Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 769 entitled:

begs leave to report as follows:

The purpose of this measure is to require electric utility cooperative associations to dispose of non-escheat patronage refunds for charitable purposes.

The bill also requires electric utility cooperative associations to issue annual reports of unclaimed property to the director of finance.

Your Committee finds that consumer cooperative associations regulated under chapter 421C, Hawaii Revised Statutes, are part of a national trend to establish non-profit member-run organizations that service their respective communities. Electric utility cooperative associations provide not only electrical power to their members, but also support the general welfare of the community.

This bill allows electric utility cooperative associations to further their community support by utilizing unclaimed member refunds for charitable purposes in the community. In this way, funds that would otherwise escheat to the State (non-escheat patronage refunds) would remain in the community for the good of all its members.

Your Committee received testimony from the Department of Budget and Finance that expressed concern regarding the rights of persons of unclaimed refunds. Accordingly, your Committee has amended the bill to hold electric utility cooperative associations responsible for any subsequent claim filed by a person owed a refund. Your Committee has also made other changes to the bill that have no substantive effect.

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 769, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 769, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.