Maryland 2025 Regular Session

Maryland Senate Bill SB561 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5	5		Underlining indicates amendments to bill.
6	6		Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7	7		amendment.
8		-	Italics indicate opposite chamber/conference committee amendments.
9	8		sb0561
10	9
11	10		SENATE BILL 561
12		-	C1, C5 (5lr1220)
13		-	ENROLLED BILL
14		-	— Judicial Proceedings/Economic Matters —
15		-	Introduced by Senators Hershey and Mautz
16		-
17		-	Read and Examined by Proofreaders:
18		-
19		-	_______________________________________________
20		-	Proofreader.
21		-	_______________________________________________
22		-	Proofreader.
23		-
24		-	Sealed with the Great Seal and presented to the Governor, for his approval this
25		-
26		-	_______ day of _______________ at __ ______________________ o’clock, ________M.
27		-
28		-	______________________________________________
29		-	President.
	11	+	C1, C5 5lr1220
	12	+	SB 510/24 – JPR CF HB 227
	13	+	By: Senators Hershey and Mautz
	14	+	Introduced and read first time: January 23, 2025
	15	+	Assigned to: Judicial Proceedings
	16	+	Committee Report: Favorable
	17	+	Senate action: Adopted
	18	+	Read second time: February 2, 2025
30	19
31	20		CHAPTER ______
32	21
33	22		AN ACT concerning 1
34	23
35	24		Corporations and Associations – Electric Cooperatives – Nonescheat Capital 2
36	25		Credits 3
37	26
38	27		FOR the purpose of providing that certain unclaimed money held by an electric cooperative 4
39	28		and due to a past member is not considered abandoned property; authorizing an 5
40	29		electric cooperative to use this money only for certain purposes; and generally 6
41	30		relating to electric cooperatives and nonescheat capital credits. 7
42	31
43	32		BY repealing and reenacting, without amendments, 8
44	33		Article – Commercial Law 9
45	34		Section 17–304(b) 10
46	35		Annotated Code of Maryland 11
47	36		(2013 Replacement Volume and 2024 Supplement) 12
48	37
49		-	BY repealing and reenacting, with amendments, 13 2 SENATE BILL 561
	38	+	BY repealing and reenacting, with amendments, 13
	39	+	Article – Commercial Law 14
	40	+	Section 17–304(g) 15
	41	+	Annotated Code of Maryland 16
	42	+	(2013 Replacement Volume and 2024 Supplement) 17
50	43
51		-
52		-	Article – Commercial Law 1
53		-	Section 17–304(g) 2
54		-	Annotated Code of Maryland 3
55		-	(2013 Replacement Volume and 2024 Supplement) 4
56		-
57		-	BY repealing and reenacting, without amendments, 5
58		-	Article – Corporations and Associations 6
59		-	Section 5–601(a) and (c) and 5–605 7
60		-	Annotated Code of Maryland 8
61		-	(2014 Replacement Volume and 2024 Supplement) 9
62		-
63		-	BY adding to 10
64		-	Article – Corporations and Associations 11
65		-	Section 5–650.1 12
66		-	Annotated Code of Maryland 13
67		-	(2014 Replacement Volume and 2024 Supplement) 14
68		-
69		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
70		-	That the Laws of Maryland read as follows: 16
71		-
72		-	Article – Commercial Law 17
73		-
74		-	17–304. 18
75		-
76		-	(b) Any stock or other certificate of ownership, or any dividend, profit, 19
77		-	distribution, interest, payment on principal, or other sum held by a business association for 20
78		-	or to a shareholder, certificate holder, member, bondholder or other security holder, or 21
79		-	participating patron of a cooperative is presumed abandoned 3 years after the later of: 22
80		-
81		-	(1) The date the holder is deemed to no longer have a valid address for the 23
82		-	owner of the property; or 24
83		-
84		-	(2) The date the owner last communicated with the business association 25
85		-	regarding the property if: 26
86		-
87		-	(i) It is held by a business association organized under the laws of 27
88		-	or created in this State; 28
89		-
90		-	(ii) It is held by a business association doing business in this State 29
91		-	but not organized under the laws of this State, and the records of the business association 30
92		-	indicate that the last known address of the person entitled to it is in this State; or 31
93		-
94		-	(iii) It is held by a business association not doing business in this 32
95		-	State and not organized under the laws of this State, but the records of the business 33
96		-	association indicate that the last known address of the person entitled to it is in this State. 34
97		-
98		-	(g) This section does not apply to [any]: 35 SENATE BILL 561 3
	44	+	BY repealing and reenacting, without amendments, 18
	45	+	Article – Corporations and Associations 19
	46	+	Section 5–601(a) and (c) and 5–605 20
	47	+	Annotated Code of Maryland 21
	48	+	(2014 Replacement Volume and 2024 Supplement) 22 2 SENATE BILL 561
99	49
100	50
101	51
102		-	~~(1) ANY stock or other intangible ownership interest enrolled in a plan that~~ 1
103		-	~~provides for the automatic reinvestment of dividends, distributions, or other sums payable~~ 2
104		-	~~as a result of the interest unless the records available to the Administrator of the plan~~ 3
105		-	~~show, with respect to any intangible ownership interest not enrolled in the reinvestment~~ 4
106		-	~~plan, that:~~ 5
	52	+	BY adding to 1
	53	+	Article – Corporations and Associations 2
	54	+	Section 5–650.1 3
	55	+	Annotated Code of Maryland 4
	56	+	(2014 Replacement Volume and 2024 Supplement) 5
107	57
108		-	[(1~~)] (I)~~ The ~~holder is deemed to no longer have a valid address for the~~ 6
109		-	~~owner~~ of ~~the stock or other intangible ownership interest; or~~ 7
	58	+	SECTION 1. BE IT ENACTE D BY THE GENERAL ASSEMBLY OF MARYLAND, 6
	59	+	That the Laws of Maryland read as follows: 7
110	60
111		-	[(2)] (II) The owner has not within 3 years communicated in any manner 8
112		-	described in subsection (c)(2) of this section; OR 9
	61	+	Article – Commercial Law 8
113	62
114		-	(2) NONESCHEAT CAPITAL CR EDITS, AS DEFINED IN § 5–650.1 OF THE 10
115		-	CORPORATIONS AND ASSOCIATIONS ARTICLE. 11
	63	+	17–304. 9
116	64
117		-	Article – Corporations and Associations 12
	65	+	(b) Any stock or other certificate of ownership, or any dividend, profit, 10
	66	+	distribution, interest, payment on principal, or other sum held by a business association for 11
	67	+	or to a shareholder, certificate holder, member, bondholder or other security holder, or 12
	68	+	participating patron of a cooperative is presumed abandoned 3 years after the later of: 13
118	69
119		-	5–601. 13
	70	+	(1) The date the holder is deemed to no longer have a valid address for the 14
	71	+	owner of the property; or 15
120	72
121		-	(a) In this subtitle the following words have the meanings indicated. 14
	73	+	(2) The date the owner last communicated with the business association 16
	74	+	regarding the property if: 17
122	75
123		-	(c) “Cooperative” means a corporation that: 15
	76	+	(i) It is held by a business association organized under the laws of 18
	77	+	or created in this State; 19
124	78
125		-	(1) Is organized under this subtitle; or 16
	79	+	(ii) It is held by a business association doing business in this State 20
	80	+	but not organized under the laws of this State, and the records of the business association 21
	81	+	indicate that the last known address of the person entitled to it is in this State; or 22
126	82
127		-	(2) Becomes subject to this subtitle in the manner provided in this subtitle. 17
	83	+	(iii) It is held by a business association not doing business in this 23
	84	+	State and not organized under the laws of this State, but the records of the business 24
	85	+	association indicate that the last known address of the person entitled to it is in this State. 25
128	86
129		-	~~5–605. 18~~
	87	+	(g) This section does not apply to [any]: 26
130	88
131		-	A cooperative, nonprofit, membership corporation may be organized under this 19
132		-	subtitle for the purpose of supplying, promoting, and extending the use of electricity. 20
	89	+	(1) ANY stock or other intangible ownership interest enrolled in a plan that 27
	90	+	provides for the automatic reinvestment of dividends, distributions, or other sums payable 28
	91	+	as a result of the interest unless the records available to the Administrator of the plan 29
	92	+	show, with respect to any intangible ownership interest not enrolled in the reinvestment 30
	93	+	plan, that: 31
133	94
134		-	5–650.1. 21
	95	+	[(1)] (I) The holder is deemed to no longer have a valid address for the 32
	96	+	owner of the stock or other intangible ownership interest; or 33
	97	+	SENATE BILL 561 3
135	98
136		-	(A) IN THIS SECTION, “NONESCHEAT CAPITAL C REDITS” MEANS MONEY : 22
137	99
138		-	(1) DUE TO ANY PAST MEMBE R OF A COOPERATIVE I N RETIREMENT 23
139		-	OF CAPITAL ALLOCATED ON A PATRONAGE BASIS TO THE ACCOUNT OF TH E PAST 24
140		-	MEMBER FOR AMOUNTS R ECEIVED AND RECEIVAB LE BY THE COOPERATIV E IN 25
141		-	EXCESS OF OPERATING COSTS AND EXPENSES FROM THE DATE OF THE 26
142		-	COOPERAT IVE’S INCORPORATION IN T HE STATE; 27
	100	+	[(2)] (II) The owner has not within 3 years communicated in any manner 1
	101	+	described in subsection (c)(2) of this section; OR 2
143	102
144		-	(2) FOR WHICH AT LEAST 5 YEARS HAVE PASSED SI NCE THE CREDITS 28
145		-	WERE RETIRED ; AND 29 4 SENATE BILL 561
	103	+	(2) NONESCHEAT CAPITAL CR EDITS, AS DEFINED IN § 5–650.1 OF THE 3
	104	+	CORPORATIONS AND ASSOCIATIONS ARTICLE. 4
	105	+
	106	+	Article – Corporations and Associations 5
	107	+
	108	+	5–601. 6
	109	+
	110	+	(a) In this subtitle the following words have the meanings indicated. 7
	111	+
	112	+	(c) “Cooperative” means a corporation that: 8
	113	+
	114	+	(1) Is organized under this subtitle; or 9
	115	+
	116	+	(2) Becomes subject to this subtitle in the manner provided in this subtitle. 10
	117	+
	118	+	5–605. 11
	119	+
	120	+	A cooperative, nonprofit, membership corporation may be organized under this 12
	121	+	subtitle for the purpose of supplying, promoting, and extending the use of electricity. 13
	122	+
	123	+	5–650.1. 14
	124	+
	125	+	(A) IN THIS SECTION, “NONESCHEAT CAPITAL C REDITS” MEANS MONEY : 15
	126	+
	127	+	(1) DUE TO ANY PAST MEMBER OF A COO PERATIVE IN RETIREME NT 16
	128	+	OF CAPITAL ALLOCATED ON A PATRONAGE BASIS TO THE ACCOUNT OF TH E PAST 17
	129	+	MEMBER FOR AMOUNTS R ECEIVED AND RECEIVAB LE BY THE COOPERATIV E IN 18
	130	+	EXCESS OF OPERATING COSTS AND EXPENSES ; 19
	131	+
	132	+	(2) FOR WHICH AT LEAST 5 YEARS HAVE PASSED SINCE THE CRE DITS 20
	133	+	WERE RETIRED ; AND 21
	134	+
	135	+	(3) THAT HAS NOT BEEN CLA IMED BY THE PAST MEM BER. 22
	136	+
	137	+	(B) A COOPERATIVE MAY USE NONESCHEAT CAPITAL C REDITS ONLY TO: 23
	138	+
	139	+	(1) ASSIST MEMBERS OF THE COOPERATIVE IN ACCOR DANCE WITH 24
	140	+	THE POWERS GRANTED T O THE COOPERATIV E UNDER § 5–607 OF THIS SUBTITLE ; 25
	141	+	OR 26
	142	+
	143	+	(2) MAKE DONATIONS TO NON PROFIT, CHARITABLE ORGANIZAT IONS 27
	144	+	APPROVED BY THE COOP ERATIVE’S BOARD OF DIRECTORS . 28 4 SENATE BILL 561
146	145
147	146
148	147
149		-	(3) THAT HAS NOT BEEN CLA IMED BY THE PAST MEM BER. 1
	148	+	(C) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO RELIEVE A 1
	149	+	COOPERATIVE OF THE O BLIGATION TO REFUND NONESCHE AT CAPITAL CREDITS O N 2
	150	+	APPLICATION OF A PAS T MEMBER. 3
150	151
151		-	(B) A COOPERATIVE MAY USE NONESCHEAT CAPITAL C REDITS ONLY TO: 2
	152	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
	153	+	October 1, 2025. 5
152	154
153		-	(1) ASSIST MEMBERS O F THE COOPERATIVE IN ACCORDANCE WITH 3
154		-	THE POWERS GRANTED T O THE COOPERATIVE UN DER § 5–607 OF THIS SUBTITLE ; 4
155		-	OR 5
156		-
157		-	(2) MAKE DONATIONS TO NON PROFIT, CHARITABLE ORGANIZAT IONS 6
158		-	APPROVED BY THE COOP ERATIVE’S BOARD OF DIRECTORS . 7
159		-
160		-	(C) NOTHING IN THIS SECTI ON MAY B E CONSTRUED TO RELIE VE A 8
161		-	COOPERATIVE OF THE O BLIGATION TO REFUND NONESCHEAT CAPITAL C REDITS ON 9
162		-	APPLICATION OF A PAS T MEMBER. 10
163		-
164		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
165		-	October 1, 2025. 12
166	155
167	156
168	157
169	158		Approved:
170	159		________________________________________________________________________________
171	160		Governor.
172	161		________________________________________________________________________________
173	162		President of the Senate.
174	163		________________________________________________________________________________
175	164		Speaker of the House of Delegates.