Louisiana Constitution Art. 7 Sec. 28 – UNCLAIMED PROPERTY
Terms Used In Louisiana Constitution Art. 7 Sec. 28
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Contract: A legal written agreement that becomes binding when signed.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
§28. Louisiana Unclaimed Property Permanent Trust Fund
Section 28.(A) Creation of Fund. (1) Effective July 1, 2021, there shall be established in the state treasury as a special permanent trust fund, the Louisiana Unclaimed Property Permanent Trust Fund, referred to as the “UCP Permanent Trust Fund”. No appropriation shall be made from the UCP Permanent Trust Fund.
(2) The purpose of the UCP Permanent Trust Fund is to ensure a source of payment for claims made by owners of unclaimed property. After allocation of money to the Bond Security and Redemption Fund as provided in Article VII, § 9(B) of this Constitution, after the payment of all administrative fees, costs, and expenses as provided by law, and after the deposit of monies into the Unclaimed Property Leverage Fund, the treasurer shall annually deposit in 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.
(3) Realized capital gains, dividend income, and interest income, earned on the investments in the UCP Permanent Trust Fund, net of trust fund investment and administrative expenses, shall be deposited into the state general fund.
(4) All monies shall be credited to the fund as provided in Subparagraph (2) of this Paragraph until the balance in the UCP Permanent Trust Fund equals the amount of the state’s potential liability to unclaimed property claimants as reported in the previous fiscal year pursuant to Paragraph (C) of this Section. All money received above the state’s potential liability to unclaimed property claimants as reported by the state treasurer shall be deposited into the state general fund.
(B) Investment and Administration. The money credited to the UCP Permanent Trust Fund pursuant to Paragraph (A) of this Section shall be permanently credited to the UCP Permanent Trust Fund and shall be invested by the treasurer. Notwithstanding any provision of this constitution to the contrary, a portion of money in the UCP Permanent Trust Fund, not to exceed fifty percent of the money in the UCP Permanent Trust Fund, may be invested in equities. The legislature shall establish by law procedures for the investment of such monies. The treasurer may contract, subject to the approval of the State Bond Commission, for the management of such investments. Investment earnings shall be available for appropriation to pay expenses incurred in the investment and management of the UCP Permanent Trust Fund.
(C) Reports; Allocation. (1) Not less than sixty days prior to the beginning of each regular session of the legislature, the state treasurer shall submit to the legislature and the governor a report of the following:
(a) The balance of the UCP Permanent Trust Fund as of the close of the prior fiscal year.
(b) The state’s potential liability to unclaimed property claimants as of the close of the prior fiscal year.
(2) Notwithstanding the provisions of Subparagraph (1) of this Paragraph, not less than sixty days prior to the beginning of the 2022 Regular Session of the legislature, the state treasurer shall submit to the legislature and the governor a report of the following:
(a) The balance of the UCP Permanent Trust Fund as of January 1, 2022.
(b) The state’s potential liability to unclaimed property claimants as of the close of the prior fiscal year.
(3) If unclaimed property claims exceed receipts, the state treasurer shall certify the amount needed to pay received claims and shall allocate sufficient funds from the UCP Permanent Trust Fund to pay that amount. The state treasurer shall also immediately notify the legislature and governor of the amount transferred from the UCP Permanent Trust Fund and amount remaining in the UCP Permanent Trust Fund.
(D) Private Property. Property received by the state pursuant to the Uniform Unclaimed Property Act of 1997 or its successor and deposited into the UCP Permanent Trust Fund is private property held in trust until a claim is made for it by the owner.
Acts 2020, 1st Ex. Sess., No. 38, approved Nov. 3, 2020.