HOUSE OF REPRESENTATIVES	H.B. NO.	1942
THIRTY-SECOND LEGISLATURE, 2024		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO CORPORATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 414, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§414-    Real property; dissolved corporations; escheatment to State. (a) Upon approval of the board of land and natural resources, real property assets of a dissolved corporation not transferred to a creditor, claimant, or shareholder of the corporation shall escheat to the State if:

(1) Real property taxes assessed by county real property tax ordinance against the land and any improvements thereon have been unpaid for five years;

(2) Any state tax liens, if the same are recorded in the bureau of conveyances as provided by section 231-33, have been unpaid for five years; and

(3) The State shows that reasonable efforts were made by the State to locate a creditor, claimant, or shareholder of the dissolved corporation, and have been unsuccessful.

(b) In all cases where real property of a dissolved corporation escheats to the State pursuant to subsection (a), the attorney general shall proceed in accordance with section 665-1."

SECTION 2. Chapter 414D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§414D-    Real property; dissolved corporations; escheatment to State. (a) Upon approval of the board of land and natural resources, real property assets of a dissolved corporation not transferred to a creditor, claimant, or shareholder of the corporation shall escheat to the State if:

(1) Real property taxes assessed by county real property tax ordinance against the land and any improvements thereon have been unpaid for five years;

(2) Any state tax liens, if the same are recorded in the bureau of conveyances as provided by section 231-33, have been unpaid for five years; and

(3) The State shows that reasonable efforts were made by the State to locate a creditor, claimant, or shareholder of the dissolved corporation, and have been unsuccessful.

(b) In all cases where real property of a dissolved corporation escheats to the State pursuant to subsection (a), the attorney general shall proceed in accordance with section 665-1."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 3000.

Report Title:

BLNR; Real Property; Dissolved Corporations; Escheatment

Description:

Permits real property assets of a dissolved corporation to escheat to the State, upon approval of the Board of Land and Natural Resources, if the assets were not transferred to a creditor, claimant, or shareholder of the corporation; real property taxes and any state tax liens have remained unpaid for five years; and the State makes a showing that attempts to locate creditors, claimants, and shareholders of the dissolved corporation have been unsuccessful. Effective 7/1/3000. (HD1)

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