Unclaimed Property

Appropriates $500,000 for the satisfaction of claims for the
return of abandoned property.

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                H.D. 1
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



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

Page 2                                                     2785
                                     S.B. NO.           S.D. 1
                                                        H.D. 1

 1      SECTION 2.  Section 523A-23, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "[[]523A-23[]]  Deposit of funds.(a)  Except as otherwise
 4 provided by this section, the director shall promptly deposit in
 5 the [general] unclaimed property trust fund of this State all
 6 funds received under this part, including the proceeds from the
 7 sale of abandoned property under section 523A-22.  All funds in
 8 excess of $1,000,000 remaining on balance in the unclaimed
 9 property trust fund on June 30 of each year shall be transferred
10 by the director to the state general fund.  The trust fund
11 balance shall be invested by the director and all investment
12 earnings shall be deposited to the credit of the general fund.
13      (b)  Before making any deposit to the credit of the
14 [general] unclaimed property trust fund, the director may 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                                                     2785
                                     S.B. NO.           S.D. 1
                                                        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 deliver the
 4 property to the claimant or pay [over or deliver] from the
 5 unclaimed property trust fund to the claimant [the property or]
 6 the amount the director actually received or the net proceeds if
 7 [it] the property has been sold by the director, together with
 8 any additional amount required by section 523A-21.  If the claim
 9 is for property presumed abandoned under section 523A-10 [which]
10 that was sold by the director within three years after the date
11 of delivery, the amount payable for that claim is the value of
12 the property at the time the claim was made or the net proceeds
13 of sale, whichever is greater."
14      SECTION 4.  There is appropriated out of the general
15 revenues of the State of Hawaii the sum of $500,000, or so much
16 thereof as may be necessary for fiscal year 2000-2001, to be
17 deposited into the unclaimed property trust fund, for the purpose
18 of satisfying claims for return of abandoned property.
19      SECTION 5.  The sum appropriated shall be expended by the
20 department of budget and finance for the purposes of this Act.
21      SECTION 6.  Statutory material to be repealed is bracketed.
22 New statutory material is underscored.
23      SECTION 7.  This Act shall take effect on July 1, 2000.