Appropriations committee approves HB1046 as amended, including deposit to unclaimed-property trust fund

The Joint Committee on Appropriations voted 11-7 to pass House Bill 1046 as amended, advancing a supplemental package that directs money to the state's unclaimed-property trust fund and provides funding for maintenance and repair of state buildings and other projects.

Committee members debated whether placing the unclaimed-property dollars into a trust fund would restrict access to those reserves if the state faced budget stress. Jim Twilley of the Bureau of Finance and Management told the committee that currently the interest on the unclaimed-property trust fund is available for appropriation.

"That interest basically is available for the legislature to appropriate through the general general fund. And so that's the way it's set up right now, statutorily, of course," Twilley said. He added that if a pending constitutional amendment passes, the funds would be invested similarly to other trust funds and that distributions would be calculated "a 4% allocation of the market value without invading principle. But, long story short, it'll come into the general fund and be appropriated through the appropriations process like we do every year."

Opponents of the move said locking funds into a trust could reduce flexibility in the short term. Senator Jack Foster said he would "be resisting this motion," citing uncertainty over federal funding and a potential fiscal cliff that could make it prudent to keep funds more accessible. "We don't know where this is gonna end," Foster said, adding concern about workforce and budget cuts.

Several committee members said they supported most elements of the bill but opposed the specific unclaimed-property deposit. Representative Travis Muckey said nearly everything in the bill merited support but that he opposed the timing and process for placing funds into the trust; he said he would vote no despite backing most of the bill.

Representative John Kassem and others pointed to items they said would benefit the state, naming Richmond Lake Dam repairs, tech college equipment, and capital building restoration as examples. Senator Vojta urged support, saying the money being moved into the unclaimed-property trust fund "is not even technically the state's money. So please support this."

The committee approved an amendment labeled "1046C" before the final vote; that amendment reallocated dollars for unclaimed property, maintenance and repair and updated a date as requested by members. Senator Howard moved approval of HB1046 as amended; Representative May seconded. The roll-call vote recorded 11 yeas and 7 nays. Recorded yes votes included Cassin, Carly, May, Boyda, Jorgensen, Howard, Sharda, Norstrup, Lapka, Derby and Aun; recorded no votes included Miss Kimmons, Moore, Bill Hower, Foster, Muckey, Zickmund and Kolbeck.

Action and next steps: The committee's motion to pass HB1046 as amended now sends the supplemental to the next stage of floor consideration under normal legislative process.