CHARLESTON, W.Va. — The House of Delegates spent 45 minutes Wednesday debating an off-the-radar savings bond bill focused on the word “escheat,” about 45 seconds passing a bill to prevent certain sex offenders from supervising kids.
The savings bond bill is HB 2193. As amended on the House floor on Tuesday, it sets up a process for the state to be able to claim and cash abandoned savings bonds. Judiciary chair John Shott, R-Mercer, told members that the state treasury department has about $500,000 worth of those in its possession, but can’t do anything with them.
“Escheat,” according to Merriam-Webster, means “the reversion of property to the crown in England or to the state in the U.S. when there are no legal heirs.”
HB 2193 considers any bonds uncashed five years after their maturity as abandoned. If the state comes into possession of those bonds, it sets up a process for the state to initiate legal action, inform the last known owner and afford the owner an opportunity to claim and cash them.
If no one claims them, a court can rule the bonds escheated to the state. The state can then cash them and put the money into its unclaimed property fund.
While the money sits in the fund, the owner or a rightful heir may still lay claim to the cash, but if no one does the money is eventually transferred to the state General Fund for legislative appropriation.
Shott said the bill offers an opportunity for bond owners or the state to benefit.
Some worried that uncashed bonds sitting in grandma’s drawer 10 years after they’ve reached maturity and stopped earning interest would automatically become state property.
Among them was Delegate Isaac Sponaugle, D-Pendleton, who said the bill isn’t specific enough about uncashed bonds becoming abandoned property and subject to the escheat process. He said that the word “escheat” has devolved over time to “cheat” and the bill allows the state to cheat people out of their bonds.
Shott countered that the state has no access to uncashed bonds in people’s possession and has no access to records of who owns them – that’s federal information.
Delegate Tom Fast, R-Fayette worked with Shott to formulate the amendment that clarified the bond owner’s right to due process and supported the bill on Wednesday. He emphasized that the owner can claim the money even if the state has cashed it and deposited it into unclaimed property.
The vote was 72-28, with bipartisan support and opposition. Locally, voting yes were Democrats Barbara Evans Fleischauer, Evan Hansen, Dave Pethtel and Rodney Pyles, and Republicans Buck Jennings, Amy Summers and Terri Sypolt.
Opposed were Democrats Michael Angelucci, Mike Caputo, Linda Longstreth, Danielle Walker and John Williams.
It heads to the Senate.
So does the sex offender bill, HB 2423. It prohibits certain sex offenders on supervisory release from overseeing children.
It applies to convictions of first-degree sexual assault or abuse, such as rape leading to injury, rape with a weapon, rape of minors under 12, among other offenses.
It applies to oversight of “groups of children, including, but not limited to, religious organizations, Boy Scouts, Girl Scouts, 4H organizations, sporting and scholastic teams, music, sporting and theatre groups and camps, and summer day camps.”
It passed 100-0 without discussion.
HB 2005, the Broadband Expansion Act, was on second reading and subject to amendment. Members approved moving it to third reading with the right to amend on third, so some changes to the 26-page bill are expected.