AB 752 — Relating to: the revised uniform unclaimed property act. (FE)

20.585 (1) (k) as specified in s.

14.58 (4).

SECTION 3.

62.63 (5) of the statutes is amended to read:

62.63 (5) REATMENT 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.

SECTION 4.

71.93 (1) (d) 2.

of the statutes is amended to read:

71.93 (1) (d) 2.

The amount owed to a debtor under s.

177.24 (3)05 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.

SECTION 5.

71.93 (3) (a) (intro.) of the statutes is amended to read:

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.

177.240505, 177.0605 (12), 177.0905 (2), LRB-4503/1 - 2020 Legislature - 5 - JK:kjf SECTION 5 ASSEMBLY BILL 752 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:

S ECTION 6.

73.01 (4) (a) of the statutes is amended to read:

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, 341.405, and 341.45, subch.

XIV of ch.

71, andbch.

VII of ch.

77, and ss.

177.1103 and 177.1206 (3).

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.

S ECTION 7.

Subchapter I (title) of chapter 177 [precedes 177.001] of the statutes is created to read:

- 2020 Legislature - 6 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 7 CHAPTER 177 SUBCHAPTER I GENERAL PROVISIONS SECTION 8.

177.001 of the statutes is created to read:

177.001 Short title.

This chapter may be cited as the “Revised Uniform Unclaimed Property Act.” SECTION 9.

177.01 (1) of the statutes is amended to read:

177.01 (1) “Administrator" means the secretaryrtment of revenue.

SECTION 10.

177.01 (1d) of the statutes is created to read:

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.

SECTION 11.

177.01 (2) of the statutes is amended to read:

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.

SECTION 12.

177.01 (3) and (4) of the statutes are repealed.

SECTION 13.

177.01 (5) of the statutes is amended to read:

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 140, as amended, 15 U.S.C.

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;

LRB-4503/1 - 2020 Legislature - 7 - JK:kjf S ECTION 13 ASSEMBLY BILL 752 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.

SECTION 14.

177.01 (5d) of the statutes is created to read:

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

177.1402.

SECTION 15.

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

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:

SECTION 16.

177.01 (6) (a) to (d) of the statutes are created to read:

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

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

(c) For a federally chartered entity or an investment company registered under the investment company act of 1940, as amended, 15 U.S.C.

sections 80a-1 to 80a-64, the state of its home office.

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

SECTION 17.

177.01 (6d) of the statutes is created to read:

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.

SECTION 18.

177.01 (6f) of the statutes is created to read:

- 2020 Legislature - 8 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 18 177.01 (6f) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

SECTION 19.

177.01 (6g) of the statutes is created to read:

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

SECTION 20.

177.01 (7) of the statutes is amended to read:

177.01 (7) “Financial organization" means a savings and loan association, savings bank, cooperative bank,uilding 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.

SECTION 21.

177.01 (7b) of the statutes is created to read:

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.

SECTION 22.

177.01 (7d) of the statutes is created to read:

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 LRB-4503/1 - 2020 Legislature - 9 - JK:kjf S ECTION 22 ASSEMBLY BILL 752 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:

PageThe 15,value lineor 6:amount does not expire.

delete “not".

PageThe 17,value lineor 17:amount may be decreased only by redemption for merchandise, goods, or services.

delete “maturity of the deposit" and substitute “earlier of maturity or the date of the last indication of interest in the property by the apparent owner".

PageThe 19,value lineor 5:amount may not be redeemed for or converted into money or otherwise monetized by the issuer.

delete(b) the“Gift materialcard” beginningincludes withthe thatfollowing: line and ending with page 20, line 21, and substitute:

“177.02021. When tax-deferred retirement account presumed abandoned.

(1)A Subjectrecord tothat s.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.

177.0210, property held in a pension account or retirement account that qualifies for federal income tax deferral under the U.S.

income tax laws is presumed abandoned if it is unclaimed by the apparent owner 3 years after:

(a) The later of the following:

LRBa0982/1 - 2020 Legislature - 2 - JK:cjs 1.

The date on which a 2nd consecutive communication sent by the holder by 1st class mail to the apparent owner is returned to the holder by the U.S.

postal service as undeliverable.

IfA theprepaid 2ndcommercial communicationmobile isradio sentservice, lateras thandefined 30in days47 afterC.F.R. the date on which the first communication is returned to the holder by the U.S.

postal20.3, service as undeliverable,amended. the date on which the first communication was returned as undeliverable.

(b)(c) The“Gift earliercard” ofdoes not include the following:

TheA datestored-value oncard. which the apparent owner reaches the minimum distribution age, as specified under the Internal Revenue Code or by federal regulation, if that can be determined by the holder.

IfA distributionloyalty tocard. avoid a tax penalty is required under the Internal Revenue Code, 2 years after the following:

3.

A payroll card.

4.

Game-related digital content.

SECTION 23.

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

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.

SECTION 24.

177.01 (8) (a) to (c) of the statutes are repealed.

- 2020 Legislature - 10 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 25 SECTION 25.

177.01 (9) of the statutes is amended to read:

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,ccident, burial, casualty, credit life, contract performance, dental, disability,elity, fire, health, hospitalization, illness, life including endowments and annuities, malpractice, marine, mortgage, surety and, wage protection, and worker compensation insurance.

SECTION 26.

177.01 (10) and (11) of the statutes are repealed.

SECTION 27.

177.01 (11d) of the statutes is created to read:

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.

SECTION 28.

177.01 (11f) of the statutes is created to read:

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.

SECTION 29.

177.01 (11g) of the statutes is created to read:

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 LRB-4503/1 - 2020 Legislature - 11 - JK:kjf S ECTION 29 ASSEMBLY BILL 752 that becomes payable after abandonment.

“Mineral proceeds" includes an amount payable:

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

(b) For the extraction, production, or sale of minerals, including a net revenue interest, royalty, overriding royalty, extraction payment, and production payment.

(c) Under an agreement or option, including a joint-operating agreement, unit agreement, pooling agreement, and farm-out agreement.

SECTION 30.

177.01 (11j) of the statutes is created to read:

177.01 (11j) “Money order” means a payment order for a specified amount of money.

“Money order" includes an express money order and a personal money order on which the remitter is the purchaser.

SECTION 31.

177.01 (11m) of the statutes is created to read:

177.01 (11m) “Municipal bond” means a bond or evidence of indebtedness issued by a municipality or other political subdivision of a state.

SECTION 32.

177.01 (12) of the statutes is renumbered 177.01 (12) (intro.) and amended to read:

177.01 (12) (intro.) “Owner" means a person having a legal, beneficial, or equitable interest in property subject to this chapter or the person's legal representative acting on the person's behalf.

“Owner” includes the following:

(a) A depositor in the case of, for a deposit, a .

(b) A beneficiary in the case of, for a trust other than a deposit in trust, a .

(c) A creditor, claimant, or payee in the case of, for other intangible property, or a person having a legal or equitable interest in property subject to this chapter or his or her legal representative.

- 2020 Legislature - 12 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 33 SECTION 33.

177.01 (12) (d) of the statutes is created to read:

177.01 (12) (d) The lawful bearer of a record that may be used to obtain money, a reward, or a thing of value.

SECTION 34.

177.01 (12d) of the statutes is created to read:

177.01 (12d) “Payroll card” means a record that evidences a payroll-card account as defined in Regulation E, 12 C.F.R.

Part 1005, as amended.

SECTION 35.

177.01 (13) of the statutes is amended to read:

177.01 (13) “Person" means an individual, business association, state or other government, governmental subdivision, instrumentality, or agency, public corporation, public authority, estate, trust, 2 or more persons having a joint or common interest, or any other legal or commercial entity.

SECTION 36.

177.01 (13b) of the statutes is created to read:

177.01 (13b) (a) “Property” means tangible property described in s.

177.0205 or a fixed and certain interest in intangible property held, issued, or owed in the course of a holder's business or by a government, governmental subdivision, agency, or instrumentality.

(b) “Property” includes all of the following:

1.

All income from or increments to the property.

2.

Property referred to as or evidenced by:

TheMoney, datevirtual oncurrency, whichor theinterest. holder receives confirmation of the death of the apparent owner in the ordinary course of the holder's business.

A dividend, check, draft, deposit, or payroll card.

c.

A credit balance, customer overpayment, security deposit, refund, credit memorandum, unpaid wage, unused ticket for which the issuer has an obligation to provide a refund, mineral proceeds, or unidentified remittance.

LRB-4503/1 - 2020 Legislature - 13 - JK:kjf S ECTION 36 ASSEMBLY BILL 752 d.

A security, except for a worthless security or a security that is subject to a lien, legal hold, or restriction evidenced on the records of the holder or imposed by operation of law, if the lien, legal hold, or restriction restricts the holder's or owner's ability to receive, transfer, sell, or otherwise negotiate the security.

e.

A bond, debenture, note, or other evidence of indebtedness.

f.

Money deposited to redeem a security, make a distribution, or pay a dividend.

g.

An amount due and payable under an annuity contract or insurance policy.

h.

An amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit-sharing, employee-savings, supplemental-unemployment insurance, or a similar benefit.

(c) “Property” does not include the following:

1.

Property held in a plan described in section 529A of the Internal Revenue Code.

2.

Game-related digital content.

3.

A loyalty card.

4.

An in-store credit for returned merchandise.

5.

A gift card.

6.

A stored-value card.

7.

Property described under s.

177.015 (2).

SECTION 37.

177.01 (13d) of the statutes is created to read:

177.01 (13d) “Putative holder” means a person believed by the administrator to be a holder, until the person pays or delivers to the administrator property subject to this chapter or the administrator or a court makes a final determination that the person is or is not a holder.

- 2020 Legislature - 14 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 38 SECTION 38.

177.01 (13f) of the statutes is created to read:

177.01 (13f) “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

SECTION 39.

177.01 (13h) of the statutes is created to read:

177.01 (13h) “Security” means all of the following:

(a) A security, as defined in s.

408.102 (1) (o).

(b) A security entitlement, as defined in s.

408.102 (1) (q), including a customer security account held by a registered broker-dealer, to the extent the financial assets held in the security account are not any of the following:

1.

Registered on the books of the issuer in the name of the person for which the broker-dealer holds the assets.

2.

Payable to the order of the person.

3.

Specifically endorsed to the person.

(c) An equity interest in a business association that is not a security under par.

(a) or a security entitlement under par.

(b).

SECTION 40.

177.01 (13j) of the statutes is created to read:

177.01 (13j) “Sign” means any of the following done with the intent to authenticate or adopt a record:

(a) To execute or adopt a tangible symbol.

(b) To attach to or logically associate with the record an electronic symbol, sound, or process.

SECTION 41.

177.01 (14d) of the statutes is created to read:

177.01 (14d) (a) “Stored-value card” means a record evidencing a promise for consideration by the seller or issuer of the record that merchandise, goods, services, LRB-4503/1 - 2020 Legislature - 15 - JK:kjf S ECTION 41 ASSEMBLY BILL 752 or money 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:

1.

The value or amount does not expire.

2.

The value or amount may be decreased only by redemption for merchandise, goods, services, or money.

3.

The value or amount may not be redeemed for or converted into money or otherwise monetized by the issuer.

(b) “Stored-value card” includes the following:

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.

2.

A prepaid commercial mobile radio service, as defined in 47 C.F.R.

20.3, as amended.

(c) “Stored-value card” does not include the following:

1.

A payroll card.

2.

A loyalty card.

3.

A gift card.

4.

Game-related digital content.

SECTION 42.

177.01 (15) of the statutes is amended to read:

177.01 (15) “Utility" means a person who that owns or operates for public use any plant, equipment, real property, franchise, or license for the transmission of communications or;

the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas;

the provision of sewage or septic services;

or the disposal or recycling of trash or garbage.

- 2020 Legislature - 16 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 43 SECTION 43.

177.01 (16) of the statutes is created to read:

177.01 (16) “Virtual currency” means a digital representation of value used as a medium of exchange, unit of account, or store of value that does not have legal tender status recognized by the United States.

“Virtual currency" does not include:

(a) The software or protocols governing the transfer of the digital representation of value.

(b) Game-related digital content.

(c) A loyalty card.

(d) A gift card.

SECTION 44.

177.01 (17) of the statutes is created to read:

177.01 (17) “Worthless security” means a security for which the cost of liquidation and delivery to the administrator exceeds the value of the security on the date on which a report is due under this chapter.

SECTION 45.

177.015 (title) of the statutes is amended to read:

177.015 (title) Exemption Inapplicability to foreign transactions and other exemptions.

SECTION 46.

177.015 of the statutes is renumbered 177.015 (1).

SECTION 47.

177.015 (2) of the statutes is created to read:

177.015 (2) This chapter does not apply to any of the following:

(a) Property held, due, and owing in a foreign country if the transaction out of which the property arose was a foreign transaction.

(b) Any payment or credit shown on the books and records of a business association owed to another business association in the ordinary course of business.

(c) Property described in s.

20.912 (1).

SECTION 48.

177.02 of the statutes is repealed.

LRB-4503/1 - 2020 Legislature - 17 - JK:kjf S ECTION49 ASSEMBLY BILL 752 SECTION 49.

Subchapter II (title) of chapter 177 [precedes 177.0201] of the statutes is created to read:

CHAPTER 177 SUBCHAPTER II PRESUMPTION OF ABANDONMENT SECTION 50.

177.0201 of the statutes is created to read:

177.0201 When property presumed abandoned.

Subject to s.

177.0210, the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified below:

(1) A traveler's check, 15 years after issuance.

(2) A money order or similar instrument, 5 years after issuance.

(3) A state or municipal bond, bearer bond, or original-issue-discount bond, 3 years after the earliest of the date the bond matures or is called or the obligation to pay the principal of the bond arises.

(4) A debt of a business association, 3 years after the obligation to pay arises.

(5) A payroll card or demand, savings, or time deposit, including a deposit that is automatically renewable, 5 years after the maturity of the deposit, except a deposit that is automatically renewable is deemed matured on its initial date of maturity unless the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal.

(6) Money or a credit owed to a customer as a result of a retail business transaction, other than in-store credit for returned merchandise, 5 years after the obligation arises.

(7) An amount owed by an insurance company on a life or endowment insurance policy or an annuity contract that has matured or terminated, 3 years after - 2020 Legislature - 18 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 50 the obligation to pay arises under the terms of the policy or contract or, if a policy or contract for which an amount is owed on proof of death has not matured by proof of the death of the insured or annuitant, as follows:

(a) With respect to an amount owed on a life or endowment insurance policy, 3 years after the earliest of the date on which the insurance company has knowledge of the death of the insured or the date on which the insured attained, or would have attained if living, the limiting age under the mortality table that forms the bases of the reserve for the policy.

(b) With respect to an amount owed on an annuity contract, 3 years after the date on which the insurance company has knowledge of the death of the annuitant.

(8) Property that may distributed by a business association in the course of dissolution, one year after the property may be distributed.

(9) Except as provided in ss.

800.095 (8), 852.01 (3), 863.37 (2), and 863.39, property held by a court, including property received as proceeds of a class action, one year after the property may be distributed.

(10) Except as provided in ss.

40.08 (8), 852.01 (3), 863.37 (2), and 863.39, property held by a government or governmental subdivision, agency, or instrumentality, including municipal bond interest and unredeemed principal under the administration of a paying agent or indenture trustee, 5 years after the property may be distributed.

(11) Wages, commissions, bonuses, or reimbursements to which an employee is entitled, or other compensation for personal services, other than amounts held in a payroll card, one year after the amount becomes payable.

(12) A deposit or refund owed to a subscriber by a utility, one year after the deposit or refund becomes payable.

LRB-4503/1 - 2020 Legislature - 19 - JK:kjf S ECTION50 ASSEMBLY BILL 752 (13) Property not specified in this section or ss.

177.0202 to 177.0209, the earlier of 5 years after the owner first has a right to demand the property or the date on which the obligation to pay or distribute the property arises.

SECTION 51.

177.0202 of the statutes is created to read:

177.0202 When tax-deferred retirement account presumed abandoned.

(1) Subject to s.

177.0210, property held in a pension account or retirement account that qualifies for federal income tax deferral under the Internal Revenue Code is presumed abandoned if it is unclaimed by the apparent owner 3 years after the earliest of the following:

(a) The date on which a 2nd consecutive communication sent by the holder by 1st class mail to the apparent owner is returned to the holder by the U.S.

postal service as undeliverable, if the apparent owner has reached the age for which an early withdrawal penalty does not apply.

(b) If the 2nd communication is sent by the holder to the apparent owner later than 30 days after the date on which the first communication is returned to the holder by the U.S.

postal service as undeliverable, the date on which the first communication was returned as undeliverable, if the apparent owner has reached the age for which an early withdrawal penalty does not apply.

(c) The date on which the apparent owner becomes 70.5 years of age, if that can be determined by the holder.

(d) Any of the following, if distribution to avoid a tax penalty is required under the Internal Revenue Code:

1.

The date on which the holder receives confirmation of the death of the apparent owner in the ordinary course of the holder's business.

- 2020 Legislature - 20 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 51 2.

(1) (b)(c) or (d) applies, the holder shall attempt not later than 90 days after receipt of the notice or indication to confirm whether the apparent owner is deceased.

(3) If the holder does not send communications to the apparent owner ofby an1st accountclass mail, as described in sub.

(1)(1), by 1st class mail, the holder shall attempt to confirm the apparent owner's interest in the property by sending the apparent owner e-mail not later than 2 years after the apparent owner's last indication of interest in the LRBa0982/1 - 2020 Legislature - 3 - JK:cjs property, except that the holder shall promptly attempt to contact the apparent owner by 1st class mail if any of the following applies:

postal service as undeliverable, the property is presumed abandoned on3 years after the date determinedon underwhich sub.the mail is returned.

(1).”.SECTION 52.

177.0203 of the statutes is created to read:

177.0203 When other tax-deferred account presumed abandoned.

Subject to s.

177.0210, and except for property described under s.

177.0202 and property held in a plan described in section 529A of the Internal Revenue Code, LRB-4503/1 - 2020 Legislature - 21 - JK:kjf S ECTION 52 ASSEMBLY BILL 752 property held in an account or plan, including a health savings account, that qualifies for federal income tax deferral under the Internal Revenue Code is presumed abandoned if it is unclaimed by the apparent owner 3 years after the earliest of the following:

(1) The date specified under the Internal Revenue Code or by federal regulation by which the distribution of property must begin in order to avoid a penalty, if no such distribution has been made.

(2) Thirty years after the date on which the account was opened.

SECTION 53.

177.0204 of the statutes is created to read:

177.0204 When custodial account for a minor presumed abandoned.

(1) Subject to s.

177.0210, property held in an account established under any state's uniform gifts to minors act or uniform transfers to minors act is presumed abandoned if it is unclaimed by or on behalf of the minor on whose behalf the account was opened 3 years after the earliest of the following:

(a) The date on which a 2nd consecutive communication sent by the holder by 1st class mail to the minor's custodian is returned to the holder by the U.S.

postal service as undeliverable.

(b) If the 2nd communication is sent by the holder to the minor's custodian later than 30 days after the date on which the first communication is returned to the holder by the U.S.

postal service as undeliverable, the date on which the first communication was returned as undeliverable.

(c) The date on which the minor's custodian is required to transfer the property to the minor or the minor's estate in accordance with the uniform gifts to minors act or uniform transfers to minors act of the state in which the account was opened.

- 2020 Legislature - 22 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 53 (2) If the holder does not send communications to the custodian by 1st class mail, as described in sub.

(1), the holder shall attempt to confirm the custodian's interest in the property by sending the custodian e-mail not later than 2 years after the custodian's last indication of interest in the property, except that the holder shall promptly attempt to contact the custodian by 1st class mail if any of the following applies:

(a) The holder does not have information needed to send the custodian e-mail or the holder believes that the custodian's e-mail address in the holder's records is not valid.

(b) The holder receives notification that the e-mail was not received.

(c) The custodian does not respond to the e-mail within 30 days from the date on which the e-mail was sent.

(3) If 1st class mail sent under sub.

(2) is returned to the holder by the U.S.

postal service as undeliverable, the property is presumed abandoned 3 years after the date on which the mail is returned.

(4) The property in the account described under sub.

(1) is not subject to this section after the property is transferred to the minor or the minor's estate.

SECTION 54.

177.0205 of the statutes is created to read:

177.0205 When contents of safe deposit box presumed abandoned.

Tangible property held in a safe deposit box and proceeds from a sale of the property by the holder permitted by law of this state other than this chapter are presumed abandoned if the property remains unclaimed by the apparent owner 5 years after the earliest of the following:

(1) The expiration of the lease or rental period for the box.

LRB-4503/1 - 2020 Legislature - 23 - JK:kjf S ECTION 54 ASSEMBLY BILL 752 (2) The earliest date when the lessor of the box is authorized by contract or law of this state other than this chapter to enter the box and remove or dispose of the contents without consent or authorization of the lessee.

SECTION 55.

177.0207 of the statutes is created to read:

177.0207 When security presumed abandoned.

(1) Subject to s.

177.0210, a security is presumed to be abandoned 3 years after the following:

(a) The date on which a 2nd consecutive communication sent by the holder by 1st class mail to the apparent owner is returned to the holder by the U.S.

postal service as undeliverable.

(b) If the 2nd communication is sent by the holder to the apparent owner later than 30 days after the date on which the first communication is returned to the holder by the U.S.

postal service as undeliverable, the date on which the first communication was returned as undeliverable.

(2) If the holder does not send communications to the apparent owner of the security by 1st class mail, as described in sub.

(1), the holder shall attempt to confirm the apparent owner's interest in the security by sending the apparent owner e-mail not later than 2 years after the apparent owner's last indication of interest in the security, except that the holder shall promptly attempt to contact the apparent owner by 1st class mail if any of the following applies:

(a) The holder does not have information needed to send the apparent owner e-mail or the holder believes that the apparent owner's e-mail address in the holder's records is not valid.

(b) The holder receives notification that the e-mail was not received.

(c) The apparent owner does not respond to the e-mail within 30 days from the date on which the e-mail was sent.

- 2020 Legislature - 24 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 55 (3) If 1st class mail sent under sub.

(2) is returned to the holder by the U.S.

postal service as undeliverable, the security is presumed abandoned 3 years after the date on which the mail is returned.

SECTION 56.

177.0208 of the statutes is created to read:

177.0208 When related property presumed abandoned.

At and after the time property is presumed abandoned under this chapter, any property right or interest accrued or accruing from property presumed abandoned under this chapter is presumed abandoned.

SECTION 57.

177.0210 of the statutes is created to read:

177.0210 Indication of apparent owner interest in property.

(1) Property is presumed abandoned from the earliest of the following:

(a) The date on which the property is otherwise presumed abandoned under this subchapter.

(b) The date on which the dormancy period has elapsed following the last indication of interest by the apparent owner in the property.

(2) Under this chapter, an indication of an apparent owner's interest in property includes the following:

(a) A record communicated by the apparent owner to the holder or the holder's agent concerning the property or the account in which the property is held.

(b) An oral communication by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held, if the holder or the holder's agent contemporaneously makes and preserves a record of the fact of the apparent owner's communication.

(c) Presentment of a check or other instrument of payment of a dividend, interest, or other distribution, or evidence of receipt of a distribution made by LRB-4503/1 - 2020 Legislature - 25 - JK:kjf S ECTION 57 ASSEMBLY BILL 752 electronic or similar means, with respect to an account, underlying security, or interest in a business association.

(d) Activity directed by an apparent owner in the account in which the property is held, including accessing the account or information concerning the account, or a direction by the apparent owner to increase, decrease, or otherwise change the amount or type of property held in the account.

(e) A deposit into or withdrawal from an account at a financial organization, including an automatic deposit or withdrawal previously authorized by the apparent owner, other than an automatic reinvestment of dividends or interest.

(f) Subject to sub.

(5), payment of a premium on an insurance policy.

(g) Any other action by the apparent owner that reasonably demonstrates to the holder that the apparent owner knows that the property exists.

(3) An action by an agent or other representative of an apparent owner, other than the holder acting as the apparent owner's agent, is presumed to be an action on behalf of the apparent owner.

(4) A communication with an apparent owner by a person other than the holder or the holder's representative is not an indication of interest in the property by the apparent owner unless a record of the communication evidences the apparent owner's knowledge of a right to the property.

(5) If an insured person dies or the insured or beneficiary of an insurance policy otherwise becomes entitled to the proceeds before depletion of the cash surrender value of the policy by operation of an automatic-premium-loan provision or other nonforfeiture provision contained in the policy, the operation does not prevent the policy from maturing or terminating for purposes of this chapter.

SECTION 58.

177.0211 of the statutes is created to read:

- 2020 Legislature - 26 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 S ECTION 58 177.0211 Knowledge of death of insured or annuitant.

(1) In this section, “death master file” means the federal social security administration death master file or other database or service that is at least as comprehensive as the federal social security administration death master file for determining that a person has reportedly died.

(2) With respect to a life or endowment insurance policy or annuity contract for which an amount is owed on proof of death, but which has not matured by proof of death of the insured or annuitant, the insurance company has knowledge of the death of an insured or annuitant when any of the following occurs:

(a) The insurance company receives a death certificate or court order determining that the insured or annuitant has died.

(b) The insurance company or other person validates the death of the insured or annuitant by its performance of due diligence, as required under ch.

632 or other law, to maintain contact with the insured or annuitant to determine whether the insured or annuitant has died.

(c) The insurance company compares for any purpose a death master file with the names of some or all of the company's insureds or annuitants, finds a match that provides notice that the insured or annuitant has died, and the company validates the death.

(d) The insurance company receives notice of the death of the insured or annuitant from a beneficiary, policy owner, relative, or trustee, or from the personal or legal representative of the insured's or annuitant's estate and the company validates the death.

(3) The following applies to validating the death of the insured or annuitant under this section:

LRB-4503/1 - 2020 Legislature - 27 - JK:kjf S ECTION 58 ASSEMBLY BILL 752 (a) A death master file match occurs if the criteria for an exact or partial match is satisfied as provided by a law of this state other than this chapter or by a rule promulgated or policy adopted by the office of the commissioner of insurance.

(b) A death master file match does not constitute proof of death for the purpose of submission to an insurance company of a claim by a beneficiary, annuitant, or owner of the policy or contract for an amount due under an insurance policy or annuity contract.

(c) The death master file match or validation of the insured's or annuitant's death does not alter the requirements for a beneficiary, annuitant, or owner of the policy or contract to make a claim to receive proceeds under the terms of the policy or contract.

(d) If no provision in a law of this state or a rule promulgated or policy adopted by the office of the commissioner of insurance establishes a time for validation of a death of an insured or annuitant, the insurance company shall make a good faith effort using other available records and information to validate the death, and document the effort taken for such validation, not later than 90 days after the insurance company has notice of the death.

(4) This chapter does not affect the determination of the extent to which an insurance company before the effective date of this chapter had knowledge of the death of an insured or annuitant or was required to conduct a death master file comparison to determine whether amounts owed by the company on a life or endowment insurance policy or annuity contract were presumed abandoned or unclaimed.

SECTION 59.

177.0212 of the statutes is created to read:

- 2020 Legislature - 28 - LRB-4503/1 JK:kjf ASSEMBLY BILL 752 SECTION 59 177.0212 Deposit account for proceeds of insurance policy or annuity contract.

If proceeds payable under a life or endowment insurance policy or annuity contract are deposited into an account with check or draft writing privileges for the beneficiary of the policy or contract and, under a supplementary contract not involving annuity benefits other than death benefits, the proceeds are retained by the insurance company or the financial organization where the account is held and the policy or contract includes the assets in the account, the assets in the account are subject to the same presumption of abandonment that is applied to the underlying policy or contract.

SECTION 60.

177.0214 of the statutes is created to read:

177.0214 Distributions by certain insurance company activities.

(1) Subject to s.

177.0210, property distributable in the course of a demutualization of an insurance company is presumed abandoned.

(2) Subject to s.

177.0210, property distributable in the course of the dissolution of the Health Insurance Risk-Sharing Plan under 2013 Wisconsin Act 20, section 9122 (1L), and 2013 Wisconsin Act 116, section 32 (1) (b), is presumed abandoned.

SECTION 61.

177.03 of the statutes is repealed.

SECTION 62.

Subchapter III (title) of chapter 177 [precedes 177.0301] of the statutes is created to read:

CHAPTER 177 SUBCHAPTER III TAKING CUSTODY OF PROPERTY PRESUMED ABANDONED SECTION 63.

177.0301 of the statutes is created to read:

LRB-4503/1 - 2020 Legislature - 29 - JK:kjf SECTION 63 ASSEMBLY BILL 752 177.0301 Address of apparent owner to establish priority.

(1) The last-known address of an apparent owner is any description, code, or other indication of the location of the apparent owner that identifies the state, even if the description, code, or indication of location is not sufficient to direct the delivery of 1st class mail to the apparent owner.