Relates to abandoned property delivered to the state and held by the state comptroller

BILL NUMBER:S7147

Title of bill

An act to amend the general business law, in relation to the sale of abandoned property location services; and to amend the abandoned property law, in relation to restrictions on agreements to locate abandoned property

Purpose

The purpose of this legislation is to clarify language relating to the type of abandoned property that is subject to abandoned property location services. Specifically, abandoned property delivered to the state of New York and held by the State Comptroller. This corrects the problems that arise when the finder and claimant are located out of state.

Summary of provisions

Section 1 amends Subdivision 2 of Section 393-e of the General Business Law to provide that any person, corporation, association, partnership or other entity which sells or offers to sell any abandoned property location services for abandoned property delivered to the state of New York and held by the State Comptroller shall, in every solicitation and agreement for such services, provide to the purchaser of such location services the following notice in a clear and conspicuous manner, and in at least twelve-point boldface type prior to the time of sale.

"Abandoned funds held by the State can be obtained directly from the Office of the State Comptroller by the owner of such funds without paying a fee. These funds are held indefinitely by the Office of the State Comptroller. For more information, contact the Office of the State Comptroller at (insert the current telephone number established by the Office of the State Comptroller for receiving inquiries from consumers regarding unclaimed funds) or (insert the current address of the website of the Office of the State Comptroller)."

Section 2 amends Subdivision 2 of Section 1416 of the Abandoned Property Law providing that the provisions of such section shall apply to any person, corporation, association, partnership or other entity which sells or offers to sell abandoned property location services for abandoned property delivered to the state and held by the state comptroller; provided, however, that this section shall not apply to a client's agreement with an attorney or accountant where the services in question can only be performed by an attorney or accountant; or there is a pre-existing relationship between the attorney or accountant and the client; or the agreement results from an effort initiated by the client to engage the attorney or accountant.

Prior legislative history

New bill.

Justification

Currently, the General Business Law and the Abandoned Property Law require that any person, corporation, association, partnership or

other entity which sells or offers to sell in this state any abandoned property location services (a/k/a a finder) shall, in every solicitation and agreement for such services, provide to the purchaser (a/k/a owner of the funds) notice that abandoned funds held by the state can be obtained directly from the Office of the State Comptroller by the owner of such funds without paying a fee.

This proposal clarifies language relating to location services provided by finders. The current statutory language is ambiguous and could be interpreted to exempt abandoned property location services agreements from the provisions of this statute when both the finder and the finder's client are not located in the state of New York. This proposal corrects the problem and makes it clear that this statute applies when the finder and claimant are located outside of the state of New York.

Fiscal implications for state

This bill has no State fiscal impact.

Effective date

This act shall take effect immediately.