§100.161. Louisiana Unclaimed Property Permanent Trust Fund
A. 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.
(1)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 the Constitution
of Louisiana, 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 t
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§100.161. Louisiana Unclaimed Property Permanent Trust Fund
A. 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.
(1) 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 the Constitution
of Louisiana, 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 successors at least annually.
(2) 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.
(3) All monies shall be credited to the fund as provided in Paragraph (1) of this
Subsection 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 Subsection C of this Section. All monies received in excess of the state's
potential liability to unclaimed property claimants as reported by the state treasurer shall be
deposited into the state general fund.
B.(1) The monies credited to the UCP Permanent Trust Fund pursuant to Subsection
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 law to the contrary, a portion
of money in the UCP Permanent Trust Fund, not to exceed fifty percent of the money in the
fund, may be invested in equities. Investment earnings shall be available for appropriation
to pay expenses incurred in the investment and management of the UCP Permanent Trust
Fund.
(2) The monies deposited in and permanently credited to the UCP Permanent Trust
Fund pursuant to Subsection A of this Section shall be invested by the state treasurer.
NOTE: Paragraph (B)(3) eff. until ratification of the const. amend. proposed by Acts 2025,
No. 222.
(3) Subject to the limitations provided in this Subsection, the state treasurer may
invest the monies deposited in and credited to the UCP Permanent Trust Fund in the same
manner as authorized for the Louisiana Education Quality Trust Fund as set forth in R.S.
17:3803.
NOTE: Paragraph (B)(3) eff. upon ratification of the const. amend. proposed by Acts 2025,
No. 222.
(3) Subject to the limitations provided in this Subsection, the state treasurer may
invest the monies deposited in and credited to the UCP Permanent Trust Fund in any of the
following:
(a) Time certificates of deposit of any bank domiciled or having a branch office in
the state of Louisiana, savings accounts or shares of savings and loan associations and
savings banks, as defined by R.S. 6:703, or share accounts and share certificate accounts
of federally or state-chartered credit unions issuing time certificates of deposit, issued for
the state treasurer under this authority. For those funds determined under prudent judgment
of the state treasurer to be made available for investment in time certificates of deposit, the
rate of interest paid by the banks shall be determined by rules and regulations adopted and
promulgated by the state treasurer. Competitive bidding may be used to establish the rate
of interest on fifty percent or less of the amount determined to be available as of that date
for investment in time certificates of deposit. Those financial institutions bidding on time
certificates of deposit shall meet the financial criteria established by rules and regulations
adopted and promulgated by the state treasurer. At the time of investment, the interest rate
under the provisions of this Subsection shall be a rate not less than the prevailing market
interest rate on direct obligations of the United States Treasury with a similar length of
maturity. The funds so invested shall not exceed at any time the amount insured by the
Federal Deposit Insurance Corporation (FDIC) in any one bank, savings bank, or savings
and loan association and shall not exceed at any time the amount insured by the National
Credit Union Administration, or other deposit insurance corporation, in any one credit
union, unless the uninsured portion is collateralized by the pledge of securities in the manner
provided by R.S. 49:321.
(b) Direct obligations of the United States government, a United States government
agency, a United States government instrumentality, or a United States government-sponsored enterprise, the timely payment of the principal and interest of which is fully and
explicitly guaranteed by the full faith and credit of the government of the United States of
America, and contained in a list promulgated by the state treasurer.
(c) Direct obligations of a United States government agency, United States
government instrumentality, or United States government-sponsored enterprise, the timely
payment of principal and interest of which is fully guaranteed by the issuing entity, but are
not explicitly guaranteed by the full faith and credit of the government of the United States,
and contained in a list promulgated by the state treasurer.
(d) Stocks of any corporation listed on the New York Stock Exchange, the American
Stock Exchange, the National Association of Securities Dealers Automated Quotations
System, or other such stock exchange domiciled in the United States and registered with the
United States Securities and Exchange Commission, provided that the total investment in
such stocks at any one time shall not exceed thirty-five percent of the market value of all
funds held by the treasurer in the UCP Permanent Trust Fund.
(e)(i) Investment grade commercial paper issued in the United States, traded in the
United States markets, denominated in United States dollars, with a short-term rating of at
least A-1 by Standard & Poor's Financial Services LLC or P-1 by Moody's Investor Service,
Inc., or the equivalent rating by a nationally recognized statistical rating organization.
(ii) Investment grade corporate notes and bonds issued in the United States, traded
in United States markets, denominated in United States dollars, rated BAA or better by
Moody's Investor Service, Inc., or BBB or better by Standard & Poor's Financial Services
LLC, and the trades of which are settled through The Depository Trust & Clearing
Corporation, a national clearinghouse in the United States for the settlement of securities
trades.
(f) Money market funds consisting solely of securities otherwise eligible for
investment by the treasurer pursuant to this Section.
(g) Open-end mutual funds, closed-end mutual funds, and unit investment trusts
consisting solely of securities otherwise eligible for investment by the state treasurer.
(h) Tax exempt bonds and other taxable governmental bonds. In addition to all other
investment authority related to the UCP Permanent Trust Fund, the state treasurer may
invest in tax exempt bonds as defined in R.S. 49:342, and in taxable bonds issued by any
state or a political subdivision or public corporation of any state, provided that such taxable
bonds are rated at the time the investment is made by a nationally recognized rating agency
in one of the three highest rating categories of that rating agency.
(i) Bonds, debentures, notes, or other similar obligations issued in the United States
market, denominated in United States dollars and are the direct legal obligations of a
foreign nation which the International Monetary Fund lists as an industrial country, for
which investments in and/or business transactions with are not prohibited or restricted by
any law, regulation, or rule of the United States or the state of Louisiana, and for which the
full faith and credit of such nation has been pledged for the payment of principal and
interest; provided that any such security shall be rated at least A- or better by Standard &
Poor's Corporation or A3 or better by Moody's, Inc., or an equivalent investment grade by
a securities ratings organization accepted by the National Association of Insurance
Commissioners; and, provided further that the total investment in such foreign securities at
any one time shall not exceed five percent of the market value of all investments held by the
treasurer in the UCP Permanent Trust Fund, or any other fund or investment of funds
subject to this investment authority.
(j) Any investment managers hired on a contract basis to advise the treasurer
regarding such investments shall be selected by the treasurer, subject to the approval of the
State Bond Commission, in accordance with a request for proposal process using strict
selection criteria based on sound industry principles. The contract, as approved by the State
Bond Commission, shall be on a fee, together with minimum exchange fee, basis or on a
commission basis only. The state treasurer shall adopt and promulgate rules and
regulations for such investments and for the selection of outside investment managers.
(k) Open-end mutual funds, closed-end mutual funds, exchange-traded funds, and
unit investment trusts consisting solely of international securities constructed to match or
track the components of a market index provided by globally recognized index providers,
including but not limited to MSCI, FTSE, Dow Jones, Standard & Poor's, Barclays,
Citigroup, or any of their affiliates or successors and assigns; however, the total investment
in any and all such index funds at any one time shall not exceed ten percent of the market
value of all funds held by the treasurer in the UCP Permanent Trust Fund. Nothing in this
Subparagraph shall be construed to allow the state treasurer to invest directly in the
common stock of foreign companies known to do business with nations that support
terrorism.
(4) Subject to the approval of the State Bond Commission, the state treasurer may
contract for the management of UCP Permanent Trust Fund investments. Expenses of the
fund, including but not limited to expenses incurred for outside investment managers for the
investment and management of the fund assets and for other custody, investment, and
disbursement costs directly attributable to the fund, may be paid from fund investment
earnings.
(5) Expenses attributable to the state treasurer exercising responsibility for the
custody, investment, and disbursement of the monies in the fund are administrative costs that
shall be paid by appropriation from fund investment earnings. For the purposes of this
Paragraph, the term "administrative costs" includes but is not limited to those costs
attributable to fees charged by any financial institution for providing custodial services,
which shall not exceed two percent of the amount managed, and costs incurred for outside
investment managers for the investment and management of the fund, which shall not exceed
two percent of the amount managed.
C.(1) Not less than sixty days before 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) 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. Property received by the state pursuant to the Uniform Unclaimed Property Act
of 1997 as established in R.S. 9:151 et seq. and deposited into the UCP Permanent Trust
Fund is private property held in trust until a claim is made for it by the owner.
NOTE: Subsection E eff. upon ratification of the const. amend. proposed by Acts 2025, No.
222, §1.
E.(1) In addition to all other investment authority granted for the UCP Permanent
Trust Fund, and notwithstanding any provision of law to the contrary, the state treasurer
may enter into direct security repurchase agreements, reverse security repurchase
agreements, and securities lending contracts in order to generate passive income.
(2) For the purposes of this Subsection, the terms "direct security repurchase
agreement" and "reverse security repurchase agreement" shall have the same meaning as
in R.S. 49:327(B) and the term "securities lending" shall have the same meaning as in R.S.
49:321.1.