A Florida law on unclaimed property faces a constitutional challenge in a federal appeals court. The case centers around the state’s practice of collecting unclaimed property from sources like banks and insurance companies and depositing the money into the State School Trust Fund.
While original owners can reclaim their property, they are not entitled to any interest accrued when the state holds the funds.
Plaintiffs argue this lack of compensation violates the Fifth Amendment’s “Takings Clause” by depriving them of the value of their property accumulated while in the state’s possession.
Read: Florida Sees Decline In Drug Overdose Deaths, But Fentanyl Remains A Concern
The lawsuit was initially dismissed by a lower court, but the plaintiffs have now taken their case to the 11th U.S. Circuit Court of Appeals, with oral arguments scheduled for November.
The state maintains that its actions are constitutional, as the law allows owners unlimited time to reclaim their property or its proceeds.
However, the appeals court’s decision could significantly impact how Florida handles unclaimed property in the future.
Help support the Tampa Free Press by making any small donation by clicking here.
Android Users, Click To Download The Tampa Free Press App And Never Miss A Story. Follow Us On Facebook and Twitter. Sign up for our free newsletter.