SLS 201ES-27 REENGROSSED
2020 First Extraordinary Session
SENATE BILL NO. 12
BY SENATOR FESI
UNCLAIMED PROPERTY. Constitutional amendment to dedicate unclaimed property
funds and to create the Louisiana Unclaimed Property Permanent Trust Fund.
(2/3 - CA13s1(A)) (Item #10) (7/1/21)
1 A JOINT RESOLUTION
2 Proposing to add Article VII, Section 10(F)(4)(i) and Part V of Article VII, to be comprised
3 of Section 28, of the Constitution of Louisiana, relative to unclaimed property funds;
4 to provide for the creation of a special trust fund; to provide for the dedication and
5 credit of unclaimed property monies; to provide for the investment, administration,
6 and use of the monies in the special trust fund; to exempt the monies in the fund
7 from reduction in certain circumstances; to provide for certain reporting
8 requirements; to provide for appropriation of monies in the special fund; to provide
9 for an effective date; and to specify an election for submission of the proposition to
10 electors and provide a ballot proposition.
11 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
12 elected to each house concurring, that there shall be submitted to the electors of the state, for
13 their approval or rejection in the manner provided by law, a proposal to add Article VII,
14 Section 10(F)(4)(i) and Part V of Article VII, comprised of Section 28, of the Constitution
15 of Louisiana, to read as follows:
16 §10. Expenditure of State Funds
17 * * *
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1 (F)
2 * * *
3 (4) The provisions of Subparagraphs (1) and (2) of this Paragraph shall not
4 be applicable to, nor affect:
5 * * *
6 (i) The Louisiana Unclaimed Property Permanent Trust Fund, as
7 provided in Article VII, Section 28 of this constitution.
8 * * *
9 PART V. UNCLAIMED PROPERTY
10 §28. Louisiana Unclaimed Property Permanent Trust Fund
11 Section 28.(A) Creation of Fund. (1) Effective July 1, 2021, there shall be
12 established in the state treasury as a special permanent trust fund, the
13 Louisiana Unclaimed Property Permanent Trust Fund, referred to as the "UCP
14 Permanent Trust Fund". No appropriation shall be made from the UCP
15 Permanent Trust Fund.
16 (2) The purpose of the UCP Permanent Trust Fund is to ensure a source
17 of payment for claims made by owners of unclaimed property. After allocation
18 of money to the Bond Security and Redemption Fund as provided in Article
19 VII, Section 9(B) of this constitution, after the payment of all administrative
20 fees, costs, and expenses as provided by law, and after the deposit of monies into
21 the Unclaimed Property Leverage Fund that were pledged for the payment of
22 the principal and interest for the I-49 Project, the treasurer shall annually
23 deposit in and credit to the UCP Permanent Trust Fund the net amount of all
24 monies received as a result of the Uniform Unclaimed Property Act of 1997 or
25 its successor.
26 (3) Realized capital gains, dividend income, and interest income, earned
27 on the investments in the UCP Permanent Trust Fund, net of trust fund
28 investment and administrative expenses, shall be deposited into the State
29 General Fund.
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1 (4) All monies shall be credited to the fund as provided in Subparagraph
2 (2) of this Paragraph until the balance in the UCP Permanent Trust Fund
3 equals the amount of the state's potential liability to unclaimed property
4 claimants as reported in the previous fiscal year pursuant to Paragraph (C) of
5 this Section. All money received above the state's potential liability to unclaimed
6 property claimants as reported by the state treasurer shall be deposited into the
7 State General Fund.
8 (B) Investment and Administration. The money credited to the UCP
9 Permanent Trust Fund pursuant to Paragraph (A) of this Section shall be
10 permanently credited to the UCP Permanent Trust Fund and shall be invested
11 by the treasurer. Notwithstanding any provision of this constitution to the
12 contrary, a portion of money in the UCP Permanent Trust Fund, not to exceed
13 fifty percent of the money in the UCP Permanent Trust Fund, may be invested
14 in equities. The legislature shall establish by law procedures for the investment
15 of such monies. The treasurer may contract, subject to the approval of the State
16 Bond Commission, for the management of such investments. Investment
17 earnings shall be available for appropriation to pay expenses incurred in the
18 investment and management of the UCP Permanent Trust Fund.
19 (C) Reports; Allocation. (1) Not less than sixty days prior to the
20 beginning of each regular session of the legislature, the state treasurer shall
21 submit to the legislature and the governor a report of the following:
22 (a) The balance of the UCP Permanent Trust Fund as of the close of the
23 prior fiscal year.
24 (b) The state's potential liability to unclaimed property claimants as of
25 the close of the prior fiscal year.
26 (2) Notwithstanding the provisions of Subparagraph (1) of this
27 Paragraph, not less than sixty days prior to the beginning of the 2022 Regular
28 Session of the legislature, the state treasurer shall submit to the legislature and
29 the governor a report of the following:
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1 (a) The balance of the UCP Permanent Trust Fund as of January 1, 2022.
2 (b) The state's potential liability to unclaimed property claimants as of
3 the close of the prior fiscal year.
4 (3) If unclaimed property claims exceed receipts, the state treasurer shall
5 certify the amount needed to pay received claims and shall allocate sufficient
6 funds from the UCP Permanent Trust Fund to pay that amount. The state
7 treasurer shall also immediately notify the legislature and governor of the
8 amount transferred from the UCP Permanent Trust Fund and amount
9 remaining in the UCP Permanent Trust Fund.
10 (D) Private Property. Property received by the state pursuant to the
11 Uniform Unclaimed Property Act of 1997 or its successor and deposited into the
12 UCP Permanent Trust Fund is private property held in trust until a claim is
13 made for it by the owner.
14 Section 2. Be it further resolved that the provisions of the amendment contained
15 in this Joint Resolution shall become effective on July 1, 2021.
16 Section 3. Be it further resolved that this proposed amendment shall be submitted to
17 the electors of the state of Louisiana at the statewide election to be held on November 3,
18 2020.
19 Section 4. Be it further resolved that on the official ballot to be used at said election
20 there shall be printed a proposition, upon which the electors of the state shall be permitted
21 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
22 follows:
23 Do you support an amendment to create the Louisiana
24 Unclaimed Property Permanent Trust Fund to preserve the
25 money that remains unclaimed by its owner or owners?
26 (July 1, 2021) (Adds Article VII, Sections 10(F)(4)(i) and 28)
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The original instrument was prepared by Jerry Guillot. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Jeanne Johnston.
DIGEST
SB 12 Reengrossed 2020 First Extraordinary Session Fesi
Proposed constitutional amendment creates the UCP Permanent Trust Fund to be used solely
for the payment of claims made by owners and prohibits appropriation from the fund.
Proposed constitutional amendment provides that after allocation of money to the Bond
Security and Redemption Fund as required by present constitution, after payment of all
administrative fees, costs, and expenses as provided by law, and after the deposit of monies
into the Unclaimed Property Leverage Fund pledged for payment of principal and interest
for the I-49 Project, the treasurer shall annually deposit and credit to the UCP Permanent
Trust Fund the net amount of all monies received as a result of the Uniform Unclaimed
Property Act of 1997 or its successor.
Proposed constitutional amendment requires the net amount of monies received pursuant to
present law (Uniform Unclaimed Property Act, R.S. 9:151 et seq.) to be credited to the UCP
Permanent Trust Fund. Further provides that realized capital gains, dividend income, and
interest income, earned on investments in the fund, net of trust fund investment and
administrative expenses, shall be deposited into the State General Fund.
Proposed constitutional amendment requires the state treasurer to annually report the UCP
Permanent Trust Fund balance and the state's potential liability for unclaimed property
claims to the legislature and the governor. Further authorizes money to be deposited into the
UCP Permanent Trust Fund until the balance in that fund equals the state's reported potential
liability for all unclaimed property. Once this threshold is reached in the UCP Permanent
Trust Fund, proposed constitutional amendment requires any additional money received to
be deposited into the State General Fund.
Proposed constitutional amendment authorizes the state treasurer to invest up to 50% of the
balance in the UCP Permanent Trust Fund in equities. Requires the legislature to establish
procedures for the investment of the funds and authorizes the treasurer to contract for the
management of the investments.
Proposed constitutional amendment authorizes the treasurer to transfer money from the UCP
Permanent Trust Fund if claims for unclaimed property exceed receipts. Requires the
treasurer to certify the amount needed to pay claims received and immediately notify the
legislature and the governor of the new fund balance once he has transferred the money.
Proposal constitutional amendment becomes effective on July 1, 2021.
Specifies submission of the amendment to the voters at the statewide election to be held on
November 3, 2020.
(Adds Const. Art. VII, §10(F)(4)(i) and §28)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Provides that the UCP Permanent Trust Fund must meet present
constitutional requirements relative to the Bond Security and Redemption
Fund.
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2. Provides for payment of specified expenses prior to deposit of monies into
the UCP Permanent Trust Fund.
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