NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7742A
SPONSOR: Lavine TITLE OF BILL:
An act to amend the abandoned property law, in relation to including
unclaimed virtual currency within the scope of property covered by such
law
PURPOSE:
The purpose of this proposed legislation is to provide coverage for
virtual currency.
SUMMARY OF PROVISIONS:
Section 1 of this bill amends Section 103 of the abandoned property law
by adding two new subdivisions (h) and (i) defining the terms "virtual
currency" and "virtual currency business activity."
Section 2 amends the abandoned property law to add a new section 1319
providing coverage for unclaimed virtual currency.
Section 3 provides for an immediate effective date. JUSTIFICATION: The
State Comptroller is the custodian of the Abandoned Property Fund. This
legislation is designed to update the Abandoned Property Law
(APL) to allow "virtual currency", a new type of property, to be
included under the definition of abandoned property when it otherwise
meets the statutory requirements. Consistent with the regulations
issued by the Department of Financial Services, which regulates virtual
currency business activity (Title 23, Part 200), this change provides
statutory coverage for unclaimed virtual currency and provides reporting
instructions to holders of such property. By providing coverage for
virtual currency under the APL, the owner's rights will be protected.
Holders of such property will be subject to the same due diligence
requirements required of other holders under the APL.
The State Comptroller urges the passage of this proposed legislation.
PRIOR LEGISLATIVE HISTORY: 2021: A.7742
FISCAL IMPLICATION:.
The new coverage is estimated to increase receipts by $2-5 million annu-
ally in virtual currency.
EFFECTIVE DATE:
This act shall take effect immediately.
