NY State Senate Bill 2011-S7690

Senate Bill S7690

Signed By Governor

2011-2012 Legislative Session

Relates to the sale of abandoned property location services and to restrictions on agreements to locate abandoned property

download bill text pdf

Archive: Last Bill Status Via A10239 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 01, 2012	signed chap.332
Jul 20, 2012	delivered to governor
Jun 19, 2012	returned to assembly passed senate 3rd reading cal.1334 substituted for s7690
Jun 19, 2012	substituted by a10239 ordered to third reading cal.1334
Jun 13, 2012	referred to rules

Votes

- Jun 19, 2012 - Floor Vote
  A10239
  
  59
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 19, 2012
      
      aye (59)
      
      Adams
      
      Addabbo Jr.
      
      Avella
      
      Ball
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Grisanti
      
      Hannon
      
      Hassell-Thompson
      
      Johnson
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Libous
      
      Little
      
      Marcellino
      
      Martins
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      O'Mara
      
      Oppenheimer
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Storobin
      
      Valesky
      
      Young
      
      Zeldin
      
      excused (3)
      
      Alesi
      
      Espaillat
      
      Huntley
  Jun 21, 2012 - Rules Committee Vote
  S7690
  
  24
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 21, 2012
      
      aye (24)
      
      Breslin
      
      Dilan
      
      Duane
      
      Farley
      
      Fuschillo
      
      Hannon
      
      Hassell-Thompson
      
      Johnson
      
      Krueger
      
      LaValle
      
      Larkin
      
      Libous
      
      Marcellino
      
      Maziarz
      
      Montgomery
      
      Nozzolio
      
      Parker
      
      Perkins
      
      Saland
      
      Sampson
      
      Seward
      
      Skelos
      
      Smith
      
      Stewart-Cousins
      
      excused (1)
      
      Alesi

2011-S7690 (ACTIVE) - Details

See Assembly Version of this Bill:: A10239
Law Section:: General Business Law
Laws Affected:: Add §393-e, Gen Bus L; amd §1416, Ab Prop L

2011-S7690 (ACTIVE) - Summary

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

2011-S7690 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7690

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 OR GENERAL IDEA OF BILL:
The purpose of this bill is to ensure
that consumers are able to make informed decisions regarding the
purchase of abandoned property locations services by requiring such
services to notify consumers that property held by the State may be
obtained directly from the Office of the State Comptroller free of
charge.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would amend the General
Business Law to require any person or business entity offering
abandoned property location services for a fee to include the
following notice in all solicitations and agreements: "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 (current telephone number established by the Office
for receiving inquires from consumers regarding unclaimed funds) or
(current web address of the Office)."

This bill would also amend section 1416 of the Abandoned Property Law
related to abandoned property location service agreements to:

> clarify that such section shall apply to any person, corporation,
association, partnership or other entity which sells or offers to
sell such services, with the exception of certain client agreements
with attorneys or accountants; and

> provide that abandoned property location service agreements shall be
in a form prescribed by the Comptroller and witnessed and
acknowledged by a notary public.

JUSTIFICATION:
According to the Better Business Bureau of Metro New
York, several consumers have filed complaints regarding solicitations
for abandoned property location services that make exaggerated
claims, while others have complained about services making misleading
claims.
Some consumers informed the Bureau that they paid an upfront fee only
to find that the State held less than three dollars of their money.

Rightful owners of unclaimed funds held by the State should be able to
claim their funds without charge. In order to save New Yorkers'
hard earned money, the Office of the State Comptroller encourages
consumers to make direct inquires regarding unclaimed funds, as


opposed to using an abandoned property location service that charges
a fee.

Section one of the bill is modeled on General Business Law sections
393-c and d, which require entities that offer to obtain documents
provided by government agencies at no charge or for a small fee,
namely labor postings and certified copies of property deeds, to
disclose such fact to consumers.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State.

EFFECTIVE DATE:
This act shall take effect on the
sixtieth day after
it shall have became a law.

2011-S7690 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7690

                            I N  S E N A T E

                              June 13, 2012
                               ___________

Introduced by Sen. FUSCHILLO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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:

  Section 1. The general business law is amended by adding a new section
393-e to read as follows:
  S 393-E. SALE OF ABANDONED PROPERTY  LOCATION  SERVICES.  1.  FOR  THE
PURPOSES  OF  THIS SECTION, "ABANDONED PROPERTY LOCATION SERVICES" SHALL
INCLUDE ANY SERVICE FOR A FEE PROVIDING ASSISTANCE TO CONSUMERS FOR  THE
PURPOSES  OF LOCATING AND/OR RETRIEVING PROPERTY HELD BY THE STATE COMP-
TROLLER PURSUANT TO THE ABANDONED PROPERTY LAW.
  2. ANY PERSON, CORPORATION, ASSOCIATION, PARTNERSHIP OR  OTHER  ENTITY
WHICH  SELLS  OR  OFFERS  TO  SELL  IN THIS STATE ANY ABANDONED PROPERTY
LOCATION SERVICES SHALL, IN EVERY SOLICITATION AND  AGREEMENT  FOR  SUCH
SERVICES,  PROVIDE  TO THE PURCHASER 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)."
  S 2. Section 1416 of the abandoned property law, as added  by  chapter
173 of the laws of 1980, is amended to read as follows:
  S  1416.  Restriction on agreement to locate AND/OR RETRIEVE abandoned
property. 1.   FOR THE PURPOSES OF  THIS  SECTION,  "ABANDONED  PROPERTY
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

S. 7690                             2

ANCE TO CONSUMERS FOR THE PURPOSES OF LOCATING AND/OR RETRIEVING PROPER-
TY HELD BY THE COMPTROLLER PURSUANT TO THIS CHAPTER.
  2.  THIS  SECTION SHALL APPLY TO ANY PERSON, CORPORATION, ASSOCIATION,
PARTNERSHIP OR OTHER ENTITY WHICH SELLS OR OFFERS TO SELL IN THIS  STATE
ABANDONED  PROPERTY  LOCATION  SERVICES;  PROVIDED,  HOWEVER,  THAT THIS
SECTION SHALL NOT APPLY TO A CLIENT'S  AGREEMENT  WITH  AN  ATTORNEY  OR
ACCOUNTANT WHERE:
  (A)  THE  SERVICES IN QUESTION CAN ONLY BE PERFORMED BY AN ATTORNEY OR
ACCOUNTANT; OR
  (B) THERE IS A  PRE-EXISTING  RELATIONSHIP  BETWEEN  THE  ATTORNEY  OR
ACCOUNTANT AND THE CLIENT; OR
  (C)  THE  AGREEMENT  RESULTS FROM AN EFFORT INITIATED BY THE CLIENT TO
ENGAGE THE ATTORNEY OR ACCOUNTANT.
  3. No agreement [to locate property held by the comptroller] FOR ABAN-
DONED PROPERTY LOCATION SERVICES pursuant to this chapter shall be valid
unless [that] SUCH agreement:
  (a) is:
  (I) IN SUCH FORM AS MAY BE PRESCRIBED BY THE COMPTROLLER;
  (II) in writing [and];
  (III) signed by the property owner; AND
  (IV) WITNESSED AND ACKNOWLEDGED BY A NOTARY PUBLIC;
  (b) discloses the nature of the property; [and]
  (c) discloses the name and address of the [holder] COMPTROLLER; AND
  (D) DISCLOSES, IN A CLEAR AND CONSPICUOUS  MANNER,  AND  IN  AT  LEAST
TWELVE-POINT BOLDFACE TYPE:
  "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)".
  [2] 4.  No such agreement shall be valid if it provides for payment of
a fee in excess of fifteen percent of the value of recoverable property.
  [3] 5.  Nothing in this section shall be construed to prevent an owner
from asserting, at any time, that any agreement [to locate property held
by the comptroller] FOR ABANDONED PROPERTY LOCATION SERVICES is based on
an excessive or unjust consideration.
  S 3. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

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