AB799: Bill Text

LRB-1447/1

PJD:wlj:hmh

1999 - 2000 LEGISLATURE

1999 Assembly BILL 799

February 25, 2000 - Introduced by Representatives Gundrum and Cullen, cosponsored by Senators George and Huelsman. Referred to Committee on Financial Institutions.

AB799,1,3 An Act to amend 610.61; and to repeal and recreate chapter 177 of the statutes; relating to: the Uniform Unclaimed Property Act and granting rule-making authority.

Analysis by the Legislative Reference Bureau

This bill is based on the Uniform Unclaimed Property Act (1995), which was approved by the National Conference of Commissioners on Uniform State Laws in 1995.

This bill clarifies the definition of "property", removes ambiguities over the meaning of "last-known address" and adds new definitions of "mineral", "mineral proceeds" and "money order". It also consolidates several sections that deal with various presumptions of abandonment for different classifications of property into one unified treatment of presumptions of abandonment.

This bill adds an express provision to cover proceeds of class actions, and also adds limitations on dormancy charges. It clarifies the limited nature of the states' burden of proof when the unclaimed obligation is evidenced by negotiable instruments. The bill increases penalties for noncompliance and adds a provision for attorney fees in litigated enforcement actions. Rules of confidentiality are added.

The periods of time after which abandonment is presumed have been reduced in some instances: corporate stock, from seven to five years, and gift certificates, from five to three years. Certain life insurance obligations had five-year and two-year periods of abandonment; they have been unified at three years.

The statute of limitations provision has been clarified so that it does not run in favor of a holder who makes no report or whose report is false or fraudulent.

Under the 1981 law, the administrator could require any person who had not filed a report to file a verified statement disclosing any unclaimed and reportable property. This bill provides that the administrator may also require a report from a person believed to have filed a false or incomplete report. The administrator has a right to audit records whether or not there is reason to believe a person is not complying with the law.

This state has enacted some nonuniform amendments to the 1981 version of the Uniform Unclaimed Property Act. This bill retains some of them, including those providing that unclaimed property is deposited in and paid from the school fund rather than the general fund, and providing that the act does not apply to the escheat of property to counties and municipalities, the forfeiture to a cooperative of unclaimed funds, the proceeds of a sale of property left in a self-storage facility, and unclaimed race prizes.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB799, s. 1 Section 1. Chapter 177 of the statutes, as affected by 1999 Wisconsin Act 9, is repealed and recreated to read:

AB799,2,3 chapter 177

AB799,2,4 Uniform Unclaimed property act

AB799,2,5 177.01 Definitions. In this chapter:

AB799,2,6 (1) "Administrator" means the state treasurer.

AB799,2,8 (2) "Apparent owner" means a person whose name appears on the records of a holder as the person entitled to property held, issued or owing by the holder.

AB799,2,14 (3) "Business association" means a corporation, joint stock company, investment company, partnership, unincorporated association, joint venture, limited liability company, business trust, trust company, land bank, safe deposit company, safekeeping depository, financial organization, insurance company, mutual fund, utility or other business entity consisting of one or more persons, whether or not for profit.

AB799,3,2 (4) "Domicile" means the state of incorporation of a corporation and the state of the principal place of business of a holder other than a corporation.

AB799,3,5 (5) "Financial organization" means a savings and loan association, building and loan association, savings bank, industrial bank, bank, banking organization or credit union.

AB799,3,7 (6) "Holder" means a person obligated to hold for the account of, or deliver or pay to, the owner property that is subject to this chapter.

AB799,3,13 (7) "Insurance company" means an association, corporation or fraternal or mutual benefit organization, whether or not for profit, engaged in the business of providing life endowments, annuities or insurance, including accident, burial, casualty, credit life, contract performance, dental, disability, fidelity, fire, health, hospitalization, illness, life, malpractice, marine, mortgage, surety, wage protection and workers' compensation insurance.

AB799,3,18 (8) "Mineral" means gas; oil; coal; other gaseous, liquid and solid hydrocarbons; oil shale; cement material; sand and gravel; road material; building stone; chemical raw material; gemstone; fissionable and nonfissionable ores; colloidal and other clay; steam and other geothermal resource; or any other substance defined as a mineral by the law of this state.

AB799,3,21 (9) "Mineral proceeds" means amounts payable for the extraction, production or sale of minerals, or, upon the abandonment of those payments, all payments that become payable thereafter. The term includes any of the following amounts payable:

AB799,3,24 (a) For the acquisition and retention of a mineral lease, including bonuses, royalties, compensatory royalties, shut-in royalties, minimum royalties and delay rentals.

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.