Report Title:

Relating to Unclaimed Property

Description:

Appropriates money out of the Unclaimed Property Trust Fund for fiscal years 2003-2004 ($313,888) and 2004-2005 ($313,888) to pay for the operating expenses of the program.

THE SENATE

S.B. NO.

1307

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

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 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] $1,500,000 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. There is appropriated out of the unclaimed property trust fund the sum of $313,888, or so much thereof as may be necessary for the fiscal year 2003-2004, and the sum of $313,888, or so much thereof as may be necessary for fiscal year 2004-2005, for the administration and operation of the unclaimed property program.

The sums appropriated shall be expended by the department of budget and finance for the purposes of this Act.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

_____________________________

BY REQUEST