LRB-3823/1

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2015 - 2016 LEGISLATURE

2015 Assembly BILL 721

January 15, 2016 - Introduced by Representatives Katsma, Macco, Ballweg, Brandtjen, E. Brooks, Czaja, Horlacher, Kremer, Krug, Murphy, Quinn and A. Ott, cosponsored by Senators Marklein and Miller. Referred to Committee on State Affairs and Government Operations.

AB721,1,4 An Act to amend 177.12 (1), 177.13, 177.16, 177.17 (5) (intro.), (a) and (b), 177.22 (1) and 177.23 (1); and to create 177.01 (14m), 177.135, 177.17 (2) (cm), 177.225, 177.23 (2) (am) and 177.255 of the statutes; relating to: escheat of abandoned U.S. savings bonds.

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.