AB799: Bill Text

AB799,10,12 (4) The last-known address of the apparent owner, as shown on the records of the holder, is in a state that does not provide for the escheat or custodial taking of the property and the holder is domiciled in this state or is a government or governmental subdivision, agency or instrumentality of this state.

AB799,10,15 (5) The last-known address of the apparent owner, as shown on the records of the holder, is in a foreign country and the holder is domiciled in this state or is a government or governmental subdivision, agency or instrumentality of this state.

AB799,10,20 (6) The transaction out of which the property arose occurred in this state, the holder is domiciled in a state that does not provide for the escheat or custodial taking of the property, and the last-known address of the apparent owner or other person entitled to the property is unknown or is in a state that does not provide for the escheat or custodial taking of the property.

AB799,10,25 (7) The property is a traveler's check or money order purchased in this state, or the issuer of the traveler's check or money order has its principal place of business in this state and the issuer's records show that the instrument was purchased in a state that does not provide for the escheat or custodial taking of the property, or do not show the state in which the instrument was purchased.

AB799,11,7 177.09 Dormancy charge. A holder may deduct from property presumed abandoned a charge imposed by reason of the owner's failure to claim the property within a specified time only if there is a valid and enforceable written contract between the holder and the owner under which the holder may impose the charge and the holder regularly imposes the charge, which is not regularly reversed or otherwise canceled. The amount of the deduction is limited to an amount that is not unconscionable.

AB799,11,15 177.11 Burden of proof as to property evidenced by record of check or draft. A record of the issuance of a check, draft or similar instrument is prima facie evidence of an obligation. In claiming property from a holder who is also the issuer, the administrator's burden of proof as to the existence and amount of the property and its abandonment is satisfied by showing issuance of the instrument and passage of the requisite period of abandonment. Defenses of payment, satisfaction, discharge and want of consideration are affirmative defenses that must be established by the holder.

AB799,11,19 177.165 Proceeds from sale of property in self-service storage facility. Notwithstanding s. 177.02 (1), the proceeds of a sale under s. 704.90 (6) of personal property stored in a leased facility located within a self-service storage facility after satisfaction of the operator's lien under s. 704.90 (3) (a) is presumed abandoned.

AB799,11,21 177.17 Report of abandoned property. (1) A holder of property presumed abandoned shall make a report to the administrator concerning the property.

AB799,11,22 (2) The report must be verified and must contain all of the following:

AB799,11,23 (a) A description of the property.

AB799,12,2 (b) Except with respect to a traveler's check or money order, the name, if known, and last-known address, if any, and the social security number or taxpayer identification number, if readily ascertainable, of the apparent owner of property of the value of $50 or more.

AB799,12,3 (c) An aggregated amount of items valued under $50 each.

AB799,12,6 (d) In the case of an amount of $50 or more held or owing under an annuity or a life or endowment insurance policy, the full name and last-known address of the annuitant or insured and of the beneficiary.

AB799,12,9 (e) In the case of property held in a safe deposit box or other safekeeping depository, an indication of the place where it is held and where it may be inspected by the administrator, and any amounts owing to the holder.

AB799,12,12 (f) The date, if any, on which the property became payable, demandable or returnable, and the date of the last transaction with the apparent owner with respect to the property.

AB799,12,14 (g) Other information that the administrator by rule prescribes as necessary for the administration of this chapter.

AB799,12,19 (3) If a holder of property presumed abandoned is a successor to another person who previously held the property for the apparent owner or the holder has changed its name while holding the property, the holder shall file with the report its former names, if any, and the known names and addresses of all previous holders of the property.

AB799,12,22 (4) The report must be filed before November 1 of each year and cover the 12 months next preceding July 1 of that year, but a report with respect to a life insurance company must be filed before May 1 of each year for the calendar year next preceding.

AB799,13,2 (5) The holder of property presumed abandoned shall send written notice to the apparent owner, not more than 120 days or less than 60 days before filing the report, stating that the holder is in possession of property subject to this chapter, if all of the following exist:

AB799,13,4 (a) The holder has in its records an address for the apparent owner that the holder's records do not disclose to be inaccurate.

AB799,13,5 (b) The claim of the apparent owner is not barred by a statute of limitations.

AB799,13,6 (c) The value of the property is $50 or more.

AB799,13,12 (6) Before the date for filing the report, the holder of property presumed abandoned may request the administrator to extend the time for filing the report. The administrator may grant the extension for good cause. The holder, upon receipt of the extension, may make an interim payment on the amount the holder estimates will ultimately be due, which terminates the accrual of additional interest on the amount paid.

AB799,13,14 (7) The holder of property presumed abandoned shall file with the report an affidavit stating that the holder has complied with sub. (5).

AB799,13,18 177.18 Notice and publication of lists of abandoned property. (1) The administrator shall publish a notice not later than November 30 of the year next following the year in which abandoned property has been paid or delivered to the administrator.

AB799,14,2 (1d) Except as provided in sub. (1m), the notice must be published as a class 1 notice under ch. 985 in a newspaper of general circulation in the county of this state in which is located the last-known address of any person named in the notice. If a holder does not report an address for the apparent owner, or the address is outside this state, the notice must be published in the county in which the holder has its principal place of business within this state or another county that the administrator reasonably selects. The advertisement must be in a form that, in the judgment of the administrator, is likely to attract the attention of the apparent owner of the unclaimed property. The form must contain all of the following:

AB799,14,4 (a) The name of each person appearing to be the owner of the property, as set forth in the report filed by the holder.

AB799,14,7 (b) The last-known address or location of each person appearing to be the owner of the property, if an address or location is set forth in the report filed by the holder.

AB799,14,9 (c) A statement explaining that property of the owner is presumed to be abandoned and has been taken into the protective custody of the administrator.

AB799,14,12 (d) A statement that information about the property and its return to the owner is available to a person having a legal or beneficial interest in the property, upon request to the administrator.

AB799,14,19 (1m) For money or other property received under s. 852.01 (3), 863.37 (2) or 863.39 (1), the notice shall be published in the official state newspaper and shall include the name of the decedent, the time and place of the decedent's death, the amount paid to the administrator, the name of the decedent's personal representative, the county in which the estate is probated and a statement that the money will be paid to the heirs or legatees without interest, on proof of ownership, if claimed within 10 years from the date of publication as provided in s. 863.39 (3).

AB799,14,22 (2) The administrator is not required to advertise the name and address or location of an owner of property having a total value less than $50, or information concerning a traveler's check, money order or similar instrument.

AB799,15,7 177.19 Payment or delivery of abandoned property. (1) Except for property held in a safe deposit box or other safekeeping depository, upon filing the report required by s. 177.17, the holder of property presumed abandoned shall pay, deliver or cause to be paid or delivered to the administrator the property described in the report as unclaimed, but if the property is an automatically renewable deposit, and a penalty or forfeiture in the payment of interest would result, the time for compliance is extended until a penalty or forfeiture would no longer result. Tangible property held in a safe deposit box or other safekeeping depository may not be delivered to the administrator until 120 days after filing the report required by s. 177.17.

AB799,15,13 (2) If the property reported to the administrator is a security or security entitlement under ch. 408, the administrator is an appropriate person to make an endorsement, instruction or entitlement order on behalf of the apparent owner to invoke the duty of the issuer or its transfer agent or the securities intermediary to transfer or dispose of the security or the security entitlement in accordance with ch. 408.

AB799,15,16 (3) If the holder of property reported to the administrator is the issuer of a certificated security, the administrator has the right to obtain a replacement certificate pursuant to s. 408.405, but an indemnity bond is not required.

AB799,15,20 (4) An issuer, the holder and any transfer agent or other person acting pursuant to the instructions of and on behalf of the issuer or holder in accordance with this section is not liable to the apparent owner and must be indemnified against claims of any person in accordance with s. 177.20.

AB799,15,22 177.20 Custody by state; recovery by holder; defense of holder. (1) In this section, payment or delivery is made in "good faith" if all of the following exist:

AB799,15,24 (a) Payment or delivery was made in a reasonable attempt to comply with this chapter.

AB799,16,3 (b) The holder was not then in breach of a fiduciary obligation with respect to the property and had a reasonable basis for believing, based on the facts then known, that the property was presumed abandoned.

AB799,16,5 (c) There is no showing that the records under which the payment or delivery was made did not meet reasonable commercial standards of practice.

AB799,16,9 (2) Upon payment or delivery of property to the administrator, the state assumes custody and responsibility for the safekeeping of the property. A holder who pays or delivers property to the administrator in good faith is relieved of all liability arising thereafter with respect to the property.

AB799,16,20 (3) A holder who has paid money to the administrator pursuant to this chapter may subsequently make payment to a person reasonably appearing to the holder to be entitled to payment. Upon a filing by the holder of proof of payment and proof that the payee was entitled to the payment, the administrator shall promptly reimburse the holder for the payment without imposing a fee or other charge. If reimbursement is sought for a payment made on a negotiable instrument, including a traveler's check or money order, the holder must be reimbursed upon filing proof that the instrument was duly presented and that payment was made to a person who reasonably appeared to be entitled to payment. The holder must be reimbursed for payment made even if the payment was made to a person whose claim was barred under s. 177.29 (1).

AB799,16,24 (4) A holder who has delivered property other than money to the administrator pursuant to this chapter may reclaim the property if it is still in the possession of the administrator, without paying any fee or other charge, upon filing proof that the apparent owner has claimed the property from the holder.

AB799,17,2 (5) The administrator may accept a holder's affidavit as sufficient proof of the holder's right to recover money and property under this section.

AB799,17,8 (6) If a holder pays or delivers property to the administrator in good faith and thereafter another person claims the property from the holder or another state claims the money or property under its laws relating to escheat or abandoned or unclaimed property, the administrator, upon written notice of the claim, shall defend the holder against the claim and indemnify the holder against any liability on the claim resulting from payment or delivery of the property to the administrator.

AB799,17,14 (7) Property removed from a safe deposit box or other safekeeping depository is received by the administrator subject to the holder's right to be reimbursed for the cost of the opening and to any valid lien or contract providing for the holder to be reimbursed for unpaid rent or storage charges. The administrator shall reimburse the holder out of the proceeds remaining after deducting the expense incurred by the administrator in selling the property.

AB799,18,2 177.21 Crediting of dividends, interest and increments to owner's account. If property other than money is delivered to the administrator under this chapter, the owner is entitled to receive from the administrator any income or gain realized or accruing on the property at or before liquidation or conversion of the property into money. If the property was an interest-bearing demand, savings or time deposit, including a deposit that is automatically renewable, the administrator shall pay interest at a rate of 18% a year or any lesser rate the property earned while in the possession of the holder. Interest begins to accrue when the property is delivered to the administrator and ceases on the earlier of the expiration of 10 years after delivery or the date on which payment is made to the owner. Interest on interest-bearing property is not payable for any period before the effective date of this section .... [revisor inserts date], unless authorized by ch. 177, 1997 stats.

AB799,18,13 177.22 Public sale of abandoned property. (1) Except as otherwise provided in this section, the administrator, within 3 years after the receipt of abandoned property, shall sell it to the highest bidder at public sale at a location in the state that in the judgment of the administrator affords the most favorable market for the property. The administrator may decline the highest bid and reoffer the property for sale if the administrator considers the bid to be insufficient. The administrator need not offer the property for sale if the administrator considers that the probable cost of sale will exceed the proceeds of the sale. A sale held under this section must be preceded by a class 1 notice under ch. 985, at least 3 weeks before sale, in a newspaper of general circulation in the county in which the property is to be sold.

AB799,19,4 (2) Securities listed on an established stock exchange must be sold at prices prevailing on the exchange at the time of sale. Other securities may be sold over the counter at prices prevailing at the time of sale or by any reasonable method selected by the administrator. If securities are sold by the administrator before the expiration of 3 years after their delivery to the administrator, a person making a claim under this chapter before the end of the 3-year period is entitled to the proceeds of the sale of the securities or the market value of the securities at the time the claim is made, whichever is greater, plus dividends, interest and other increments thereon up to the time the claim is made, less any deduction for expenses of sale. A person making a claim under this chapter after the expiration of the 3-year period is entitled to receive the securities delivered to the administrator by the holder, if they still remain in the custody of the administrator, or the net proceeds received from sale, and is not entitled to receive any appreciation in the value of the property occurring after delivery to the administrator, except in a case of intentional misconduct or malfeasance by the administrator.

AB799,19,8 (3) A purchaser of property at a sale conducted by the administrator pursuant to this chapter takes the property free of all claims of the owner or previous holder and of all persons claiming through or under them. The administrator shall execute all documents necessary to complete the transfer of ownership.

AB799,19,16 177.23 Deposit of funds. (1) Except as otherwise provided by sub. (2), the administrator shall promptly deposit in the school fund all funds received under this chapter, including the clear proceeds from the sale of abandoned property under s. 177.33. The administrator shall record the name and last-known address of each person appearing from the holders' reports to be entitled to the property and the name and last-known address of each insured person or annuitant and beneficiary and with respect to each policy or annuity listed in the report of an insurance company, its number, the name of the company and the amount due.

AB799,19,18 (2) The administrator shall deposit in the general fund an amount equal to all of the following:

AB799,19,19 (a) Expenses of sale of abandoned property.

AB799,19,20 (b) Costs of mailing and publication in connection with abandoned property.

AB799,19,21 (c) Reasonable service charges.

AB799,19,23 (d) Expenses incurred in examining records of holders of property and in collecting the property from those holders.

AB799,19,25 (e) Salaries of the employes of the administrator that are attributable to the administration of this chapter.

AB799,20,4 177.24 Filing of claim with administrator; handling of claims by administrator. (1) A person, excluding another state, claiming property paid or delivered to the administrator may file a claim on a form prescribed by the administrator and verified by the claimant.

AB799,20,10 (2) Within 90 days after a claim is filed, the administrator shall allow or deny the claim and give written notice of the decision to the claimant. If the claim is denied, the administrator shall inform the claimant of the reasons for the denial and specify what additional evidence is required before the claim will be allowed. The claimant may then file a new claim with the administrator or maintain an action under s. 177.26.

AB799,20,14 (3) Within 30 days after a claim is allowed, the property or the net proceeds of a sale of the property must be delivered or paid by the administrator to the claimant, together with any dividend, interest or other increment to which the claimant is entitled under ss. 177.21 and 177.22.

AB799,20,18 (4) A holder who pays the owner for property that has been delivered to this state and that, if claimed from the administrator by the owner, would be subject to an increment under ss. 177.21 and 177.22 may recover from the administrator the amount of the increment.

AB799,20,21 177.25 Claim of another state to recover property. (1) After property has been paid or delivered to the administrator under this chapter, another state may recover the property if any of the following circumstances occur:

AB799,21,2 (a) The property was paid or delivered to the custody of this state because the records of the holder did not reflect a last-known location of the apparent owner within the borders of the other state and the other state establishes that the apparent owner or other person entitled to the property was last known to be located within the borders of that state and under the laws of that state the property has escheated or become subject to a claim of abandonment by that state.

AB799,21,6 (b) The property was paid or delivered to the custody of this state because the laws of the other state did not provide for the escheat or custodial taking of the property and, under the laws of that state subsequently enacted, the property has escheated or become subject to a claim of abandonment by that state.

AB799,21,10 (c) The records of the holder were erroneous in that they did not accurately identify the owner of the property and the last-known location of the owner within the borders of another state and under the laws of that state the property has escheated or become subject to a claim of abandonment by that state.

AB799,21,13 (d) The property was subjected to custody by this state under s. 177.03 (6) and under the laws of the state of domicile of the holder the property has escheated or become subject to a claim of abandonment by that state.

AB799,21,17 (e) The property is a sum payable on a traveler's check, money order or similar instrument that was purchased in the other state and delivered into the custody of this state under s. 177.03 (7), and under the laws of the other state the property has escheated or become subject to a claim of abandonment by that state.

AB799,21,21 (2) A claim of another state to recover escheated or abandoned property must be presented in a form prescribed by the administrator, who shall decide the claim within 90 days after it is presented. The administrator shall allow the claim upon determining that the other state is entitled to the abandoned property under sub. (1).

AB799,21,24 (3) The administrator shall require another state, before recovering property under this section, to agree to indemnify this state and its officers and employes against any liability on a claim to the property.

AB799,22,6 177.26 Action to establish claim. A person aggrieved by a decision of the administrator or whose claim has not been acted upon within 90 days after its filing may maintain an original action to establish the claim in the circuit court, naming the administrator as a defendant. If the aggrieved person establishes the claim in an action against the administrator, the court may award the claimant reasonable attorney fees.

AB799,22,9 177.27 Election to take payment or delivery. (1) The administrator may decline to receive property reported under this chapter that the administrator considers to have a value less than the expenses of notice and sale.

AB799,22,14 (2) A holder, with the written consent of the administrator and upon conditions and terms prescribed by the administrator, may report and deliver property before the property is presumed abandoned. Property so delivered must be held by the administrator and is not presumed abandoned until it otherwise would be presumed abandoned under this chapter.

AB799,22,21 177.28 Destruction or disposition of property having no substantial commercial value; immunity from liability. If the administrator determines after investigation that property delivered under this chapter has no substantial commercial value, the administrator may destroy or otherwise dispose of the property at any time. An action or proceeding may not be maintained against this state or any of its officers or against the holder for or on account of an act of the administrator under this section, except for intentional misconduct or malfeasance.

AB799,23,2 177.29 Periods of limitation. (1) The expiration, before, on or after the effective date of this subsection .... [revisor inserts date], of a period of limitation on the owner's right to receive or recover property, whether specified by contract, statute or court order, does not preclude the property from being presumed abandoned or affect a duty to file a report or to pay, deliver or transfer property to the administrator as required by this chapter.

AB799,23,9 (2) An action or proceeding may not be maintained by the administrator to enforce this chapter in regard to the reporting, delivery or payment of property more than 10 years after the holder specifically identified the property in a report filed with the administrator or gave express notice to the administrator of a dispute regarding the property. In the absence of such a report or other express notice, the period of limitation is tolled. The period of limitation is also tolled by the filing of a report that is fraudulent.

AB799,23,16 177.30 Requests for reports and examination of records. (1) The administrator may require a person that has not filed a report, or a person that the administrator believes has filed an inaccurate, incomplete or false report, to file a verified report in a form specified by the administrator. The report must state whether the person is holding property reportable under this chapter, describe property not previously reported or as to which the administrator has made inquiry, and specifically identify and state the amounts of property that may be in issue.

AB799,23,22 (2) The administrator, at reasonable times and upon reasonable notice, may examine the records of any person to determine whether the person has complied with this chapter. The administrator may conduct the examination even if the person believes it is not in possession of any property that must be reported, paid or delivered under this chapter. The administrator may contract with any other person to conduct the examination on behalf of the administrator.

AB799,24,2 (3) The administrator, at reasonable times, may examine the records of an agent, including a dividend disbursing agent or transfer agent, of a business association or financial association that is the holder of property presumed abandoned if the administrator has given the notice required by sub. (2) to both the association or organization and the agent at least 90 days before the examination.

AB799,24,6 (4) Documents and working papers obtained or compiled by the administrator, or the administrator's agents, employes or designated representatives, in the course of conducting an examination are confidential and are not public records, but the documents and papers may be used, produced and disclosed as follows:

AB799,24,8 (a) Used by the administrator in the course of an action to collect unclaimed property or to otherwise enforce this chapter.

AB799,24,11 (b) Used in joint examinations conducted with or pursuant to an agreement with another state, the federal government, or any other governmental subdivision, agency or instrumentality.

AB799,24,12 (c) Produced pursuant to subpoena or court order.

AB799,24,15 (d) Disclosed to the abandoned property office of another state for that state's use in circumstances equivalent to those described in this subsection, if the other state is bound to keep the documents and papers confidential.

AB799,24,22 (5) If an examination of the records of a person results in the disclosure of property reportable under this chapter, the administrator may assess the cost of the examination against the holder at the rate of $200 a day for each examiner, or a greater amount that is reasonable and was incurred, but the assessment may not exceed the value of the property found to be reportable. The cost of an examination made pursuant to sub. (3) may be assessed only against the business association or financial organization.

AB799,25,4 (6) If, after the effective date of this subsection .... [revisor inserts date], a holder does not maintain the records required by s. 177.31 and the records of the holder available for the periods subject to this chapter are insufficient to permit the preparation of a report, the administrator may require the holder to report and pay to the administrator the amount the administrator reasonably estimates, on the basis of any available records of the holder or by any other reasonable method of estimation, should have been but was not reported.

AB799,25,9 177.31 Retention of records. (1) Except as otherwise provided in sub. (2), a holder required to file a report under s. 177.17 shall maintain the records containing the information required to be included in the report for 10 years after the holder files the report, unless a shorter period is provided by rule of the administrator.

AB799,25,15 (2) A business association or financial organization that sells, issues or provides to others for sale or issue in this state, traveler's checks, money orders or similar instruments other than third-party bank checks, on which the business association or financial organization is directly liable, shall maintain a record of the instruments while they remain outstanding, indicating the state and date of issue, for 3 years.

AB799,25,18 177.32 Enforcement. The administrator may maintain an action in this or another state to enforce this chapter. The court may award reasonable attorney fees to the prevailing party.

AB799,26,2 177.33 Interstate agreements and cooperation; joint and reciprocal actions with other states. (1) The administrator may enter into an agreement with another state to exchange information relating to abandoned property or its possible existence. The agreement may permit the other state, or another person acting on behalf of a state, to examine records as authorized in s. 177.30. The administrator by rule may require the reporting of information needed to enable compliance with an agreement made under this section and prescribe the form.