SB370: Bill Text

SB370,37,5 (e) If the holder sells, issues, or provides to others for sale or issue in this state travelers checks, money orders, or similar instruments, other than 3rd-party bank checks, on which the holder is directly liable, a record of the instruments while they remain outstanding, indicating the state and date of issue.

SB370,79 Section 79. 177.0405 of the statutes is created to read:

SB370,37,10 177.0405 Property reportable and payable or deliverable absent owner demand. Property is reportable and payable or deliverable under this chapter even if the owner fails to make demand or present an instrument or document otherwise required to obtain payment.

SB370,80 Section 80. 177.0406 of the statutes is created to read:

SB370,37,14 177.0406 Negative reporting. (1) The administrator may require any person or persons to file a report as otherwise prescribed in this section, except that the administrator may specify a deadline after the deadline specified in s. 177.0403.

SB370,37,17 (2) The administrator may require any person to file a report even if the person believes the person is not in possession of any property reportable or deliverable under this chapter.

SB370,81 Section 81. 177.05 of the statutes is repealed.

SB370,82 Section 82 . Subchapter V (title) of chapter 177 [precedes 177.0501] of the statutes is created to read:

SB370,37,21 CHAPTER 177

SB370,37,22 SUBCHAPTER V

SB370,37,23 notice to apparent owner of

SB370,37,24 property presumed abandoned

SB370,83 Section 83. 177.0501 of the statutes is created to read:

SB370,38,5 177.0501 Notice to apparent owner by holder. (1) Subject to sub. (2), the holder of property presumed abandoned shall send to the apparent owner notice by 1st class mail that complies with s. 177.0502, in a format acceptable to the administrator, not more than 120 days nor less than 60 days before filing the report under s. 177.0401, if all of the following apply:

SB370,38,8 (a) The holder has in the holder's records an address for the apparent owner that the records do not indicate to be invalid and that is sufficient to direct the delivery of 1st class mail to the apparent owner.

SB370,38,9 (b) The value of the property is $50 or more.

SB370,38,13 (2) If an apparent owner has consented to receive e-mail delivery from the holder, the holder shall send the notice described in sub. (1) both by 1st class mail to the apparent owner's last-known mailing address and by e-mail, unless the holder believes that the apparent owner's e-mail address is invalid.

SB370,84 Section 84. 177.0502 of the statutes is created to read:

SB370,38,19 177.0502 Contents of notice by holder. (1) Notice under s. 177.0501 shall contain a heading that reads substantially as follows: “Notice. The State of Wisconsin requires us to notify you that your property may be transferred to the custody of the state's unclaimed property administrator if you do not contact us before (the date that is 30 days after the date of the notice).”

SB370,38,20 (2) The notice under s. 177.0501 shall do all of the following:

SB370,38,22 (a) Identify the nature and, except for property that does not have a fixed value, the value of the property that is the subject of the notice.

SB370,38,23 (b) State that the property will be turned over to the administrator.

SB370,38,25 (c) State that after the property is turned over to the administrator an apparent owner that seeks return of the property shall file a claim with the administrator.

SB370,39,1 (d) State that property may be sold by the administrator.

SB370,39,3 (e) Provide instructions that the apparent owner shall follow to prevent the holder from reporting and paying or delivering the property to the administrator.

SB370,85 Section 85. 177.0503 (1b) of the statutes is created to read:

SB370,39,5 177.0503 (1b) A notice under sub. (1) shall contain all of the following:

SB370,39,8 (a) The names in alphabetical order and the last-known addresses, if any, of persons listed in the report and entitled to notice within the county, as specified in sub. (1).

SB370,39,11 (b) A statement that information concerning the property and the name and last-known address of the holder may be obtained by any person possessing an interest in the property by addressing an inquiry to the administrator.

SB370,86 Section 86. 177.0503 (1d) of the statutes is created to read:

SB370,39,15 177.0503 (1d) The administrator is not required to publish notice of any item with a value of less than $50 unless the administrator determines the publication to be in the public interest.

SB370,87 Section 87. 177.0503 (2n) of the statutes is created to read:

SB370,39,19 177.0503 (2n) (a) The administrator may publish, on behalf of the department of children and families, the name and address of an apparent owner of uncashed child support payments.

SB370,39,22 (b) At least quarterly, the department of children and families shall reimburse the administrator, based on information provided by the administrator, for any administrative expenses incurred under par. (a).

SB370,88 Section 88. 177.0504 of the statutes is created to read:

SB370,40,6 177.0504 Cooperation among state officers and agencies to locate apparent owners. Unless otherwise prohibited by law, at the request of the administrator, each officer, agency, board, commission, division, or department of this state, any body politic or corporate created by this state for a public purpose, and each political subdivision of this state shall make its books and records available to the administrator and cooperate with the administrator to determine the current address of an apparent owner of property held by the administrator under this chapter.

SB370,89 Section 89. 177.0505 of the statutes is created to read:

SB370,40,10 177.0505 Tax return identification of apparent owners. (1) Annually, before July 1, the administrator shall determine if either of the following applies to any apparent owner of abandoned property under s. 177.0503:

SB370,40,12 (a) The apparent owner has filed a tax return in the 14 months preceding the determination.

SB370,40,13 (b) The apparent owner is a debtor under s. 71.93 or 71.935.

SB370,40,15 (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:

SB370,40,18 (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.

SB370,40,22 (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.

SB370,41,2 (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).

SB370,41,4 (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.

SB370,90 Section 90. 177.06 of the statutes is repealed.

SB370,91 Section 91 . Subchapter VI (title) of chapter 177 [precedes 177.0601] of the statutes is created to read:

SB370,41,8 CHAPTER 177

SB370,41,9 SUBCHAPTER VI

SB370,41,10 taking custody of property

SB370,41,11 by administrator

SB370,92 Section 92. 177.0601 of the statutes is created to read:

SB370,41,14 177.0601 Definition of good faith. In this subchapter, payment or delivery of property is made in good faith if any of the following applies:

SB370,41,17 (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.

SB370,41,21 (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.

SB370,93 Section 93. 177.0602 of the statutes is created to read:

SB370,41,25 177.0602 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:

SB370,42,3 (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.

SB370,42,5 (b) The holder regularly imposes the charge and regularly does not reverse or otherwise cancel or not collect the charge.

SB370,42,9 (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.

SB370,94 Section 94. 177.0603 of the statutes is created to read:

SB370,42,13 177.0603 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.

SB370,42,19 (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.

SB370,42,21 (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.

SB370,42,23 (4) If property reported to the administrator under s. 177.0401 is a security, the administrator may do any of the following:

SB370,43,3 (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.

SB370,43,4 (b) Dispose of the security under s. 177.0702.

SB370,43,8 (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.

SB370,43,11 (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.

SB370,43,15 (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.

SB370,95 Section 95. 177.0604 of the statutes is created to read:

SB370,43,23 177.0604 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.

SB370,44,2 (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.

SB370,96 Section 96. 177.0605 of the statutes is created to read:

SB370,44,6 177.0605 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:

SB370,44,7 (a) The holder paid the money in error.

SB370,44,9 (b) After paying the money to the administrator, the holder paid money to a person the holder reasonably believed was entitled to the money.

SB370,44,17 (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.

SB370,44,19 (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.

SB370,44,23 (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.

SB370,45,3 (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:

SB370,45,4 (a) The holder delivered the property in error.

SB370,45,5 (b) The apparent owner has claimed the property from the holder.

SB370,45,7 (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.

SB370,45,10 (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.

SB370,45,13 (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.

SB370,45,15 (9) A holder is not required to pay a fee or other charge for reimbursement or return of property under this section.

SB370,45,19 (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.

SB370,46,2 (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.