Kentucky State Treasury Newsroom
Treasurer Hollenbach’s Legislative Agenda Moves Forward
Frankfort, KY (March, 2014) – Kentucky Treasurer Todd Hollenbach has three proposals from his legislative agenda making their way through the Kentucky General Assembly. Two were introduced in the senate, one dealing with the checks and balances between constitutional officers and the legislature. The second relates to the United States Treasury which is currently holding nearly $16 billion worth of matured U.S. Savings Bonds that are no longer paying interest. Of that amount over $200 million belongs to owners with addresses in Kentucky.
“Senate Bill 235 sponsored by Senator Morgan McGarvey provides the greatest opportunity for the return of these hard earned savings to the rightful owners, their heirs and the people of the Commonwealth”, said Kentucky Treasurer Todd Hollenbach. “The savings were invested by these good citizens, in good faith, through the U.S. Saving Bonds program to provide support for the government’s war efforts”, the Treasurer noted.
Now the Federal Government is holding the funds hostage by refusing to comply with Kentucky’s unclaimed property statues, making little or no effort to notify the bond owners or report the bonds to the state as abandoned property so that the Treasury can locate the rightful owners and return the cash through the proactive Treasure Finders program.
“Most of the bonds have matured and no longer accrue interest,” Hollenbach said. “Consequently, inflation has eroded the value of the bonds.”
Treasurer Hollenbach also proposed legislation in response to a bipartisan concern about the use of funds recovered by constitutional officers though legal actions. “The current law requires only written notification to the legislative leadership”, the Treasurer said. Senator Robin Webb introduced Senate Bill 223 that would insure those recovered funds are deposited into the general fund and that the General Assembly would have oversight of the appropriation of the money.
An additional measure proposed by the Treasurer and sponsored by Representative Jim Glenn would form the Kentucky Financial Literacy Commission. It has passed the House and is now in the Senate. “I’m grateful to Representative Glenn and Senators Webb and McGarvey for sponsoring these important pieces of legislation”, Hollenbach added.