Report Title:

Unclaimed Property; Electric Utility Cooperative Association

Description:

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

HOUSE OF REPRESENTATIVES

H.B. NO.

769

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

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 a new section to be appropriately designated and to read as follows:

"§421C- Annual report of unclaimed property. Notwithstanding chapter 523A, an electric utility cooperative association shall file with the director of finance an annual report of unclaimed property in its possession. 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. The electric utility cooperative association shall remain responsible for the payment of all claims for unclaimed property reported to the director of finance."

SECTION 2. Chapter 421C, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§421C- Disposition of non-escheat patronage refunds. (a) An electric utility cooperative association shall transfer all non-escheat patronage refunds properly reported to the director of finance, pursuant to section 421C- , to a nonprofit corporation incorporated pursuant to chapter 414D. The electric utility cooperative association shall remain responsible for the payment of all claims for unclaimed property reported to the director of finance.

(b) The nonprofit corporation incorporated in accordance with 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 its board of directors;

(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 authorized by its board of directors."

SECTION 3. Section 421C-1, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:

""Electric utility cooperative association" or "association" means a consumer cooperative association that provides electric utility service as a public utility.

"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 patron to whom the refund was allocated has not claimed the refund.

"Unclaimed property" includes moneys, checks, drafts, interest, dividends, income, credit balances, overpayments, deposits, refunds, and non-escheat patronage refunds."

SECTION 4. New statutory material is underscored.

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