AB799: Bill Text

AB799,4,3 (b) For the extraction, production or sale of minerals, including net revenue interests, royalties, overriding royalties, extraction payments and production payments.

AB799,4,5 (c) Under an agreement or option, including a joint operating agreement, unit agreement, pooling agreement and farm-out agreement.

AB799,4,9 (10) "Money order" includes an express money order and a personal money order, on which the remitter is the purchaser. The term does not include a bank money order or any other instrument sold by a financial organization if the seller has obtained the name and address of the payee.

AB799,4,13 (11) "Owner" means a person who has a legal or equitable interest in property subject to this chapter or the person's legal representative. The term includes a depositor in the case of a deposit, a beneficiary in the case of a trust other than a deposit in trust and a creditor, claimant or payee in the case of other property.

AB799,4,16 (12) "Person" means an individual, business association, financial organization, estate, trust, government, governmental subdivision, agency or instrumentality, or any other legal or commercial entity.

AB799,4,21 (13) "Property" means tangible property described in s. 177.025 or a fixed and certain interest in intangible property that is held, issued or owed in the course of a holder's business, or by a government, governmental subdivision, agency or instrumentality, and all income or increments therefrom. The term includes property that is referred to as or evidenced by any of the following:

AB799,4,22 (a) Money, a check, draft, deposit, interest or dividend.

AB799,4,25 (b) Credit balance, customer's overpayment, gift certificate, security deposit, refund, credit memorandum, unpaid wage, unused ticket, mineral proceeds or unidentified remittance.

AB799,5,2 (c) Stock or other evidence of ownership of an interest in a business association or financial organization.

AB799,5,3 (d) A bond, debenture, note or other evidence of indebtedness.

AB799,5,5 (e) Money deposited to redeem stocks, bonds, coupons or other securities or to make distributions.

AB799,5,8 (f) An amount due and payable under the terms of an annuity or insurance policy, including policies providing life insurance, property and casualty insurance, workers' compensation insurance or health and disability insurance.

AB799,5,12 (g) An amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employe savings, supplemental unemployment insurance or similar benefits.

AB799,5,14 (14) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

AB799,5,17 (15) "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or insular possession subject to the jurisdiction of the United States.

AB799,5,21 (16) "Utility" means a person who owns or operates for public use any plant, equipment, real property, franchise or license for the transmission of communications or the production, storage, transmission, sale, delivery or furnishing of electricity, water, steam or gas.

AB799,5,24 177.015 Exemption. Notwithstanding this chapter, a cooperative organized under ch. 185 may effect the forfeiture to the cooperative of unclaimed funds as provided in ss. 185.03 (10) and 185.75 (1).

AB799,6,3 177.02 Presumption of abandonment. (1) Property is presumed abandoned if it is unclaimed by the apparent owner during the time set forth below for the particular property:

AB799,6,4 (a) Traveler's check, 15 years after issuance.

AB799,6,5 (b) Money order, 7 years after issuance.

AB799,6,8 (c) Stock or other equity interest in a business association or financial organization, including a security entitlement under ch. 408, 5 years after the earlier of:

AB799,6,10 1. The date of the most recent dividend, stock split or other distribution unclaimed by the apparent owner.

AB799,6,13 2. The date of the second mailing of a statement of account or other notification or communication that was returned as undeliverable or after the holder discontinued mailings, notifications or communications to the apparent owner.

AB799,6,16 (d) Debt of a business association or financial organization, other than a bearer bond or an original issue discount bond, 5 years after the date of the most recent interest payment unclaimed by the apparent owner.

AB799,6,23 (e) A demand, savings or time deposit, including a deposit that is automatically renewable, 5 years after the earlier of maturity or the date of the last indication by the owner of interest in the property; but a deposit that is automatically renewable is deemed matured for purposes of this section upon its initial date of maturity, unless the owner has consented to a renewal at or about the time of the renewal and the consent is in writing or is evidenced by a memorandum or other record on file with the holder.

AB799,7,2 (f) Money or credits owed to a customer as a result of a retail business transaction, 3 years after the obligation accrued.

AB799,7,5 (g) Gift certificate, 3 years after December 31 of the year in which the certificate was sold, but if redeemable in merchandise only, the amount abandoned is deemed to be 60% of the certificate's face value.

AB799,7,10 (h) Amount owed by an insurer on a life or endowment insurance policy or an annuity that has matured or terminated, 3 years after the obligation to pay arose or, in the case of a policy or annuity payable upon proof of death, 3 years after the insured has attained, or would have attained if living, the limiting age under the mortality table on which the reserve is based.

AB799,7,12 (i) Property distributable by a business association or financial organization in a course of dissolution, one year after the property becomes distributable.

AB799,7,14 (j) Property received by a court as proceeds of a class action, and not distributed pursuant to the judgment, one year after the distribution date.

AB799,7,17 (k) Except as provided in ss. 40.08 (8), 800.095 (7m), 852.01 (3), 863.27 (2) and 863.39, property held by a court, government, governmental subdivision, agency or instrumentality, one year after the property becomes distributable.

AB799,7,19 (L) Wages or other compensation for personal services, one year after the compensation becomes payable.

AB799,7,21 (m) Deposit or refund owed to a subscriber by a utility, one year after the deposit or refund becomes payable.

AB799,8,3 (n) Property in an individual retirement account, defined benefit plan or other account or plan that is qualified for tax deferral under the income tax laws of the United States, 3 years after the earliest of the date of the distribution or attempted distribution of the property, the date of the required distribution as stated in the plan or trust agreement governing the plan, or the date, if determinable by the holder, specified in the income tax laws of the United States by which distribution of the property must begin in order to avoid a tax penalty.

AB799,8,5 (o) All other property, 5 years after the owner's right to demand the property or after the obligation to pay or distribute the property arises, whichever first occurs.

AB799,8,8 (2) At the time that an interest is presumed abandoned under sub. (1), any other property right accrued or accruing to the owner as a result of the interest, and not previously presumed abandoned, is also presumed abandoned.

AB799,8,15 (3) Property is unclaimed if, for the applicable period set forth in sub. (1), the apparent owner has not communicated in writing, or by other means reflected in a contemporaneous record prepared by or on behalf of the holder, with the holder concerning the property or the account in which the property is held, and has not otherwise indicated an interest in the property. A communication with an owner by a person other than the holder or its representative who has not in writing identified the property to the owner is not an indication of interest in the property by the owner.

AB799,8,16 (4) An indication of an owner's interest in property includes the following:

AB799,8,21 (a) The presentment of a check or other instrument of payment of a dividend or other distribution made with respect to an account or underlying stock or other interest in a business association or financial organization or, in the case of a distribution made by electronic or similar means, evidence that the distribution has been received.

AB799,8,24 (b) Owner-directed activity in the account in which the property is held, including a direction by the owner to increase, decrease or change the amount or type of property held in the account.

AB799,8,25 (c) The making of a deposit to or withdrawal from a bank account.

AB799,9,7 (d) The payment of a premium with respect to a property interest in an insurance policy; but the application of an automatic premium loan provision or other nonforfeiture provision contained in an insurance policy does not prevent a policy from maturing or terminating if the insured has died or the insured or the beneficiary of the policy has otherwise become entitled to the proceeds before the depletion of the cash surrender value of a policy by the application of those provisions.

AB799,9,10 (5) Property is payable or distributable for purposes of this chapter notwithstanding the owner's failure to make demand or present an instrument or document otherwise required to obtain payment.

AB799,9,16 177.025 Contents of safe deposit box or other safekeeping depository. Tangible property held in a safe deposit box or other safekeeping depository in this state in the ordinary course of the holder's business and proceeds resulting from the sale of the property permitted by other law are presumed abandoned if the property remains unclaimed by the owner for more than 5 years after expiration of the lease or rental period on the box or other depository.

AB799,9,20 177.03 Rules for taking custody. Except as otherwise provided in this chapter or by other statute of this state, property that is presumed abandoned, whether located in this or another state, is subject to the custody of this state if any of the following conditions is present:

AB799,9,22 (1) The last-known address of the apparent owner, as shown on the records of the holder, is in this state.

AB799,9,25 (2) The records of the holder do not reflect the identity of the person entitled to the property and it is established that the last-known address of the person entitled to the property is in this state.

AB799,10,2 (3) The records of the holder do not reflect the last-known address of the apparent owner and either of the following is established:

AB799,10,4 (a) The last-known address of the person entitled to the property is in this state.

AB799,10,8 (b) The holder is domiciled in this state or is a government or governmental subdivision, agency or instrumentality of this state and has not previously paid or delivered the property to the state of the last-known address of the apparent owner or other person entitled to the property.

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.