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HB 227

Corporations and Associations - Electric Cooperatives - Nonescheat Capital Credits

2025 Regular Session Introduced by Chris Adams and 1 co-sponsor

HB 227 modifies when Maryland electric cooperatives must surrender unclaimed member capital credits to the state, likely extending member recovery timeframes.

Approved by the Governor - Chapter 212
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Bill Summary · HB 227

Legislative bill overview

HB 227 modifies Maryland law governing electric cooperatives' handling of capital credits—the refunds or patronage dividends that members receive based on their usage and the cooperative's financial performance. The bill establishes new rules for when these capital credits are considered abandoned property (escheat) and become subject to state custody, likely extending the timeframe before unclaimed credits revert to the state.

Why is this important

Electric cooperatives in Maryland hold substantial capital credits belonging to thousands of member-customers. Changes to escheat rules directly affect whether members can eventually recover these funds or whether the state gains control of them. This impacts both cooperative finances and member rights to their accumulated equity in the organization.

Potential points of contention

  • State revenue implications: Extending the period before capital credits escheat to the state reduces immediate revenue to Maryland's unclaimed property fund, creating fiscal trade-offs
  • Member equity protection vs. administrative burden: While extending recovery timeframes protects members' property rights, it may increase cooperative administrative costs in tracking and locating members
  • Fairness in dormancy standards: Different escheat timelines for cooperatives versus other businesses could create inconsistent treatment of abandoned property across entity types

Compiled from official sources — confirm details with the bill’s official record.

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