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SB370,94 10Section 94. 177.0603 of the statutes is created to read:
SB370,42,13 11177.0603 Payment or delivery of property to administrator. (1) Except
12as otherwise provided in this section, upon filing a report under s. 177.0401, the
13holder shall pay or deliver to the administrator the property described in the report.
SB370,42,19 14(2) If property in a report under s. 177.0401 is an automatically renewable
15deposit and a penalty or forfeiture in the payment of interest would result from
16paying the deposit to the administrator at the time of the report, the date for payment
17of the property to the administrator is extended until a penalty or forfeiture no longer
18would result from payment, if the holder informs the administrator of the extended
19date.
SB370,42,21 20(3) After filing the report under s. 177.0401, property in a safe deposit box shall
21be delivered to the administrator no later than December 1.
SB370,42,23 22(4) If property reported to the administrator under s. 177.0401 is a security, the
23administrator may do any of the following:
SB370,43,3
1(a) Make an endorsement, instruction, or entitlement order on behalf of the
2apparent owner to invoke the duty of the issuer, its transfer agent, or the securities
3intermediary to transfer the security.
SB370,43,44 (b) Dispose of the security under s. 177.0702.
SB370,43,8 5(5) If the holder of property reported to the administrator under s. 177.0401
6is the issuer of a certificated security, the administrator may obtain a replacement
7certificate in physical or book-entry form under s. 408.405. An indemnity bond is
8not required for purposes of this subsection.
SB370,43,11 9(6) The administrator shall establish procedures for the registration, issuance,
10method of delivery, transfer, and maintenance of securities delivered to the
11administrator by a holder.
SB370,43,15 12(7) An issuer, holder, or transfer agent, or other person acting under this
13section under instructions of and on behalf of the issuer or holder, is not liable to the
14apparent owner for, and shall be indemnified by the state against, a claim arising
15with respect to property after the property has been delivered to the administrator.
SB370,95 16Section 95. 177.0604 of the statutes is created to read:
SB370,43,23 17177.0604 Effect of payment or delivery of property to administrator.
18(1)
On payment or delivery of property to the administrator under this chapter, the
19administrator, as agent for the state, assumes custody and responsibility for
20safekeeping the property. A holder that pays or delivers property to the
21administrator in good faith and substantially complies with ss. 177.0501 and
22177.0502 is relieved of liability arising thereafter with respect to payment or delivery
23of the property to the administrator.
SB370,44,2 24(2) This state shall defend and indemnify a holder against liability on a claim
25against the holder resulting from the payment or delivery of property to the

1administrator made in good faith and after the holder substantially complied with
2ss. 177.0501 and 177.0502.
SB370,96 3Section 96. 177.0605 of the statutes is created to read:
SB370,44,6 4177.0605 Recovery of property by holder from administrator. (1) A
5holder that pays money to the administrator may file a claim for reimbursement from
6the administrator of the amount paid if any of the following applies:
SB370,44,77 (a) The holder paid the money in error.
SB370,44,98 (b) After paying the money to the administrator, the holder paid money to a
9person the holder reasonably believed was entitled to the money.
SB370,44,17 10(2) If a claim for reimbursement under sub. (1) is made for a payment made on
11a negotiable instrument, including a travelers check, money order, or similar
12instrument, the holder shall submit proof that the instrument was presented and
13payment was made to a person the holder reasonably believed was entitled to
14payment. The holder may claim reimbursement even if the payment was made to
15a person whose claim was made after expiration of a period of limitation on the
16owner's right to receive or recover property, whether specified by contract or court
17order and notwithstanding any law to the contrary.
SB370,44,19 18(3) The administrator may only grant and pay a holder's claim under sub. (1)
19if the money being claimed is in the administrator's possession.
SB370,44,23 20(4) If a holder is reimbursed by the administrator under sub. (1) (b), the holder
21may also recover from the administrator income or gain under s. 177.0607 that would
22have been paid to the owner if the money had been claimed from the administrator
23by the owner, to the extent the income or gain was paid by the holder to the owner.
SB370,45,3
1(5) A holder that delivers property other than money to the administrator may
2file a claim for return of the property from the administrator if any of the following
3applies:
SB370,45,44 (a) The holder delivered the property in error.
SB370,45,55 (b) The apparent owner has claimed the property from the holder.
SB370,45,7 6(6) The administrator may only grant and pay a holder's claim under sub. (5)
7if the property being claimed is in the administrator's possession.
SB370,45,10 8(7) A holder that files a claim under sub. (5) shall include with the claim
9evidence sufficient to establish that the apparent owner claimed the property from
10the holder or that the holder delivered the property to the administrator in error.
SB370,45,13 11(8) The administrator may determine that an affidavit submitted by a holder
12is evidence sufficient to establish that the holder is entitled to reimbursement or to
13recover property under this section.
SB370,45,15 14(9) A holder is not required to pay a fee or other charge for reimbursement or
15return of property under this section.
SB370,45,19 16(10) Not later than 120 days after a claim is filed under sub. (1) or (4), the
17administrator shall allow or deny the claim and give the claimant notice of the
18decision in a record. If the administrator does not take action on a claim during the
19120-day period, the claim is deemed denied.
SB370,46,2 20(11) If a holder's claim is denied under this section, the holder may petition for
21judicial review of the claim under s. 227.52, notwithstanding s. 227.52 (1), except
22that petitions for review shall be served and filed no later than 90 days after the
23decision of the administrator or no later than 180 days after the filing of the claim
24if the administrator has failed to act on it. If the holder establishes the claim in an

1action against the administrator, the hearing examiner or court may award costs and
2reasonable attorney fees as permitted by s. 227.483, 227.485, or 814.245.
SB370,46,6 3(12) If a holder receives reimbursement under this section, or for any other
4reason under this chapter, and the holder is a debtor under s. 71.93 or 71.935, the
5administrator shall setoff the reimbursement against the holder's debts under s.
671.93 or 71.935.
SB370,97 7Section 97. 177.0606 of the statutes is created to read:
SB370,46,14 8177.0606 Property removed from safe deposit box. Property removed
9from a safe deposit box and delivered to the administrator is subject to the holder's
10right to reimbursement for the cost of opening the box and a lien or contract providing
11reimbursement to the holder for unpaid rent charges for the box. The administrator
12shall reimburse the holder from payment made by the apparent owner in the process
13of claiming the safe deposit box or the proceeds remaining after deducting the
14expense incurred by the administrator in selling the property.
SB370,98 15Section 98. 177.0607 of the statutes is created to read:
SB370,46,19 16177.0607 Income, interest, or gain while in the administrator's
17custody. (1)
If property other than money is delivered to the administrator, the
18owner is entitled to receive income or gain realized or accrued on the property on or
19before the date the property is sold.
SB370,47,2 20(2) Except as provided in subs. (3) and (4), when the administrator pays to a
21claimant property in the form of money, including property described in sub. (1) that
22is converted to money, the administrator shall pay simple interest on that money for
23the period that it was in the custody of the administrator or this state at an annual
24rate equal to the applicable annual federal long-term rate determined under section

11274 (d) of the Internal Revenue Code in effect on December 31 of the year prior to
2the year in which the claim is paid.
SB370,47,3 3(3) Interest shall not accrue:
SB370,47,44 (a) On property in the form of money that is less than $100.
SB370,47,55 (b) On property recovered by a holder under s. 177.0605.
SB370,47,66 (c) Before January 2, 2019, except as provided in sub. (4).
SB370,47,16 7(4) Property received by the administrator before January 2, 2019, that was
8interest-bearing to the holder at the time of receipt by the administrator or this state
9shall accrue interest while in possession of the administrator or this state at a rate
10of 6 percent per year or any lesser rate the property earned while in the possession
11of the holder. Interest begins to accrue when the property is delivered to the
12administrator and ceases on the earlier of the date on which payment is made to the
13owner or January 1, 2019. If the property is still in the possession of the
14administrator or this state on January 2, 2019, interest shall accrue as described in
15sub (2). No interest on interest-bearing property is payable for any period before
16December 31, 1984.
SB370,99 17Section 99. 177.0608 of the statutes is created to read:
SB370,47,20 18177.0608 Administrator's options as to custody. The administrator may
19decline to take custody of property reported under s. 177.0401 if the administrator
20determines that any of the following applies:
SB370,47,22 21(1) The property has a value less than the estimated expenses of notice and sale
22of the property.
SB370,47,23 23(2) Taking custody of the property would be unlawful.
SB370,47,24 24(3) The property is not subject to custody or escheatment under this chapter.
SB370,100 25Section 100. 177.0609 of the statutes is created to read:
SB370,48,6
1177.0609 Disposition of property having no substantial value;
2immunity from liability. (1)
If the administrator takes custody of property
3delivered under this chapter and later determines that the property has no
4substantial commercial value or that the cost of disposing of the property exceeds the
5value of the property, the administrator may return the property to the holder or
6destroy or otherwise dispose of the property.
SB370,48,9 7(2) An action or proceeding may not be commenced against the state, an agency
8of the state, the administrator, another officer, employee, or agent of the state, or a
9holder for or because of an act of the administrator under this section.
SB370,101 10Section 101. 177.0610 of the statutes is created to read:
SB370,48,16 11177.0610 Periods of limitation and repose. (1) Expiration, before, on, or
12after the effective date of this subsection .... [LRB inserts date], of a period of
13limitation on an owner's right to receive or recover property, whether specified by
14contract or court order, and notwithstanding any law to the contrary, does not
15prevent the property from being presumed abandoned or affect the duty of a holder
16under this chapter to file a report or pay or deliver property to the administrator.
SB370,48,20 17(2) The administrator may not commence an action or proceeding to enforce
18this chapter with respect to the reporting, payment, or delivery of property reported
19to the administrator more than 5 years after the holder filed a nonfraudulent report
20and reported the property under s. 177.0401 to the administrator.
SB370,48,25 21(3) If a holder is required to file a report under s. 177.0401 and fails to do so,
22or if a holder files a report but does not report property required to be included with
23the report under s. 177.0401, the administrator may not commence an action,
24proceeding, or examination with respect to the reporting, payment, or delivery of the
25unreported property more than 10 years after the holder's duty to report arose.
SB370,49,2
1(4) Subsections (1) to (3) do not apply in the case of the filing of a fraudulent
2report or to any collection action or proceeding under s. 177.1201 or 177.1206.
SB370,49,4 3(5) For purposes of this section, the administrator and holder may extend any
4period of limitation by written agreement.
SB370,102 5Section 102. 177.07 of the statutes is repealed.
SB370,103 6Section 103 . Subchapter VII (title) of chapter 177 [precedes 177.0701] of the
7statutes is created to read:
SB370,49,88 CHAPTER 177
SB370,49,99 SUBCHAPTER VII
SB370,49,1010 Sale of property by administrator
SB370,104 11Section 104. 177.0701 of the statutes is created to read:
SB370,49,14 12177.0701 Public sale of property. (1) Except as provided in ss. 177.0702 and
13177.1504, the administrator shall sell abandoned property within 3 years after
14receiving the property.
SB370,49,17 15(2) Before selling property under sub. (1), the administrator shall give notice
16to the public of the date of the sale and include with the notice a reasonable
17description of the property.
SB370,49,19 18(3) Except as provided under sub. (4), a sale under sub. (1) shall be to the
19highest bidder by any of the following means:
SB370,49,2120 (a) At a public sale at a location in this state that the administrator determines
21to be the most favorable market for the property.
SB370,49,2222 (b) On the Internet.
SB370,49,2423 (c) On another forum that the administrator determines is likely to yield the
24highest net proceeds.
SB370,50,3
1(4) The administrator may decline the highest bid at a sale under this section
2and re-offer the property for sale if the administrator determines the highest bid is
3insufficient.
SB370,50,7 4(5) If a sale held under this section is to be conducted other than on the Internet,
5the administrator shall publish at least one notice of the sale, at least 3 weeks, but
6not more than 5 weeks before the sale, in a newspaper of general circulation in the
7county in which the property is sold.
SB370,105 8Section 105. 177.0702 of the statutes is created to read:
SB370,50,11 9177.0702 Disposal of securities. (1) Unless the administrator determines
10that it is in the best interest of this state to do otherwise, the administrator shall hold
11all securities for at least one year before selling them.
SB370,50,15 12(2) The administrator may not sell a security listed on an established stock
13exchange for less than the price prevailing on the exchange at the time of sale. The
14administrator may sell a security not listed on an established exchange by any
15commercially-reasonable method.
SB370,106 16Section 106. 177.0703 of the statutes is created to read:
SB370,50,21 17177.0703 Purchaser owns property after sale. A purchaser of property at
18a sale conducted by the administrator under this chapter takes the property free of
19all claims of the owner, a previous holder, a creditor, or a person claiming an interest
20through the owner or holder. The administrator shall execute documents necessary
21to complete the transfer of ownership to the purchaser.
SB370,107 22Section 107. 177.0704 of the statutes is created to read:
SB370,50,24 23177.0704 Military medal or decoration. (1) The administrator may not sell
24a medal or decoration awarded for service in the U.S. armed forces.
SB370,51,3
1(2) The administrator may deliver a medal or decoration as described under
2sub. (1) to any of the following entities, with the entity's consent, to hold in custody
3for the owner:
SB370,51,44(a) An entity organized under section 501 (c) (19) of the Internal Revenue Code.
SB370,51,55 (b) The agency that awarded the medal or decoration.
SB370,51,66 (c) A governmental entity.
SB370,51,8 7(3) The administrator is not responsible for the safekeeping of a medal or
8decoration after it is delivered to an entity under sub. (2).
SB370,108 9Section 108. 177.075 of the statutes is repealed.
SB370,109 10Section 109. 177.08 of the statutes is repealed.
SB370,110 11Section 110 . Subchapter VIII (title) of chapter 177 [precedes 177.0801] of the
12statutes is created to read:
SB370,51,1313 CHAPTER 177
SB370,51,1414 SUBCHAPTER VIII
SB370,51,1515 administration of property
SB370,111 16Section 111. 177.0801 of the statutes is created to read:
SB370,51,20 17177.0801 Deposit of funds by administrator. (1) Except as provided in sub.
18(2), the administrator shall deposit in the common school fund all funds received
19under this chapter, including proceeds from the sale of property under subch. VII and
20amounts received from the redemption of U.S. savings bonds under s. 177.1504.
SB370,51,24 21(2) The administrator shall deposit in the general fund an amount that the
22administrator reasonably estimates is sufficient to pay claims allowed under this
23chapter and administrative expenses. For purposes of this subsection,
24“administrative expenses” means any of the following:
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