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Sponsors
No co-sponsors yet.
History
- Substituted by A9577
- Advanced to third reading
- 2nd report cal.
- 1st report cal.959
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Provides that court withdrawal actions must be commenced in the court which had original jurisdiction of the underlying matter
Signed by Governor · Sponsor Herman D. Farrell
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7332
Title of bill
An act to amend the abandoned property law, in relation to withdrawal actions
Purpose
The purpose of this legislation is to clarify that court withdrawal actions must be commenced in the court of original jurisdiction and specifically bars the commencement of court withdrawal actions as special proceedings against the State Comptroller.
Summary of provisions
Section 1 amends Subdivision 2 of section 1406 of the abandoned property law to increase from five to ten thousand dollars the amount of a claim for any abandoned property paid to the State that may be established only on order of the court which had original jurisdiction of the underlying matter, after service of notice upon the State Comptroller and upon due notice to all parties to the action or proceeding which resulted in the monies being paid into court (court withdrawal action.)
Also, provides that such court withdrawal action must be commenced in the court which had jurisdiction over the underlying matter using the court index number of that original action and further provides that no such withdrawal action shall be brought as a special proceeding against the State Comptroller.
Prior legislative history
New bill.
Justification
Recently, certain courts have held that court withdrawal actions to recover moneys paid into court and then subsequently turned over to the Office of the State Comptroller pursuant to the Abandoned Property Law should be brought as a special proceeding against the State Comptroller rather than what it actually is, simply a reopening of the original underlying action involving the same parties who were parties in the original action.
Therefore, it is necessary to clarify in statute that the court withdrawal actions must be commenced in the court of original jurisdiction and specifically bar the commencement of court withdrawal actions as special proceedings against the State Comptroller.
The proposal also increases the threshold for such withdrawal actions from five thousand to ten thousand where the underlying court record established someone's entitlement to court deposited funds now held by the State Comptroller (and such amount is below the threshold.) If the claimant can establish, by means of proof; to the State Comptroller that the claimant is the person who the court determined is entitled to the funds, the funds may be paid to such claimant without obtaining a court order thereby saving legal fees. This almost exclusively would apply in estate matters where the funds were clearly deposited for a known but unlocated distributee or legatee who later appears to claim the inheritance.
Fiscal implications for state
This bill has no significant State fiscal impact.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.