KRP&JK:wlj
2015 - 2016 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 721
February 4, 2016 - Offered by Representative Katsma.
AB721-ASA1,1,3 1An Act to amend 177.22 (1) and 177.23 (1); and to create 177.01 (14m), 177.135,
2177.18 (1g), 177.225, 177.23 (2) (am) and 177.255 of the statutes; relating to:
3escheat of abandoned U.S. savings bonds.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB721-ASA1,1 4Section 1. 177.01 (14m) of the statutes is created to read:
AB721-ASA1,1,75 177.01 (14m) "U.S. savings bond" means a savings bond issued by the U.S.
6department of the treasury, whether in paper, electronic, or paperless form, and
7includes all proceeds of the savings bond.
AB721-ASA1,2 8Section 2. 177.135 of the statutes is created to read:
AB721-ASA1,2,2 9177.135 U.S. savings bonds. Except as provided in ss. 177.12 (1), 177.13, and
10177.16, a U.S. savings bond that remains unredeemed by the owner for more than
115 years after the date of final maturity is presumed abandoned. In this section, "final

1maturity" means the date a U.S. savings bond stops earning interest upon reaching
2its final extended maturity date.
AB721-ASA1,3 3Section 3. 177.18 (1g) of the statutes is created to read:
AB721-ASA1,2,74 177.18 (1g) In addition to any notice required under sub. (1), the administrator
5shall also publish, in the notice described under sub. (1), the name and last-known
6address of each owner of a U.S. savings bond that has been presumed abandoned
7under s. 177.135 since the publication of the previous notice.
AB721-ASA1,4 8Section 4. 177.22 (1) of the statutes is amended to read:
AB721-ASA1,2,189 177.22 (1) Except as provided in subs. (2) and (4) and s. 177.225, the
10administrator, within 3 years after the receipt of abandoned property, shall sell it to
11the highest bidder in a manner that, in the judgment of the administrator, affords
12the most favorable market for the property. The administrator may decline the
13highest bid and reoffer the property for sale if, in his or her judgment, the bid is
14insufficient. If the administrator determines that the probable cost of sale exceeds
15the value of the property, it need not be offered for sale. Any public sale under this
16section held in a city, village, or town in this state shall be preceded by the publication
17of one notice, at least 3 weeks in advance of sale, in a newspaper of general circulation
18in the county in which the property is to be sold.
AB721-ASA1,5 19Section 5. 177.225 of the statutes is created to read:
AB721-ASA1,2,24 20177.225 Escheat of U.S. savings bonds. (1) If all of the following conditions
21apply, the administrator may bring an action for a judgment that a U.S. savings
22bond, including a U.S. savings bond in the possession of the administrator or a U.S.
23savings bond that has been lost, stolen, or destroyed, is abandoned and for an order
24transferring ownership of the abandoned U.S. savings bond to this state:
AB721-ASA1,3,2
1(a) The U.S. savings bond has been presumed abandoned under s. 177.135 for
2at least one year.
AB721-ASA1,3,43 (b) The U.S. savings bond is subject to the custody of this state as unclaimed
4property under s. 177.03.
AB721-ASA1,3,65 (c) At least one year has elapsed since the administrator published the notice
6required under s. 177.18 (1g).
AB721-ASA1,3,15 7(2) An action under sub. (1) may be commenced in the circuit court for Dane
8County or in any county that would be a proper place of trial under s. 801.50. Subject
9to sub. (3), service may be made under s. 801.11 (1) (c) by publication of a notice
10published as a class 3 notice under ch. 985. In determining which newspaper is likely
11to give notice as required under s. 985.02 (1), the administrator shall consider the
12conditions under s. 177.03 that made the U.S. savings bond subject to the custody of
13this state as unclaimed property. The administrator may postpone commencing an
14action under this subsection until sufficient U.S. savings bonds meet the conditions
15under sub. (1) to justify the expense of the action.
AB721-ASA1,3,21 16(3) If service is made under sub. (2) by publication of a notice, the administrator
17shall, before publication of the notice, file with the court an affidavit setting forth the
18administrator's efforts to locate the owners of each U.S. savings bond subject to the
19action, and, upon filing of the affidavit, there shall be a presumption that the owners
20cannot with reasonable diligence be served under s. 801.11 (1) (a) or (b). The affidavit
21shall include all of the following information with respect to the U.S. savings bond:
AB721-ASA1,3,2422 (a) A description of the efforts made by the administrator to ascertain the name
23and last-known address of each person appearing to be an owner of the U.S. savings
24bond.
AB721-ASA1,4,2
1(b) The name and last-known address of each person identified by the
2administrator as appearing to be an owner of the U.S. savings bond.
AB721-ASA1,4,43 (c) The interest of each unknown person identified by the administrator as
4appearing to be an owner of the U.S. savings bond.
AB721-ASA1,4,65 (d) A description of the efforts made by the administrator to notify each owner
6of the U.S. savings bond that the owner may be entitled to claim abandoned property.
AB721-ASA1,4,107 (e) A statement that, based on prior efforts of the administrator to locate or
8contact the persons appearing to be owners of the U.S. saving bond, the
9administrator believes that the administrator cannot, with reasonable diligence,
10serve the owners with notice of the action by personal or substituted service.
AB721-ASA1,4,17 11(4) In an action under sub. (1), if the court finds that the administrator has
12substantially complied with the provisions of this chapter and that no other person
13has proven ownership of the U.S. savings bond, the court shall enter judgment that
14this state has all legal title and interest, including all rights, powers, and privileges
15of survivorship of any owner, co-owner, or beneficiary, of the U.S. savings bond and
16that this state owns the U.S. savings bond free of all claims of the owner or previous
17holder and of all persons claiming through or under them.
AB721-ASA1,4,20 18(5) Within 3 years after the entry of a judgment under sub. (4), the
19administrator shall file an application with the U.S. department of the treasury to
20redeem the U.S. savings bond.
AB721-ASA1,6 21Section 6. 177.23 (1) of the statutes is amended to read:
AB721-ASA1,5,1022 177.23 (1) Except as provided in sub. (2), the administrator shall deposit in the
23school fund all funds received under this chapter, including the clear proceeds from
24the sale of abandoned property under s. 177.22 and amounts received from the
25redemption of U.S. savings bonds under s. 177.225 (5)
. Before making the deposit,

1the administrator shall record the name and last-known address of each person
2appearing from the holders' reports to be entitled to the property and; the name and
3last-known address of each insured person or annuitant and beneficiary and,; with
4respect to each policy or contract listed in the report of an insurance company, its
5number, the name of the company, and the amount due; and, with respect to each U.S.
6savings bond, the name and last-known address of each owner of the U.S. savings
7bond and the issue date, face amount, and serial number of the U.S. savings bond
.
8The information recorded by the administrator under this subsection is not available
9for inspection or copying under s. 19.35 (1) until 12 months after payment or delivery
10of the property is due under s. 177.17 (4) (a).
AB721-ASA1,7 11Section 7. 177.23 (2) (am) of the statutes is created to read:
AB721-ASA1,5,1312 177.23 (2) (am) Any costs in connection with an action under s. 177.225 (1) and
13the redemption of a U.S. savings bond under s. 177.225 (5).
AB721-ASA1,8 14Section 8. 177.255 of the statutes is created to read:
AB721-ASA1,6,3 15177.255 Claim to recover abandoned U.S. savings bond.
16Notwithstanding s. 177.225, any person who could have claimed an interest in a U.S.
17savings bond immediately before this state became the owner of the U.S. savings
18bond pursuant to a judgment entered under s. 177.225 (4) may file a claim under s.
19177.24, and another state may file a claim under s. 177.25. Notwithstanding s.
20177.24 (3) or 177.25 (2), if the claim is allowed, the administrator shall pay the
21claimant the amount the administrator received from redeeming the U.S. savings
22bond under s. 177.225 (5), minus any amounts that were deposited in the general
23fund to pay administrative expenses under s. 177.23 (2) that are attributable to the
24U.S. savings bond, or, if the U.S. savings bond has not been redeemed, the amount
25the administrator estimates the administrator will receive from redeeming the U.S.

1savings bond under s. 177.225 (5), minus any amounts the administrator estimates
2will be deposited in the general fund to pay administrative expenses under s. 177.23
3(2) that are attributable to the U.S. savings bond.
AB721-ASA1,9 4Section 9. Nonstatutory provisions.
AB721-ASA1,6,75 (1) An unredeemed U.S. savings bond in the possession of the administrator
6on the effective date of this subsection is presumed abandoned under section 177.135
7of the statutes, as created by this act, as follows:
AB721-ASA1,6,118 (a) If the U.S. savings bond reached final maturity, as defined in section
9177.135 of the statutes, as created by this act, more than 5 years before the effective
10date of this paragraph, the U.S. savings bond is presumed abandoned on the date
11that is 5 years and one day after the date of final maturity.
AB721-ASA1,6,1712 (b) If the U.S. savings bond reached final maturity, as defined in section
13177.135 of the statutes, as created by this act, not more than 5 years before the
14effective date of this paragraph, the U.S. savings bond will be presumed abandoned
15on the date that is 5 years and one day after the date of final maturity even if the U.S.
16savings bond would have been presumed abandoned on an earlier date under chapter
17177, 2013 stats.
AB721-ASA1,6,2218 (c) If the U.S. savings bond has not reached final maturity, as defined in section
19177.135 of the statutes, as created by this act, on the effective date of this paragraph,
20the U.S. savings bond will be presumed abandoned on the date that is 5 years and
21one day after the date of final maturity even if the U.S. savings bond would have been
22presumed abandoned on an earlier date under chapter 177, 2013 stats.
AB721-ASA1,7,223 (2) For the purposes of determining when an action may be commenced under
24section 177.225 (1) of the statutes, as created by this act, a notice published by the
25administrator under section 177.18 of the statutes must include the name and

1last-known address of each person appearing to be an owner of the U.S. savings
2bond.
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