Louisiana House Bill HB536

Louisiana 2020 Regular Session

• Introduced: 2/28/20
• Refer: 2/28/20
• Refer: 3/9/20
• Report Pass: 5/7/20
• Engrossed: 5/22/20
• Refer: 5/25/20

Caption

Dedication of unclaimed property funds and creation of Louisiana Unclaimed Property Permanent Trust Fund (RE -$20,900,000 GF RV See Note)

Impact

Under this legislation, the funds held in the UCP Permanent Trust Fund will be exempt from certain constitutional allocations that typically require state funds to be redirected to the Bond Security and Redemption Fund. Additionally, any realized capital gains, dividends, and interest earned on the investments of the fund will be directed to the State General Fund, promoting a more sustained fiscal approach to managing unclaimed property. The state's treasurer is given the responsibility of managing the fund and is required to provide annual reports regarding the fund’s balance and the state’s potential liability to claimants.

Summary

House Bill 536 establishes the Louisiana Unclaimed Property Permanent Trust Fund (UCP Permanent Trust Fund) to provide a dedicated source of funds for claims made by owners of unclaimed property. The bill mandates that funds from unclaimed property are to be credited exclusively to the UCP Permanent Trust Fund, which is designed to ensure that claimants have access to their rightful property. The law specifically prohibits the appropriation of money from this trust fund, reinforcing its purpose as a safeguard for unclaimed property claims.

Sentiment

The sentiment surrounding HB 536 appears to be generally positive among legislators who support the provision of a trust fund dedicated to ensuring proper payment of claims for unclaimed properties. By isolating these funds and eliminating the possibility of appropriation for other purposes, supporters argue that this bill enhances accountability and transparency in state financial management. However, there may be underlying concerns regarding the amount of capital that will be available for claims and how investments are managed, which require careful oversight to avoid misuse or mismanagement of the funds.

Contention

Notable points of contention include the implications of allowing the state treasurer to manage and invest a significant portion of the funds. Critics may fear that without stringent regulations, there could be risks associated with investment decisions that could jeopardize the availability of funds for claims. The potential for fiscal mismanagement needs to be addressed to ensure that the fund remains compliant with its primary goal of serving claimants effectively.