An act TO AMEND THE LAW CONCERNING UNCLAIMED PROPERTY 10 FUNDS, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas             A Bill
2 95th General Assembly

3 Regular Session, 2025                                            SENATE BILL 454

4

5 By: Senator Hill

6 By: Representative Childress

7

8                               For An Act To Be Entitled

9   AN ACT TO AMEND THE LAW CONCERNING UNCLAIMED PROPERTY

10  FUNDS; TO AMEND THE LAW CONCERNING THE DEPOSIT AND

11  INVESTMENT OF UNCLAIMED PROPERTY FUNDS; TO CREATE THE

12  UNCLAIMED PROPERTY INTEREST TRUST FUND; TO DECLARE AN

13  EMERGENCY; AND FOR OTHER PURPOSES.

14

15

16                              Subtitle

17                       TO AMEND THE LAW CONCERNING UNCLAIMED

18                       PROPERTY FUNDS; TO AMEND THE LAW

19                       CONCERNING THE DEPOSIT AND INVESTMENT OF

20                       UNCLAIMED PROPERTY FUNDS; TO CREATE THE

21                       UNCLAIMED PROPERTY INTEREST TRUST FUND;

22                       AND TO DECLARE AN EMERGENCY.

23

24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

25

26  SECTION 1. Arkansas Code � 18-28-213(b), concerning the deposit of

27 unclaimed property funds, is amended to read as follows:

28  (b)(1) At the end of each fiscal year, the administrator shall

29 withdraw from the Unclaimed Property Proceeds Interest Trust Fund an amount

30 necessary to reimburse the State Central Services Fund, or its successor fund

31 or fund account, for moneys expended for personal services and operating

32 expenses of administering and enforcing this subchapter.

33  (2) If there are insufficient funds available in the Unclaimed

34 Property Interest Trust Fund to reimburse the State Central Services Fund, or

35 its successor fund or fund account, in a fiscal year as required under

36 subdivision (b)(1) of this section, the administrator shall withdraw the

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1 remaining amount owed to the State Central Services Fund, or its successor

2 fund or fund account, under this subsection from the Unclaimed Property

3 Proceeds Trust Fund.

4

5   SECTION 2. Arkansas Code � 18-28-213(c)(2), concerning the deposit of

6 unclaimed property funds is amended to read as follows:

7             (2) At least one (1) time each fiscal year, the administrator

8 shall transfer to the general revenues of the state eighteen million dollars

9 ($18,000,000) from the remaining funds that have been collected and held for

10 a full three (3) years, less the amount transferred to the State Central

11 Services Fund, or its successor fund or fund account, under subsection (b) of

12 this section as required by this subchapter.

13

14  SECTION 3. Arkansas Code � 19-3-603(4), concerning the entities that

15 may deposit money into the State Treasury Money Management Trust for the

16 purpose of investment, is amended to read as follows:

17            (4)(A) The Auditor of State may invest funds subject to the

18 unclaimed property provisions of the Unclaimed Property Act, � 18-28-201 et

19 seq., in the State Treasury Money Management Trust.

20            (B) Any interest received under � 19-3-604 from the

21 investment of funds under this subdivision (4) shall be deposited into the

22 Unclaimed Property Interest Trust Fund.

23

24  SECTION 4. Arkansas Code Title 19, Chapter 5, Subchapter 11, is

25 amended to add an additional section to read as follows:

26  19-5-1161. Unclaimed Property Interest Trust Fund.

27  (a) There is created on the books of the Treasurer of State, the

28 Auditor of State, and the Chief Fiscal Officer of the State a trust fund to

29 be known as the "Unclaimed Property Interest Trust Fund".

30  (b) The Unclaimed Property Interest Trust Fund shall consist of:

31            (1) Interest earned from the investment of funds in the

32 Unclaimed Property Proceeds Trust Fund and the Abandoned Mineral Proceeds

33 Trust Fund under � 19-3-603(4);

34            (2) Any remaining fund balances carried forward from year to

35 year; and

36            (3) Any other funds authorized or provided by law.

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1   (c) The Unclaimed Property Interest Trust Fund shall be used by the

2 Auditor of State as follows, in order of priority as the amount in the

3 Unclaimed Property Interest Trust Fund permits:

4            (1) First, the amount necessary to reimburse the State Central

5 Services Fund, or its successor fund or fund account, under � 18-28-213(b)

6 shall be transferred to the State Central Services Fund, or its successor

7 fund or fund account; and

8            (2) Second, the amount necessary to reimburse the Unclaimed

9 Property Proceeds Trust Fund for any liabilities incurred during previous

10 fiscal years in which the amount in the Unclaimed Property Interest Trust

11 Fund was insufficient to reimburse the State Central Services Fund, or its

12 successor fund or fund account, under subdivision (c)(1) of this section

13 shall be transferred to the Unclaimed Property Proceeds Trust Fund.

14  (d) Moneys remaining in the Unclaimed Property Interest Trust Fund at

15 the end of each fiscal year shall carry forward and be made available for the

16 purposes stated in this section in the next fiscal year.

17  (e) The Auditor of State shall maintain accounting and other records

18 necessary to ensure compliance with this section and shall provide any

19 records maintained under this section to Arkansas Legislative Audit upon

20 request.

21

22  SECTION 5. EMERGENCY CLAUSE. It is found and determined by the

23 General Assembly of the State of Arkansas that the Unclaimed Property

24 Proceeds Trust Fund is used to reimburse the State Central Services Fund each

25 fiscal year for the operations and personnel costs incurred in administering

26 the unclaimed property program; that the transfer of funds from the Unclaimed

27 Property Proceeds Trust Fund to the State Central Services Fund creates a

28 liability that flows from the State Central Services Fund to the Unclaimed

29 Property Proceeds Trust Fund; that this bill would halt the growing liability

30 by segregating the privately owned principal in the Unclaimed Property

31 Proceeds Trust Fund from the state-owned interest derived from the investment

32 of the funds in the Unclaimed Property Proceeds Trust Fund; and that this act

33 is necessary because this act will enable the new Unclaimed Property Interest

34 Trust Fund to build a balance in anticipation of the required reimbursement

35 to the State Central Services Fund, which will reduce the unfunded liability

36 created under current law. Therefore, an emergency is declared to exist, and

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 1 this act being necessary for the preservation of the public peace, health,
 2 and safety shall become effective on July 1, 2025.
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