Bill > SB561

This bill addresses how unclaimed capital credits are handled by electric cooperatives in Maryland. Specifically, it introduces a new definition for "nonescheat capital credits," which are funds owed to past members of a cooperative that have not been claimed for at least 5 years. These credits are calculated based on amounts received by the cooperative beyond its operating costs, dating back to the cooperative's incorporation in the state. The bill stipulates that these unclaimed funds are not considered abandoned property, as they would be under previous law. Instead, the cooperative is given two specific options for using these nonescheat capital credits: they can either assist current cooperative members in accordance with existing cooperative powers or make donations to nonprofit, charitable organizations approved by the cooperative's board of directors. Importantly, the bill explicitly states that this provision does not relieve the cooperative of its obligation to refund these capital credits if a past member eventually applies to claim them. The new law is set to take effect on October 1, 2025, providing electric cooperatives with clear guidance on managing unclaimed capital credits.

Business and Industry, Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0561?ys=2025RS