Bill Text: NY S05059 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to the definition of communication for purposes of abandoned property; includes any written, electronic, or personal contact between an owner and a holder of record that can be documented and that reflects an owner's awareness of the existence of the property.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2018-06-18 - referred to ways and means [S05059 Detail]
Download: New_York-2017-S05059-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5059--A 2017-2018 Regular Sessions IN SENATE March 6, 2017 ___________ Introduced by Sen. VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- reported favor- ably from said committee and committed to the Committee on Rules -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the abandoned property law, in relation to the defi- nition of communication for purposes of abandoned property The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (iii) of paragraph (a) and subparagraph (iii) 2 of paragraph (b) of subdivision 1 of section 300 of the abandoned prop- 3 erty law, as amended by section 1 of part A of chapter 61 of the laws of 4 2011, are amended and a new subdivision 5 is added to read as follows: 5 (iii) any such amount with respect to which the banking organization 6 has on file [written] evidence received within three years that the 7 person or persons appearing to be entitled to such amounts had knowledge 8 thereof, or 9 (iii) any such amount with respect to which the banking organization 10 has on file [written] evidence received within three years that the 11 person or persons appearing to be entitled to such amount had knowledge 12 thereof. 13 5. For purposes of this section, "communication" shall include any 14 written, electronic, or personal contact between an owner and a holder 15 of record that can be documented and that reflects an owner's awareness 16 of the existence of the property including, but not limited to, written 17 correspondence, a telephonic or voice over internet protocol (VOIP) 18 communication, a transaction effected through an automated clearing 19 house (ACH) or similar electronic funds processing method, signing on to 20 a password protected account in which the securities may be accessed by 21 their owner, or effecting a transaction in the owner's account, includ- 22 ing automated transactions that have been authorized by the owner. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10433-02-7S. 5059--A 2 1 § 2. Subparagraph (ii) of paragraph (a) of subdivision 2 of section 2 501 of the abandoned property law, as amended by section 3 of part T of 3 chapter 62 of the laws of 2006, is amended to read as follows: 4 (ii) no [written] communication has been received from such resident 5 by the holder. 6 § 3. Clause 2 of subparagraph (i) of paragraph (b) of subdivision 2 of 7 section 501 of the abandoned property law, as amended by section 4 of 8 part T of chapter 62 of the laws of 2006, is amended to read as follows: 9 (2) no [written] communication has been received from such resident by 10 the holder, and 11 § 4. Subparagraph (iii) of paragraph (b) of subdivision 2 of section 12 501 of the abandoned property law, as added by chapter 166 of the laws 13 of 1991, is amended to read as follows: 14 (iii) Any corporation or fiduciary holding or evidencing on its books 15 and records securities enrolled in a reinvestment plan shall notify the 16 apparent owner by certified mail that such securities will be delivered 17 to the state comptroller as abandoned property, pursuant to the 18 provisions of section five hundred two of this article, unless such 19 corporation or fiduciary receives [written] communication from the 20 apparent owner of such securities indicating knowledge of such securi- 21 ties prior to the date that such securities are required to be delivered 22 to the state comptroller. Such letter by certified mail shall be sent 23 during the calendar year prior to the year in which such property would 24 be required to be delivered to the state comptroller, but no later than 25 the thirty-first day of December of such year. For purposes of this 26 subdivision, a signed return receipt shall constitute written communi- 27 cation received by the holder from the apparent owner. 28 § 5. Paragraph (b) of subdivision 3 of section 501 of the abandoned 29 property law, as amended by chapter 61 of the laws of 1989, is amended 30 and a new subdivision 6 is added to read as follows: 31 (b) No [written] communication has been received from such resident by 32 the holder, and 33 6. For purposes of this section, "communication" shall include any 34 written, electronic, or personal contact between an owner and a holder 35 of record that can be documented and that reflects an owner's awareness 36 of the existence of the property including, but not limited to, written 37 correspondence, a telephonic or voice over internet protocol (VOIP) 38 communication, a transaction effected through an automated clearing 39 house (ACH) or similar electronic funds processing method, signing on to 40 a password protected account in which the securities may be accessed by 41 their owner, or effecting a transaction in the owner's account, includ- 42 ing automated transactions that have been authorized by the owner. 43 § 6. Subdivisions 3 and 4 of section 511 of the abandoned property 44 law, as amended by chapter 617 of the laws of 1973, are amended to read 45 as follows: 46 3. Any security held in this state by a broker or dealer, or nominee 47 of such broker or dealer, as the holder of record of a security for a 48 customer or for a person or persons unknown to such broker or dealer or 49 nominee where, for three successive years, all amounts paid thereon or 50 with respect thereto and received after June thirtieth, nineteen hundred 51 forty-six by such broker or dealer or nominee have remained unclaimed. 52 Provided, however, that if any amount or security specified in this 53 subdivision or subdivisions one[,] or two [or three] of this section is 54 reflected, recorded, or included in an account with respect to which 55 such broker or dealer has on file evidence in writing received within 56 the three years immediately preceding the thirty-first day of DecemberS. 5059--A 3 1 preceding the date such amount or security would otherwise be payable or 2 deliverable pursuant to section five hundred twelve of this article that 3 the person entitled thereto had knowledge of such account, then such 4 amount or security shall not be deemed abandoned property. 5 4. Any security held by a broker or dealer or nominee of such broker 6 or dealer reflected, recorded, or included in an account with respect to 7 which, for three successive years, all statements of account or other 8 communications which have been sent, via first class mail, to the 9 customer at his last known address have been returned to such broker, 10 dealer or nominee by the postal authorities for inability to locate the 11 customer, and no [written] communication has been received from the 12 customer by such broker, dealer or nominee, provided such security was 13 received or is held in this state by such broker, dealer or nominee or 14 the last known address of the customer is located in this state. 15 § 7. Paragraph (b) of subdivision 5 of section 511 of the abandoned 16 property law, as amended by chapter 767 of the laws of 1983, is amended 17 and a new subdivision 7 is added to read as follows: 18 (b) No [written] communication has been received from such person by 19 the holder, and 20 7. For purposes of this section, "communication" shall include any 21 written, electronic, or personal contact between an owner and a holder 22 of record that can be documented and that reflects an owner's awareness 23 of the existence of the property including, but not limited to, written 24 correspondence, a telephonic or voice over internet protocol (VOIP) 25 communication, a transaction effected through an automated clearing 26 house (ACH) or similar electronic funds processing method, signing on to 27 a password protected account in which the securities may be accessed by 28 their owner, or effecting a transaction in the owner's account, includ- 29 ing automated transactions that have been authorized by the owner. 30 § 8. Subparagraph (ii) of paragraph (b) of subdivision 1 of section 31 700 of the abandoned property law, as amended by section 13 of part A of 32 chapter 61 of the laws of 2011, is amended to read as follows: 33 (ii) any policy with respect to which such corporation has on file 34 written or electronic evidence received within three years that the 35 person or persons apparently entitled to claim thereunder have knowledge 36 thereof. 37 § 9. Paragraph (f) of subdivision 1 of section 700 of the abandoned 38 property law, as amended by chapter 61 of the laws of 1989, is amended 39 to read as follows: 40 (f) If no address of the person or persons appearing to be entitled to 41 the unclaimed funds pursuant to paragraphs (a), (b), (c), (d) or (e) of 42 this subdivision is known to such corporation, or if it is not definite 43 and certain from the records of such corporation what person is entitled 44 to such funds, it shall be presumed that the last-known address of the 45 person entitled to such funds is the same as the last-known address of 46 the insured or annuitant according to the records of such corporation. 47 Where no address can be ascertained, pursuant to this paragraph, for the 48 insured, annuitant or person or persons entitled to the unclaimed funds, 49 such person's last-known address shall be presumed to be within this 50 state if the unclaimed funds are held or owing by life insurance corpo- 51 ration organized under the laws of this state. 52 § 10. This act shall take effect immediately.
