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Louisiana Amendment 7, Unclaimed Property Permanent Trust Fund Amendment (2020)

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Louisiana Amendment 7
Flag of Louisiana.png
Election date
November 3, 2020
Topic
Property and State and local government budgets, spending and finance
Status
Approveda Approved
Type
Constitutional amendment		Origin
State legislature

Louisiana Amendment 7, the Unclaimed Property Permanent Trust Fund Amendment, was on the ballot in Louisiana as a legislatively referred constitutional amendment on November 3, 2020.[1] It was approved.

A "yes" vote supported 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 opposed 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. 


The amendment took effect on July 1, 2021.

Election results

Louisiana Amendment 7

Result Votes Percentage

Approved Yes

1,267,414 64.32%
No 702,930 35.68%
Results are officially certified.
Source


Overview

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

See also: Measure design and Text of measure

The amendment created the Unclaimed Property (UCP) Permanent Trust Fund, with the fund earmarked for payment of claims made by owners of abandoned property. It also required 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 also allocated any additional unclaimed property receipts and any investment revenue from the UCP Permanent Trust Fund to the state's general fund and authorized the treasurer to invest up to 50% of the UCP Permanent Trust Fund in equities.[1]

Under the Uniform Unclaimed Property Act of 1997, the treasurer is required to maintain $500,000 in a fund for payment of claims made by owners of abandoned property. The law also requires that $15 million be deposited into the Unclaimed Property Leverage Fund each fiscal year. Money in excess of this is then deposited into the Bond Security and Redemption Fund.[2]

How did Amendment 7 get on the ballot?

See also: Path to the ballot and Gov. John Bel Edwards v. Treasurer John Schroder

In the 2019 and 2020 fiscal years, State Treasurer John Schroder (R) did not transfer $32.5 million in unclaimed property revenue above the amount remitted to claimants to the general fund, saying the money did not belong to the state and should be kept in case its rightful owners come forward. In February 2020, Gov. Edwards (D) sued Schroder, requesting the court to order the treasurer to transfer the $32.5 million to the general fund. On May 26, 2020, District Court Judge Richard Moore, III, ruled in favor of Gov. Edwards. Edwards and Schroder struck a deal, however, that included (a) Schroder releasing the $32.5 million and an estimated $25 million for the following fiscal year and (b) the adoption of this constitutional amendment to establish a permanent fund for unclaimed property revenue starting in July 2021.

Senator Michael Fesi (R) introduced the constitutional amendment as Senate Bill 12 on June 4, 2020. On June 22, 2020, the state Senate passed the amendment in a vote of 37-0, with two absent. On June 25, 2020, the state House passed Senate Bill 12 with amendments in a vote of 95-3, with six absent. On June 26, 2020, the state Senate concurred with the House amendments in a vote of 35-0, with four absent.

Measure design

Amendment 7 created the Unclaimed Property (UCP) Permanent Trust Fund, with the fund earmarked for payment of claims made by owners of abandoned property, such as abandoned bank accounts, IRAs, and 401(k) accounts; unclaimed pensions, Social Security benefits; unredeemed U.S. Savings Bonds; and uncollected insurance proceeds and utility deposits. The amendment took effect on July 1, 2021. After funds are allocated to the administrative costs for the Trust Fund, the Bond Security and Redemption Fund, and the Unclaimed Property Leverage Fund, the state treasurer is required to deposit the net amount of abandoned property received according to the Uniform Unclaimed Property Act of 1997.[1]

Amendment 7 authorized the state treasurer to invest up to 50 percent of the balance of the UCP Permanent Trust Fund in equities and required the state legislature to approve a procedure to do so. Capital gains and dividend and interest income earned on investments in the fund is deposited into the state's general fund.[1]

Amendment 7 also required 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]

Text of measure

Ballot title

The ballot title was as follows:[1]

“

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)[3]

”

Ballot summary

The ballot summary was as follows:[4]

“

Proposed Constitutional Amendment creates the Louisiana Unclaimed Property Permanent Trust Fund, effective July 1, 2021, in the state treasury as a special permanent trust fund referred to as the “UCP Permanent Trust Fund” and provides that no appropriation shall be made from the fund.

Proposed Constitutional Amendment provides that the purpose of the fund is to ensure a source of payment for claims made by owners of unclaimed property. Further provides that 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 after allocation of money to the Bond Security and Redemption Fund, 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.

Proposed Constitutional Amendment provides that 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.

Proposed Constitutional Amendment provides that all monies shall be credited to the fund until the balance in the UCP Permanent Trust Fund equals the amount of the state’s potential liability to unclaimed property claimants as reported by the state treasurer in the previous fiscal year and 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.

Proposed Constitutional Amendment provides that the money credited to the UCP Permanent Trust Fund shall be permanently credited to the fund and shall be invested by the treasurer. Further provides that a portion of the money in the UCP Permanent Trust Fund, not to exceed 50% of the money in the fund may be invested in equities and requires the legislature to establish by law procedures for the investment of such monies. Further provides that the treasurer may contract, with the approval of the State Bond Commission, for the management of such investments and investment earnings shall be available for appropriation to pay expenses incurred in the investment and management of the UCP Permanent Trust Fund.

Proposed Constitutional Amendment requires the state treasurer to submit a report to the legislature and the governor not less than 60 days prior to the beginning of each regular session of the legislature that includes the balance of the UCP Permanent Trust Fund as of the close of the prior fiscal year and the state’s potential liability to unclaimed property claimants as of the close of the prior fiscal year.

Proposed Constitutional Amendment also requires the state treasurer to submit a report to the legislature and the governor not less than 60 days prior to the beginning of the 2022 Regular Session of the legislature that includes the balance of the UCP Permanent Trust Fund as of January 1, 2022 and the state’s potential liability to unclaimed property claimants as of the close of the prior fiscal year.

Proposed Constitutional Amendment provides that 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 and shall also immediately notify the legislature and the governor of the amount transferred from the UCP Permanent Trust Fund and amount remaining in the UCP Permanent Trust Fund.

Proposed Constitutional Amendment provides that property received in 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 that is held in trust until a claim is made for it by the owner.

Proposed Constitutional Amendment provides that the provisions of this amendment shall become effective on July 1, 2021.[3]

”

Constitutional changes

See also: Article VII, Louisiana Constitution

The measure added clause 4)(i) to Section 10(F) and Part V of Article VII of the Louisiana Constitution. The following underlined text would be added:[1]

Note: Hover over the text and scroll to see the full text.

(4) The provisions of Subparagraphs (1) and (2) of this Paragraph shall not be applicable to, nor affect:

(a) The Bond Security and Redemption Fund or any bonds secured thereby, or any other funds pledged as security for bonds or other evidences of indebtedness.

(b) The allocations provided for by Article VII, Section 4(D) and (E) of this constitution.

(c) The contributions made in accordance with Article X, Section 29(E) of this constitution.

(d) The Louisiana Education Quality Trust Fund as defined in Article VII, Section 10.1(A)(1) of this constitution.

(e) The Millennium Trust as provided in Article VII, Section 10.8 of this constitution, except for appropriations from the trust.

(f) Any monies not required to be deposited in the state treasury as provided in Article VII, Section 9 of this constitution.

(g) The Medicaid Trust Fund for the Elderly created under the provisions of R.S. 46:2691 et seq.

(h) The Revenue Stabilization Trust Fund, as provided in Article VII, Section 10.15 of this constitution.

(i) The Louisiana Unclaimed Property Permanent Trust Fund, as provided in Article VII, Section 28 of this constitution.

PART V. UNCLAIMED PROPERTY

§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, Section 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 UCPPermanent 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. Section 2. Be it further resolved that the provisions of the amendment contained in this Joint Resolution shall become effective on July 1, 2021.[3]

Readability score

See also: Ballot measure readability scores, 2020
Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure.


The FKGL for the ballot title is grade level 8, and the FRE is 56. The word count for the ballot title is 34, and the estimated reading time is 9 seconds. The FKGL for the ballot summary is grade level 10, and the FRE is 48. The word count for the ballot summary is 629, and the estimated reading time is 2 minutes and 47 seconds.


Full text

The full text is available here.[1]

Support

Supporters

Officials

Arguments

  • Louisiana State Treasurer John M. Schroder: "My staff and I have worked hard on this issue because I truly believe Unclaimed Property belongs to the people of Louisiana. It should be there whether it takes you two years or 20 years to claim it. Putting Unclaimed Property into a trust fund will ensure it’s protected for you. The interest earnings will generate millions of dollars for the state budget. Everyone wins here. Unclaimed Property is your money. Claim it!"
  • Public Affairs Research Council of Louisiana: The Public Affairs Research Council of Louisiana (PAR), a nonprofit organization, published arguments for and against each amendment on the ballot. PAR wrote the following argument in support of Amendment 7: "This amendment protects money that belongs to individuals. Unclaimed property comes to the state with somebody’s name on it and the state’s job is to try to find those people. This money does not belong to the state; it’s for the citizens with rightful claims. This new fund is needed because the recent increase in returns to claimants has created a cash flow issue in the Treasurer’s office. Twice the escrow fund has temporarily run dry resulting in a slowdown of payments. This improvement in finding claimants could continue due to advances in technology and efforts by the Treasurer’s office. This amendment would arrest the growing liability associated with habitually moving excess unclaimed property to the general fund. By allowing the fund to be invested, it creates a future revenue stream for the state that would not be dependent on spending other people’s property."


Opposition

If you know of any endorsements or arguments that should be listed here, email editor@ballotpedia.org.

Arguments

  • Public Affairs Research Council of Louisiana: The Public Affairs Research Council of Louisiana (PAR), a nonprofit organization, published arguments for and against each amendment on the ballot. PAR wrote the following argument in opposition to Amendment 7: "The Unclaimed Property Program has existed for almost 50 years and has never had more claims than collections in a year. Even with increased returns in 2019 there was still an excess of about $12 million after dedications. The cash flow issue of the program has existed from its inception because state law requires remittances to be paid to the Treasury at particular times of the year, while refunds can come in at any time. State law could be adjusted to reduce this problem. This money is put to good use by funding important programs such as K-12 education, healthcare and state colleges. While the investment earnings of the proposed fund would eventually put money into the state general fund, it could take years before that new revenue source would approach anything close to $12 million in a year. The state needs every dollar it can get if it is going to fund government without raising taxes."


Campaign finance

The campaign finance information on this page reflects the most recent scheduled reports that Ballotpedia has processed, which covered through December 3, 2020.


See also: Campaign finance requirements for Louisiana ballot measures

Ballotpedia did not identify any committees registered in support of or in opposition to the measure.[5]

Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures
Support $0.00 $0.00 $0.00 $0.00 $0.00
Oppose $0.00 $0.00 $0.00 $0.00 $0.00
Total $0.00 $0.00 $0.00 $0.00 $0.00

Background

Implementing legislation (Senate Bill 18)

The Louisiana Legislature approved Senate Bill 18 in June 2020. The bill was designed as the implementing legislation of this constitutional amendment and went into effect on July 1, 2021.[6]

The Uniform Disposition of Property Act (1972)

The Uniform Disposition of Property Act was passed in 1972. From 1972 to 2019, the state treasurer collected $1.3 billion in unclaimed property—such as abandoned bank accounts, IRAs, and 401(k) accounts; unclaimed pensions, Social Security benefits; unredeemed U.S. Savings Bonds; and uncollected insurance proceeds and utility deposits. From this, $463 million was remitted according to claims by owners of unclaimed property. The remaining revenue was transferred to the state’s general fund (except for a certain amount transferred to the I-49 Leverage fund).[7]

Gov. John Bel Edwards v. Treasurer John Schroder and conflict over unclaimed property revenue

In the 2019 and 2020 fiscal years, State Treasurer John Schroder did not transfer $32.5 million in unclaimed property revenue above the amount remitted to claimants to the general fund, saying the money did not belong to the state and should be kept in case its rightful owners come forward.[7]

In February 2020, Gov. Edwards sued Schroder, requesting the court to order the treasurer to transfer the $32.5 million to the general fund. On May 26, 2020, District Court Judge Richard Moore, III, ruled in favor of Gov. Edwards. Schroder said he would appeal the ruling. Edwards and Schroder struck a deal, however, that included (a) Schroder releasing the $32.5 million and an estimated $25 million for the following fiscal year and (b) this constitutional amendment to establish a permanent fund for unclaimed property revenue starting in July 2021.[7][8][9]

Gov. Edwards' chief lawyer Matthew Block said, "This resolves the dispute we have." Schroder said, "This is a good thing for Louisiana." He also said, "My intent is when everything's passed and signed, to settle the lawsuit. I consider it done."[8]

Amendments on the ballot in Louisiana

See also: List of Louisiana ballot measures

The following statistics are based on legislatively referred constitutional amendments between 1995 and 2019 in Louisiana:

  • Ballots featured 189 constitutional amendments.
    • Even-year ballots featured 121 constitutional amendments.
  • An average of 10 measures appeared on even-year statewide ballots.
  • The number of ballot measures on even-year statewide ballots ranged from four to 21.
  • Voters approved 75 percent (141 of 189) and rejected 25 percent (48 of 189) of the constitutional amendments.
Legislatively-referred constitutional amendments, 1995-2018
Total number Approved Percent approved Defeated Percent defeated Even-year average Even-year median Even-year minimum Even-year maximum
189 141 74.6% 48 25.4% 10.1 8.0 4 21

Path to the ballot

See also: Amending the Louisiana Constitution

In Louisiana, a two-thirds vote is needed in each chamber of the Louisiana State Legislature to refer a constitutional amendment to the ballot for voter consideration.

Senator Michael Fesi (R) introduced the constitutional amendment as Senate Bill 12 on June 4, 2020. On June 22, 2020, the state Senate passed the amendment in a vote of 37-0, with two absent. On June 25, 2020, the state House passed Senate Bill 12 with amendments in a vote of 95-3, with six absent. On June 26, 2020, the state Senate concurred with the House amendments in a vote of 35-0, with four absent.[10]

Vote in the Louisiana House of Representatives
June 25, 2020
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 70  Approveda
YesNoNot voting
Total9536
Total percent91.35%2.88%5.77%
Democrat2933
Republican6502
Independent101
Vote in the Louisiana State Senate
June 26, 2020
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
YesNoNot voting
Total3504
Total percent89.74%0.00%10.26%
Democrat1101
Republican2403

How to cast a vote

See also: Voting in Louisiana

Click "Show" to learn more about voter registration, identification requirements, and poll times in Louisiana.

See also

External links

Footnotes

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Louisiana State Legislature, "House Bill 12 (Re-engrossed)," accessed June 22, 2020
  2. ↑ Louisiana Revised Statute, "Uniform Unclaimed Property Act, R.S. 9:165," accessed July 22, 2020
  3. ↑ 3.0 3.1 3.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content
  4. ↑ Louisiana Secretary of State, "2020 Ballot Questions," accessed August 20, 2020
  5. ↑ Louisiana Ethics Administration Program, "Campaign Finance Portal: Louisiana Political Action Committees," accessed June 8, 2020
  6. ↑ Louisiana State Legislature, "Senate Bill 18 (2020)," accessed June 29, 2020
  7. ↑ 7.0 7.1 7.2 19th Judicial District Court, "Edwards v. Schroder," May 26, 2020
  8. ↑ 8.0 8.1 The Advocate, "Louisiana governor, treasurer reach unclaimed property deal," June 24, 2020
  9. ↑ The Advocate, "Louisiana's 'unclaimed property' program at center of battle between treasurer, governor," December 24, 2019
  10. ↑ Louisiana State Legislature, "Senate Bill 12 (2020) Overview," accessed June 22, 2020
  11. ↑ Louisiana Secretary of State, "FAQ: Voting on Election Day," accessed August 15, 2024
  12. ↑ Louisiana Secretary of State, "Vote on Election Day," accessed August 15, 2024
  13. ↑ 13.0 13.1 13.2 Louisiana Secretary of State, "Register to Vote," accessed August 15, 2024
  14. ↑ WWNO, "Louisiana now requires proof of citizenship to vote, but hasn’t issued any guidance," January 15, 2025
  15. ↑ Louisiana Secretary of State, "Louisiana Voter Registration Application," accessed June 30, 2025
  16. ↑ Under federal law, the national mail voter registration application (a version of which is in use in all states with voter registration systems) requires applicants to indicate that they are U.S. citizens in order to complete an application to vote in state or federal elections, but does not require voters to provide documentary proof of citizenship. According to the U.S. Department of Justice, the application "may require only the minimum amount of information necessary to prevent duplicate voter registrations and permit State officials both to determine the eligibility of the applicant to vote and to administer the voting process."
  17. ↑ 17.0 17.1 Louisiana Secretary of State, "Vote on Election Day," accessed August 15, 2024
  18. ↑ Louisiana Secretary of State, "Louisiana voters' bill of rights and voting information," accessed August 15, 2024
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