AB799,15,22
21177.20 Custody by state; recovery by holder; defense of holder. (1) In
22this
section, payment or delivery is made in "good faith" if all of the following exist:
AB799,15,2423
(a) Payment or delivery was made in a reasonable attempt to comply with this
24chapter.
AB799,16,3
1(b) The holder was not then in breach of a fiduciary obligation with respect to
2the property and had a reasonable basis for believing, based on the facts then known,
3that the property was presumed abandoned.
AB799,16,54
(c) There is no showing that the records under which the payment or delivery
5was made did not meet reasonable commercial standards of practice.
AB799,16,9
6(2) Upon payment or delivery of property to the administrator, the state
7assumes custody and responsibility for the safekeeping of the property. A holder who
8pays or delivers property to the administrator in good faith is relieved of all liability
9arising thereafter with respect to the property.
AB799,16,20
10(3) A holder who has paid money to the administrator pursuant to this chapter
11may subsequently make payment to a person reasonably appearing to the holder to
12be entitled to payment. Upon a filing by the holder of proof of payment and proof that
13the payee was entitled to the payment, the administrator shall promptly reimburse
14the holder for the payment without imposing a fee or other charge. If reimbursement
15is sought for a payment made on a negotiable instrument, including a traveler's
16check or money order, the holder must be reimbursed upon filing proof that the
17instrument was duly presented and that payment was made to a person who
18reasonably appeared to be entitled to payment. The holder must be reimbursed for
19payment made even if the payment was made to a person whose claim was barred
20under s. 177.29 (1).
AB799,16,24
21(4) A holder who has delivered property other than money to the administrator
22pursuant to this chapter may reclaim the property if it is still in the possession of the
23administrator, without paying any fee or other charge, upon filing proof that the
24apparent owner has claimed the property from the holder.
AB799,17,2
1(5) The administrator may accept a holder's affidavit as sufficient proof of the
2holder's right to recover money and property under this
section.
AB799,17,8
3(6) If a holder pays or delivers property to the administrator in good faith and
4thereafter another person claims the property from the holder or another state
5claims the money or property under its laws relating to escheat or abandoned or
6unclaimed property, the administrator, upon written notice of the claim, shall defend
7the holder against the claim and indemnify the holder against any liability on the
8claim resulting from payment or delivery of the property to the administrator.
AB799,17,14
9(7) Property removed from a safe deposit box or other safekeeping depository
10is received by the administrator subject to the holder's right to be reimbursed for the
11cost of the opening and to any valid lien or contract providing for the holder to be
12reimbursed for unpaid rent or storage charges. The administrator shall reimburse
13the holder out of the proceeds remaining after deducting the expense incurred by the
14administrator in selling the property.
AB799,18,2
15177.21 Crediting of dividends, interest and increments to owner's
16account. If property other than money is delivered to the administrator under this
17chapter, the owner is entitled to receive from the administrator any income or gain
18realized or accruing on the property at or before liquidation or conversion of the
19property into money. If the property was an interest-bearing demand, savings or
20time deposit, including a deposit that is automatically renewable, the administrator
21shall pay interest at a rate of 18% a year or any lesser rate the property earned while
22in the possession of the holder. Interest begins to accrue when the property is
23delivered to the administrator and ceases on the earlier of the expiration of 10 years
24after delivery or the date on which payment is made to the owner. Interest on
1interest-bearing property is not payable for any period before the effective date of
2this section .... [revisor inserts date], unless authorized by ch. 177, 1997 stats.
AB799,18,13
3177.22 Public sale of abandoned property. (1) Except as otherwise
4provided in this
section, the administrator, within 3 years after the receipt of
5abandoned property, shall sell it to the highest bidder at public sale at a location in
6the state that in the judgment of the administrator affords the most favorable market
7for the property. The administrator may decline the highest bid and reoffer the
8property for sale if the administrator considers the bid to be insufficient. The
9administrator need not offer the property for sale if the administrator considers that
10the probable cost of sale will exceed the proceeds of the sale. A sale held under this
11section must be preceded by a class 1 notice under ch. 985, at least 3 weeks before
12sale, in a newspaper of general circulation in the county in which the property is to
13be sold.
AB799,19,4
14(2) Securities listed on an established stock exchange must be sold at prices
15prevailing on the exchange at the time of sale. Other securities may be sold over the
16counter at prices prevailing at the time of sale or by any reasonable method selected
17by the administrator. If securities are sold by the administrator before the expiration
18of 3 years after their delivery to the administrator, a person making a claim under
19this chapter before the end of the 3-year period is entitled to the proceeds of the sale
20of the securities or the market value of the securities at the time the claim is made,
21whichever is greater, plus dividends, interest and other increments thereon up to the
22time the claim is made, less any deduction for expenses of sale. A person making a
23claim under this chapter after the expiration of the 3-year period is entitled to
24receive the securities delivered to the administrator by the holder, if they still remain
1in the custody of the administrator, or the net proceeds received from sale, and is not
2entitled to receive any appreciation in the value of the property occurring after
3delivery to the administrator, except in a case of intentional misconduct or
4malfeasance by the administrator.
AB799,19,8
5(3) A purchaser of property at a sale conducted by the administrator pursuant
6to this chapter takes the property free of all claims of the owner or previous holder
7and of all persons claiming through or under them. The administrator shall execute
8all documents necessary to complete the transfer of ownership.
AB799,19,16
9177.23 Deposit of funds. (1) Except as otherwise provided by sub. (2), the
10administrator shall promptly deposit in the school fund all funds received under this
11chapter, including the clear proceeds from the sale of abandoned property under s.
12177.33. The administrator shall record the name and last-known address of each
13person appearing from the holders' reports to be entitled to the property and the
14name and last-known address of each insured person or annuitant and beneficiary
15and with respect to each policy or annuity listed in the report of an insurance
16company, its number, the name of the company and the amount due.
AB799,19,18
17(2) The administrator shall deposit in the general fund an amount equal to all
18of the following:
AB799,19,1919
(a) Expenses of sale of abandoned property.
AB799,19,2020
(b) Costs of mailing and publication in connection with abandoned property.
AB799,19,2121
(c) Reasonable service charges.
AB799,19,2322
(d) Expenses incurred in examining records of holders of property and in
23collecting the property from those holders.
AB799,19,2524
(e) Salaries of the employes of the administrator that are attributable to the
25administration of this chapter.
AB799,20,4
1177.24 Filing of claim with administrator; handling of claims by
2administrator. (1) A person, excluding another state, claiming property paid or
3delivered to the administrator may file a claim on a form prescribed by the
4administrator and verified by the claimant.
AB799,20,10
5(2) Within 90 days after a claim is filed, the administrator shall allow or deny
6the claim and give written notice of the decision to the claimant. If the claim is
7denied, the administrator shall inform the claimant of the reasons for the denial and
8specify what additional evidence is required before the claim will be allowed. The
9claimant may then file a new claim with the administrator or maintain an action
10under s. 177.26.
AB799,20,14
11(3) Within 30 days after a claim is allowed, the property or the net proceeds of
12a sale of the property must be delivered or paid by the administrator to the claimant,
13together with any dividend, interest or other increment to which the claimant is
14entitled under ss. 177.21 and 177.22.
AB799,20,18
15(4) A holder who pays the owner for property that has been delivered to this
16state and that, if claimed from the administrator by the owner, would be subject to
17an increment under ss. 177.21 and 177.22 may recover from the administrator the
18amount of the increment.
AB799,20,21
19177.25 Claim of another state to recover property. (1) After property has
20been paid or delivered to the administrator under this chapter, another state may
21recover the property if any of the following circumstances occur:
AB799,21,222
(a) The property was paid or delivered to the custody of this state because the
23records of the holder did not reflect a last-known location of the apparent owner
24within the borders of the other state and the other state establishes that the apparent
25owner or other person entitled to the property was last known to be located within
1the borders of that state and under the laws of that state the property has escheated
2or become subject to a claim of abandonment by that state.
AB799,21,63
(b) The property was paid or delivered to the custody of this state because the
4laws of the other state did not provide for the escheat or custodial taking of the
5property and, under the laws of that state subsequently enacted, the property has
6escheated or become subject to a claim of abandonment by that state.
AB799,21,107
(c) The records of the holder were erroneous in that they did not accurately
8identify the owner of the property and the last-known location of the owner within
9the borders of another state and under the laws of that state the property has
10escheated or become subject to a claim of abandonment by that state.
AB799,21,1311
(d) The property was subjected to custody by this state under s. 177.03 (6) and
12under the laws of the state of domicile of the holder the property has escheated or
13become subject to a claim of abandonment by that state.
AB799,21,1714
(e) The property is a sum payable on a traveler's check, money order or similar
15instrument that was purchased in the other state and delivered into the custody of
16this state under s. 177.03 (7), and under the laws of the other state the property has
17escheated or become subject to a claim of abandonment by that state.
AB799,21,21
18(2) A claim of another state to recover escheated or abandoned property must
19be presented in a form prescribed by the administrator, who shall decide the claim
20within 90 days after it is presented. The administrator shall allow the claim upon
21determining that the other state is entitled to the abandoned property under sub. (1).
AB799,21,24
22(3) The administrator shall require another state, before recovering property
23under this
section, to agree to indemnify this state and its officers and employes
24against any liability on a claim to the property.
AB799,22,6
1177.26 Action to establish claim. A person aggrieved by a decision of the
2administrator or whose claim has not been acted upon within 90 days after its filing
3may maintain an original action to establish the claim in the circuit court, naming
4the administrator as a defendant. If the aggrieved person establishes the claim in
5an action against the administrator, the court may award the claimant reasonable
6attorney fees.
AB799,22,9
7177.27 Election to take payment or delivery. (1) The administrator may
8decline to receive property reported under this chapter that the administrator
9considers to have a value less than the expenses of notice and sale.
AB799,22,14
10(2) A holder, with the written consent of the administrator and upon conditions
11and terms prescribed by the administrator, may report and deliver property before
12the property is presumed abandoned. Property so delivered must be held by the
13administrator and is not presumed abandoned until it otherwise would be presumed
14abandoned under this chapter.
AB799,22,21
15177.28 Destruction or disposition of property having no substantial
16commercial value; immunity from liability. If the administrator determines
17after investigation that property delivered under this chapter has no substantial
18commercial value, the administrator may destroy or otherwise dispose of the
19property at any time. An action or proceeding may not be maintained against this
20state or any of its officers or against the holder for or on account of an act of the
21administrator under this
section, except for intentional misconduct or malfeasance.
AB799,23,2
22177.29 Periods of limitation. (1) The expiration, before, on or after the
23effective date of this subsection .... [revisor inserts date], of a period of limitation on
24the owner's right to receive or recover property, whether specified by contract,
25statute or court order, does not preclude the property from being presumed
1abandoned or affect a duty to file a report or to pay, deliver or transfer property to
2the administrator as required by this chapter.
AB799,23,9
3(2) An action or proceeding may not be maintained by the administrator to
4enforce this chapter in regard to the reporting, delivery or payment of property more
5than 10 years after the holder specifically identified the property in a report filed
6with the administrator or gave express notice to the administrator of a dispute
7regarding the property. In the absence of such a report or other express notice, the
8period of limitation is tolled. The period of limitation is also tolled by the filing of a
9report that is fraudulent.
AB799,23,16
10177.30 Requests for reports and examination of records. (1) The
11administrator may require a person that has not filed a report, or a person that the
12administrator believes has filed an inaccurate, incomplete or false report, to file a
13verified report in a form specified by the administrator. The report must state
14whether the person is holding property reportable under this chapter, describe
15property not previously reported or as to which the administrator has made inquiry,
16and specifically identify and state the amounts of property that may be in issue.
AB799,23,22
17(2) The administrator, at reasonable times and upon reasonable notice, may
18examine the records of any person to determine whether the person has complied
19with this chapter. The administrator may conduct the examination even if the
20person believes it is not in possession of any property that must be reported, paid or
21delivered under this chapter. The administrator may contract with any other person
22to conduct the examination on behalf of the administrator.
AB799,24,2
23(3) The administrator, at reasonable times, may examine the records of an
24agent, including a dividend disbursing agent or transfer agent, of a business
25association or financial association that is the holder of property presumed
1abandoned if the administrator has given the notice required by sub. (2) to both the
2association or organization and the agent at least 90 days before the examination.
AB799,24,6
3(4) Documents and working papers obtained or compiled by the administrator,
4or the administrator's agents, employes or designated representatives, in the course
5of conducting an examination are confidential and are not public records, but the
6documents and papers may be used, produced and disclosed as follows:
AB799,24,87
(a) Used by the administrator in the course of an action to collect unclaimed
8property or to otherwise enforce this chapter.
AB799,24,119
(b) Used in joint examinations conducted with or pursuant to an agreement
10with another state, the federal government, or any other governmental subdivision,
11agency or instrumentality.
AB799,24,1212
(c) Produced pursuant to subpoena or court order.
AB799,24,1513
(d) Disclosed to the abandoned property office of another state for that state's
14use in circumstances equivalent to those described in this subsection, if the other
15state is bound to keep the documents and papers confidential.
AB799,24,22
16(5) If an examination of the records of a person results in the disclosure of
17property reportable under this chapter, the administrator may assess the cost of the
18examination against the holder at the rate of $200 a day for each examiner, or a
19greater amount that is reasonable and was incurred, but the assessment may not
20exceed the value of the property found to be reportable. The cost of an examination
21made pursuant to sub. (3) may be assessed only against the business association or
22financial organization.
AB799,25,4
23(6) If, after the effective date of this subsection .... [revisor inserts date], a
24holder does not maintain the records required by s. 177.31 and the records of the
25holder available for the periods subject to this chapter are insufficient to permit the
1preparation of a report, the administrator may require the holder to report and pay
2to the administrator the amount the administrator reasonably estimates, on the
3basis of any available records of the holder or by any other reasonable method of
4estimation, should have been but was not reported.
AB799,25,9
5177.31 Retention of records. (1) Except as otherwise provided in sub. (2),
6a holder required to file a report under s. 177.17 shall maintain the records
7containing the information required to be included in the report for 10 years after the
8holder files the report, unless a shorter period is provided by rule of the
9administrator.
AB799,25,15
10(2) A business association or financial organization that sells, issues or
11provides to others for sale or issue in this state, traveler's checks, money orders or
12similar instruments other than third-party bank checks, on which the business
13association or financial organization is directly liable, shall maintain a record of the
14instruments while they remain outstanding, indicating the state and date of issue,
15for 3 years.
AB799,25,18
16177.32 Enforcement. The administrator may maintain an action in this or
17another state to enforce this chapter. The court may award reasonable attorney fees
18to the prevailing party.
AB799,26,2
19177.33 Interstate agreements and cooperation; joint and reciprocal
20actions with other states. (1) The administrator may enter into an agreement
21with another state to exchange information relating to abandoned property or its
22possible existence. The agreement may permit the other state, or another person
23acting on behalf of a state, to examine records as authorized in s. 177.30. The
1administrator by rule may require the reporting of information needed to enable
2compliance with an agreement made under this
section and prescribe the form.
AB799,26,5
3(2) The administrator may join with another state to seek enforcement of this
4chapter against any person who is or may be holding property reportable under this
5chapter.
AB799,26,10
6(3) At the request of another state, the attorney general of this state may
7maintain an action on behalf of the other state to enforce, in this state, the unclaimed
8property laws of the other state against a holder of property subject to escheat or a
9claim of abandonment by the other state, if the other state has agreed to pay expenses
10incurred by the attorney general in maintaining the action.
AB799,26,22
11(4) The administrator may request that the attorney general of another state
12or another attorney commence an action in the other state on behalf of the
13administrator. With the approval of the attorney general of this state, the
14administrator may retain any other attorney to commence an action in this state on
15behalf of the administrator. This state shall pay all expenses, including attorney
16fees, in maintaining an action under this subsection. With the administrator's
17approval, the expenses and attorney fees may be paid from money received under
18this chapter. The administrator may agree to pay expenses and attorney fees based
19in whole or in part on a percentage of the value of any property recovered in the
20action. Any expenses or attorney fees paid under this subsection may not be
21deducted from the amount that is subject to the claim by the owner under this
22chapter.
AB799,27,2
23177.34 Interest and penalties. (1) A holder who fails to report, pay or deliver
24property within the time prescribed by this chapter shall pay to the administrator
1interest at the annual rate of 18% on the property or value thereof from the date the
2property should have been reported, paid or delivered.
AB799,27,8
3(2) Except as otherwise provided in sub. (3), a holder who fails to report, pay
4or deliver property within the time prescribed by this chapter, or fails to perform
5other duties imposed by this chapter, shall pay to the administrator, in addition to
6interest as provided in sub. (1), a civil penalty of $200 for each day the report,
7payment or delivery is withheld, or the duty is not performed, up to a maximum of
8$5,000.
AB799,27,14
9(3) A holder who wilfully fails to report, pay or deliver property within the time
10prescribed by this chapter, or wilfully fails to perform other duties imposed by this
11chapter, shall pay to the administrator, in addition to interest as provided in sub. (1),
12a civil penalty of $1,000 for each day the report, payment or delivery is withheld, or
13the duty is not performed, up to a maximum of $25,000, plus 25% of the value of any
14property that should have been but was not reported.
AB799,27,18
15(4) A holder who makes a fraudulent report shall pay to the administrator, in
16addition to interest as provided in sub. (1), a civil penalty of $1,000 for each day from
17the date a report under this chapter was due, up to a maximum of $25,000, plus 25%
18of the value of any property that should have been but was not reported.
AB799,27,21
19(5) The administrator for good cause may waive, in whole or in part, interest
20under sub. (1) and penalties under subs. (2) and (3), and shall waive penalties if the
21holder acted in good faith and without negligence.
AB799,28,4
22177.35 Agreement to locate property. (1) An agreement by an owner, the
23primary purpose of which is to locate, deliver, recover or assist in the recovery of
24property that is presumed abandoned, is void and unenforceable if it was entered into
25during the period commencing on the date the property was presumed abandoned
1and extending to a time that is 24 months after the date the property is paid or
2delivered to the administrator. This subsection does not apply to an owner's
3agreement with an attorney to file a claim as to identified property or contest the
4administrator's denial of a claim.
AB799,28,9
5(2) An agreement by an owner, the primary purpose of which is to locate,
6deliver, recover or assist in the recovery of property, is enforceable only if the
7agreement is in writing, clearly sets forth the nature of the property and the services
8to be rendered, is signed by the apparent owner and states the value of the property
9before and after the fee or other compensation has been deducted.
AB799,28,13
10(3) If an agreement covered by this
section applies to mineral proceeds and the
11agreement contains a provision to pay compensation that includes a portion of the
12underlying minerals or any mineral proceeds not then presumed abandoned, the
13provision is void and unenforceable.
AB799,28,19
14(4) An agreement covered by this
section that provides for compensation that
15is unconscionable is unenforceable except by the owner. An owner who has agreed
16to pay compensation that is unconscionable, or the administrator on behalf of the
17owner, may maintain an action to reduce the compensation to a conscionable
18amount. The court may award reasonable attorney fees to an owner who prevails in
19the action.
AB799,28,22
20(5) This
section does not preclude an owner from asserting that an agreement
21covered by this
section is invalid on grounds other than unconscionable
22compensation.
AB799,28,24
23177.36 Foreign transactions. This chapter does not apply to property held,
24due and owing in a foreign country and arising out of a foreign transaction.
AB799,29,6
1177.37 Transitional provisions. (1) An initial report filed under this
2chapter for property that was not required to be reported before the effective date of
3this subsection .... [revisor inserts date], but which is subject to this chapter must
4include all items of property that would have been presumed abandoned during the
510-year period next preceding the effective date of this subsection .... [revisor inserts
6date], as if this chapter had been in effect during that period.
AB799,29,12
7(2) This chapter does not relieve a holder of a duty that arose before the
8effective date of this subsection .... [revisor inserts date], to report, pay or deliver
9property. Except as otherwise provided in s. 177.29 (2), a holder who did not comply
10with ch. 177, 1997 stats., before the effective date of this subsection .... [revisor
11inserts date], is subject to the applicable provisions for enforcement and penalties
12that then existed, which are continued in effect for the purpose of this
section.
AB799,29,14
13177.38 Rules. The administrator may adopt rules pursuant to ch. 227
14necessary to carry out this chapter.
AB799,29,17
15177.40 Uniformity of application and construction. This chapter shall
16be applied and construed to effectuate its general purpose to make uniform the law
17with respect to the subject of this chapter among states enacting it.
AB799,29,20
18177.41 Escheat of property to municipalities. If a statute of this state
19provides for the escheat of abandoned or unclaimed property to a county, city, village
20or town, this chapter does not apply to the property.
AB799, s. 2
21Section
2. 610.61 of the statutes is amended to read:
AB799,30,3
1610.61 Duty of life insurers to report abandoned property. An insurer
2doing a life insurance business shall report under s. 177.17 any property presumed
3abandoned under s.
177.07 177.02 (1) (h).