STATE OF NEW YORK
________________________________________________________________________
7690
IN SENATE
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:
1 Section 1. The general business law is amended by adding a new section
2 393-e to read as follows:
3 § 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 § 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 § 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
S. 7690 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 § 3. This act shall take effect on the sixtieth day after it shall
41 have become a law.
