HLS 19RS-532 ORIGINAL
2019 Regular Session
HOUSE BILL NO. 291
BY REPRESENTATIVE BARRAS
FUNDS/FUNDING: (Constitutional Amendment) Dedication of unclaimed property funds
and creation of Louisiana Unclaimed Property Permanent Trust Fund and Louisiana
Unclaimed Property Support Fund
1 A JOINT RESOLUTION
2Proposing to add Article VII, Section 28 of the Constitution of Louisiana, relative to
3 unclaimed property funds; to provide for the creation of special funds; to provide for
4 the dedication and credit of unclaimed property monies; to provide for the
5 investment, administration, and use of the monies in the special funds; to provide for
6 certain reporting requirements; to provide for appropriation of monies in the special
7 funds; to provide for an effective date; to provide for submission of the proposed
8 amendment to the electors; and to provide for related matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10elected to each house concurring, that there shall be submitted to the electors of the state of
11Louisiana, for their approval or rejection in the manner provided by law, a proposal to add
12Article VII, Section 28 of the Constitution of Louisiana, to read as follows:
13 PART V. UNCLAIMED PROPERTY
14 ยง28. Louisiana Unclaimed Property Trust Fund
15 Section 28.(A) Creation of Fund. Effective July 1, 2020, there shall be
16 established in the state treasury as a special permanent trust fund, the Louisiana
17 Unclaimed Property Permanent Trust Fund, hereinafter referred to as the "UCP
18 Permanent Trust Fund", and a special fund, the Louisiana Unclaimed Property
19 Support Fund, hereinafter referred to as the "UCP Support Fund".
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HB NO. 291
1 (1) The purpose of the UCP Permanent Trust Fund is to ensure a source of
2 payment of claims made by owners of unclaimed property. Notwithstanding the
3 allocation of money to the Bond Security and Redemption Fund as provided in
4 Article VII, Section 9(B) of this constitution, the treasurer shall at least annually
5 deposit in and credit to the UCP Permanent Trust Fund, the net amount of all monies
6 received as a result of the Uniform Unclaimed Property Act as established in R.S.
7 9:151 et seq. No appropriation shall be made from the UCP Permanent Trust Fund.
8 (2) The purpose of the UCP Support Fund is to provide a source of funds for
9 the state capital outlay revolving loan bank, established by law. Notwithstanding the
10 allocation of money to the Bond Security and Redemption Fund as provided in
11 Article VII, Section 9(B) of this constitution, the treasurer shall deposit in and credit
12 to the UCP Support Fund, the following:
13 (a) Interest income earned on investment of monies in the UCP Permanent
14 Trust Fund.
15 (b) Realized capital gains on investment of the UCP Permanent Trust Fund.
16 (c) Dividend income earned on investment of the UCP Permanent Trust
17 Fund.
18 (d) All monies received as repayment of loans made through the state capital
19 outlay revolving loan bank, as established by law.
20 (e) All proceeds from the sale of securities held by Unclaimed Property.
21 (3) All monies shall be credited to the respective funds as provided in
22 Subparagraphs (1) and (2) of this Paragraph until the balance in the UCP Permanent
23 Trust Fund equals the amount of the state's potential liability to unclaimed property
24 claimants as reported in the previous fiscal year by the state treasurer. All money
25 received above the state's potential liability to unclaimed property claimants as
26 reported by the state treasurer shall be deposited into the UCP Support Fund.
27 (B) Investment and Administration. The money credited to the UCP
28 Permanent Trust Fund pursuant to Paragraph (A) of this Section shall be permanently
29 credited to the UCP Permanent Trust Fund and shall be invested by the treasurer.
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HB NO. 291
1 Notwithstanding any provision of this constitution or other law to the contrary, a
2 portion of money in the UCP Permanent Trust Fund, not to exceed fifty percent, may
3 be invested in equities. The legislature shall provide for procedures for the
4 investment of such monies by law. The treasurer may contract, subject to the
5 approval of the State Bond Commission, for the management of such investments.
6 The amounts in the UCP Support Fund shall be available for appropriation to pay
7 expenses incurred in the investment and management of the UCP Permanent Trust
8 Fund.
9 (C) Reports; Allocation. (1) The state treasurer shall annually submit to the
10 legislature and the governor, not less than sixty days prior to the beginning of each
11 regular session of the legislature, a report of the following:
12 (a) The balance of the UCP Permanent Trust Fund and UCP Support Fund
13 as of the close of the prior fiscal year.
14 (b) The state's potential liability to unclaimed property claimants as of the
15 close of the prior fiscal year.
16 (2) If unclaimed property claims exceed receipts, the state treasurer shall
17 certify such and allocate sufficient funds from the UCP Permanent Trust Fund to pay
18 the amount that claims have exceeded receipts, and immediately notify the
19 legislature and governor of the amount transferred from the UCP Permanent Trust
20 Fund and amount remaining in the UCP Permanent Trust Fund.
21 (D) Public Purposes; Disbursement. (1) Property received by the state
22 pursuant to the Uniform Unclaimed Property Act as established in R.S. 9:151 et seq.,
23 and deposited into the UCP Permanent Trust Fund is private property held in trust
24 until a claim is made for it by the owner.
25 (2) The legislature shall establish by law a state capital outlay revolving loan
26 bank, which shall administer a revolving loan program for the benefit of local
27 governmental subdivisions, political subdivisions, or municipalities as defined in
28 Article VI, Section 44 of this constitution.
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HB NO. 291
1 (3) Money in the UCP Support Fund may be transferred by the state treasurer
2 for use by the state capital outlay revolving loan bank to make loans.
3 (4) The monies disbursed from the UCP Support Fund for use as revolving
4 loans shall not displace, replace, or supplant appropriations from the state general
5 fund (direct) or any other specific constitutional or statutory dedication to local
6 governmental subdivisions, political subdivisions, or municipalities in existence on
7 July 1, 2020.
8 Section 2. Be it further resolved that the provisions of the amendment contained in
9this Joint Resolution shall become effective July 1, 2020.
10 Section 3. Be it further resolved that this proposed amendment shall be submitted
11to the electors of the state of Louisiana at the statewide election to be held on October 12,
122019.
13 Section 4. Be it further resolved that on the official ballot to be used at the election,
14there shall be printed a proposition, upon which the electors of the state shall be permitted
15to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
16follows:
17 Do you support an amendment to create the Louisiana Unclaimed Property
18 Permanent Trust Fund to protect money owed to Louisiana citizens and to
19 create the Louisiana Unclaimed Property Support Fund to fund a revolving
20 loan bank for local government infrastructure? (July 1, 2020) (Adds Article
21 VII, Section 28)
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HB NO. 291
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 291 Original 2019 Regular Session Barras
Abstract: Creates the La. Unclaimed Property Permanent Trust Fund (UCP Permanent
Trust Fund) to fund claims made by owners of unclaimed property, and the La.
Unclaimed Property Support Fund (UCP Support Fund) to fund a revolving loan
bank for local government infrastructure.
Proposed constitutional amendment creates the UCP Permanent Trust Fund and credits all
monies received as a result of the unclaimed property pursuant to present law and the
Unclaimed Property Leverage Fund into the UCP Permanent Trust Fund after making
deposits pursuant to present law. The UCP Permanent Trust Fund is to be used solely for
the payment of claims made by owners. Proposed constitutional amendment prohibits
appropriation from the fund.
Proposed constitutional amendment also creates the UCP Support Fund to provide a source
of funds for the state capital revolving loan bank for local government infrastructure. The
UCP Support Fund shall be funded by interest income, realized capital gains, and dividend
income from the UCP Permanent Trust Fund, all monies received as repayment of loans
made by the state capital outlay revolving loan bank, and proceeds from sales of securities.
Proposed constitutional amendment requires monies to be deposited into both funds until the
UCP Permanent Trust Fund balance equals the state's potential liability for all unclaimed
property, then additional monies shall be deposited into the UCP Support Fund.
Proposed constitutional amendment authorizes the state treasurer to invest up to 50% of the
monies in the UCP Permanent Trust Fund as provided by the legislature and authorizes the
treasurer to contract for the management of the funds.
Proposed constitutional amendment requires the state treasurer to submit an annual report
including the balance of the funds and the state's potential liability of unclaimed property to
the legislature and governor.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held October 12, 2019.
Eff. date July 1, 2020.
(Adds Const. Art. VII, Section 28)
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