Report Title:
Unclaimed Property; Electric Utility Cooperative Association
Description:
Exempts unclaimed property in possession of electric utility cooperative association from unclaimed property law. Requires association to issue annual report of unclaimed property held and establishes requirements for the disposition of non-escheat patronage refunds. (SD1)
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THE SENATE |
S.B. NO. |
1412 |
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TWENTY-THIRD LEGISLATURE, 2005 |
S.D. 1 |
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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-A Annual report of unclaimed property. Chapter 523A shall not apply to an electric utility cooperative association; provided that each association shall file with the director of finance an annual report of the 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 association shall remain responsible for the payment of all claims for unclaimed property reported to the director of finance.
§421C-B 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-A to a nonprofit corporation incorporated pursuant to chapter 414D.
(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 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 refunds" means patronage refunds from an electric utility cooperative association for which a five-year period has elapsed since the patronage refunds were made and for which no claims have been made by the patrons to whom the refund amounts were allocated.
"Unclaimed property" includes moneys, checks, drafts, interest, dividends, income, credit balances, overpayments, deposits, refunds, and non-escheat patronage refunds."
SECTION 3. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.