The original instrument was prepared by Leonore Heavey. The following digest,
which does not constitute a part of the legislative instrument, was prepared by Jeanne
Johnston.
DIGEST
SB 18 Reengrossed 2020 First Extraordinary Session Fesi
Present law (R.S. 9:151 et seq.) establishes requirements and procedures for transfer to the state
treasury of property that remains unclaimed for a certain period of time. Proposed law retains present
law.
Proposed law creates the Unclaimed Property (UCP) Permanent Trust Fund to be used solely for the
payment of claims made by owners and prohibits appropriation from the fund.
Proposed law 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 law requires realized capital gains, dividend income, and interest income, earned on the
investments in the fund, net of trust fund investment and administrative expenses, to be deposited
into the state general fund.
Proposed law requires the state treasurer to annually report the 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 law requires any additional money to be deposited into the state
general fund.
Proposed law authorizes the state treasurer to invest up to 50% of the balance in the UCP Permanent
Trust Fund in the same manner as authorized in present law (R.S. 17:3803) for the La. Education
Quality Trust Fund. Further authorizes the treasurer to contract for the management of the
investments and to pay expenses of the fund from investment earnings. Also authorizes payment of
administrative expenses attributable to the custody, investment, and disbursement of fund monies
from investment earnings.
Proposed law 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. Effective July 1, 2021, if the proposed amendment of Article VII, Section 28 of the Constitution of
La. contained in the Act which originated as Senate Bill No. 12 of this 2020 1st Ex. Sess. of the
Legislature is adopted at a statewide election and becomes effective.
(Adds R.S. 39:100.161)
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.