Bill Text: NY A08314 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to recognizing electronic contact by an owner as written contact and including unclaimed virtual currency within the definition of abandoned property.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A08314 Detail]

Download: New_York-2019-A08314-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8314

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      June 13, 2019
                                       ___________

        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  including
          unclaimed  virtual  currency  within  the scope of property covered by
          such law; reducing the dormancy for wages; and authorizing the promul-
          gation of regulations recognizing electronic communication as  written
          contact

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 103 of the abandoned property  law  is  amended  by
     2  adding two new subdivisions (h) and (i) to read as follows:
     3    (h) (i) "Virtual currency" means any type of digital unit that is used
     4  for  a  medium of exchange or a form of digitally stored value.  Virtual
     5  currency shall be broadly construed to include digital units of exchange
     6  that (A) have a central depository or administrator; (B) are  decentral-
     7  ized  and have no centralized repository or administrator; or (C) may be
     8  created or obtained by computing or manufacturing effort.
     9    (ii) Virtual currency shall not include digital  units  that  are  (A)
    10  solely  used  within  online  gaming  platforms, (B) redeemed for goods,
    11  services, discounts or purchases as part of a  reward  program,  or  (C)
    12  used as part of prepaid cards.
    13    (i)  "Virtual currency business activity" means the conduct of any one
    14  of the following types of activities involving New York or  a  New  York
    15  resident:
    16    (i) receiving virtual currency for transmission or transmitting virtu-
    17  al  currency,  except where the transaction is undertaken for non-finan-
    18  cial purposes and does not involve more than a nominal amount of virtual
    19  currency;
    20    (ii) storing, holding or maintaining custody  or  control  of  virtual
    21  currency on behalf of others;
    22    (iii) buying and selling virtual currency as a customer business; or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11824-03-9
        A. 8314                             2

     1    (iv) controlling, administering, or issuing a virtual currency.
     2    §  2.  The  abandoned  property law is amended by adding a new section
     3  1423 to read as follows:
     4    § 1423. Electronic contact. Notwithstanding  any  other  provision  of
     5  this  chapter,  the  comptroller  shall promulgate rules and regulations
     6  establishing when an electronic communication from the apparent owner of
     7  amounts or securities as defined in this chapter shall constitute "writ-
     8  ten contact" for purposes of tolling the dormancy period.
     9    § 3. The opening paragraph of subdivision 3  of  section  501  of  the
    10  abandoned property law, as amended by chapter 61 of the laws of 1989, is
    11  amended to read as follows:
    12    Any wages payable on or after July first, nineteen hundred sixty-three
    13  by  a  domestic  or  foreign corporation and held for a resident by such
    14  issuing corporation or held and payable by  a  fiduciary  other  than  a
    15  broker  or dealer as defined in section five hundred ten of this chapter
    16  for a resident shall be deemed  to  be  abandoned  property,  where  for
    17  [three successive years] one year:
    18    § 4. The opening paragraph and paragraphs (b) and (c) of subdivision 5
    19  of  section 511 of the abandoned property law, as amended by chapter 767
    20  of the laws of 1983, are amended to read as follows:
    21    Any wages held and payable on or after July  first,  nineteen  hundred
    22  sixty-six  by a broker or dealer, as defined in section five hundred ten
    23  of this article, for the benefit  of  a  person  or  persons,  known  or
    24  unknown  shall  be  deemed  to  be  abandoned property, where for [three
    25  successive years] one year:
    26    (b) No written communication has been received from such person by the
    27  holder[, and
    28    (c) Notice regarding such wages, if sent by the broker or dealer,  via
    29  first  class  mail,  to  such  person at his last known address has been
    30  returned to the broker or dealer by the postal authorities for inability
    31  to locate such person].
    32    § 5. The abandoned property law is amended by  adding  a  new  section
    33  1318 to read as follows:
    34    §  1318.  Unclaimed  virtual currency. 1. Any virtual currency held or
    35  owing by any banking organization, corporation or other  entity  engaged
    36  in   virtual  currency  business  activity  which  shall  have  remained
    37  unclaimed by the person entitled thereto for a  period  of  three  years
    38  shall be deemed abandoned property if:
    39    (a)  the  last  known  address  of the person entitled to such virtual
    40  currency as shown on the books and records of the entity engaging in the
    41  virtual currency business activity is located in the state; or
    42    (b) the last known address of the  person  entitled  to  such  virtual
    43  currency is not shown on the books and records of the entity engaging in
    44  the virtual currency business activity and the entity is incorporated in
    45  this state.
    46    2. (a) Any virtual currency held or owing by a banking organization, a
    47  corporation  or other entity engaged in virtual currency business deemed
    48  abandoned under this section as of the thirtieth day  of  the  preceding
    49  June  shall  be  paid  or  delivered to the comptroller on or before the
    50  tenth day of the next succeeding November.
    51    (b) Payment or delivery shall be accompanied by a  true  and  accurate
    52  report  setting forth information relating to such abandoned property as
    53  the comptroller may require.
    54    3. Virtual currency reported  to  the  comptroller  pursuant  to  this
    55  section  shall  be  sold  on  any established exchange, or by such other
        A. 8314                             3

     1  means as the comptroller shall deem advisable,  as  soon  as  the  comp-
     2  troller in his or her discretion deems practicable.
     3    4.  The  proceeds  of  the  sale  of  virtual currency, less all costs
     4  incurred in connection with such sale, shall be deposited by  the  comp-
     5  troller  in the abandoned property fund and any claimant to such virtual
     6  currency shall be entitled only to the proceeds  of  the  sale  of  such
     7  virtual currency by the comptroller.
     8    § 6. This act shall take effect immediately.