SB370: Bill Text

SB370,47,3 (3) Interest shall not accrue:

SB370,47,4 (a) On property in the form of money that is less than $100.

SB370,47,5 (b) On property recovered by a holder under s. 177.0605.

SB370,47,6 (c) Before January 2, 2019, except as provided in sub. (4).

SB370,47,16 (4) Property received by the administrator before January 2, 2019, that was interest-bearing to the holder at the time of receipt by the administrator or this state shall accrue interest while in possession of the administrator or this state at a rate of 6 percent per year or any lesser rate the property earned while in the possession of the holder. Interest begins to accrue when the property is delivered to the administrator and ceases on the earlier of the date on which payment is made to the owner or January 1, 2019. If the property is still in the possession of the administrator or this state on January 2, 2019, interest shall accrue as described in sub (2). No interest on interest-bearing property is payable for any period before December 31, 1984.

SB370,99 Section 99. 177.0608 of the statutes is created to read:

SB370,47,20 177.0608 Administrator's options as to custody. The administrator may decline to take custody of property reported under s. 177.0401 if the administrator determines that any of the following applies:

SB370,47,22 (1) The property has a value less than the estimated expenses of notice and sale of the property.

SB370,47,23 (2) Taking custody of the property would be unlawful.

SB370,47,24 (3) The property is not subject to custody or escheatment under this chapter.

SB370,100 Section 100. 177.0609 of the statutes is created to read:

SB370,48,6 177.0609 Disposition of property having no substantial value; immunity from liability. (1) If the administrator takes custody of property delivered under this chapter and later determines that the property has no substantial commercial value or that the cost of disposing of the property exceeds the value of the property, the administrator may return the property to the holder or destroy or otherwise dispose of the property.

SB370,48,9 (2) An action or proceeding may not be commenced against the state, an agency of the state, the administrator, another officer, employee, or agent of the state, or a holder for or because of an act of the administrator under this section.

SB370,101 Section 101. 177.0610 of the statutes is created to read:

SB370,48,16 177.0610 Periods of limitation and repose. (1) Expiration, before, on, or after the effective date of this subsection .... [LRB inserts date], of a period of limitation on an owner's right to receive or recover property, whether specified by contract or court order, and notwithstanding any law to the contrary, does not prevent the property from being presumed abandoned or affect the duty of a holder under this chapter to file a report or pay or deliver property to the administrator.

SB370,48,20 (2) The administrator may not commence an action or proceeding to enforce this chapter with respect to the reporting, payment, or delivery of property reported to the administrator more than 5 years after the holder filed a nonfraudulent report and reported the property under s. 177.0401 to the administrator.

SB370,48,25 (3) If a holder is required to file a report under s. 177.0401 and fails to do so, or if a holder files a report but does not report property required to be included with the report under s. 177.0401, the administrator may not commence an action, proceeding, or examination with respect to the reporting, payment, or delivery of the unreported property more than 10 years after the holder's duty to report arose.

SB370,49,2 (4) Subsections (1) to (3) do not apply in the case of the filing of a fraudulent report or to any collection action or proceeding under s. 177.1201 or 177.1206.

SB370,49,4 (5) For purposes of this section, the administrator and holder may extend any period of limitation by written agreement.

SB370,102 Section 102. 177.07 of the statutes is repealed.

SB370,103 Section 103 . Subchapter VII (title) of chapter 177 [precedes 177.0701] of the statutes is created to read:

SB370,49,8 CHAPTER 177

SB370,49,9 SUBCHAPTER VII

SB370,49,10 Sale of property by administrator

SB370,104 Section 104. 177.0701 of the statutes is created to read:

SB370,49,14 177.0701 Public sale of property. (1) Except as provided in ss. 177.0702 and 177.1504, the administrator shall sell abandoned property within 3 years after receiving the property.

SB370,49,17 (2) Before selling property under sub. (1), the administrator shall give notice to the public of the date of the sale and include with the notice a reasonable description of the property.

SB370,49,19 (3) Except as provided under sub. (4), a sale under sub. (1) shall be to the highest bidder by any of the following means:

SB370,49,21 (a) At a public sale at a location in this state that the administrator determines to be the most favorable market for the property.

SB370,49,22 (b) On the Internet.

SB370,49,24 (c) On another forum that the administrator determines is likely to yield the highest net proceeds.

SB370,50,3 (4) The administrator may decline the highest bid at a sale under this section and re-offer the property for sale if the administrator determines the highest bid is insufficient.

SB370,50,7 (5) If a sale held under this section is to be conducted other than on the Internet, the administrator shall publish at least one notice of the sale, at least 3 weeks, but not more than 5 weeks before the sale, in a newspaper of general circulation in the county in which the property is sold.

SB370,105 Section 105. 177.0702 of the statutes is created to read:

SB370,50,11 177.0702 Disposal of securities. (1) Unless the administrator determines that it is in the best interest of this state to do otherwise, the administrator shall hold all securities for at least one year before selling them.

SB370,50,15 (2) The administrator may not sell a security listed on an established stock exchange for less than the price prevailing on the exchange at the time of sale. The administrator may sell a security not listed on an established exchange by any commercially-reasonable method.

SB370,106 Section 106. 177.0703 of the statutes is created to read:

SB370,50,21 177.0703 Purchaser owns property after sale. A purchaser of property at a sale conducted by the administrator under this chapter takes the property free of all claims of the owner, a previous holder, a creditor, or a person claiming an interest through the owner or holder. The administrator shall execute documents necessary to complete the transfer of ownership to the purchaser.

SB370,107 Section 107. 177.0704 of the statutes is created to read:

SB370,50,24 177.0704 Military medal or decoration. (1) The administrator may not sell a medal or decoration awarded for service in the U.S. armed forces.

SB370,51,3 (2) The administrator may deliver a medal or decoration as described under sub. (1) to any of the following entities, with the entity's consent, to hold in custody for the owner:

SB370,51,4 (a) An entity organized under section 501 (c) (19) of the Internal Revenue Code.

SB370,51,5 (b) The agency that awarded the medal or decoration.

SB370,51,6 (c) A governmental entity.

SB370,51,8 (3) The administrator is not responsible for the safekeeping of a medal or decoration after it is delivered to an entity under sub. (2).

SB370,108 Section 108. 177.075 of the statutes is repealed.

SB370,109 Section 109. 177.08 of the statutes is repealed.

SB370,110 Section 110 . Subchapter VIII (title) of chapter 177 [precedes 177.0801] of the statutes is created to read:

SB370,51,13 CHAPTER 177

SB370,51,14 SUBCHAPTER VIII

SB370,51,15 administration of property

SB370,111 Section 111. 177.0801 of the statutes is created to read:

SB370,51,20 177.0801 Deposit of funds by administrator. (1) Except as provided in sub. (2), the administrator shall deposit in the common school fund all funds received under this chapter, including proceeds from the sale of property under subch. VII and amounts received from the redemption of U.S. savings bonds under s. 177.1504.

SB370,51,24 (2) The administrator shall deposit in the general fund an amount that the administrator reasonably estimates is sufficient to pay claims allowed under this chapter and administrative expenses. For purposes of this subsection, “administrative expenses” means any of the following:

SB370,51,25 (a) Expenses for the disposition of property delivered to the administrator.

SB370,52,2 (b) Costs of mailing and publication in connection with property delivered to the administrator.

SB370,52,3 (c) Reasonable service charges.

SB370,52,5 (d) Expenses incurred in examining records of or collecting property from a putative holder or holder.

SB370,52,6 (e) Any costs in connection with the sale of abandoned property.

SB370,52,8 (f) Any costs in connection with the action under s. 177.0907 and the redemption of a U.S. savings bond under s. 177.0907.

SB370,52,10 (g) Salaries of the employees of the office of the state treasurer and the administrator that are attributable to the administration of this chapter.

SB370,52,11 (h) Any costs in connection with the payment of interest under s. 177.0607.

SB370,112 Section 112. 177.0802 of the statutes is created to read:

SB370,52,14 177.0802 Administrator to retain records of property. The administrator shall do all of the following:

SB370,52,17 (1) Record the name, last-known address, social security number or taxpayer identification number, and date of birth of each person shown on a report filed under s. 177.0401 to be the apparent owner of property delivered to the administrator.

SB370,52,20 (2) Record the name, last-known address, social security number or taxpayer identification number, and date of birth of each insured or annuitant and beneficiary shown on the report.

SB370,52,23 (3) For each policy of insurance or annuity contract listed in the report of an insurance company, record the policy or account number, the name of the company, and the amount due or paid.

SB370,52,25 (4) For each apparent owner listed in the report, record the name of the holder that filed the report and the amount due or paid.

SB370,53,3 (5) For each U.S. savings bond, record the name and last-known address of each owner of the U.S. savings bond and the issue date, face amount, and serial number of the U.S. savings bond.

SB370,113 Section 113. 177.09 of the statutes is renumbered 177.0215.

SB370,114 Section 114 . Subchapter IX (title) of chapter 177 [precedes 177.0901] of the statutes is created to read:

SB370,53,7 CHAPTER 177

SB370,53,8 SUBCHAPTER IX

SB370,53,9 Claim to recover property

SB370,53,10 from administrator

SB370,115 Section 115. 177.0901 of the statutes is created to read:

SB370,53,16 177.0901 Claim of another state to recover property. (1) If the administrator knows that property held by the administrator under this chapter is subject to a superior claim of another state, the administrator shall report and pay or deliver the property to the other state or return the property to the holder so that the holder may pay or deliver the property to the other state.

SB370,53,18 (2) The administrator may enter into an agreement to transfer property to the other state under sub. (1).

SB370,116 Section 116. 177.0902 of the statutes is created to read:

SB370,53,22 177.0902 When property subject to recovery by another state. (1) Property held under this chapter by the administrator is subject to the right of another state to take custody of the property if any of the following applies:

SB370,54,3 (a) The property was paid or delivered to the administrator because the records of the holder did not reflect a last-known address in the other state of the apparent owner and the other state establishes that the last-known address of the apparent owner or other person entitled to the property was in the other state or, under the law of the other state, the property has become subject to a claim by the other state of abandonment.

SB370,54,7 (b) The records of the holder did not accurately identify the owner of the property, the last-known address of the owner was in another state, and, under the law of the other state, the property has become subject to a claim by the other state of abandonment.

SB370,54,11 (c) The property was subject to the custody of the administrator of this state under s. 177.0305 and, under the law of the state of domicile of the holder, the property has become subject to a claim by the state of domicile of the holder of abandonment.

SB370,54,15 (d) 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 to the administrator under s. 177.0306 and, under the law of the other state, has become subject to a claim by the other state of abandonment.

SB370,54,18 (2) A claim by another state to recover property under this section must be presented in a form prescribed by the administrator, unless the administrator waives presentation of the form.

SB370,54,23 (3) The administrator shall make a decision regarding each claim under this section no later than 90 days after the claim is presented to the administrator. If the administrator determines that the other state is entitled under sub. (1) to custody of the property, the administrator shall allow the claim and pay or deliver the property to the other state.

SB370,55,3 (4) The administrator may require another state, before recovering property under this section, to agree to indemnify this state and its agents, officers, and employees against any liability on a claim to the property.

SB370,117 Section 117. 177.0903 of the statutes is created to read:

SB370,55,9 177.0903 Claim for property by person claiming to be owner. (1) A person claiming to be the owner of property held under this chapter by the administrator may file a claim for the property on a form prescribed by the administrator. The claimant shall verify the claim as to its completeness and accuracy.