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:
(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.
(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.
(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.
(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.
(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.
(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.
(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.
87,117
Section
117. 177.0903 of the statutes is created to read:
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.
(2) The administrator may waive the requirement under sub. (1) and may pay or deliver property directly to a person if the person receiving the property or payment is shown to be the apparent owner included on a report filed under s. 177.0401 and the administrator reasonably believes the person is entitled to receive the property or payment.
(3) If a claim is submitted by a locator service that enters into an agreement under subch. XIII, a copy of the agreement shall be filed with the claim, otherwise the administrator shall deny the claim.
(4) The administrator may use state tax information to assist in identifying the owner of property that has been abandoned as provided under this chapter or in verifying a claim filed under this subchapter.
87,118
Section
118. 177.0904 of the statutes is created to read:
177.0904 When administrator must honor claim for property. (1) (a) The administrator shall pay or deliver property to a claimant under s. 177.0903 (1) if the administrator receives evidence sufficient to establish to the satisfaction of the administrator that the claimant is the owner of the property.
(b) If a claim is made and allowed under subch. XIII, the administrator shall pay or deliver property to the apparent owner of the property.
(2) Not later than 90 days after a claim is filed under s. 177.0903 (1), the administrator shall allow or deny the claim and give the claimant notice in a record of the decision. The administrator may refer any claim to the attorney general for an opinion. For each claim referred, the attorney general shall advise the administrator either to allow it or to deny it in whole or in part.
(3) If the administrator denies a claim under sub. (2), the administrator shall inform the claimant of the reason for the denial and specify what additional evidence, if any, is required for the claim to be allowed. The claimant may file an amended claim with the administrator or commence an action under s. 177.0906. The administrator shall consider an amended complaint filed under this subsection as an initial claim.
(4) If the administrator does not take action on a claim during the 90-day period following the filing of a claim under s. 177.0903 (1), the claim is denied.
87,119
Section
119. 177.0905 of the statutes is created to read:
177.0905 Allowance of claim for property. (1) Not later than 30 days after a claim is allowed under s. 177.0904 (2), the administrator shall pay or deliver the property to the owner or pay to the owner the net proceeds of a sale of the property, together with interest, income, or gain to which the owner is entitled under s. 177.0607. Upon request of the owner, the administrator may sell or liquidate a security and pay the net proceeds to the owner, even if the security has been held by the administrator for less than one year or the administrator has not complied with the notice requirements under s. 177.0503.
(2) If the owner is a debtor under s. 71.93 or 71.935, before delivery or payment of property to an owner under sub. (1) or payment to the owner of net proceeds of a sale of the property, the administrator shall first setoff against the owner's debt under s. 71.93 or 71.935.
(3) Any property paid or delivered to a person under this subchapter is subject to recovery by the administrator as provided in s. 177.1206.
87,120
Section
120. 177.0906 of the statutes is created to read:
177.0906 Action by person whose claim is denied. (1) A person aggrieved by a claim denial of the administrator or whose claim has not been acted upon within 90 days after its filing may petition for judicial review of the decision or of the claim under s. 227.52, notwithstanding s. 227.52 (1), except that petitions for review shall be served and filed within 90 days after the claim denial or within 180 days after the filing of the claim if the administrator has failed to act on it.
(2) If the person aggrieved establishes a claim under sub. (1) and is a debtor under s. 71.93 or 71.935, the administrator shall first setoff against the person's debt under s. 71.93 or 71.935 before delivery or payment of the property to the owner.
87,121
Section
121. 177.10 of the statutes is repealed.
87,122
Section 122
. Subchapter
X (title) of chapter 177 [precedes 177.1001] of the statutes is created to read:
CHAPTER 177
SUBCHAPTER X
requests for reports;
examination of records
87,123
Section
123. 177.1001 of the statutes is created to read:
177.1001 Verified report of property. If a person does not file a report required under s. 177.0401 or the administrator believes that a person may have filed an inaccurate, incomplete, or false report, the administrator may require the person to file a verified report in a form prescribed by the administrator. A verified report shall include all of the following:
(1) A statement as to whether the person is holding property that is reportable under this chapter.
(2) A description of the property not previously reported or about which the administrator has inquired.
(3) A specific identification of property described under sub. (2) about which there is a dispute whether it is reportable under this chapter.
(4) The amount or value of the property.
87,124
Section
124. 177.1002 (3) of the statutes is created to read:
177.1002 (3) The administrator may at reasonable times and on reasonable notice issue an administrative subpoena requiring the person or agent of the person to make records available for examination. The attorney general may bring an action seeking judicial enforcement of a subpoena issued under this subsection.
87,125
Section
125. 177.1002 (4) of the statutes is created to read:
177.1002 (4) If any person fails to file any report or refuses to deliver property to the administrator as required under this chapter, the administrator may bring an action in a court of appropriate jurisdiction to require the filing of the report and to enforce delivery of the property.
87,126
Section
126. 177.1003 of the statutes is created to read:
177.1003 Records obtained in examination. Records obtained and records, including work papers, compiled by the administrator in the course of conducting an examination under s. 177.1002:
(1) Are subject to the confidentiality and security provisions of subch. XIV and are not public records for purposes of subch. II of ch. 19.
(2) May be used by the administrator in an action to collect property or otherwise enforce this chapter.
(3) May be used in a joint examination conducted with another state, the federal government, a foreign country or subordinate unit of a foreign country, or any other governmental entity if the governmental entity conducting the examination is legally bound to maintain the confidentiality and security of information obtained from a person subject to examination in a manner substantially equivalent to that under subch. XIV.
(4) May be disclosed to the person that administers the unclaimed property law of another state, upon that person's request, for that state's use in circumstances equivalent to circumstances described in this subchapter, if the other state is required to maintain the confidentiality and security of information obtained in a manner substantially equivalent to that under subch. XIV.
87,127
Section
127. 177.11 of the statutes is repealed.
87,128
Section 128
. Subchapter
XI (title) of chapter 177 [precedes 177.1101] of the statutes is created to read:
CHAPTER 177
SUBCHAPTER XI
Assessments and appeals
87,129
Section
129. 177.1101 of the statutes is created to read:
177.1101 Default assessment. When any person fails, neglects, or refuses to file a report by the deadline prescribed by this chapter, the administrator may, notwithstanding ss. 177.1001 and 177.1002, petition a court to determine the liability of such holder based on the court's findings as to a reasonable estimate of the amount due.
87,130
Section
130. 177.1102 of the statutes is created to read:
177.1102 Notice of assessment. The administrator shall notify a person in writing of any assessment under this chapter. The administrator shall serve that notice as provided in s. 73.03 (73m). If the person is a corporation and the administrator is unable to serve that corporation as provided in s. 73.03 (73m), the administrator may serve the notice by publishing a class 3 notice under ch. 985 in the official state newspaper.
87,131
Section
131. 177.1103 of the statutes is created to read:
177.1103 Appeal of assessment. The appeal provisions under ss. 71.88 (1) (a) and (2) (a), 71.89, 71.90, 73.01 (1), (2), (3), (4), and (4m), and 73.015, as they apply to a taxpayer and the department of revenue and consistent with this chapter, shall apply to the person or holder and the administrator with respect to an assessment under this chapter.
87,132
Section
132. 177.1104 of the statutes is created to read:
177.1104 Penalties. The provisions of s. 177.1204 shall apply to an amount due as determined and assessed under this chapter.
87,133
Section
133. 177.12 of the statutes is renumbered 177.0213, and 177.0213 (1), as renumbered, is amended to read:
177.0213 (1) Intangible property
Property and any income or increment derived from it held in a fiduciary capacity for the benefit of another person is presumed abandoned unless the owner, within 5 years after it has become payable or distributable, has increased or decreased the principal, accepted payment of principal or income, communicated concerning the property or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by the fiduciary provided in s. 177.0210.
87,134
Section 134
. Subchapter
XII (title) of chapter 177 [precedes 177.1201] of the statutes is created to read:
CHAPTER 177
SUBCHAPTER XII
enforcement
87,135
Section
135. 177.1201 of the statutes is created to read:
177.1201 Enforcement. (1) An assessment under this chapter that becomes final and is not subject to administrative or judicial review is subject to action and collection by the administrator under ss. 71.91, 71.92, and 73.03 (9), (20), (27), (28), (33m), and (33p) consistent with action taken by the department of revenue with respect to delinquent taxes under the same provisions.
(2) If no court in this state has jurisdiction over the assessed holder or the assessed holder is not subject to the jurisdiction of this state, the attorney general may commence an action in any court having jurisdiction over the assessed holder.
(3) Subject to sub. (2), the attorney general may bring an action in circuit court or in federal court to enforce this chapter.
87,136
Section
136. 177.1202 of the statutes is created to read:
177.1202 Interstate and international agreement; cooperation. (1) Subject to sub. (2), the administrator may do all of the following:
(a) Exchange information with another state or foreign country relating to property presumed abandoned or relating to the possible existence of property presumed abandoned.
(b) Authorize another state or foreign country or a person acting on behalf of the other state or country to examine its records of a putative holder as provided in subch. X. The administrator shall make the authorization under this paragraph in a record.
(2) An exchange or examination under sub. (1) may be done only if the state or foreign country has confidentiality and security requirements substantially equivalent to those in subch. XIV or agrees in a record to be bound by this state's confidentiality and security requirements.
87,137
Section
137. 177.1203 of the statutes is created to read:
177.1203 Action involving another state or foreign country. (1) The administrator may join another state or foreign country to examine the records of a putative holder and seek enforcement of this chapter against a putative holder.
(2) At the request of another state or a foreign country, the attorney general may commence an action on behalf of the other state or country to enforce, in this state, the law of the other state or country against a putative holder subject to a claim by the other state or country, if the other state or country agrees to pay costs incurred by the attorney general in the action.
(3) The administrator may request the official authorized to enforce the unclaimed property law of another state or a foreign country to commence an action to recover property in the other state or country on behalf of the administrator. This state shall pay the costs, including reasonable attorney's fees and expenses, incurred by the other state or foreign country in an action under this section.
(4) The administrator may pursue an action on behalf of this state to recover property subject to this chapter, but delivered to the custody of another state, if the administrator believes the property is subject to the custody of the administrator.
(5) The administrator may retain an attorney in this state, another state, or a foreign country to commence an action to recover property on behalf of the administrator and may agree to pay attorney's fees based in whole or in part on a fixed fee, hourly fee, or a percentage of the amount or value of property recovered in the action.
(6) Expenses incurred by this state in an action under this section may be paid from property received under this chapter or the net proceeds from the sale of the property. Expenses paid to recover property may not be deducted from the amount that is subject to a claim under this chapter by the owner.
87,138
Section
138. 177.1204 of the statutes is created to read:
177.1204 Penalties. (1) Failure to file a report. (a) Any person who fails to timely file a report under this chapter shall pay a penalty equal to $150.
(b) In addition to the penalty imposed under par. (a), any person who fails to file a report by the time prescribed in a written request by the administrator may be subject to a penalty of $100 for each day the report is not filed.
(c) Any person who files a false or fraudulent report with intent to defeat or evade the laws imposed under this chapter, is subject to the penalties under pars. (a) and (b) and a fine of $1,000 for each day from the date the report was made until corrected or imprisonment for not more than 6 months, or both. The fine imposed under this paragraph may not exceed the lesser of $25,000 or an amount equal to 25 percent of the amount or value of any property that was required to be included in the report that was not included or was underreported.
(2) Failure to pay or deliver property. (a) Any person who fails to timely pay or deliver abandoned property to the administrator as required under this chapter shall pay a penalty equal to 15 percent of the value of the property.
(b) In addition to the penalty imposed under par. (a), any person who fails to pay or deliver abandoned property by the time prescribed in a written request from the administrator may be subject to a penalty of $100 for each day the property is not paid or delivered.
