AB799: Bill Text

AB799,21,2 (a) The property was paid or delivered to the custody of this state because the records of the holder did not reflect a last-known location of the apparent owner within the borders of the other state and the other state establishes that the apparent owner or other person entitled to the property was last known to be located within the borders of that state and under the laws of that state the property has escheated or become subject to a claim of abandonment by that state.

AB799,21,6 (b) The property was paid or delivered to the custody of this state because the laws of the other state did not provide for the escheat or custodial taking of the property and, under the laws of that state subsequently enacted, the property has escheated or become subject to a claim of abandonment by that state.

AB799,21,10 (c) The records of the holder were erroneous in that they did not accurately identify the owner of the property and the last-known location of the owner within the borders of another state and under the laws of that state the property has escheated or become subject to a claim of abandonment by that state.

AB799,21,13 (d) The property was subjected to custody by this state under s. 177.03 (6) and under the laws of the state of domicile of the holder the property has escheated or become subject to a claim of abandonment by that state.

AB799,21,17 (e) The property is a sum payable on a traveler's check, money order or similar instrument that was purchased in the other state and delivered into the custody of this state under s. 177.03 (7), and under the laws of the other state the property has escheated or become subject to a claim of abandonment by that state.

AB799,21,21 (2) A claim of another state to recover escheated or abandoned property must be presented in a form prescribed by the administrator, who shall decide the claim within 90 days after it is presented. The administrator shall allow the claim upon determining that the other state is entitled to the abandoned property under sub. (1).

AB799,21,24 (3) The administrator shall require another state, before recovering property under this section, to agree to indemnify this state and its officers and employes against any liability on a claim to the property.

AB799,22,6 177.26 Action to establish claim. A person aggrieved by a decision of the administrator or whose claim has not been acted upon within 90 days after its filing may maintain an original action to establish the claim in the circuit court, naming the administrator as a defendant. If the aggrieved person establishes the claim in an action against the administrator, the court may award the claimant reasonable attorney fees.

AB799,22,9 177.27 Election to take payment or delivery. (1) The administrator may decline to receive property reported under this chapter that the administrator considers to have a value less than the expenses of notice and sale.

AB799,22,14 (2) A holder, with the written consent of the administrator and upon conditions and terms prescribed by the administrator, may report and deliver property before the property is presumed abandoned. Property so delivered must be held by the administrator and is not presumed abandoned until it otherwise would be presumed abandoned under this chapter.

AB799,22,21 177.28 Destruction or disposition of property having no substantial commercial value; immunity from liability. If the administrator determines after investigation that property delivered under this chapter has no substantial commercial value, the administrator may destroy or otherwise dispose of the property at any time. An action or proceeding may not be maintained against this state or any of its officers or against the holder for or on account of an act of the administrator under this section, except for intentional misconduct or malfeasance.

AB799,23,2 177.29 Periods of limitation. (1) The expiration, before, on or after the effective date of this subsection .... [revisor inserts date], of a period of limitation on the owner's right to receive or recover property, whether specified by contract, statute or court order, does not preclude the property from being presumed abandoned or affect a duty to file a report or to pay, deliver or transfer property to the administrator as required by this chapter.

AB799,23,9 (2) An action or proceeding may not be maintained by the administrator to enforce this chapter in regard to the reporting, delivery or payment of property more than 10 years after the holder specifically identified the property in a report filed with the administrator or gave express notice to the administrator of a dispute regarding the property. In the absence of such a report or other express notice, the period of limitation is tolled. The period of limitation is also tolled by the filing of a report that is fraudulent.

AB799,23,16 177.30 Requests for reports and examination of records. (1) The administrator may require a person that has not filed a report, or a person that the administrator believes has filed an inaccurate, incomplete or false report, to file a verified report in a form specified by the administrator. The report must state whether the person is holding property reportable under this chapter, describe property not previously reported or as to which the administrator has made inquiry, and specifically identify and state the amounts of property that may be in issue.

AB799,23,22 (2) The administrator, at reasonable times and upon reasonable notice, may examine the records of any person to determine whether the person has complied with this chapter. The administrator may conduct the examination even if the person believes it is not in possession of any property that must be reported, paid or delivered under this chapter. The administrator may contract with any other person to conduct the examination on behalf of the administrator.

AB799,24,2 (3) The administrator, at reasonable times, may examine the records of an agent, including a dividend disbursing agent or transfer agent, of a business association or financial association that is the holder of property presumed abandoned if the administrator has given the notice required by sub. (2) to both the association or organization and the agent at least 90 days before the examination.

AB799,24,6 (4) Documents and working papers obtained or compiled by the administrator, or the administrator's agents, employes or designated representatives, in the course of conducting an examination are confidential and are not public records, but the documents and papers may be used, produced and disclosed as follows:

AB799,24,8 (a) Used by the administrator in the course of an action to collect unclaimed property or to otherwise enforce this chapter.

AB799,24,11 (b) Used in joint examinations conducted with or pursuant to an agreement with another state, the federal government, or any other governmental subdivision, agency or instrumentality.

AB799,24,12 (c) Produced pursuant to subpoena or court order.

AB799,24,15 (d) Disclosed to the abandoned property office of another state for that state's use in circumstances equivalent to those described in this subsection, if the other state is bound to keep the documents and papers confidential.

AB799,24,22 (5) If an examination of the records of a person results in the disclosure of property reportable under this chapter, the administrator may assess the cost of the examination against the holder at the rate of $200 a day for each examiner, or a greater amount that is reasonable and was incurred, but the assessment may not exceed the value of the property found to be reportable. The cost of an examination made pursuant to sub. (3) may be assessed only against the business association or financial organization.

AB799,25,4 (6) If, after the effective date of this subsection .... [revisor inserts date], a holder does not maintain the records required by s. 177.31 and the records of the holder available for the periods subject to this chapter are insufficient to permit the preparation of a report, the administrator may require the holder to report and pay to the administrator the amount the administrator reasonably estimates, on the basis of any available records of the holder or by any other reasonable method of estimation, should have been but was not reported.

AB799,25,9 177.31 Retention of records. (1) Except as otherwise provided in sub. (2), a holder required to file a report under s. 177.17 shall maintain the records containing the information required to be included in the report for 10 years after the holder files the report, unless a shorter period is provided by rule of the administrator.

AB799,25,15 (2) A business association or financial organization that sells, issues or provides to others for sale or issue in this state, traveler's checks, money orders or similar instruments other than third-party bank checks, on which the business association or financial organization is directly liable, shall maintain a record of the instruments while they remain outstanding, indicating the state and date of issue, for 3 years.

AB799,25,18 177.32 Enforcement. The administrator may maintain an action in this or another state to enforce this chapter. The court may award reasonable attorney fees to the prevailing party.

AB799,26,2 177.33 Interstate agreements and cooperation; joint and reciprocal actions with other states. (1) The administrator may enter into an agreement with another state to exchange information relating to abandoned property or its possible existence. The agreement may permit the other state, or another person acting on behalf of a state, to examine records as authorized in s. 177.30. The administrator by rule may require the reporting of information needed to enable compliance with an agreement made under this section and prescribe the form.

AB799,26,5 (2) The administrator may join with another state to seek enforcement of this chapter against any person who is or may be holding property reportable under this chapter.

AB799,26,10 (3) At the request of another state, the attorney general of this state may maintain an action on behalf of the other state to enforce, in this state, the unclaimed property laws of the other state against a holder of property subject to escheat or a claim of abandonment by the other state, if the other state has agreed to pay expenses incurred by the attorney general in maintaining the action.

AB799,26,22 (4) The administrator may request that the attorney general of another state or another attorney commence an action in the other state on behalf of the administrator. With the approval of the attorney general of this state, the administrator may retain any other attorney to commence an action in this state on behalf of the administrator. This state shall pay all expenses, including attorney fees, in maintaining an action under this subsection. With the administrator's approval, the expenses and attorney fees may be paid from money received under this chapter. The administrator may agree to pay expenses and attorney fees based in whole or in part on a percentage of the value of any property recovered in the action. Any expenses or attorney fees paid under this subsection may not be deducted from the amount that is subject to the claim by the owner under this chapter.

AB799,27,2 177.34 Interest and penalties. (1) A holder who fails to report, pay or deliver property within the time prescribed by this chapter shall pay to the administrator interest at the annual rate of 18% on the property or value thereof from the date the property should have been reported, paid or delivered.

AB799,27,8 (2) Except as otherwise provided in sub. (3), a holder who fails to report, pay or deliver property within the time prescribed by this chapter, or fails to perform other duties imposed by this chapter, shall pay to the administrator, in addition to interest as provided in sub. (1), a civil penalty of $200 for each day the report, payment or delivery is withheld, or the duty is not performed, up to a maximum of $5,000.

AB799,27,14 (3) A holder who wilfully fails to report, pay or deliver property within the time prescribed by this chapter, or wilfully fails to perform other duties imposed by this chapter, shall pay to the administrator, in addition to interest as provided in sub. (1), a civil penalty of $1,000 for each day the report, payment or delivery is withheld, or the duty is not performed, up to a maximum of $25,000, plus 25% of the value of any property that should have been but was not reported.

AB799,27,18 (4) A holder who makes a fraudulent report shall pay to the administrator, in addition to interest as provided in sub. (1), a civil penalty of $1,000 for each day from the date a report under this chapter was due, up to a maximum of $25,000, plus 25% of the value of any property that should have been but was not reported.

AB799,27,21 (5) The administrator for good cause may waive, in whole or in part, interest under sub. (1) and penalties under subs. (2) and (3), and shall waive penalties if the holder acted in good faith and without negligence.

AB799,28,4 177.35 Agreement to locate property. (1) An agreement by an owner, the primary purpose of which is to locate, deliver, recover or assist in the recovery of property that is presumed abandoned, is void and unenforceable if it was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is 24 months after the date the property is paid or delivered to the administrator. This subsection does not apply to an owner's agreement with an attorney to file a claim as to identified property or contest the administrator's denial of a claim.

AB799,28,9 (2) An agreement by an owner, the primary purpose of which is to locate, deliver, recover or assist in the recovery of property, is enforceable only if the agreement is in writing, clearly sets forth the nature of the property and the services to be rendered, is signed by the apparent owner and states the value of the property before and after the fee or other compensation has been deducted.

AB799,28,13 (3) If an agreement covered by this section applies to mineral proceeds and the agreement contains a provision to pay compensation that includes a portion of the underlying minerals or any mineral proceeds not then presumed abandoned, the provision is void and unenforceable.

AB799,28,19 (4) An agreement covered by this section that provides for compensation that is unconscionable is unenforceable except by the owner. An owner who has agreed to pay compensation that is unconscionable, or the administrator on behalf of the owner, may maintain an action to reduce the compensation to a conscionable amount. The court may award reasonable attorney fees to an owner who prevails in the action.

AB799,28,22 (5) This section does not preclude an owner from asserting that an agreement covered by this section is invalid on grounds other than unconscionable compensation.

AB799,28,24 177.36 Foreign transactions. This chapter does not apply to property held, due and owing in a foreign country and arising out of a foreign transaction.

AB799,29,6 177.37 Transitional provisions. (1) An initial report filed under this chapter for property that was not required to be reported before the effective date of this subsection .... [revisor inserts date], but which is subject to this chapter must include all items of property that would have been presumed abandoned during the 10-year period next preceding the effective date of this subsection .... [revisor inserts date], as if this chapter had been in effect during that period.

AB799,29,12 (2) This chapter does not relieve a holder of a duty that arose before the effective date of this subsection .... [revisor inserts date], to report, pay or deliver property. Except as otherwise provided in s. 177.29 (2), a holder who did not comply with ch. 177, 1997 stats., before the effective date of this subsection .... [revisor inserts date], is subject to the applicable provisions for enforcement and penalties that then existed, which are continued in effect for the purpose of this section.

AB799,29,14 177.38 Rules. The administrator may adopt rules pursuant to ch. 227 necessary to carry out this chapter.

AB799,29,17 177.40 Uniformity of application and construction. This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.

AB799,29,20 177.41 Escheat of property to municipalities. If a statute of this state provides for the escheat of abandoned or unclaimed property to a county, city, village or town, this chapter does not apply to the property.

AB799, s. 2 Section 2. 610.61 of the statutes is amended to read:

AB799,30,3 610.61 Duty of life insurers to report abandoned property. An insurer doing a life insurance business shall report under s. 177.17 any property presumed abandoned under s. 177.07 177.02 (1) (h).

AB799,30,4 (End)