RDCSB12 2549 480
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)]
SB 12 Reengrossed 2020 First Extraordinary Session Fesi
Proposed constitutional amendment creates the La. Unclaimed Property Permanent Trust
Fund (UCP Permanent Trust Fund) to be used solely for the payment of claims made by
owners of abandoned property. Further prohibits appropriation from the UCP Permanent
Trust Fund.
Proposed constitutional amendment requires monies received pursuant to present law
(Uniform Unclaimed Property Act, R.S. 9:151 et seq.) remaining after allocation to the Bond
Security and Redemption Fund pursuant to present constitution; the payment of all
administrative fees, costs, and expenses provided by law; and deposit of monies into the
Unclaimed Property Leverage Fund to be deposited in 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.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 3, 2020.
Effective July 1, 2021.
(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.
2. Provides for payment of specified expenses prior to deposit of monies into
the UCP Permanent Trust Fund.
Summary of Amendments Adopted by House
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The Committee Amendments Proposed by House Committee on Appropriations to the
reengrossed bill:
1. Remove language regarding pledge of monies in the Unclaimed Property
Leverage Fund.
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