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A07742 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
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.