Wisconsin Legislature: 87,94

(a) The apparent owner has filed a tax return in the 14 months preceding the determination.

(b) The apparent owner is a debtor under s. 71.93 or 71.935.

(2) For any person who is identified in sub. (1) and who is not a debtor under sub (1) (b), the administrator shall do the following:

(a) Deliver the property to the apparent owner, in the manner provided under s. 177.0903, without requiring the apparent owner to file a claim under s. 177.0903, if the value of the abandoned property is $2,000 or less.

(b) Send written notice to the person, informing the person that he or she is the owner of abandoned property held by the state and may file a claim with the administrator for return of the property under s. 177.0903, if the value of the abandoned property is over $2,000.

(3) For any person who is identified in sub. (1) and who is a debtor under sub. (1) (b), the administrator shall setoff the abandoned property against the person's debts under s. 71.93 or 71.935. If there is any remaining property after setoff, the administrator shall proceed under sub. (2) (a) or (b).

(4) Any property paid or delivered to a person under this section is subject to recovery by the administrator as provided in s. 177.1206 and this chapter.

87,90 Section 90. 177.06 of the statutes is repealed.

87,91 Section 91 . Subchapter VI (title) of chapter 177 [precedes 177.0601] of the statutes is created to read:

CHAPTER 177

SUBCHAPTER VI

taking custody of property

by administrator

87,92 Section 92. 177.0601 of the statutes is created to read:

177.0601 Definition of good faith. In this subchapter, payment or delivery of property is made in good faith if any of the following applies:

(1) The holder had a reasonable basis for believing, based on the facts then known, that the property was required or permitted to be paid or delivered to the administrator under this chapter.

(2) The holder made payment or delivery in response to a demand by the administrator or administrator's agent or under guidance or a ruling issued by the administrator that the holder reasonably believed required or permitted the property to be paid or delivered.

87,93 Section 93. 177.0602 of the statutes is created to read:

177.0602 Dormancy charge. (1) A holder may deduct a dormancy charge from property required to be paid or delivered to the administrator if all of the following apply:

(a) A valid written contract between the holder and the apparent owner authorizes imposition of the charge for the apparent owner's failure to claim the property within a specified time.

(b) The holder regularly imposes the charge and regularly does not reverse or otherwise cancel or not collect the charge.

(2) The amount of the deduction under sub. (1) is limited to an amount that is not unconscionable considering all relevant factors, including the marginal transactional costs incurred by the holder in maintaining the apparent owner's property and any services received by the apparent owner.

87,94 Section 94. 177.0603 of the statutes is created to read:

177.0603 Payment or delivery of property to administrator. (1) Except as otherwise provided in this section, upon filing a report under s. 177.0401, the holder shall pay or deliver to the administrator the property described in the report.

(2) If property in a report under s. 177.0401 is an automatically renewable deposit and a penalty or forfeiture in the payment of interest would result from paying the deposit to the administrator at the time of the report, the date for payment of the property to the administrator is extended until a penalty or forfeiture no longer would result from payment, if the holder informs the administrator of the extended date.

(3) After filing the report under s. 177.0401, property in a safe deposit box shall be delivered to the administrator no later than December 1.

(4) If property reported to the administrator under s. 177.0401 is a security, the administrator may do any of the following:

(a) Make an endorsement, instruction, or entitlement order on behalf of the apparent owner to invoke the duty of the issuer, its transfer agent, or the securities intermediary to transfer the security.

(b) Dispose of the security under s. 177.0702.

(5) If the holder of property reported to the administrator under s. 177.0401 is the issuer of a certificated security, the administrator may obtain a replacement certificate in physical or book-entry form under s. 408.405. An indemnity bond is not required for purposes of this subsection.

(6) The administrator shall establish procedures for the registration, issuance, method of delivery, transfer, and maintenance of securities delivered to the administrator by a holder.

(7) An issuer, holder, or transfer agent, or other person acting under this section under instructions of and on behalf of the issuer or holder, is not liable to the apparent owner for, and shall be indemnified by the state against, a claim arising with respect to property after the property has been delivered to the administrator.

87,95 Section 95. 177.0604 of the statutes is created to read:

177.0604 Effect of payment or delivery of property to administrator. (1) On payment or delivery of property to the administrator under this chapter, the administrator, as agent for the state, assumes custody and responsibility for safekeeping the property. A holder that pays or delivers property to the administrator in good faith and substantially complies with ss. 177.0501 and 177.0502 is relieved of liability arising thereafter with respect to payment or delivery of the property to the administrator.

(2) This state shall defend and indemnify a holder against liability on a claim against the holder resulting from the payment or delivery of property to the administrator made in good faith and after the holder substantially complied with ss. 177.0501 and 177.0502.

87,96 Section 96. 177.0605 of the statutes is created to read:

177.0605 Recovery of property by holder from administrator. (1) A holder that pays money to the administrator may file a claim for reimbursement from the administrator of the amount paid if any of the following applies:

(a) The holder paid the money in error.

(b) After paying the money to the administrator, the holder paid money to a person the holder reasonably believed was entitled to the money.

(2) If a claim for reimbursement under sub. (1) is made for a payment made on a negotiable instrument, including a travelers check, money order, or similar instrument, the holder shall submit proof that the instrument was presented and payment was made to a person the holder reasonably believed was entitled to payment. The holder may claim reimbursement even if the payment was made to a person whose claim was made after expiration of a period of limitation on the owner's right to receive or recover property, whether specified by contract or court order and notwithstanding any law to the contrary.

(3) The administrator may only grant and pay a holder's claim under sub. (1) if the money being claimed is in the administrator's possession.

(4) If a holder is reimbursed by the administrator under sub. (1) (b), the holder may also recover from the administrator income or gain under s. 177.0607 that would have been paid to the owner if the money had been claimed from the administrator by the owner, to the extent the income or gain was paid by the holder to the owner.

(5) A holder that delivers property other than money to the administrator may file a claim for return of the property from the administrator if any of the following applies:

(a) The holder delivered the property in error.

(b) The apparent owner has claimed the property from the holder.

(6) The administrator may only grant and pay a holder's claim under sub. (5) if the property being claimed is in the administrator's possession.

(7) A holder that files a claim under sub. (5) shall include with the claim evidence sufficient to establish that the apparent owner claimed the property from the holder or that the holder delivered the property to the administrator in error.

(8) The administrator may determine that an affidavit submitted by a holder is evidence sufficient to establish that the holder is entitled to reimbursement or to recover property under this section.

(9) A holder is not required to pay a fee or other charge for reimbursement or return of property under this section.

(10) Not later than 120 days after a claim is filed under sub. (1) or (4), the administrator shall allow or deny the claim and give the claimant notice of the decision in a record. If the administrator does not take action on a claim during the 120-day period, the claim is deemed denied.

(11) If a holder's claim is denied under this section, the holder may petition for judicial review of the claim under s. 227.52, notwithstanding s. 227.52 (1), except that petitions for review shall be served and filed no later than 90 days after the decision of the administrator or no later than 180 days after the filing of the claim if the administrator has failed to act on it. If the holder establishes the claim in an action against the administrator, the hearing examiner or court may award costs and reasonable attorney fees as permitted by s. 227.483, 227.485, or 814.245.

(12) If a holder receives reimbursement under this section, or for any other reason under this chapter, and the holder is a debtor under s. 71.93 or 71.935, the administrator shall setoff the reimbursement against the holder's debts under s. 71.93 or 71.935.

87,97 Section 97. 177.0606 of the statutes is created to read:

177.0606 Property removed from safe deposit box. Property removed from a safe deposit box and delivered to the administrator is subject to the holder's right to reimbursement for the cost of opening the box and a lien or contract providing reimbursement to the holder for unpaid rent charges for the box. The administrator shall reimburse the holder from payment made by the apparent owner in the process of claiming the safe deposit box or the proceeds remaining after deducting the expense incurred by the administrator in selling the property.

87,98 Section 98. 177.0607 of the statutes is created to read:

177.0607 Income, interest, or gain while in the administrator's custody. (1) If property other than money is delivered to the administrator, the owner is entitled to receive income or gain realized or accrued on the property on or before the date the property is sold.

(2) Except as provided in subs. (3) and (4), when the administrator pays to a claimant property in the form of money, including property described in sub. (1) that is converted to money, the administrator shall pay simple interest on that money for the period that it was in the custody of the administrator or this state at an annual rate equal to the applicable annual federal long-term rate determined under section 1274 (d) of the Internal Revenue Code in effect on December 31 of the year prior to the year in which the claim is paid.

(3) Interest shall not accrue:

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

(b) On property recovered by a holder under s. 177.0605.

(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.

87,99 Section 99. 177.0608 of the statutes is created to read:

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:

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

(2) Taking custody of the property would be unlawful.

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

87,100 Section 100. 177.0609 of the statutes is created to read:

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.

(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.

87,101 Section 101. 177.0610 of the statutes is created to read:

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.

(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.

(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 7 years after the holder's duty to report arose.

(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.

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

87,102 Section 102. 177.07 of the statutes is repealed.

87,103 Section 103 . Subchapter VII (title) of chapter 177 [precedes 177.0701] of the statutes is created to read:

CHAPTER 177

SUBCHAPTER VII

Sale of property by administrator

87,104 Section 104. 177.0701 of the statutes is created to read:

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.

(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.

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

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

(b) On the Internet.

(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.