SB370: Bill Text

SB370,18,15 177.0201 When property presumed abandoned. Subject to s. 177.0210, the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified below:

SB370,18,16 (1) A traveler's check, 15 years after issuance.

SB370,18,17 (2) A money order or similar instrument, 5 years after issuance.

SB370,18,20 (3) A state or municipal bond, bearer bond, or original-issue-discount bond, 3 years after the earliest of the date the bond matures or is called or the obligation to pay the principal of the bond arises.

SB370,18,22 (4) A debt of a business association owed to an individual, 3 years after the obligation to pay arises.

SB370,19,3 (5) A payroll card or 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 of interest in the property by the apparent owner, except a deposit that is automatically renewable is deemed matured on its initial date of maturity unless the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal.

SB370,19,6 (6) Money or a credit owed to a customer as a result of a retail business transaction, other than in-store credit for returned merchandise, 5 years after the obligation arises.

SB370,19,11 (7) An amount owed by an insurance company on a life or endowment insurance policy or an annuity contract that has matured or terminated, 3 years after the obligation to pay arises under the terms of the policy or contract or, if a policy or contract for which an amount is owed on proof of death has not matured by proof of the death of the insured or annuitant, as follows:

SB370,19,16 (a) With respect to an amount owed on a life or endowment insurance policy, 3 years after the earliest of the date on which the insurance company has knowledge of the death of the insured or the date on which the insured attained, or would have attained if living, the limiting age under the mortality table that forms the basis of the reserve for the policy.

SB370,19,18 (b) With respect to an amount owed on an annuity contract, 3 years after the date on which the insurance company has knowledge of the death of the annuitant.

SB370,19,20 (8) Property that may distributed by a business association in the course of dissolution, one year after the property may be distributed.

SB370,19,23 (9) Except as provided in ss. 800.095 (8), 852.01 (3), 863.37 (2), and 863.39, property held by a court, including property received as proceeds of a class action, one year after the property may be distributed.

SB370,20,3 (10) Except as provided in ss. 40.08 (8), 852.01 (3), 863.37 (2), and 863.39, property held by a government or governmental subdivision, agency, or instrumentality, including municipal bond interest and unredeemed principal under the administration of a paying agent or indenture trustee, 5 years after the property may be distributed.

SB370,20,6 (11) Wages, commissions, bonuses, or reimbursements to which an employee is entitled, or other compensation for personal services, other than amounts held in a payroll card, one year after the amount becomes payable.

SB370,20,8 (12) A deposit or refund owed to a subscriber by a utility, one year after the deposit or refund becomes payable.

SB370,20,11 (13) Property not specified in this section or ss. 177.0202 to 177.0209, the earlier of 5 years after the owner first has a right to demand the property or the date on which the obligation to pay or distribute the property arises.

SB370,53 Section 53. 177.0202 of the statutes is created to read:

SB370,20,17 177.0202 When tax-deferred retirement account presumed abandoned. (1) Subject to s. 177.0210, property held in a pension account or retirement account that qualifies for federal income tax deferral under the U.S. income tax laws is presumed abandoned if it is unclaimed by the apparent owner 3 years after the later of:

SB370,20,18 (a) The following dates:

SB370,20,21 1. The date on which a 2nd consecutive communication sent by the holder by 1st class mail to the apparent owner is returned to the holder by the U.S. postal service as undeliverable.

SB370,20,25 2. If the 2nd communication is sent later than 30 days after the date on which the first communication is returned to the holder by the U.S. postal service as undeliverable, the date on which the first communication was returned as undeliverable.

SB370,21,1 (b) The earlier of the following dates:

SB370,21,4 1. The date on which the apparent owner reaches the minimum required distribution age, as specified under the Internal Revenue Code or by federal regulation, if that can be determined by the holder.

SB370,21,6 2. If distribution to avoid a tax penalty is required under the Internal Revenue Code, 2 years after the following:

SB370,21,8 a. The date on which the holder receives confirmation of the death of the apparent owner in the ordinary course of the holder's business.

SB370,21,10 b. The date on which the holder confirms the death of the apparent owner under sub. (2).

SB370,21,14 (2) If a holder in the ordinary course of its business receives notice or an indication of the death of an apparent owner and sub. (1) (b) applies, the holder shall attempt not later than 90 days after receipt of the notice or indication to confirm whether the apparent owner is deceased.

SB370,21,20 (3) If the holder does not send communications to the apparent owner of an account described in sub. (1) by 1st class mail, the holder shall attempt to confirm the apparent owner's interest in the property by sending the apparent owner e-mail not later than 2 years after the apparent owner's last indication of interest in the property, except that the holder shall promptly attempt to contact the apparent owner by 1st class mail if any of the following applies:

SB370,21,23 (a) The holder does not have information needed to send the apparent owner e-mail or the holder believes that the apparent owner's e-mail address in the holder's records is not valid.

SB370,21,24 (b) The holder receives notification that the e-mail was not received.

SB370,22,2 (c) The apparent owner does not respond to the e-mail within 30 days from the date on which the e-mail was sent.

SB370,22,5 (4) If 1st class mail sent under sub. (3) is returned to the holder by the U.S. postal service as undeliverable, the property is presumed abandoned on the date determined under sub. (1).

SB370,54 Section 54. 177.0203 of the statutes is created to read:

SB370,22,13 177.0203 When other tax-deferred account presumed abandoned. Subject to s. 177.0210, and except for property described under s. 177.0202 and property held in a plan described in section 529A of the Internal Revenue Code, property held in an account or plan, including a health savings account, that qualifies for federal income tax deferral under the Internal Revenue Code is presumed abandoned if it is unclaimed by the apparent owner 3 years after the earliest of the following:

SB370,22,16 (1) The date specified under the Internal Revenue Code or by federal regulation by which the distribution of property must begin in order to avoid a penalty, if no such distribution has been made.

SB370,22,17 (2) Thirty years after the date on which the account was opened.

SB370,55 Section 55. 177.0204 of the statutes is created to read:

SB370,22,23 177.0204 When custodial account for a minor presumed abandoned. (1) Subject to s. 177.0210, property held in an account established under any state's uniform gifts to minors act or uniform transfers to minors act is presumed abandoned if it is unclaimed by or on behalf of the minor on whose behalf the account was opened 3 years after the later of the following:

SB370,23,2 (a) If the date on which the minor's custodian is required to transfer the property to the minor has passed, the date on which a 2nd consecutive communication sent by the holder by 1st class mail to the minor's custodian is returned to the holder by the U.S. postal service as undeliverable.

SB370,23,7 (b) If the date on which the minor's custodian is required to transfer the property to the minor has passed and if the 2nd communication is sent by the holder to the minor's custodian later than 30 days after the date on which the first communication is returned to the holder by the U.S. postal service as undeliverable, the date on which the first communication was returned as undeliverable.

SB370,23,10 (c) The date on which the minor's custodian is required to transfer the property to the minor or the minor's estate in accordance with the uniform gifts to minors act or uniform transfers to minors act of the state in which the account was opened.

SB370,23,16 (2) If the holder does not send communications to the custodian by 1st class mail, as described in sub. (1), the holder shall attempt to confirm the custodian's interest in the property by sending the custodian e-mail not later than 2 years after the custodian's last indication of interest in the property, except that the holder shall promptly attempt to contact the custodian by 1st class mail if any of the following applies:

SB370,23,19 (a) The holder does not have information needed to send the custodian e-mail or the holder believes that the custodian's e-mail address in the holder's records is not valid.

SB370,23,20 (b) The holder receives notification that the e-mail was not received.

SB370,23,22 (c) The custodian does not respond to the e-mail within 30 days from the date on which the e-mail was sent.

SB370,23,25 (3) If 1st class mail sent under sub. (2) is returned to the holder by the U.S. postal service as undeliverable, the property is presumed abandoned on the date determined under sub. (1).

SB370,24,2 (4) The property in the account described under sub. (1) is not subject to this section after the property is transferred to the minor or the minor's estate.

SB370,56 Section 56. 177.0205 of the statutes is created to read:

SB370,24,8 177.0205 When contents of safe deposit box presumed abandoned. Tangible property held in a safe deposit box and proceeds from a sale of the property by the holder permitted by law of this state other than this chapter are presumed abandoned if the property remains unclaimed by the apparent owner 5 years after the earliest of the following:

SB370,24,9 (1) The expiration of the lease or rental period for the box.

SB370,24,12 (2) The earliest date when the lessor of the box is authorized by contract or law of this state other than this chapter to enter the box and remove or dispose of the contents without consent or authorization of the lessee.

SB370,57 Section 57. 177.0207 of the statutes is created to read:

SB370,24,15 177.0207 When security presumed abandoned. (1) Subject to s. 177.0210, a security is presumed to be abandoned 3 years after the following:

SB370,24,18 (a) The date on which a 2nd consecutive communication sent by the holder by 1st class mail to the apparent owner is returned to the holder by the U.S. postal service as undeliverable.

SB370,24,22 (b) If the 2nd communication is sent by the holder to the apparent owner later than 30 days after the date on which the first communication is returned to the holder by the U.S. postal service as undeliverable, the date on which the first communication was returned as undeliverable.

SB370,25,3 (2) If the holder does not send communications to the apparent owner of the security by 1st class mail, as described in sub. (1), the holder shall attempt to confirm the apparent owner's interest in the security by sending the apparent owner e-mail not later than 2 years after the apparent owner's last indication of interest in the security, except that the holder shall promptly attempt to contact the apparent owner by 1st class mail if any of the following applies:

SB370,25,6 (a) The holder does not have information needed to send the apparent owner e-mail or the holder believes that the apparent owner's e-mail address in the holder's records is not valid.

SB370,25,7 (b) The holder receives notification that the e-mail was not received.

SB370,25,9 (c) The apparent owner does not respond to the e-mail within 30 days from the date on which the e-mail was sent.

SB370,25,12 (3) If 1st class mail sent under sub. (2) is returned to the holder by the U.S. postal service as undeliverable, the security is presumed abandoned 3 years after the date on which the mail is returned.

SB370,58 Section 58. 177.0208 of the statutes is created to read:

SB370,25,17 177.0208 When related property presumed abandoned. At and after the time property is presumed abandoned under this chapter, any property right or interest accrued or accruing from property presumed abandoned under this chapter is presumed abandoned.

SB370,59 Section 59. 177.0210 of the statutes is created to read:

SB370,25,20 177.0210 Indication of apparent owner interest in property. (1) Property is presumed abandoned from the earliest of the following:

SB370,25,22 (a) The date on which the property is otherwise presumed abandoned under this subchapter.

SB370,25,24 (b) The date on which the dormancy period has elapsed following the last indication of interest by the apparent owner in the property.

SB370,26,2 (2) Under this chapter, an indication of an apparent owner's interest in property includes the following:

SB370,26,4 (a) A record communicated by the apparent owner to the holder or the holder's agent concerning the property or the account in which the property is held.

SB370,26,8 (b) An oral communication by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held, if the holder or the holder's agent contemporaneously makes and preserves a record of the fact of the apparent owner's communication.

SB370,26,12 (c) Presentment of a check or other instrument of payment of a dividend, interest, or other distribution, or evidence of receipt of a distribution made by electronic or similar means, with respect to an account, underlying security, or interest in a business association.

SB370,26,16 (d) Activity directed by an apparent owner in the account in which the property is held, including accessing the account or information concerning the account, or a direction by the apparent owner to increase, decrease, or otherwise change the amount or type of property held in the account.

SB370,26,19 (e) A deposit into or withdrawal from an account at a financial organization, including an automatic deposit or withdrawal previously authorized by the apparent owner, other than an automatic reinvestment of dividends or interest.

SB370,26,20 (f) Subject to sub. (5), payment of a premium on an insurance policy.

SB370,26,22 (g) Any other action by the apparent owner that reasonably demonstrates to the holder that the apparent owner knows that the property exists.

SB370,26,25 (3) An action by an agent or other representative of an apparent owner, other than the holder acting as the apparent owner's agent, is presumed to be an action on behalf of the apparent owner.

SB370,27,4 (4) A communication with an apparent owner by a person other than the holder or the holder's representative is not an indication of interest in the property by the apparent owner unless a record of the communication evidences the apparent owner's knowledge of a right to the property.

SB370,27,9 (5) If an insured person dies or the insured or beneficiary of an insurance policy otherwise becomes entitled to the proceeds before depletion of the cash surrender value of the policy by operation of an automatic-premium-loan provision or other nonforfeiture provision contained in the policy, the operation does not prevent the policy from maturing or terminating for purposes of this chapter.

SB370,60 Section 60. 177.0211 of the statutes is created to read:

SB370,27,15 177.0211 Knowledge of death of insured or annuitant. (1) In this section, “death master file” means the federal social security administration death master file or other database or service that is at least as comprehensive as the federal social security administration death master file for determining that a person has reportedly died.

SB370,27,19 (2) With respect to a life or endowment insurance policy or annuity contract for which an amount is owed on proof of death, but which has not matured by proof of death of the insured or annuitant, the insurance company has knowledge of the death of an insured or annuitant when any of the following occurs:

SB370,27,21 (a) The insurance company receives a death certificate or court order determining that the insured or annuitant has died.

SB370,27,25 (b) The insurance company or other person validates the death of the insured or annuitant by its performance of due diligence, as required under ch. 632 or other law, to maintain contact with the insured or annuitant to determine whether the insured or annuitant has died.

SB370,28,4 (c) The insurance company compares for any purpose a death master file with the names of some or all of the company's insureds or annuitants, finds a match that provides notice that the insured or annuitant has died, and the company validates the death.

SB370,28,8 (d) The insurance company receives notice of the death of the insured or annuitant from a beneficiary, policy owner, relative, or trustee, or from the personal or legal representative of the insured's or annuitant's estate and the company validates the death.

SB370,28,10 (3) The following applies to validating the death of the insured or annuitant under this section:

SB370,28,13 (a) A death master file match occurs if the criteria for an exact or partial match is satisfied as provided by a law of this state other than this chapter or by a rule promulgated or policy adopted by the office of the commissioner of insurance.

SB370,28,17 (b) A death master file match does not constitute proof of death for the purpose of submission to an insurance company of a claim by a beneficiary, annuitant, or owner of the policy or contract for an amount due under an insurance policy or annuity contract.

SB370,28,21 (c) The death master file match or validation of the insured's or annuitant's death does not alter the requirements for a beneficiary, annuitant, or owner of the policy or contract to make a claim to receive proceeds under the terms of the policy or contract.

SB370,29,2 (d) If no provision in a law of this state or a rule promulgated or policy adopted by the office of the commissioner of insurance establishes a time for validation of a death of an insured or annuitant, the insurance company shall make a good faith effort using other available records and information to validate the death, and document the effort taken for such validation, not later than 90 days after the insurance company has notice of the death.