S T A T E   O F   N E W   Y O R K
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                                  6080

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 13, 2015
                               ___________

Introduced  by M. of A. FARRELL -- (at request of the State Comptroller)
  -- 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; clarifying language relating to statu-
  tory coverage of accounts payable and receivable credits;  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 property claim; authorizing the comptroller to
  establish guidelines for new forms of payment technologies; increasing
  the threshold for certified mailings; recognizing  electronic  contact
  by  an  owner  as written contact; and to amend the abandoned property
  law and the surrogate's court procedure act, in relation to  authoriz-
  ing  the  payment  of interest on monies received directly from surro-
  gate's court and held by the state comptroller as abandoned property

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Paragraph (a) of subdivision 3 of section 402 of the aban-
doned property law is amended to read as follows:
  (a) that a report of unclaimed amounts of money or other property held
or owing by it [has been made to] WILL BE PREPARED FOR the  state  comp-
troller  and that a list of the names of the person or persons appearing
from the records of such corporation to be entitled thereto is  on  file
and  open to public inspection at its principal office or place of busi-
ness in any city, village or county where any such abandoned property is
payable;
  S 2. Paragraph (c) of subdivision 3 of section 501  of  the  abandoned
property  law,  as amended by chapter 61 of the laws of 1989, is amended
to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08236-02-5

              

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  [(c) Notice regarding such wages has been sent by the  corporation  or
fiduciary,  via  first  class  mail,  to such resident at his last known
address and such notice has been returned to the corporation or  fiduci-
ary by the postal authorities for inability to locate such resident.]
  S 3. Subdivisions 1-a and 1-b of section 1315 of the abandoned proper-
ty  law,  subdivision  1-a  as  amended  and subdivision 1-b as added by
section 2 of part II of chapter 57 of the laws of 2010, are  amended  to
read as follows:
  1-a.  Any  amount  representing outstanding checks issued on and after
July first, nineteen hundred seventy-four [in payment for goods  or  for
services,  and  owing  in  this  state,]  or held by OR ON BEHALF OF any
corporation (other than a  public  corporation),  joint  stock  company,
individual,  association  of two or more individuals, committee or busi-
ness trust in this state, and which has remained unclaimed by the  owner
of such amount for three years, shall be deemed abandoned property.
  1-b.  Any unclaimed amount [for services not rendered or for goods not
delivered] REPRESENTING ACCOUNTS PAYABLE OR RECEIVABLE CREDITS, REFUNDS,
REBATES, CREDITS, OVERPAYMENTS OR DEPOSITS, which amount [was  received]
IS  HELD  BY  OR  ON BEHALF OF A CORPORATION (OTHER THAN A PUBLIC CORPO-
RATION), JOINT STOCK COMPANY, INDIVIDUAL, ASSOCIATION  OF  TWO  OR  MORE
INDIVIDUALS,  COMMITTEE  OR  BUSINESS  TRUST  IN  THIS STATE, after July
first, nineteen hundred seventy-four, or in the case of a public utility
company as that term is defined in subdivision twenty-three  of  section
two  of the public service law, on or after July first, nineteen hundred
eighty which has remained unclaimed by the  owner  of  such  amount  for
three years, shall be deemed abandoned property.
  S  4.  Paragraph (a) of subdivision 1 of section 1405 of the abandoned
property law, as amended by section 13 of part R of chapter  85  of  the
laws of 2002, is amended to read as follows:
  (a)  Notwithstanding any other provision of law, no owner of abandoned
property shall be entitled to receive interest on account of such  aban-
doned property from and after the date a payment of such abandoned prop-
erty is hereafter made to the state comptroller pursuant to this chapter
or any law relating to abandoned property, whether or not [he] THE OWNER
was  entitled  to  interest  on such property prior to such date, except
that interest at the overpayment rate set by the commissioner  of  taxa-
tion and finance pursuant to subsection (j) of section six hundred nine-
ty-seven  of  the  tax  law,  less one percentage point, shall accrue to
abandoned property hereafter paid to the  state  comptroller  under  the
following  provisions  of  this  chapter,  for the first five years such
property is held by [him] THE STATE COMPTROLLER:
  (i) paragraph (a) of subdivision one of section three hundred of  this
chapter; or
  (ii) subdivision one of section four hundred of this chapter; or
  (iii)  paragraph (a) of subdivision one of section six hundred of this
chapter; or
  (iv) PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION SEVEN HUNDRED OF THIS
CHAPTER; OR
  (V) subdivision one of section ten hundred of this chapter; OR
  (VI) SUBDIVISION ONE OF SECTION TWO THOUSAND TWO HUNDRED TWENTY-TWO OF
THE SURROGATE'S COURT PROCEDURE ACT.
  S 5. The opening paragraph  of  paragraph  (a)  of  subdivision  1  of
section 1406 of the abandoned property law, as amended by chapter 815 of
the laws of 1963, is amended to read as follows:
  Claim  may be filed with the state comptroller for any abandoned prop-
erty amounting to over [three] TWENTY dollars, INCLUDING ANY CLAIM TO  A

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SECURITY  DELIVERED TO THE STATE COMPTROLLER ON OR AFTER NOVEMBER FIRST,
NINETEEN HUNDRED NINETY-ONE, WITH A FAIR MARKET VALUE  EXCEEDING  TWENTY
DOLLARS  AT  THE TIME OF CLAIM heretofore paid to the state or hereafter
paid  or  delivered  to  the state comptroller pursuant to this chapter,
except abandoned property heretofore paid to the state pursuant to
  S 6. Section 1414 of the abandoned property law, as added  by  chapter
459 of the laws of 1952, is amended to read as follows:
  S  1414.  Comptroller  to  make  regulations. The state comptroller is
hereby authorized to make such rules and  regulations  as  he  may  deem
necessary  to enforce the provisions of this chapter, INCLUDING, BUT NOT
LIMITED TO, RULES AND REGULATIONS  RELATING  TO  THE  INCLUSION  OF  NEW
PAYMENT TECHNOLOGIES WITHIN THE DEFINITION OF ABANDONED PROPERTY.
  S  7.  Subdivision 2 of section 1422 of the abandoned property law, as
added by section 6 of part P of chapter 62  of  the  laws  of  2003,  is
amended to read as follows:
  2.  Where  notice is required by subdivision one of this section, each
holder shall, with respect to property listed in such report whose value
is in excess of [one] THREE thousand  dollars,  send  a  second  written
notice to the owner by certified mail, return receipt requested not less
than  sixty  days  prior  to  the  applicable  reporting  date  for such
unclaimed property, provided that no notice pursuant to this subdivision
shall be required where: (a) such holder has received a claim  from  the
owner of the property; or (b) the original mailing was returned as unde-
liverable.
  S  8.  The  abandoned  property law is amended by adding a new section
1423 to read as follows:
  S 1423. ELECTRONIC CONTACT. NOTWITHSTANDING ANY  OTHER  PROVISIONS  OF
THIS  CHAPTER,  THE  COMPTROLLER  SHALL PROMULGATE RULES AND REGULATIONS
ESTABLISHING WHEN AN ELECTRONIC COMMUNICATION FROM THE APPARENT OWNER OF
AMOUNTS OR SECURITIES AS DEFINED IN THIS CHAPTER SHALL CONSTITUTE "WRIT-
TEN CONTACT" FOR PURPOSES OF TOLLING THE DORMANCY PERIOD.
  S 9. Subdivision 2 of section 2222 of the surrogate's court  procedure
act,  as  amended by chapter 125 of the laws of 1972, is amended to read
as follows:
  2. The court or the supreme court upon the petition of a person claim-
ing to be so entitled and upon at least  14  days'  notice,  accompanied
with  a  copy  of the petition, to the attorney general, the state comp-
troller and the public administrator of the county or if there be  none,
the county treasurer, may by a reference or by directing the trial of an
issue by a jury or otherwise, ascertain the rights of the persons inter-
ested  and  grant  an  order  directing  the  payment of any money which
appears to be due to the claimant,  [but  without  interest  and]  after
deducting all expenses incurred by the state with respect thereto.
  S 10. This act shall take effect immediately.