Report Title:
Eliminates escheatment
Description:
Eliminates the permanent escheatment of unclaimed property to the State.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1287 |
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TWENTY-FOURTH LEGISLATURE, 2007 |
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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. Section 523A-3.5, Hawaii Revised Statutes, is repealed.
["§523A-3.5 Escheat
process. (a) Any property in custody of the State pursuant to this
chapter at the close of a fiscal year ending June 30, shall escheat to the
State as follows:
(1) If the value of the property is greater
than $10,000, the property shall escheat six years after the end of the fiscal
year in which the property was paid or delivered to the director;
(2) If the value of the property is greater
than $5,000 but less than or equal to $10,000, the property shall escheat five
years after the end of the fiscal year in which the property was paid or
delivered to the director;
(3) If the value of the property is greater
than $1,000 but less than or equal to $5,000, the property shall escheat four
years after the end of the fiscal year in which the property was paid or
delivered to the director;
(4) If the value of the property is greater
than $100 but less than or equal to $1,000, the property shall escheat three
years after the end of the fiscal year in which the property was paid or
delivered to the director; and
(5) If the value of the property is less
than or equal to $100, the property shall escheat two years after the end of
the fiscal year in which the property was paid or delivered to the director;
provided that the property for which a timely
claim has been filed with the director pursuant to section 523A-24, or a timely
action has been filed pursuant to section 523A-26, shall not escheat until the
disposition of the claim or action.
(b) The director shall cause notice to be
given no later than April 1 of the fiscal year ending June 30 in which the
property shall escheat to the State at least once statewide.
(c) The notice shall be entitled,
"Notice to Declare Certain Abandoned Property Escheated to the State of Hawaii" and contain:
(1) A statement that any property presumed
abandoned and paid or delivered to the director that remains unclaimed as of
June 30 of the year the notice is given and that meets the escheat criteria
established in subsection (a)(1), (2), (3), (4), or (5) shall escheat to the
State on June 30, and all rights, title, or interest of the owner shall be
terminated and all claims of the owner shall be forever barred;
(2) A statement listing the names of owners
of abandoned property with a value greater than $5,000 scheduled to escheat to
the State; and
(3) A statement identifying the location
where a list of names and last known addresses, if any, of persons appearing to
be owners of abandoned property subject to escheat on June 30 of the year the
notice is given; and stating that this list shall be made available as a
government record.
(d)
This section shall not apply to sums payable on:
(1) Travelers checks, money orders, and
other written instruments presumed abandoned under section 523A-4;
(2) Checks, drafts, or similar instruments
on which a banking or financial organization is directly liable, including a
cashier's check and a certified check presumed abandoned under section 523A-5;
and
(3) Unpaid debt service payments on Hawaii state and county bonds."]
SECTION 2. Statutory material to be repealed is bracketed and stricken.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |