Analysis by the Legislative Reference Bureau
This bill provides that a U.S. savings bond that remains unredeemed for five
years after final maturity is presumed abandoned and subject to the custody of this
state under this state's version of the Uniform Unclaimed Property Act. The bill also
provides that, if all of the following conditions apply, the Secretary of Revenue may
commence an action for a determination that the bond is abandoned and for an order
transferring ownership of the abandoned bond to this state:
1. The bond has been presumed abandoned for at least one year.
2. The bond is subject to the custody of this state as unclaimed property.
3. At least one year has elapsed since the secretary published notice of the name
of the person appearing to be the owner of the bond.
The secretary must redeem the bond within three years after entry of the order
transferring ownership of the bond. The proceeds from the redemption are deposited
in the school fund.
At any time before the order is entered, the rightful owner may file a claim with
the secretary for the bond's return. After the order is entered, the previous owner
may file a claim with the secretary for return of the bond or payment of the amount

for which the bond was redeemed, less administrative costs incurred by the
secretary.
For further information see the state 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:
AB721,1 1Section 1. 177.01 (14m) of the statutes is created to read:
AB721,2,42 177.01 (14m) "U.S. savings bond" means a savings bond issued by the U.S.
3department of the treasury, whether in paper, electronic, or paperless form, and
4includes all proceeds of the savings bond.
AB721,2 5Section 2. 177.12 (1) of the statutes is amended to read:
AB721,2,126 177.12 (1) Intangible Except as provided in s. 177.135, intangible property and
7any income or increment derived from it held in a fiduciary capacity for the benefit
8of another person is presumed abandoned unless the owner, within 5 years after it
9has become payable or distributable, has increased or decreased the principal,
10accepted payment of principal or income, communicated concerning the property or
11otherwise indicated an interest as evidenced by a memorandum or other record on
12file prepared by the fiduciary.
AB721,3 13Section 3. 177.13 of the statutes is amended to read:
AB721,2,19 14177.13 Property held by courts and public agencies. Except as provided
15in ss. 40.08 (8), 177.135, 800.095 (8), 852.01 (3), 863.37 (2), and 863.39, intangible
16property held for the owner by a court, state, or other government, governmental
17subdivision, or agency, public corporation, or public authority that remains
18unclaimed by the owner for more than one year after it became payable or
19distributable is presumed abandoned.
AB721,4 20Section 4. 177.135 of the statutes is created to read:
AB721,3,5
1177.135 U.S. savings bonds. Notwithstanding s. 177.02 (1), a U.S. savings
2bond that remains unredeemed by the owner for more than 5 years after the date of
3final maturity is presumed abandoned. In this section, "final maturity" means the
4date a U.S. savings bond stops earning interest upon reaching its final extended
5maturity date.
AB721,5 6Section 5. 177.16 of the statutes is amended to read:
AB721,3,13 7177.16 Contents of safe deposit box or other safekeeping repository.
8All Except as provided in s. 177.135, all tangible and intangible property held in a
9safe deposit box or any other safekeeping repository in this state in the ordinary
10course of the holder's business and proceeds resulting from the sale of the property
11permitted by other law, which remain unclaimed by the owner for more than 5 years
12after the lease or rental period on the box or other repository has expired, are
13presumed abandoned.
AB721,6 14Section 6. 177.17 (2) (cm) of the statutes is created to read:
AB721,3,1715 177.17 (2) (cm) In the case of a U.S. savings bond, the name and last-known
16address of each owner of the U.S. savings bond and the issue date, face amount, and
17serial number of the U.S. savings bond.
AB721,7 18Section 7. 177.17 (5) (intro.), (a) and (b) of the statutes are amended to read:
AB721,3,2519 177.17 (5) (intro.) Not more than 120 days before filing the report required by
20this section, the holder in possession of property presumed abandoned and subject
21to custody as unclaimed property under this chapter shall send written notice to the
22apparent owner and, in the case of a U.S. savings bond, to each owner of the U.S.
23savings bond
at his or her last-known address informing him or her that the holder
24is in possession of property subject to this chapter if all of the following exist factors
25apply
:
AB721,4,3
1(a) The holder has in its records an address for the apparent owner which, or
2owner of the U.S. savings bond, that
the holder's records do not disclose to be
3inaccurate.
AB721,4,54 (b) The claim of the apparent owner, or owner of the U.S. savings bond, is not
5barred by the statute of limitations.
AB721,8 6Section 8. 177.22 (1) of the statutes is amended to read:
AB721,4,167 177.22 (1) Except as provided in subs. (2) and (4) and s. 177.225, the
8administrator, within 3 years after the receipt of abandoned property, shall sell it to
9the highest bidder in a manner that, in the judgment of the administrator, affords
10the most favorable market for the property. The administrator may decline the
11highest bid and reoffer the property for sale if, in his or her judgment, the bid is
12insufficient. If the administrator determines that the probable cost of sale exceeds
13the value of the property, it need not be offered for sale. Any public sale under this
14section held in a city, village, or town in this state shall be preceded by the publication
15of one notice, at least 3 weeks in advance of sale, in a newspaper of general circulation
16in the county in which the property is to be sold.
AB721,9 17Section 9. 177.225 of the statutes is created to read:
AB721,4,22 18177.225 Escheat of U.S. savings bonds. (1) If all of the following conditions
19apply, the administrator may bring an action for a judgment that a U.S. savings
20bond, including a U.S. savings bond in the possession of the administrator or a U.S.
21savings bond that has been lost, stolen, or destroyed, is abandoned and for an order
22transferring ownership of the abandoned U.S. savings bond to this state:
AB721,4,2423 (a) The U.S. savings bond has been presumed abandoned under s. 177.135 for
24at least one year.
AB721,5,2
1(b) The U.S. savings bond is subject to the custody of this state as unclaimed
2property under s. 177.03.
AB721,5,43 (c) At least one year has elapsed since the administrator published the notice
4required under s. 177.18.
AB721,5,13 5(2) An action under sub. (1) may be commenced in the circuit court for Dane
6County or in any county that would be a proper place of trial under s. 801.50. Subject
7to sub. (3), service may be made under s. 801.11 (1) (c) by publication of a notice
8published as a class 3 notice under ch. 985. In determining which newspaper is likely
9to give notice as required under s. 985.02 (1), the administrator shall consider the
10conditions under s. 177.03 that made the U.S. savings bond subject to the custody of
11this state as unclaimed property. The administrator may postpone commencing an
12action under this subsection until sufficient U.S. savings bonds meet the conditions
13under sub. (1) to justify the expense of the action.
AB721,5,19 14(3) If service is made under sub. (2) by publication of a notice, the administrator
15shall, before publication of the notice, file with the court an affidavit setting forth the
16administrator's efforts to locate the owners of each U.S. savings bond subject to the
17action, and, upon filing of the affidavit, there shall be a presumption that the owners
18cannot with reasonable diligence be served under s. 801.11 (1) (a) or (b). The affidavit
19shall include all of the following information with respect to the U.S. savings bond:
AB721,5,2220 (a) A description of the efforts made by the administrator to ascertain the name
21and last-known address of each person appearing to be an owner of the U.S. savings
22bond.
AB721,5,2423 (b) The name and last-known address of each person identified by the
24administrator as appearing to be an owner of the U.S. savings bond.
AB721,6,2
1(c) The interest of each unknown person identified by the administrator as
2appearing to be an owner of the U.S. savings bond.
AB721,6,43 (d) A description of the efforts made by the administrator to notify each owner
4of the U.S. savings bond that the owner may be entitled to claim abandoned property.
AB721,6,85 (e) A statement that, based on prior efforts of the administrator to locate or
6contact the persons appearing to be owners of the U.S. saving bond, the
7administrator believes that the administrator cannot, with reasonable diligence,
8serve the owners with notice of the action by personal or substituted service.
AB721,6,15 9(4) In an action under sub. (1), if the court finds that the administrator has
10substantially complied with the provisions of this chapter and that no other person
11has proven ownership of the U.S. savings bond, the court shall enter judgment that
12this state has all legal title and interest, including all rights, powers, and privileges
13of survivorship of any owner, co-owner, or beneficiary, of the U.S. savings bond and
14that this state owns the U.S. savings bond free of all claims of the owner or previous
15holder and of all persons claiming through or under them.
AB721,6,18 16(5) Within 3 years after the entry of a judgment under sub. (4), the
17administrator shall file an application with the U.S. department of the treasury to
18redeem the U.S. savings bond.
AB721,10 19Section 10. 177.23 (1) of the statutes is amended to read:
AB721,7,820 177.23 (1) Except as provided in sub. (2), the administrator shall deposit in the
21school fund all funds received under this chapter, including the clear proceeds from
22the sale of abandoned property under s. 177.22 and amounts received from the
23redemption of U.S. savings bonds under s. 177.225 (5)
. Before making the deposit,
24the administrator shall record the name and last-known address of each person
25appearing from the holders' reports to be entitled to the property and; the name and

1last-known address of each insured person or annuitant and beneficiary and,; with
2respect to each policy or contract listed in the report of an insurance company, its
3number, the name of the company, and the amount due ; and, with respect to each U.S.
4savings bond, the name and last-known address of each owner of the U.S. savings
5bond and the issue date, face amount, and serial number of the U.S. savings bond
.
6The information recorded by the administrator under this subsection is not available
7for inspection or copying under s. 19.35 (1) until 12 months after payment or delivery
8of the property is due under s. 177.17 (4) (a).
AB721,11 9Section 11. 177.23 (2) (am) of the statutes is created to read:
AB721,7,1110 177.23 (2) (am) Any costs in connection with an action under s. 177.225 (1) and
11the redemption of a U.S. savings bond under s. 177.225 (5).
AB721,12 12Section 12. 177.255 of the statutes is created to read:
AB721,7,22 13177.255 Claim to recover abandoned U.S. savings bond. (1)
14Notwithstanding s. 177.225, any person who claimed an interest in a U.S. savings
15bond immediately before this state became the owner of the U.S. savings bond
16pursuant to a judgment entered under s. 177.225 (4) may file a claim under s. 177.24,
17and another state may file a claim under s. 177.25. Notwithstanding s. 177.24 (3)
18or 177.25 (2), if the claim is allowed, the administrator shall deliver the U.S. savings
19bond to the claimant or pay the claimant the amount the administrator received from
20redeeming the U.S. savings bond under s. 177.225 (5), minus any amounts that were
21deposited in the general fund to pay administrative expenses under s. 177.23 (2) that
22are attributable to the U.S. savings bond.
AB721,8,2 23(2) A claimant who takes delivery under sub. (1) of a U.S. savings bond that
24is owned by this state takes the U.S. savings bond free of all claims of this state. The

1administrator shall execute all documents necessary to complete the transfer of
2ownership.
AB721,13 3Section 13. Nonstatutory provisions.
AB721,8,64 (1) An unredeemed U.S. savings bond in the possession of the administrator
5on the effective date of this subsection is presumed abandoned under section 177.135
6of the statutes, as created by this act, as follows:
AB721,8,107 (a) If the U.S. savings bond reached final maturity, as defined in section
8177.135 of the statutes, as created by this act, more than 5 years before the effective
9date of this paragraph, the U.S. savings bond is presumed abandoned on the date
10that is 5 years and one day after the date of final maturity.
AB721,8,1611 (b) If the U.S. savings bond reached final maturity, as defined in section
12177.135 of the statutes, as created by this act, not more than 5 years before the
13effective date of this paragraph, the U.S. savings bond will be presumed abandoned
14on the date that is 5 years and one day after the date of final maturity even if the U.S.
15savings bond would have been presumed abandoned on an earlier date under chapter
16177, 2013 stats.
AB721,8,2117 (c) If the U.S. savings bond has not reached final maturity, as defined in section
18177.135 of the statutes, as created by this act, on the effective date of this paragraph,
19the U.S. savings bond will be presumed abandoned on the date that is 5 years and
20one day after the date of final maturity even if the U.S. savings bond would have been
21presumed abandoned on an earlier date under chapter 177, 2013 stats.
AB721,9,222 (2) For the purposes of determining when an action may be commenced under
23section 177.225 (1) of the statutes, as created by this act, a notice published by the
24administrator 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.
AB721,9,33 (End)
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