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)]
HB 430 Original 2023 Regular Session Coussan
Abstract: Authorizes certain agents acting in a fiduciary capacity to be compensated for helping
recover unclaimed property for an owner and sets forth the requirements for any such
contract.
Present law establishes the Uniform Unclaimed Property Act of 1997 to provide for collection,
administration, and distribution of abandoned property in the state.
Present law (R.S. 9:177) sets out prohibitions and requirements with respect to agreements to locate
abandoned property on behalf of an owner.
Proposed law prohibits any agreements to locate abandoned property on behalf of an owner except
for contracts for fiduciary agents as provided in proposed law. Further defines "fiduciary agent" to
mean a representative of an unclaimed property owner whose services provided to the owner involve
locating, delivering, recovering, or assisting in the recovery of unclaimed property to the owner.
Proposed law authorizes a fiduciary agent to receive compensation for his services in an amount not
to exceed 10% of the total claim value.
Proposed law requires a fiduciary agent who seeks compensation to submit to the administrator a
payment request. Requires each request submitted for payment pursuant to proposed law to be
submitted with the abandoned property claim. Further requires such request to be sworn to and
signed by the fiduciary agent and the owner before a notary public and contain both of the following:
(1)A clear disclosure of amounts that may be paid pursuant to the provisions of this Section.
(2)The signature of the owner below a statement that the owner is aware that a portion of his
unclaimed property may be used to pay the fiduciary agent.
Further provides that if the property claimed is cash or has been converted to cash through sale as
provided in present law, the payment to the fiduciary agent is made by the administrator from the
claim proceeds otherwise due the owner. If the property claimed has not been converted to cash as
provided in present law, the owner is responsible for payment to the fiduciary agent.
Proposed law further prohibits application of proposed law to any claim made by another state under
present law (Uniform Unclaimed Property Act of 1997). Present law prohibits an agreement to locate abandoned property entered into within 24 months of
delivery to the state treasurer as administrator of the Unclaimed Property Program. Provides that any
agreement to locate abandoned property that is entered into after a date that is 24 months after the
property is paid or delivered to the administrator may be valid, but cannot require compensation
exceeding 10% of the value of the recoverable property. Proposed law repeals present law.
Present law authorizes action by an owner and recovery of attorney fees if the rate charged the owner
is unconscionable. Proposed law retains present law.
Present law requires any agreement by an owner to pay compensation to locate, deliver, recover, or
assist in the recovery of property to be in writing, clearly set forth the nature of the property and
services to be rendered, be signed by the apparent owner, and state the value of the property before
and after the fee or other compensation has been deducted. Proposed law retains present law.
Present law prohibits any contract dealing with abandoned mineral proceeds that would require
compensation that includes a portion of the underlying minerals or mineral production payment,
overriding royalty, compensating royalty, or similar payment. Proposed law retains present law.
Present law authorizes an owner at any time to assert that an agreement covered by present law is
otherwise invalid. Proposed law retains present law.
Proposed law establishes a fiduciary duty on the fiduciary agent until the owner's claim is paid.
Proposed law directs the state treasurer to make any necessary changes to the forms used to claim
abandoned property pursuant to present and proposed law.
Proposed law directs the La. State Law Institute to alphabetize and renumber definitions in proposed
law and correct any cross-references in present law to the renumbered paragraphs.
Proposed law further provides that proposed law applies only to contracts entered into on or after
the effective date of proposed law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 9:177; Adds R.S. 9:153(16))