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Committee approves loans from unclaimed property trust fund despite concerns about repayment and transparency
Summary
Senate Bill 290, which authorizes long-term loans from the Unclaimed Property Trust Fund for health and dental-related spending, passed the committee after lengthy fiscal questioning and debate over whether loans would be repaid or treated as spend-downs of the fund.
Senate Bill 290 advanced out of the Senate Appropriations Committee after extended questioning about financing, repayment terms and the role of the Unclaimed Property Trust Fund.
Committee members raised repeated questions about whether loans authorized under the bill would actually be repaid. Senator Kirkmeyer asked about the term of the loans and payment schedule; sponsors replied that the loans were structured with a 20‑year horizon and that repayment timing could depend on when each loan is issued. Senator Bridges and others observed that the loans might effectively be forgiven and treated like a spend from the trust fund; Bridges characterized the likely outcome as “in all likelihood, these are just gonna be forgiven and this is just a spend from the Unclaimed Property Trust Fund.”
Senators discussed the difference between spending corpus versus interest on the trust fund: one committee member noted the trust fund interest was about $30 million a year while a separate dental spending request was north of $70 million. Sponsors said they had worked with the Office of State Planning and Budget and the governor’s office to ensure the structure complied with state law.
Committee members adopted several amendments (including J001, L006 and L008 during the bill’s consideration) that adjust appropriation types and accounting for the loans; the committee passed SB 290 unanimously. The sponsor asked that the bill be placed on the consent calendar; committee members discussed and ultimately chose not to place it on consent.
Notes: The transcript contains substantive fiscal debate about the Unclaimed Property Trust Fund, loan forgiveness risk, and interactions with the Joint Budget Committee and OSTB.
