REPORT TITLE:
Unclaimed Property


DESCRIPTION:
Establishes the unclaimed property special fund to pay claims for
the return of abandoned property to their owners and to unclaimed
property programs in other states.  (HB2444 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2444
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO UNCLAIMED PROPERTY.



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

 1      SECTION 1.  Chapter 523A, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "§523A-    Unclaimed property special fund.  (a)  There is
 
 5 established in the state treasury the unclaimed property special
 
 6 fund, which shall be administered by the director.
 
 7      (b)  The proceeds of the fund shall be used to pay claims
 
 8 for the return of abandoned property to their rightful owners and
 
 9 to unclaimed property programs in other states for owners whose
 
10 last known address was in that other state.
 
11      (c)  All moneys collected by the unclaimed property program
 
12 from holders, and proceeds from the sale of unclaimed property,
 
13 less costs in connection with the sale of the abandoned property,
 
14 shall be deposited into the unclaimed property special fund.
 
15      (d)  All funds in the unclaimed property special fund in
 
16 excess of $1,000,000 remaining on balance on June 30 of each year
 
17 shall lapse to the credit of the general fund."
 
18      SECTION 2.  Section 523A-23, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 

 
Page 2                                                     2444
                                     H.B. NO.           H.D. 1
                                            
                                                        


 1      "[[]§523A-23[]]  Deposit of funds.(a)  Except as otherwise
 
 2 provided by this section, the director shall promptly deposit in
 
 3 the [general] unclaimed property special fund of this State all
 
 4 funds received under this part, including the proceeds from the
 
 5 sale of abandoned property under section 523A-22.  All funds in
 
 6 excess of $1,000,000 remaining on balance in the unclaimed
 
 7 property special fund on June 30 of each year shall be
 
 8 transferred by the director to the general fund.  The unclaimed
 
 9 property special fund balance shall be invested by the director
 
10 and all such investment earnings shall be deposited to the credit
 
11 of the general fund.
 
12      (b)  Before making any deposit to the credit of the
 
13 [general] unclaimed property special fund, the director may
 
14 deduct:
 
15      (1)  Any costs in connection with the sale of abandoned
 
16           property;
 
17      (2)  Costs of mailing and publication in connection with any
 
18           abandoned property;
 
19      (3)  Reasonable service charges; and
 
20      (4)  Costs incurred in examining records of holders of
 
21           property and in collecting the property from those
 
22           holders."
 

 
 
 
Page 3                                                     2444
                                     H.B. NO.           H.D. 1
                                            
                                                        


 1      SECTION 3.  Section 523A-24, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (c) to read as follows:
 
 3      "(c)  If a claim is allowed, the director shall pay [over]
 
 4 via a check from the unclaimed property special fund or deliver
 
 5 to the claimant the property or the amount the director actually
 
 6 received or the net proceeds if it has been sold by the director,
 
 7 together with any additional amount required by section 523A-21.
 
 8 If the claim is for property presumed abandoned under section
 
 9 523A-10 which was sold by the director within three years after
 
10 the date of delivery, the amount payable for that claim is the
 
11 value of the property at the time the claim was made or the net
 
12 proceeds of sale, whichever is greater."
 
13      SECTION 4.  There is appropriated out of the general
 
14 revenues of the State of Hawaii the sum of $500,000 or so much
 
15 thereof as may be necessary for fiscal year 2000-2001 to be
 
16 deposited into the unclaimed property special fund, for the
 
17 purpose of satisfying claims for return of abandoned property.
 
18      SECTION 5.  The sum appropriated shall be expended by the
 
19 department of budget and finance for the purposes of this Act.
 
20      SECTION 6.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 
22      SECTION 7.  This Act shall take effect on July 1, 2000.