SB370: Bill Text

2021 Senate BILL 370

May 25, 2021 - Introduced by Senator Petrowski, cosponsored by Representative August. Referred to Committee on Financial Institutions and Revenue.

SB370,3,2 An Act to repeal 177.01 (3) and (4), 177.01 (8) (a) to (c), 177.01 (10) and (11), 177.02, 177.03, 177.04, 177.05, 177.06, 177.07, 177.075, 177.08, 177.10, 177.11, 177.13, 177.14, 177.15, 177.16, 177.17, 177.19, 177.20, 177.21, 177.22, 177.23, 177.24, 177.25, 177.26, 177.265, 177.27, 177.28, 177.29, 177.31, 177.32, 177.33, 177.34, 177.35 and 177.36; to renumber 177.015, 177.09, 177.30 (title), 177.30 (7), 177.38, 177.40 and 177.41; to renumber and amend 177.01 (6), 177.01 (8) (intro.), 177.01 (12), 177.12, 177.135, 177.165, 177.18, 177.225, 177.255, 177.30 (2), 177.30 (3), 177.30 (4), 177.30 (5), 177.30 (6) and 177.37; to amend 20.437 (2) (qm), 20.566 (4) (a), 20.566 (4) (j), 62.63 (5), 71.93 (1) (d) 2., 71.93 (3) (a) (intro.), 73.01 (4) (a), 177.01 (1), 177.01 (2), 177.01 (5), 177.01 (7), 177.01 (9), 177.01 (13), 177.01 (15), 177.015 (title), 193.735 (1) (intro.), 193.735 (2), 610.61, 632.63 (4), 863.37 (2) (a), 863.39 (1), 863.39 (3) (a) and 893.95; and to create 73.03 (75), subchapter I (title) of chapter 177 [precedes 177.001], 177.001, 177.01 (1d), 177.01 (5d), 177.01 (6) (a) to (d), 177.01 (6d), 177.01 (6f), 177.01 (6g), 177.01 (7b), 177.01 (7d), 177.01 (11d), 177.01 (11f), 177.01 (11g), 177.01 (11j), 177.01 (11m), 177.01 (12) (d), 177.01 (12d), 177.01 (13b), 177.01 (13d), 177.01 (13f), 177.01 (13h), 177.01 (13j), 177.01 (14d), 177.01 (16), 177.01 (17), 177.015 (2), subchapter II (title) of chapter 177 [precedes 177.0201], 177.0201, 177.0202, 177.0203, 177.0204, 177.0205, 177.0207, 177.0208, 177.0210, 177.0211, 177.0212, 177.0214, subchapter III (title) of chapter 177 [precedes 177.0301], 177.0301, 177.0302, 177.0303, 177.0304, 177.0305, 177.0306, 177.0307, 177.0308, subchapter IV (title) of chapter 177 [precedes 177.0401], 177.0401, 177.0402, 177.0403, 177.0404, 177.0405, 177.0406, subchapter V (title) of chapter 177 [precedes 177.0501], 177.0501, 177.0502, 177.0503 (1b), 177.0503 (1d), 177.0503 (2n), 177.0504, 177.0505, subchapter VI (title) of chapter 177 [precedes 177.0601], 177.0601, 177.0602, 177.0603, 177.0604, 177.0605, 177.0606, 177.0607, 177.0608, 177.0609, 177.0610, subchapter VII (title) of chapter 177 [precedes 177.0701], 177.0701, 177.0702, 177.0703, 177.0704, subchapter VIII (title) of chapter 177 [precedes 177.0801], 177.0801, 177.0802, subchapter IX (title) of chapter 177 [precedes 177.0901], 177.0901, 177.0902, 177.0903, 177.0904, 177.0905, 177.0906, subchapter X (title) of chapter 177 [precedes 177.1001], 177.1001, 177.1002 (3), 177.1002 (4), 177.1003, subchapter XI (title) of chapter 177 [precedes 177.1101], 177.1101, 177.1102, 177.1103, 177.1104, subchapter XII (title) of chapter 177 [precedes 177.1201], 177.1201, 177.1202, 177.1203, 177.1204, 177.1205, 177.1206, subchapter XIII (title) of chapter 177 [precedes 177.1301], 177.1301, 177.1302, subchapter XIV (title) of chapter 177 [precedes 177.1401], 177.1401, 177.1402, 177.1403, subchapter XV (title) of chapter 177 [precedes 177.1501] and 177.1505 of the statutes; relating to: the Revised Uniform Unclaimed Property Act.

Analysis by the Legislative Reference Bureau

This bill adopts the Revised Uniform Unclaimed Property Act (the act), as approved by the Uniform Law Commission, also known as the National Conference of Commissioners on Uniform State Laws. The act under current law is based on earlier versions of the act that were last updated in 1995. The act requires a holder of unclaimed property to submit that property to the state after a certain time has passed, a period referred to as a dormancy period. The state then attempts to return the property to its rightful owner. Generally, if the state is unable to return the property to its owner, the state may retain the property. Under current law, a holder of unclaimed property submits the property to the secretary of revenue who is the administrator of the act. The bill designates the Department of Revenue as the administrator and makes various changes to the act in order to make the act easier to administer. For example, the bill updates the act to address the disposition of unclaimed gift cards, life insurance benefits, securities, and virtual currencies. The bill also organizes the act chapter into subchapters in order to facilitate the act's administration.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB370,1 Section 1. 20.437 (2) (qm) of the statutes is amended to read:

SB370,3,9 20.437 (2) (qm) Child support state operations and reimbursement for claims and expenses; unclaimed payments. From the support collections trust fund, a sum sufficient equal to the amounts credited under s. 20.912 (1) to the support collections trust fund and the amounts not distributable under par. (r) for administering the program under s. 49.22 and all other purposes specified in s. 49.22 and for reimbursing the secretary department of revenue under s. 177.265 177.0503 (2n) (b).

SB370,2 Section 2. 20.566 (4) (a) of the statutes is amended to read:

SB370,4,4 20.566 (4) (a) Unclaimed property; contingency appropriation. A sum sufficient to pay claims under ss. 177.24 to 177.26 subch. IX of ch. 177 and 863.39 (3). Money may be paid under this paragraph only if sufficient funds are not available under par. (j).

SB370,3 Section 3. 20.566 (4) (j) of the statutes is amended to read:

SB370,4,10 20.566 (4) (j) Unclaimed property; claims. All moneys received under ss. 177.23 (2) 177.0801, 852.01 (3), 863.37 (2), and 863.39 to pay claims under ss. 177.24 to 177.26 subch. IX of ch. 177 and 863.39 (3), to transfer the amounts appropriated under par. (k), and for promotional activities for the unclaimed property program under s. 20.585 (1) (k) as specified in s. 14.58 (4).

SB370,4 Section 4. 62.63 (5) of the statutes is amended to read:

SB370,4,21 62.63 (5) Treatment of abandoned retirement accounts. Funds in employee retirement accounts of a retirement system of a 1st class city, which are presumed abandoned under s. 177.13 subch. II of ch. 177, are not subject to the custody of the state as unclaimed property under ch. 177, but shall be retained by the retirement system and used to reduce employer funding obligations to the retirement system. The board of a retirement system of a 1st class city shall devise rules and regulations for determining the conditions under which employee retirement accounts are presumed abandoned and for determining the manner in which funds in the abandoned employee retirement accounts may be used to reduce employer funding obligations to the retirement system.

SB370,5 Section 5. 71.93 (1) (d) 2. of the statutes is amended to read:

SB370,4,25 71.93 (1) (d) 2. The amount owed to a debtor under s. 177.24 (3) 177.0905 for the return of abandoned property under s. 177.24 subch. IX of ch. 177 which exceeds a debtor's Wisconsin tax liability or any other liability owed to the department.

SB370,6 Section 6. 71.93 (3) (a) (intro.) of the statutes is amended to read:

SB370,5,8 71.93 (3) (a) (intro.) The department of revenue shall setoff any debt or other amount owed to the department, regardless of the origin of the debt or of the amount, its nature or its date. The department's setoff shall include the use of unclaimed property owed to the debtor under s. 177.24 177.0505, 177.0605 (12), 177.0905 (2), or 177.0906 (2). If after the setoff there remains a refund in excess of $10, the department shall set off the remaining refund against certified debts of other entities in the following order:

SB370,7 Section 7. 73.01 (4) (a) of the statutes is amended to read:

SB370,6,3 73.01 (4) (a) Subject to the provisions for judicial review contained in s. 73.015, the commission shall be the final authority for the hearing and determination of all questions of law and fact arising under sub. (5) and s. 72.86 (4), 1985 stats., and ss. 70.38 (4) (a), 70.397, 70.64, and 70.995 (8), s. 76.38 (12) (a), 1993 stats., ss. 76.39 (4) (c), 76.48 (6), 77.26 (3), 77.59 (5m) and (6) (b), 78.01, 78.22, 78.40, 78.555, 139.02, 139.03, 139.06, 139.31, 139.315, 139.33, 139.76, 139.78, 177.1103, 177.1206 (3), 341.405, and 341.45, subch. XIV of ch. 71, and subch. VII of ch. 77. Whenever with respect to a pending appeal there is filed with the commission a stipulation signed by the department of revenue and the adverse party, under s. 73.03 (25), or the department of transportation and the adverse party agreeing to an affirmance, modification, or reversal of the department of revenue's or department of transportation's position with respect to some or all of the issues raised in the appeal, the commission shall enter an order affirming or modifying in whole or in part, or canceling the assessment appealed from, or allowing in whole or in part or denying the petitioner's refund claim, as the case may be, pursuant to and in accordance with the stipulation filed. No responsibility shall devolve upon the commission, respecting the signing of an order of dismissal as to any pending appeal settled by the department of revenue or the department of transportation without the approval of the commission.

SB370,8 Section 8. 73.03 (75) of the statutes is created to read:

SB370,6,25 73.03 (75) To submit a report to the joint committee on finance no later than 6 months after the end of each fiscal year, beginning with the 2021-22 fiscal year and ending with the 2025-26 fiscal year, that contains information on the use of contract auditors in the unclaimed property program under ch. 177, including auditor performance results and comments and concerns from those audited regarding the contract auditors. The department shall survey those audited by contract auditors to receive comments and concerns. Before allowing any person to engage in an audit of another person's documents or records, the administrator shall post the contract or other agreement with the person on the department's Internet site. The contract or other agreement shall remain posted on the department's Internet site until the contract or other agreement is no longer in effect, is no longer valid, or is superseded or otherwise rescinded. The person may take no action to engage in the audit until the administrator certifies that the person will proceed, even if domiciled in another state, in accordance with Wisconsin statutes and department rules and guidance documents and the administrator concludes there is a reasonable justification for using the person to engage in the audit. The administrator shall actively monitor the person to ensure that the person, even if domiciled in another state, is acting in accordance with such statutes, rules, and guidance documents and shall immediately take corrective action, including rescinding the contract, if the administrator reasonably concludes the person is not acting in accordance with such statutes, rules, and guidance documents.

SB370,9 Section 9. Subchapter I (title) of chapter 177 [precedes 177.001] of the statutes is created to read:

SB370,7,3 CHAPTER 177

SB370,7,4 SUBCHAPTER i

SB370,7,5 general provisions

SB370,10 Section 10. 177.001 of the statutes is created to read:

SB370,7,8 177.001 Short title. This chapter may be cited as the “Revised Uniform Unclaimed Property Act.”

SB370,11 Section 11. 177.01 (1) of the statutes is amended to read:

SB370,7,10 177.01 (1) “Administrator" means the secretary department of revenue.

SB370,12 Section 12. 177.01 (1d) of the statutes is created to read:

SB370,7,15 177.01 (1d) “Administrator's agent” means a person that the administrator contracts with to conduct an examination under subch. X on the administrator's behalf, including an independent contractor of such person and each individual participating in the examination on behalf of the person or contractor.

SB370,13 Section 13. 177.01 (2) of the statutes is amended to read:

SB370,7,19 177.01 (2) “Apparent owner" means the a person whose name appears on the records of the holder as the person entitled to owner of property held, issued, or owing by the holder.

SB370,14 Section 14. 177.01 (3) and (4) of the statutes are repealed.

SB370,15 Section 15. 177.01 (5) of the statutes is amended to read:

SB370,8,5 177.01 (5) “Business association" means a nonpublic corporation,; joint stock company,; investment company, not including an investment company registered under the Investment Company Act of 1940, as amended, 15 USC sections 80a-1 to 80a-64; business trust,; partnership,; unincorporated association; joint venture; limited liability company or association for business purposes,; trust company; land bank; safe deposit company; safekeeping depository; financial organization; insurance company; federally chartered entity; utility; sole proprietorship; or other business entity; regardless of whether or not any such entity is for profit, including a banking organization, financial organization, insurance company or utility.

SB370,16 Section 16. 177.01 (5d) of the statutes is created to read:

SB370,8,8 177.01 (5d) “Confidential information” means records, reports, and information that are confidential under s. 177.1402.

SB370,17 Section 17. 177.01 (6) of the statutes is renumbered 177.01 (6) (intro.) and amended to read:

SB370,8,13 177.01 (6) (intro.) “Domicile" means the state of incorporation of a corporation, the state of organization of a limited liability company and the state of the principal place of business of an unincorporated person. the following:

SB370,18 Section 18. 177.01 (6) (a) to (d) of the statutes are created to read:

SB370,8,15 177.01 (6) (a) For a corporation, the state of its incorporation.

SB370,8,17 (b) For a business association, other than a corporation, that requires a filing with a state for its formation, the state of its filing.

SB370,8,20 (c) For a federally chartered entity or an investment company registered under the Investment Company Act of 1940, as amended, 15 USC sections 80a-1 to 80a-64, the state of its home office.

SB370,8,21 (d) For any other holder, the state of its principal place of business.

SB370,19 Section 19. 177.01 (6d) of the statutes is created to read:

SB370,8,25 177.01 (6d) “Dormancy period” means the period of time, as specified for each property type in this chapter, that must pass before the property is presumed abandoned.

SB370,20 Section 20. 177.01 (6f) of the statutes is created to read:

SB370,9,3 177.01 (6f) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

SB370,21 Section 21. 177.01 (6g) of the statutes is created to read:

SB370,9,6 177.01 (6g) “E-mail” means a communication by electronic means which is automatically retained and stored and may be readily accessed or retrieved.

SB370,22 Section 22. 177.01 (7) of the statutes is amended to read:

SB370,9,12 177.01 (7) “Financial organization" means a savings and loan association, savings bank, cooperative bank, building and loan association or, credit union, industrial bank, bank, banking organization, trust company, land bank, safe deposit company, private banker, or any other organization defined by other law as a bank, banking organization, or financial institution.

SB370,23 Section 23. 177.01 (7b) of the statutes is created to read:

SB370,9,23 177.01 (7b) “Game-related digital content” means digital content that exists only in an electronic game or electronic-game platform. “Game-related digital content” includes game play currency, such as a virtual wallet, even if denominated in U.S. currency and points sometimes referred to as gems, tokens, gold, and similar names, and digital codes, if for use or redemption only within the game or platform or another electronic game or electronic game platform. “Game-related digital content” does not include an item that the issuer permits to be redeemed for use outside of a game or platform and for money or goods and services that have more than minimal value or that the issuer otherwise monetizes for use outside of a game or platform.

SB370,24 Section 24. 177.01 (7d) of the statutes is created to read:

SB370,10,4 177.01 (7d) (a) “Gift card” means a record evidencing a promise for consideration by the seller or issuer of the record that merchandise, goods, or services will be provided to the owner of the record equal to the value or amount shown in the record, if all of the following apply:

SB370,10,5 1. The value or amount does not expire.

SB370,10,7 2. The value or amount may be decreased only by redemption for merchandise, goods, or services.

SB370,10,9 3. The value or amount may not be redeemed for or converted into money or otherwise monetized by the issuer.

SB370,10,10 (b) “Gift card” includes the following:

SB370,10,14 1. A record that contains or consists of a microprocessor chip, magnetic strip, or other means for the storage of information, that is prefunded and the value or amount of which is decreased on each use and increased by payment of additional consideration.

SB370,10,16 2. A prepaid commercial mobile radio service, as defined in 47 CFR 20.3, as amended.

SB370,10,17 (c) “Gift card” does not include the following:

SB370,10,18 1. A stored-value card.

SB370,10,19 2. A loyalty card.

SB370,10,20 3. A payroll card.

SB370,10,21 4. Game-related digital content.

SB370,25 Section 25. 177.01 (8) (intro.) of the statutes is renumbered 177.01 (8) and amended to read:

SB370,11,3 177.01 (8) “Holder" means a person , wherever organized or domiciled, who is any of the following: obligated to hold property subject to this chapter for the account of, or to deliver or pay to, the owner.

SB370,26 Section 26. 177.01 (8) (a) to (c) of the statutes are repealed.

SB370,27 Section 27. 177.01 (9) of the statutes is amended to read:

SB370,11,12 177.01 (9) “Insurance company" means an association, corporation, or fraternal or mutual benefit organization, whether or not for profit, which is engaged in the business of providing life endowments, annuities, or insurance coverage, including, but not limited to, accident, burial, casualty, credit life, contract performance, dental, disability, fidelity, fire, health, hospitalization, illness, life including endowments and annuities, malpractice, marine, mortgage, surety and, wage protection, and worker compensation insurance.

SB370,28 Section 28. 177.01 (10) and (11) of the statutes are repealed.

SB370,29 Section 29. 177.01 (11d) of the statutes is created to read:

SB370,11,19 177.01 (11d) “Loyalty card” means a record given without direct monetary consideration under an award, reward, benefit, loyalty, incentive, rebate, or promotional program and that may be used or redeemed only to obtain goods or services or a discount on goods or services. “Loyalty card” does not include a record that may be redeemed for money or otherwise monetized by the issuer.

SB370,30 Section 30. 177.01 (11f) of the statutes is created to read:

SB370,11,25 177.01 (11f) “Mineral" means gas, oil, coal, oil shale, other gaseous liquid or solid hydrocarbon, cement material, sand and gravel, road material, building stone, chemical raw material, gemstone, fissionable and nonfissionable ores, colloidal and other clay, steam and other geothermal resources, and any other substance defined as a mineral by law of this state other than this chapter.

SB370,31 Section 31. 177.01 (11g) of the statutes is created to read:

SB370,12,5 177.01 (11g) “Mineral proceeds” means an amount payable for extraction, production, or sale of minerals, or, on the abandonment of the amount, an amount that becomes payable after abandonment. “Mineral proceeds" includes an amount payable:

SB370,12,7 (a) For the acquisition and retention of a mineral lease, including a bonus, royalty, compensatory royalty, shut-in royalty, minimum royalty, or delay rental.