Fraudulent claims for unclaimed property and providing a penalty, the official text

2025 - 2026 LEGISLATURE
LRB-5118/1
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2025 ASSEMBLY BILL 666
November 19, 2025 - Introduced by Representatives O'Connor, Tusler, Piwowarczyk, Bare, Behnke, Dittrich, Gundrum, B. Jacobson, Knodl, Kreibich, Murphy and Penterman, cosponsored by Senators Testin, Marklein and Nass. Referred to Committee on Criminal Justice and Public Safety.

An Act to amend 177.1104, 177.1204 (title) and 177.1205; to create 177.1201 (4) and 177.12045 of the statutes; relating to: fraudulent claims for unclaimed property and providing a penalty.

Analysis by the Legislative Reference Bureau
Current law provides certain penalties for persons who hold unclaimed property and fail to timely file a report with the Department of Revenue regarding that property or fail to timely deliver that property to DOR. For example, any person who fails to timely deliver abandoned property to DOR must pay a penalty equal to 15 percent of the value of the property.
This bill provides civil and criminal penalties for filing a claim with DOR for the property of another without the other’s consent and with the intent to deprive the owner of the property. A person who files such a claim is subject to a penalty equal to the total value of the property and is also guilty of a Class I felony.
In addition, under the bill, a claim submitted to DOR by a locator service under an agreement that does not comply with current law is subject to a penalty equal to the value of the unclaimed property plus $1,000 for property valued at no more than $15,000 or plus $2,500 for property valued at more than $15,000. The bill requires DOR to post on its website the name and address of each locator service that is assessed the penalty under the bill, including the amount of the penalty, no later than 90 days after the locator’s right to appeal the assessment has expired. Also, the information must remain on the website for at least 12 months following the date on which the information is initially posted.
Current law allows DOR to waive, in whole or in part, civil penalties applicable to persons who hold unclaimed property and who fail to comply with administrative requirements under current law. The bill allows DOR to waive, in whole or in part, the civil penalties provided under the bill. Finally, the attorney general is authorized, upon request from DOR, to represent the state or to assist the district attorney in the prosecution of any case arising under the bill.
Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report.
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:

Section 1. 177.1104 of the statutes is amended to read:
177.1104 Penalties. The provisions of s. ss. 177.1204 and 177.12045 (1) shall apply to an amount due as determined and assessed under this chapter.
Section 2. 177.1201 (4) of the statutes is created to read:
177.1201 (4) The attorney general is authorized, upon request from the administrator, to represent the state or to assist the district attorney in the prosecution of any case arising under s. 177.12045.
Section 3. 177.1204 (title) of the statutes is amended to read:
177.1204 (title) Penalties Holder penalties.
Section 4. 177.12045 of the statutes is created to read:
177.12045 Fraudulent claim penalties. (1) Civil penalties. (a) Any person who files a claim with the administrator for the property of another without the other’s consent and with the intent to deprive the owner of such property shall pay a penalty equal to the total value of the property.
(b) If a person files a claim described under s. 177.0903 (3), and the copy of the
agreement under subch. XIII filed with the claim does not comply with the requirements under s. 177.1301 (2), the person shall pay a penalty equal to the total value of the property plus $1,000 for property valued at no more than $15,000 or plus $2,500 for property valued at more than $15,000.
(2) Criminal penalties. Any person who files a claim with the administrator for the property of another without the other’s consent and with the intent to deprive the owner of such property is guilty of a Class I felony and may be assessed the cost of prosecution.
(3) Reporting. The administrator shall post on the website maintained by the administrator the name and address of each person who has been assessed a penalty under sub. (1) (b), along with the amount of the penalty and the date on which the administrator posted the information, no later than 90 days after the person’s right to appeal the assessment has expired. The information provided under this subsection shall remain on the website maintained by the administrator for at least 12 months following the date of the initial posting.
Section 5. 177.1205 of the statutes is amended to read:
177.1205 Waiver of penalties. The administrator may waive, in whole or in part, the penalties imposed under s. ss. 177.1204 and 177.12045 (1).
(end)