Report Title:
Unclaimed Property; Electric Utility Cooperative Association
Description:
Exempts electric utility cooperative associations from the unclaimed property law. Requires annual unclaimed property report to the Director of Finance, that the cooperative remain responsible for payment of all future claims on the reported property, and that the unclaimed property be used for charitable purposes or for the benefit of the general membership of the cooperative. (HB769 HD2)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
769 |
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TWENTY-THIRD LEGISLATURE, 2005 |
H.D. 2 |
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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:
SECTION 1. Chapter 421C, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§421C- Annual report of unclaimed property. The provisions of chapter 523A shall not apply to an electric utility cooperative association; provided that each association shall within one hundred twenty days after the close of the association's fiscal year, file with the director of finance an annual report of unclaimed property in its possession in a form prescribed by the director of finance; provided further that the electric utility cooperative association shall remain responsible for the payment of all future claims for unclaimed property reported to the director of finance.
§421- Disposition of non-escheat patronage refunds. (a) An electric utility cooperative association shall transfer all non-escheat patronage refunds to a nonprofit corporation incorporated pursuant to chapter 414D.
(b) The nonprofit corporation established pursuant to subsection (a) shall use any 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 may be authorized by its board of directors."
SECTION 2. 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" 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 such refund was allocated has not claimed it.
"Unclaimed property" includes moneys, checks, drafts, interest, dividends, income, credit balances, overpayments, deposits, refunds, and non-escheat patronage refunds."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.