LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 18 SLS 201ES 68
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: July 6, 2020 4:58 PM Author: FESI
Dept./Agy.: Treasury
Subject: Dedicates unclaimed property funds Analyst: Greg Albrecht
FUNDS/FUNDING EN -$25,000,000 GF RV See Note Page 1 of 1
Dedication of unclaimed property funds and creation of Louisiana Unclaimed Property Permanent Trust Fund. (Item #10)
(See Act)
Creates the La Unclaimed Property Permanent Trust Fund to annually receive net amounts attributable to the Uniform
Unclaimed Property Act that are net of administrative costs and deposits to the I-49 Unclaimed Property Leverage Fund.
These deposits are to be a source of payment for claims made by owners of unclaimed property. No appropriations are to be
made from the Fund, but monies in the Fund can be utilized to make claims payments if claims exceed gross receipts.
Monies are to be deposited into the Fund until the balance equals the state’s potential liability for all unclaimed property
claims. Monies received beyond that liability, as well as annual investment earnings, net of administrative expenses, are to
be deposited into the state general fund. The treasurer may invest up to 50% of the Fund in equities, and is required to
submit annual reports.
Contingent upon adoption of the constitutional amendment contained in SB 12 of this session, to be submitted to the
electors at the statewide election to be held on November 3, 2020. Effective July 1, 2021.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 INCREASE INCREASE INCREASE INCREASE $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 ($25,200,000) ($24,700,000) ($24,200,000) ($24,200,000) ($98,300,000)
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $25,200,000 $24,700,000 $24,200,000 $24,200,000 $98,300,000
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
The Treasury will likely incur expenditures beginning in FY 22 associated with the management of investments and operating
expenses related to the new Trust Fund (approximately $48,000 annually). The management of investments (up to 50%
equities is allowed) will be paid by professional services contract, and are allowed to be appropriated from the investment
earnings of the Trust Fund.
REVENUE EXPLANATION
The bill will result in a matching decrease in state general fund deposits and increase in dedicated fund deposits (Louisiana
Unclaimed Property Permanent Trust Fund) until such time as the balance in the new Fund equals the amount of potential
liability to unclaimed property claimants as reported in the previous fiscal year by the state treasurer. At such time as the
Fund balance exceeds the state’s potential liability in the previous fiscal year, program net receipts shall be deposited into
the state general fund. As of the end of FY19, the potential liability was $881 million. The treasury anticipates earning an
accumulating $1 million per year from the Trust Fund’s separate portfolio, including equities ($1M FY23, $2M FY24, $3M
FY25...).
Treasury practice from inception of the program through FY18 was to revert to the state general fund all program funds
received each fiscal year that have not been returned to the owners nor used for allowable administrative costs and, since
FY08, after making a transfer of $15 M to the Unclaimed Property Leverage Fund {R.S. 9:165(C)}. These excess receipts are
appropriated by the legislature in support of the state budget. Earnings attributable to UCP receipts are currently credited to
the state general fund, as well. Historically, annual receipts (FY19: $81.5M) substantially exceed annual claims refunds and
expenses (FY19: $54.5M), the state’s liability to claimants does not expire, and no claimants have not been paid their
claims.
Based on the current official forecast of May 11, 2020, the projected diversion of funds away from the state general fund and
into the new Fund is depicted in the revenue table above (FY25 is assumed equivalent to FY24). It should be noted that the
treasury did not revert excess program collections in FY19, and indicates it will not do so in subsequent years. However, this
issue is being litigated and the REC has not removed these receipts from the official forecasts for FY22 and beyond, nor were
FY19 and FY20 state general fund appropriations reduced.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Christopher A. Keaton
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Legislative Fiscal Officer
or a Net Fee Decrease {S}