(1) As used in this section:
(a) "Cooperative" means a:
(i) distribution electrical cooperative, as defined in Section 54-2-1, that is incorporated in the state; or
(ii) telephone cooperative, as defined in Section 54-2-1, that is incorporated in the state.
(b) "Unclaimed capital credit" means a capital credit issued by a cooperative to the cooperative's customer that is unclaimed on the last day of the year three years after the year in which the credit was issued.
(2) A cooperative shall retain an unclaimed capital credit.
(3) A cooperative shall use the proceeds of a retained unclaimed capital credit to:
(a) pay all or a portion of a low-income individual's utility bills;
(b) provide scholarships to graduating high school seniors in the area where the cooperative provides service; or
(c) provide financial assistance to, in the area where the cooperative provides service:
(i) a school;
(ii) a non-profit organization; or
(iii) a community organization.
(4) A cooperative shall establish criteria for recipients of the financial assistance described in this section that are based on:
(a) a recipient's financial or other needs; and
(b) the recipient community's interests.
(5) A cooperative shall submit a report, before November 1 of each year, to the Public Service Commission that describes:
(a) the amount of unclaimed capital credits retained by the cooperative;
(b) the amount and recipients of financial assistance disbursed under this section; and
(c) the criteria used by the cooperative to determine the recipients and amount of financial assistance disbursed under this section.