Election 2020: Proposed Louisiana constitutional amendment seven

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(KTVE/KARD) — The proposed amendment 7 deals with the Unclaimed Property Permanent Trust Fund.

Proposed Amendment 7:
Act 38 (SB 12, 2020 First Extraordinary Session Senator Fesi) – Proposed constitutional amendment
creates the La. Unclaimed Property Permanent Trust Fund (UCP Permanent Trust Fund) to be used
solely for the payment of claims made by owners of abandoned property. Further prohibits appropriation from the UCP Permanent Trust Fund.

Proposed constitutional amendment requires monies received pursuant to present law (Uniform Unclaimed Property Act, R.S. 9:151 et seq.) remaining after allocation to the Bond Security and Redemption Fund pursuant to present constitution; the payment of all administrative fees, costs, and expenses provided by law; and deposit of monies into the Unclaimed Property Leverage Fund to be deposited in the UCP Permanent Trust Fund.

Further provides that realized capital gains, dividend income, and interest income earned on investments in the fund, net of trust fund investment and administrative expenses, shall be deposited into the State General Fund.


Proposed constitutional amendment requires the state treasurer to annually report the UCP Permanent Trust 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 constitutional amendment requires any additional money received to be deposited into the State General Fund.

Proposed constitutional amendment authorizes the state treasurer to invest up to 50% of the balance in the UCP Permanent Trust Fund in equities. Requires the legislature to establish procedures for the investment of the funds and authorizes the treasurer to contract for the management of the investments.

Proposed constitutional amendment 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 passed. (Adds Const. Art. VII, Sec.10(F)(4)(i) and Sec.28)

This is what will be on the ballot:

“Do you support an amendment to create the Louisiana Unclaimed Property Permanent Trust Fund to preserve the money that remains unclaimed by its owner or owners?” (July 1, 2021) (Adds Article VII, Sections 10(F)(4)(i) and 28)

The amendment would take effect on July 1, 2021.

What does a vote on this amendment mean?

A “yes” vote supports amending the state constitution to: Create the Unclaimed Property (UCP) Permanent Trust Fund, with the fund earmarked for payment of claims made by owners of abandoned property; allocate funds above administrative costs received due to the Uniform Unclaimed Property Act of 1997 (or its successor) to the UCP Permanent Trust Fund until equal to the state’s estimated unclaimed property potential liability; allocate any additional unclaimed property receipts and any investment revenue from the UCP Permanent Trust Fund to the state’s general fund; and authorize the treasurer to invest up to 50% of the UCP Permanent Trust Fund in equities.

A “no” vote opposes this amendment to create the Unclaimed Property Permanent Trust Fund, dedicate fund revenue to paying claims from owners of unclaimed property, and allocate investment revenue and unclaimed property revenue above the state’s estimate unclaimed property liability to the state’s general fund.

What would Amendment 7 change about unclaimed property collected by the state?

The amendment would create the Unclaimed Property (UCP) Permanent Trust Fund, with the fund earmarked for payment of claims made by owners of abandoned property.

It also requires that funds above administrative costs received due to the Uniform Unclaimed Property Act of 1997 (or its successor) be allocated to the UCP Permanent Trust Fund until equal to the state’s estimated unclaimed property potential liability.

It would also allocate any additional unclaimed property receipts and any investment revenue from the UCP Permanent Trust Fund to the state’s general fund and authorize the treasurer to invest up to 50% of the UCP Permanent Trust Fund in equities.

Amendment 7 authorizes the state treasurer to invest up to 50 percent of the balance of the UCP Permanent Trust Fund in equities and requires the state legislature to approve a procedure to do so. Capital gains and dividend and interest income earned on investments in the fund would be deposited into the state’s general fund.

Amendment 7 also requires that the state treasurer report annually to the legislature and the governor the calculated unclaimed property potential liability for the UCP Permanent Trust Fund and allocate money to the fund until the fund’s balance equals the total potential liability amount. Money in excess of the potential liability would then be transferred to the general fund.[1]

Other items on the ballot:

Statewide Issues:

Parish Issues:

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