LRB-3491/1
TKK:jld:jf
2013 - 2014 LEGISLATURE
February 26, 2014 - Introduced by Senators Grothman,
Risser and L. Taylor,
cosponsored by Representative
Murphy. Referred to Committee on Workforce
Development, Forestry, Mining, and Revenue.
SB634,1,4
1An Act to amend 177.26 and 177.34 (1) of the statutes;
relating to: procedures
2for establishing a claim to abandoned, intangible property and interest due on
3property determined to be abandoned and due to be paid or delivered to the
4Department of Revenue.
Analysis by the Legislative Reference Bureau
Under current law, a person who holds property that has been determined to
be abandoned by the owner of the property must pay or deliver that property to the
Department of Revenue (department). If the person who holds the property fails to
pay or deliver the property within the time required by law, the person must pay
interest on the property or the value of the property at the annual rate of 18 percent
from the date the property should have been paid or delivered. Under this bill, the
department may only require a person to pay interest on the property if the person
has willfully neglected to pay or deliver the property in a timely manner. The bill also
changes the interest rate from 18 percent to 12 percent.
Under current law, a person may claim an interest in abandoned, intangible
property by filing a claim with the department. Intangible property is presumed to
be abandoned if it is held, issued, or owing in the ordinary course of a holder's
business and it has remained unclaimed by the owner for more than five years after
it became payable or distributable. Current law requires the department to consider
each claim within 90 days after the claim is filed. The department may also refer a
claim to the attorney general for an opinion on whether to either allow the claim or
deny the claim in whole or in part.
A person aggrieved by a decision of the department or whose claim has not been
acted upon within 90 days (claimant) may, under current law, bring an action to
establish the claim in circuit court. If, in circuit court, the claimant establishes the
claim against the department, the court must award costs and reasonable attorney
fees to the claimant.
This bill permits a claimant to petition for judicial review of the decision or
inaction of the department under chapter 227 of the Wisconsin Statutes; chapter 227
establishes uniform procedures for the review of administrative actions and
decisions. The bill also eliminates the mandatory award of costs and reasonable
attorneys fees to a claimant who prevails against the department in circuit court in
those cases in which the circuit court determines the department was substantially
justified in taking its position or in which special circumstances exist that would
make the award of costs and attorney fees unjust.
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:
SB634,1
1Section
1. 177.26 of the statutes is amended to read:
SB634,2,11
2177.26 Action to establish claim. A person aggrieved by a decision of the
3administrator or whose claim has not been acted upon within 90 days after its filing
4may
bring an action to establish the claim in the circuit court, naming the
5administrator as a defendant. The action shall be brought petition for judicial review
6of the decision or of the claim under s. 227.52, except that petitions for review shall
7be served and filed within 90 days after the decision of the administrator or within
8180 days after the filing of the claim if the administrator has failed to act on it. If the
9person establishes the claim in an action against the administrator, the
court shall 10standards under s. 227.485 shall apply to the award
the person of costs and
11reasonable attorney fees
by the court.
SB634,2
12Section
2. 177.34 (1) of the statutes is amended to read:
SB634,3,213
177.34
(1) A The administrator may require a person who
fails willfully
14neglects to pay or deliver property within the time prescribed by this chapter
shall
1to pay the administrator interest at the annual rate of
18% 12 percent on the property
2or value thereof from the date the property should have been paid or delivered.
