S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7201
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 12, 2017
                                ___________
 
 Introduced  by M. of A. WALLACE -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN ACT to amend the abandoned property law, in relation to  setting  the
   statute of limitation at ten years and setting a penalty cap for small
   businesses
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1400 of the abandoned property law  is  amended  to
 read as follows:
   § 1400. Statutes of limitations [not a bar]. 1. The expiration [of any
 period  of  time  specified  by law] SHALL BE TEN YEARS, during which an
 action or proceeding may be commenced or enforced to secure payment of a
 claim for money or recovery of property, AND  shall  [not]  prevent  any
 such  money  or  property  from  being  deemed  abandoned property, [nor
 affect] BARRING any duty to file a report required by this chapter or to
 pay or deliver to the state comptroller  any  such  abandoned  property;
 [and] IF ANY ACTION OR PROCEEDING IS COMMENCED BEYOND THE TEN YEAR PERI-
 OD,  THIS  STATUTE OF LIMITATIONS shall [not] serve as a defense [in any
 action or proceeding by or] on behalf of the [state comptroller]  ENTITY
 FOR  FAILURE to [compel the filing of] FILE any report or the payment or
 delivery of any abandoned property  required  by  this  chapter  [or  to
 enforce or collect] AND TO BAR any penalty provided by this chapter.
   2.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
 THE STATUTE OF LIMITATIONS SET FORTH THEREIN SHALL NOT APPLY WHERE THERE
 IS EVIDENCE THE PROPERTY WAS WITHHELD WITH THE  INTENT  TO  DEFRAUD  THE
 RIGHTFUL OWNER OF THE PROPERTY.
   §  2.  Subdivision 1 of section 1412 of the abandoned property law, as
 amended by chapter 669 of the laws  of  1971,  is  amended  to  read  as
 follows:
   1.  (A)  Any  person  wilfully  failing  to make any full and complete
 report or to file any affidavit required by this chapter BEFORE THE  TEN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10737-01-7

 A. 7201                             2
 
 YEAR  PERIOD  shall  forfeit  to  the people of the state the sum of one
 hundred dollars for each day such report or affidavit shall be  wilfully
 delayed  or  withheld,  except that the state comptroller may extend the
 time  for  making  any  such report or filing any such affidavit and may
 waive the payment of any penalty or part thereof provided  for  by  this
 subdivision.
   (B)  THE  TOTAL  SUM  OF  SUCH  PENALTY SHALL NOT EXCEED FIVE THOUSAND
 DOLLARS FOR ENTITIES WITH GROSS REVENUES LESS THAN TEN  MILLION  DOLLARS
 PER ANNUM.
   § 3. Section 1412 of the abandoned property law is amended by adding a
 new subdivision 5 to read as follows:
   5.  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION ONE
 OF THIS SECTION, THE PENALTY CAP SET FORTH THEREIN SHALL NOT APPLY WHERE
 THERE IS EVIDENCE THAT SUCH PROPERTY WAS WITHHELD  WITH  THE  INTENT  TO
 DEFRAUD THE RIGHTFUL OWNER OF SUCH PROPERTY.
   § 4. This act shall take effect immediately.