Report Title:

Unclaimed Property

Description:

Requires moneys collected by unclaimed property program to be deposited into unclaimed property trust fund. Expands allowable uses of moneys in trust fund. Requires moneys in fund to be invested. Raises threshold for transfers of excess funds to general fund to $1,300,000. (HB1154 CD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1154

H.D. 1

TWENTY-SECOND LEGISLATURE, 2003

S.D. 2

C,D. 1

A BILL FOR AN ACT

 

RELATING TO UNCLAIMED PROPERTY.

 

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

SECTION 1. Section 523A-23.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§523A-23.5[]] Unclaimed property trust fund. (a) There is established in the state treasury the unclaimed property trust fund, which shall be administered by the director. All moneys collected by the unclaimed property program from holders of property presumed abandoned and all proceeds from the sale of unclaimed property, less costs in connection with the sale of the abandoned property, shall be deposited into the unclaimed property trust fund.

(b) [The proceeds of the fund shall be used to pay claims for return of abandoned property to their rightful owners and to other states' unclaimed property programs for owners whose last known address was in that other state.] Moneys in the unclaimed property trust fund shall be used for the payment of the following:

(1) Claims for the return of abandoned property to their rightful owners;

(2) Payment to other states' unclaimed property programs for owners whose last known address was in that other state;

(3) Any costs incurred in connection with the sale of abandoned property;

(4) Costs of mailing and publication in connection with any abandoned property;

(5) Reasonable service charges;

(6) Costs incurred in examining the records of holders of property and in collecting such property from those holders; and

(7) Any other charges, costs, or expenses incurred in the operation, administration, and enforcement of this chapter.

(c) [All moneys collected by the unclaimed property program from holders of property presumed abandoned and proceeds from the sale of unclaimed property, less costs in connection with the sale of the abandoned property, shall be deposited into the unclaimed property trust fund.] Moneys in the unclaimed property trust fund shall be invested by the director, and all investment earnings shall be deposited to the credit of the general fund.

(d) All [funds in the unclaimed property trust fund] unencumbered and unexpended moneys in excess of [$1,000,000] $1,300,000 remaining on balance in the unclaimed property trust fund on June 30 of each year shall lapse to the credit of the state general fund."

SECTION 2. Section 523A-23, Hawaii Revised Statutes, is repealed.

["§523A-23 Deposit of funds. (a) Except as otherwise provided by this section, the director shall promptly deposit in the unclaimed property trust fund of this State all funds received under this part, including the proceeds from the sale of abandoned property under section 523A-22. All funds in excess of $1,000,000 remaining on balance in the unclaimed property trust fund on June 30 of each year shall be transferred by the director to the state general fund. The trust fund balance shall be invested by the director and all investment earnings shall be deposited to the credit of the general fund.

(b) Before making any deposit to the credit of the unclaimed property trust fund, the director may deduct:

(1) Any costs in connection with the sale of abandoned property;

(2) Costs of mailing and publication in connection with any abandoned property;

(3) Reasonable service charges; and

(4) Costs incurred in examining records of holders of property and in collecting the property from those holders."]

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2003.