Bill > HB227

This bill modifies Maryland state law regarding unclaimed money held by electric cooperatives, specifically addressing "nonescheat capital credits" - which are funds owed to past members of an electric cooperative that have remained unclaimed for at least 5 years. Under the new law, these capital credits, which represent money allocated to past members based on their patronage and excess payments beyond the cooperative's operating costs, will not be considered abandoned property after 3 years as previously defined. Instead, the electric cooperative may use these unclaimed funds for two specific purposes: to assist current cooperative members in accordance with existing cooperative powers, or to make donations to nonprofit charitable organizations approved by the cooperative's board of directors. Importantly, the bill explicitly states that this provision does not absolve the cooperative of its obligation to refund these nonescheat capital credits if a past member subsequently applies to claim them. The bill is set to take effect on October 1, 2025, providing electric cooperatives with a clear framework for managing these unclaimed funds while maintaining member-centric financial practices.

Business and Industry, Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0227?ys=2025RS