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Appropriations committee backs plan to move unclaimed-property receipts into a trust fund over time
Summary
Senate Bill 155 earned a do-pass recommendation after sponsors and proponents described a multi-year plan to move a large share of unclaimed-property receipts into a newly created trust fund. The proposal phases down general-fund transfers and preserves earnings for future appropriation while protecting principal to address a long-term liability.
The House Appropriations Committee recommended do-pass on Senate Bill 155, which creates a trust fund to hold a portion of state net receipts from unclaimed property and phases down the amount deposited into the general fund over several years.
Representative Chris Cassin and Sen. Taffy Howard, longtime proponents of the change, framed the bill as a bipartisan, multiyear effort to convert roughly $1.2 billion in unfunded liability into a long-term asset. Cassin said the bill sets an initial FY26 general-fund deposit of about $61 million and then reduces the general-fund portion by approximately $4 million per year until a permanent $25 million remains; the remainder would flow into the new trust fund. The trust would preserve principal while allowing the state-investment officer to calculate a 4% distribution of earnings available for appropriation.
State Treasurer Josh Haeder and Bureau of Finance and Management staff supported the bill in committee. Haeder said the bill creates a “responsible drawdown process” so the Legislature is not “pulled the rug out” and can phase deposits into the trust while preserving an ongoing general-fund baseline. Jim Terwilliger (BFM) said the measure would improve the state’s long-term financial statements and reduce risk.
Testimony described a plan to keep the trust principal intact and permit either general appropriations or a special appropriation to spend interest earnings; a separate, companion constitutional question was noted as a related item in upcoming hearings to unlock investment-council authority and pursue higher returns on invested trust assets.
Representative Jorgensen moved a do-pass; Representative Muckey seconded. The committee recorded an affirmative vote and sent the bill forward (committee roll call recorded; final tally recorded as seven yeas, two excused).
Supporters called the bill “good governance” and emphasized the opportunity to convert long-term liability into an investment for future obligations; no opponents presented testimony in committee.
