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A10118 Text:

                STATE OF NEW YORK
                   IN ASSEMBLY
                                     March 16, 2018
        Introduced  by  M.  of  A.  WEINSTEIN  -- (at request of the State Comp-
          troller) -- read once and referred to the Committee on Ways and Means
        AN ACT to amend the abandoned property law, in  relation  to  conforming
          language   relating  to  the  preliminary  reporting  requirement  for
          unclaimed amounts of money or other property;  precluding  abandonment
          based  upon undeliverable mail; authorizing the accrual of interest on
          life insurance policies after payment of  abandoned  property  to  the
          state comptroller; increasing the minimum amount of an abandoned prop-
          erty claim; increasing the threshold for certified mailings; recogniz-
          ing  electronic  contact  by an owner as written contact; to amend the
          abandoned property law and the surrogate's  court  procedure  act,  in
          relation  to  authorizing  the  payment of interest on monies received
          directly from surrogate's court and held by the state  comptroller  as
          abandoned property; and to amend the state finance law, in relation to
          annual reports to the state comptroller of custodian of court funds
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph (a) of subdivision 3 of section 402 of the  aban-
     2  doned property law is amended to read as follows:
     3    (a) that a report of unclaimed amounts of money or other property held
     4  or  owing  by it [has been made to] will be prepared for the state comp-
     5  troller and that a list of the names of the person or persons  appearing
     6  from  the  records of such corporation to be entitled thereto is on file
     7  and open to public inspection at its principal office or place of  busi-
     8  ness in any city, village or county where any such abandoned property is
     9  payable;
    10    §  2.  Paragraph  (c) of subdivision 3 of section 501 of the abandoned
    11  property law, as amended by chapter 61 of the laws of 1989,  is  amended
    12  to read as follows:
    13    [(c)  Notice  regarding such wages has been sent by the corporation or
    14  fiduciary, via first class mail, to such  resident  at  his  last  known
    15  address  and such notice has been returned to the corporation or fiduci-
    16  ary by the postal authorities for inability to locate such resident.]
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 10118                            2
     1    § 3. Subdivision 1-a of section 1315 of the abandoned property law, as
     2  amended by section 2 of part II of chapter 57 of the laws  of  2010,  is
     3  amended to read as follows:
     4    1-a.  Any  amount  representing outstanding checks issued on and after
     5  July first, nineteen hundred seventy-four [in payment for goods  or  for
     6  services,  and  owing  in  this  state,]  or held by or on behalf of any
     7  corporation (other than a  public  corporation),  joint  stock  company,
     8  individual,  association  of two or more individuals, committee or busi-
     9  ness trust in this state, and which has remained unclaimed by the  owner
    10  of such amount for three years, shall be deemed abandoned property.
    11    §  4.  Paragraph (a) of subdivision 1 of section 1405 of the abandoned
    12  property law, as amended by section 13 of part R of chapter  85  of  the
    13  laws of 2002, is amended to read as follows:
    14    (a)  Notwithstanding any other provision of law, no owner of abandoned
    15  property shall be entitled to receive interest on account of such  aban-
    16  doned property from and after the date a payment of such abandoned prop-
    17  erty is hereafter made to the state comptroller pursuant to this chapter
    18  or any law relating to abandoned property, whether or not [he] the owner
    19  was  entitled  to  interest  on such property prior to such date, except
    20  that interest at the overpayment rate set by the commissioner  of  taxa-
    21  tion and finance pursuant to subsection (j) of section six hundred nine-
    22  ty-seven  of  the  tax  law,  less one percentage point, shall accrue to
    23  abandoned property hereafter paid to the  state  comptroller  under  the
    24  following  provisions  of  this  chapter,  for the first five years such
    25  property is held by [him] the state comptroller:
    26    (i) paragraph (a) of subdivision one of section three hundred of  this
    27  chapter; or
    28    (ii) subdivision one of section four hundred of this chapter; or
    29    (iii)  paragraph (a) of subdivision one of section six hundred of this
    30  chapter; or
    31    (iv) paragraph (c) of subdivision one of section seven hundred of this
    32  chapter; or
    33    (v) subdivision one of section ten hundred of this chapter; or
    34    (vi) subdivision one of section two thousand two hundred twenty-two of
    35  the surrogate's court procedure act.
    36    § 5. The opening paragraph  of  paragraph  (a)  of  subdivision  1  of
    37  section 1406 of the abandoned property law, as amended by chapter 815 of
    38  the laws of 1963, is amended to read as follows:
    39    Claim  may be filed with the state comptroller for any abandoned prop-
    40  erty amounting to over [three] twenty dollars, including any claim to  a
    41  security  delivered to the state comptroller on or after November first,
    42  nineteen hundred ninety-one, with a fair market value  exceeding  twenty
    43  dollars  at  the time of claim heretofore paid to the state or hereafter
    44  paid or delivered to the state comptroller  pursuant  to  this  chapter,
    45  except abandoned property heretofore paid to the state pursuant to
    46    §  6.  Subdivision 2 of section 1422 of the abandoned property law, as
    47  added by section 6 of part P of chapter 62  of  the  laws  of  2003,  is
    48  amended to read as follows:
    49    2.  Where  notice is required by subdivision one of this section, each
    50  holder shall, with respect to property listed in such report whose value
    51  is in excess of [one] three thousand  dollars,  send  a  second  written
    52  notice to the owner by certified mail, return receipt requested not less
    53  than  sixty  days  prior  to  the  applicable  reporting  date  for such
    54  unclaimed property, provided that no notice pursuant to this subdivision
    55  shall be required where: (a) such holder has received a claim  from  the

        A. 10118                            3
     1  owner of the property; or (b) the original mailing was returned as unde-
     2  liverable.
     3    §  7.  The  abandoned  property law is amended by adding a new section
     4  1423 to read as follows:
     5    § 1423. Electronic contact. Notwithstanding any  other  provisions  of
     6  this  chapter,  the  comptroller  shall promulgate rules and regulations
     7  establishing when an electronic communication from the apparent owner of
     8  amounts or securities as defined in this chapter shall constitute "writ-
     9  ten contact" for purposes of tolling the dormancy period.
    10    § 8. Subdivision 2 of section 2222 of the surrogate's court  procedure
    11  act,  as  amended by chapter 125 of the laws of 1972, is amended to read
    12  as follows:
    13    2. The court or the supreme court upon the petition of a person claim-
    14  ing to be so entitled and upon at least  14  days'  notice,  accompanied
    15  with  a  copy  of the petition, to the attorney general, the state comp-
    16  troller and the public administrator of the county or if there be  none,
    17  the county treasurer, may by a reference or by directing the trial of an
    18  issue by a jury or otherwise, ascertain the rights of the persons inter-
    19  ested  and  grant  an  order  directing  the  payment of any money which
    20  appears to be due to the claimant,  [but  without  interest  and]  after
    21  deducting all expenses incurred by the state with respect thereto.
    22    §  9.  Section 184 of the state finance law, as amended by chapter 655
    23  of the laws of 1978, is amended to read as follows:
    24    § 184. Annual reports to comptroller  of  custodian  of  court  funds.
    25  Every  treasurer  or  financial  officer  who  has  [in  his  charge or]
    26  possession of or [under his] control of, or who keeps a record of money,
    27  bonds, stocks, mortgages or any other securities or  property  deposited
    28  into court and held by [him] such officer, must, once in each year, make
    29  a report to the state comptroller at the time and in the form and manner
    30  which [he] the comptroller may prescribe, containing a true statement of
    31  [his]  the  accounts for the preceding year or from the time of the last
    32  report. This report must be verified by the oath of  such  officer,  and
    33  must  be  accompanied  by  the certificate of the proper officer of each
    34  bank or trust company, stating the exact amount  on  deposit  with  such
    35  corporation.  Every  savings  bank,  bank or trust company having in its
    36  possession, pursuant to an order of a court  of  record,  money,  bonds,
    37  stocks,  mortgages  or  any  other securities or property which were not
    38  first deposited in court and delivered to a county treasurer,  financial
    39  officer  or  commissioner of finance of the city of New York, must, once
    40  in each year, make a report to the comptroller at such time as [he]  the
    41  comptroller  shall  prescribe, stating separately for each case the name
    42  of the court, the title of the action or proceeding,  the  date  of  the
    43  receipt,  from whom received, for whom received, the amount of money, if
    44  any, a description of the securities or other property, each addition of
    45  interest and each change of investment, the amount so held at  the  date
    46  of  report, the date and description of each other directing payment and
    47  the dates and amounts of payments thereunder and to whom  made.    Every
    48  officer,  or  bank  or  trust  company  mentioned in this section, shall
    49  furnish any additional report to the comptroller or to the court at such
    50  time and in such detail as may be required.  The comptroller  shall  not
    51  disclose  any  amounts  listed  on any report, except that the aggregate
    52  amount of funds reported in any report may be disclosed.
    53    § 10. This act shall take effect immediately.
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