Bill Text: NY A10239 | 2011-2012 | General Assembly | Introduced

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Bill Title: Relates to the sale of abandoned property location services and to restrictions on agreements to locate abandoned property.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2012-08-01 - signed chap.332 [A10239 Detail]

Download: New_York-2011-A10239-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         10239
                                 I N  A S S E M B L Y
                                     May 15, 2012
                                      ___________
       Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
         tee on Consumer Affairs and Protection
       AN  ACT  to  amend  the general business law, in relation to the sale of
         abandoned property location services; and to amend the abandoned prop-
         erty law, in relation to restrictions on agreements  to  locate  aban-
         doned property
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The general business law is amended by adding a new section
    2  393-e to read as follows:
    3    S 393-E. SALE OF ABANDONED PROPERTY  LOCATION  SERVICES.  1.  FOR  THE
    4  PURPOSES  OF  THIS SECTION, "ABANDONED PROPERTY LOCATION SERVICES" SHALL
    5  INCLUDE ANY SERVICE FOR A FEE PROVIDING ASSISTANCE TO CONSUMERS FOR  THE
    6  PURPOSES  OF LOCATING AND/OR RETRIEVING PROPERTY HELD BY THE STATE COMP-
    7  TROLLER PURSUANT TO THE ABANDONED PROPERTY LAW.
    8    2. ANY PERSON, CORPORATION, ASSOCIATION, PARTNERSHIP OR  OTHER  ENTITY
    9  WHICH  SELLS  OR  OFFERS  TO  SELL  IN THIS STATE ANY ABANDONED PROPERTY
   10  LOCATION SERVICES SHALL, IN EVERY SOLICITATION AND  AGREEMENT  FOR  SUCH
   11  SERVICES,  PROVIDE  TO THE PURCHASER THE FOLLOWING NOTICE IN A CLEAR AND
   12  CONSPICUOUS MANNER, AND IN AT LEAST TWELVE-POINT BOLDFACE TYPE PRIOR  TO
   13  THE TIME OF SALE:
   14    "ABANDONED  FUNDS  HELD BY THE STATE CAN BE OBTAINED DIRECTLY FROM THE
   15  OFFICE OF THE STATE COMPTROLLER BY  THE  OWNER  OF  SUCH  FUNDS  WITHOUT
   16  PAYING  A  FEE.   THESE FUNDS ARE HELD INDEFINITELY BY THE OFFICE OF THE
   17  STATE COMPTROLLER. FOR MORE INFORMATION, CONTACT THE OFFICE OF THE STATE
   18  COMPTROLLER AT (INSERT THE CURRENT TELEPHONE NUMBER ESTABLISHED  BY  THE
   19  OFFICE  OF  THE STATE COMPTROLLER FOR RECEIVING INQUIRIES FROM CONSUMERS
   20  REGARDING UNCLAIMED FUNDS) OR (INSERT THE CURRENT ADDRESS OF THE WEBSITE
   21  OF THE OFFICE OF THE STATE COMPTROLLER)."
   22    S 2. Section 1416 of the abandoned property law, as added  by  chapter
   23  173 of the laws of 1980, is amended to read as follows:
   24    S  1416.  Restriction on agreement to locate AND/OR RETRIEVE abandoned
   25  property. 1.   FOR THE PURPOSES OF  THIS  SECTION,  "ABANDONED  PROPERTY
   26  LOCATION SERVICES" SHALL INCLUDE ANY SERVICE FOR A FEE PROVIDING ASSIST-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15824-01-2
       A. 10239                            2
    1  ANCE TO CONSUMERS FOR THE PURPOSES OF LOCATING AND/OR RETRIEVING PROPER-
    2  TY HELD BY THE COMPTROLLER PURSUANT TO THIS CHAPTER.
    3    2.  THIS  SECTION SHALL APPLY TO ANY PERSON, CORPORATION, ASSOCIATION,
    4  PARTNERSHIP OR OTHER ENTITY WHICH SELLS OR OFFERS TO SELL IN THIS  STATE
    5  ABANDONED  PROPERTY  LOCATION  SERVICES;  PROVIDED,  HOWEVER,  THAT THIS
    6  SECTION SHALL NOT APPLY TO A CLIENT'S  AGREEMENT  WITH  AN  ATTORNEY  OR
    7  ACCOUNTANT WHERE:
    8    (A)  THE  SERVICES IN QUESTION CAN ONLY BE PERFORMED BY AN ATTORNEY OR
    9  ACCOUNTANT; OR
   10    (B) THERE IS A  PRE-EXISTING  RELATIONSHIP  BETWEEN  THE  ATTORNEY  OR
   11  ACCOUNTANT AND THE CLIENT; OR
   12    (C)  THE  AGREEMENT  RESULTS FROM AN EFFORT INITIATED BY THE CLIENT TO
   13  ENGAGE THE ATTORNEY OR ACCOUNTANT.
   14    3. No agreement [to locate property held by the comptroller] FOR ABAN-
   15  DONED PROPERTY LOCATION SERVICES pursuant to this chapter shall be valid
   16  unless [that] SUCH agreement:
   17    (a) is:
   18    (I) IN SUCH FORM AS MAY BE PRESCRIBED BY THE COMPTROLLER;
   19    (II) in writing [and];
   20    (III) signed by the property owner; AND
   21    (IV) WITNESSED AND ACKNOWLEDGED BY A NOTARY PUBLIC;
   22    (b) discloses the nature of the property; [and]
   23    (c) discloses the name and address of the [holder] COMPTROLLER; AND
   24    (D) DISCLOSES, IN A CLEAR AND CONSPICUOUS  MANNER,  AND  IN  AT  LEAST
   25  TWELVE-POINT BOLDFACE TYPE:
   26    "ABANDONED  FUNDS  HELD BY THE STATE CAN BE OBTAINED DIRECTLY FROM THE
   27  OFFICE OF THE STATE COMPTROLLER BY  THE  OWNER  OF  SUCH  FUNDS  WITHOUT
   28  PAYING  A  FEE.   THESE FUNDS ARE HELD INDEFINITELY BY THE OFFICE OF THE
   29  STATE COMPTROLLER. FOR MORE INFORMATION, CONTACT THE OFFICE OF THE STATE
   30  COMPTROLLER AT (INSERT THE CURRENT TELEPHONE NUMBER ESTABLISHED  BY  THE
   31  OFFICE  OF  THE STATE COMPTROLLER FOR RECEIVING INQUIRIES FROM CONSUMERS
   32  REGARDING UNCLAIMED FUNDS) OR (INSERT THE CURRENT ADDRESS OF THE WEBSITE
   33  OF THE OFFICE OF THE STATE COMPTROLLER)".
   34    [2] 4.  No such agreement shall be valid if it provides for payment of
   35  a fee in excess of fifteen percent of the value of recoverable property.
   36    [3] 5.  Nothing in this section shall be construed to prevent an owner
   37  from asserting, at any time, that any agreement [to locate property held
   38  by the comptroller] FOR ABANDONED PROPERTY LOCATION SERVICES is based on
   39  an excessive or unjust consideration.
   40    S 3. This act shall take effect on the sixtieth  day  after  it  shall
   41  have become a law.