Chapter 177

177.0903(3) (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.

177.0903(4) (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.

177.0903 History History: 2021 a. 87.

177.0904 177.0904 When administrator must honor claim for property.

177.0904(1) (1) 

177.0904(1)(a) (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.

177.0904(1)(b) (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.

177.0904(2) (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.

177.0904(3) (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 claim filed under this subsection as an initial claim.

177.0904(4) (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.

177.0904 History History: 2021 a. 87; 2021 a. 240 s. 30.

177.0905 177.0905 Allowance of claim for property.

177.0905(1) (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.

177.0905(2) (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 set off against the owner’s debt under s. 71.93 or 71.935.

177.0905(3) (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.

177.0905 History History: 2021 a. 87; 2021 a. 240 s. 30.

177.0906 177.0906 Action by person whose claim is denied.

177.0906(1) (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.

177.0906(2) (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 set off against the person’s debt under s. 71.93 or 71.935 before delivery or payment of the property to the owner.

177.0906 History History: 2021 a. 87; 2021 a. 240 s. 30.

177.0907 177.0907 Claim to recover abandoned U.S. savings bond. Notwithstanding s. 177.1504, any person who could have claimed an interest in a U.S. savings bond immediately before this state became the owner of the U.S. savings bond pursuant to a judgment entered under s. 177.1504 (4) may file a claim under s. 177.0903, and another state may file a claim under s. 177.0901. Notwithstanding s. 177.0607 or 177.0902, if the claim is allowed, the administrator shall pay the claimant the amount the administrator received from redeeming the U.S. savings bond under s. 177.1504, minus any amounts that were deposited in the general fund to pay administrative expenses under s. 177.0801 that are attributable to the U.S. savings bond, or, if the U.S. savings bond has not been redeemed, the amount the administrator estimates the administrator will receive from redeeming the U.S. savings bond under s. 177.1504, minus any amounts the administrator estimates will be deposited in the general fund to pay administrative expenses under s. 177.0801 that are attributable to the U.S. savings bond.

177.0907 History History: 2015 a. 309; 2021 a. 87 s. 166; Stats. 2021 s. 177.0907.

subch. X of ch. 177 SUBCHAPTER X

REQUESTS FOR REPORTS;
EXAMINATION OF RECORDS

177.1001 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:

177.1001(1) (1) A statement as to whether the person is holding property that is reportable under this chapter.

177.1001(2) (2) A description of the property not previously reported or about which the administrator has inquired.

177.1001(3) (3) A specific identification of property described under sub. (2) about which there is a dispute whether it is reportable under this chapter.

177.1001(4) (4) The amount or value of the property.

177.1001 History History: 2021 a. 87.

177.1002 177.1002 Requests for reports and examination of records.

177.1002(1) (1) The administrator, at reasonable times and upon reasonable notice, may examine the records of any person to determine whether the person has complied with this chapter. The administrator may authorize an agent, under written contract with the administrator, to conduct any such examination. In addition, the administrator may designate the division of banking or other appropriate regulatory authority to examine the records of regulated institutions to determine if the institutions have complied with this chapter. The administrator may conduct the examination even if the person believes it is not in possession of any property reportable or deliverable under this chapter.

177.1002(2) (2) If an examination of the records of a person results in the discovery of property reportable and deliverable under this chapter, the person shall file a report and deliver the property to the administrator. If the property is not reported and delivered, the administrator shall assess the person for the value of the property.

177.1002(3) (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.

177.1002(4) (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.

177.1002(5) (5) If a person is treated under s. 177.0213 as the holder of the property only insofar as the interest of the business association in the property is concerned, the administrator may examine the records of the person as provided under sub. (1) if the administrator has given the required notice to both the person and the business association at least 90 days before the examination.

177.1002 History History: 1983 a. 408; 1995 a. 27; 2017 a. 235; 2021 a. 87 ss. 124, 125, 172 to 175; Stats. 2021 s. 177.1002.

177.1003 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:

177.1003(1) (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.

177.1003(2) (2) May be used by the administrator in an action to collect property or otherwise enforce this chapter.

177.1003(3) (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.

177.1003(4) (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.

177.1003 History History: 2021 a. 87.

177.1004 177.1004 Failure of person to maintain records. If a holder fails to maintain the records required under s. 177.0404, and the records of the holder available for the periods subject to this chapter are insufficient to permit the preparation of a report, a court may determine the liability of such holder based on the court’s findings as to a reasonable estimate of the amount due.

177.1004 History History: 2021 a. 87 s. 176; Stats. 2021 s. 177.1004.

177.1005 177.1005 Administrator’s contract with another to conduct examination.

177.1005(1) (1) Except as provided in subs. (2) and (3), the administrator may not enter into a contract or other agreement to allow any person to engage in an audit on a contingent fee basis of another person’s documents or records as part of an effort to administer this chapter or to purchase information or documents arising from the audit.

177.1005(2) (2) If a person whose documents or records are audited is not domiciled in this state, the administrator may enter into a contract or agreement described under sub. (1) related to the person if the amount of the contingent fee under the contract or agreement does not exceed 12 percent of the total amount of property reportable and deliverable under this chapter that is disclosed by the audit.

177.1005(3) (3) This section does not apply to information received from the federal government.

177.1005(4) (4) The administrator may not enter into a contract or other agreement as part of an effort to administer this chapter that allows a person that is engaging in an audit of another person’s documents or records to use statistical sampling to estimate the other person’s liability unless the other person consents to the use of an estimate.

177.1005 History History: 2021 a. 87 ss. 177, 178; Stats. 2021 s. 177.1005.

subch. XI of ch. 177 SUBCHAPTER XI

ASSESSMENTS AND APPEALS

177.1101 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.

177.1101 History History: 2021 a. 87.

177.1102 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.

177.1102 History History: 2021 a. 87.

177.1103 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.

177.1103 History History: 2021 a. 87.

177.1104 177.1104 Penalties. The provisions of s. 177.1204 shall apply to an amount due as determined and assessed under this chapter.

177.1104 History History: 2021 a. 87.

subch. XII of ch. 177 SUBCHAPTER XII

ENFORCEMENT

177.1201 177.1201 Enforcement.

177.1201(1) (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.

177.1201(2) (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.

177.1201(3) (3) Subject to sub. (2), the attorney general may bring an action in circuit court or in federal court to enforce this chapter.

177.1201 History History: 2021 a. 87.

177.1202 177.1202 Interstate and international agreement; cooperation.

177.1202(1) (1) Subject to sub. (2), the administrator may do all of the following:

177.1202(1)(a) (a) Exchange information with another state or foreign country relating to property presumed abandoned or relating to the possible existence of property presumed abandoned.

177.1202(1)(b) (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.

177.1202(2) (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.

177.1202 History History: 2021 a. 87.

177.1203 177.1203 Action involving another state or foreign country.

177.1203(1) (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.

177.1203(2) (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.

177.1203(3) (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.

177.1203(4) (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.

177.1203(5) (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.

177.1203(6) (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.

177.1203 History History: 2021 a. 87.

177.1204 177.1204 Penalties.

177.1204(1) (1) Failure to file a report.

177.1204(1)(a) (a) Any person who fails to timely file a report under this chapter shall pay a penalty equal to $150.

177.1204(1)(b) (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.

177.1204(1)(c) (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.

177.1204(2) (2) Failure to pay or deliver property.

177.1204(2)(a) (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.