(Constitutional Amendment) Dedication of unclaimed property funds and creation of Louisiana Unclaimed Property Permanent Trust Fund (RE -$25,000,000 GF RV See Note)
If enacted, the bill will create a permanent trust fund that prevents the appropriation of its resources for general state budgeting. Instead, the fund's monetary contributions will solely serve claim payments for unclaimed property. Additionally, it allows the state treasurer to invest up to 50% of the fund in equities, potentially enhancing the fund's growth and capacity to manage claims. These measures are expected to solidify the financial management of unclaimed property, allowing for a reporting framework that keeps the legislature informed of its balance and potential liabilities annually.
House Bill 445 proposes the establishment of the Louisiana Unclaimed Property Permanent Trust Fund (UCP Permanent Trust Fund) aimed at providing a dedicated source for claims made by owners of unclaimed property. This initiative seeks to amend Article VII of the Louisiana Constitution, ensuring that the fund operates independently from standard state fund regulations, particularly those related to the Bond Security and Redemption Fund. The fund is designed to protect unclaimed property until claims are made, thus institutionalizing a systematic way to manage and pay such claims in the future.
The sentiment surrounding HB 445 appears to be generally positive among proponents who advocate for the establishment of dedicated financial frameworks that effectively address unclaimed property issues. Supporters argue that this trust fund will streamline claim processes and provide greater financial assurance for property owners. However, there may exist some apprehension voiced by critics about potential long-term implications of the fund's operation regarding state finance and the allocation of unclaimed property resources, complicating budget management at the state level.
One notable point of contention is the bill's prohibition against appropriating any funds from the UCP Permanent Trust Fund, which critics may argue limits the state’s flexibility in managing its overall budget. There may also be concerns regarding the extent of the state's role in property management and whether investing in equities could expose the trust fund to market risks, potentially jeopardizing the fund intended to secure claims for property owners.