric utility cooperative association, as may be authorized by the board of directors of the Hawaii nonprofit corporation created in subsection (a)."

SECTION 2. Section 421C-1, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

""Electric utility cooperative association" means a consumer cooperative association that provides electric utility service to a county.

"Non-escheat patronage refund" means a patronage refund from an electric utility cooperative association for which a five-year period has elapsed since the patronage refund was made and the patrons to which such amounts were allocated have not claimed them."

SECTION 3. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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