assembly Bill A8604B

Signed by Governor

Relates to consignments of works of art to art merchants by artists and their successors in interest

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Sponsor

ROSENTHAL

Co-Sponsors

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Multi-Sponsors

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 21 / Sep / 2011
    • REFERRED TO TOURISM, PARKS, ARTS AND SPORTS DEVELOPMENT
  • 04 / Jan / 2012
    • REFERRED TO TOURISM, PARKS, ARTS AND SPORTS DEVELOPMENT
  • 29 / May / 2012
    • AMEND (T) AND RECOMMIT TO TOURISM, PARKS, ARTS AND SPORTS DEVELOPMENT
  • 29 / May / 2012
    • PRINT NUMBER 8604A
  • 31 / May / 2012
    • AMEND AND RECOMMIT TO TOURISM, PARKS, ARTS AND SPORTS DEVELOPMENT
  • 31 / May / 2012
    • PRINT NUMBER 8604B
  • 05 / Jun / 2012
    • REPORTED REFERRED TO CODES
  • 12 / Jun / 2012
    • REPORTED REFERRED TO RULES
  • 13 / Jun / 2012
    • REPORTED
  • 13 / Jun / 2012
    • RULES REPORT CAL.159
  • 13 / Jun / 2012
    • ORDERED TO THIRD READING RULES CAL.159
  • 14 / Jun / 2012
    • PASSED ASSEMBLY
  • 14 / Jun / 2012
    • DELIVERED TO SENATE
  • 14 / Jun / 2012
    • REFERRED TO RULES
  • 20 / Jun / 2012
    • SUBSTITUTED FOR S4988B
  • 20 / Jun / 2012
    • 3RD READING CAL.1018
  • 20 / Jun / 2012
    • PASSED SENATE
  • 20 / Jun / 2012
    • RETURNED TO ASSEMBLY
  • 27 / Aug / 2012
    • DELIVERED TO GOVERNOR
  • 07 / Sep / 2012
    • SIGNED CHAP.450

Summary

Relates to consignments of works of art to art merchants by artists and their successors in interest.

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Bill Details

See Senate Version of this Bill:
S4988B
Versions:
A8604
A8604A
A8604B
Legislative Cycle:
2011-2012
Law Section:
Arts and Cultural Affairs Law
Laws Affected:
Amd ยงยง11.01 & 12.01, Arts & Cul L
view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8604--B

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                           September 21, 2011
                               ___________

Introduced  by  M.  of A. ROSENTHAL, PAULIN, BRONSON, ZEBROWSKI, JAFFEE,
  MILLMAN, GALEF, WEPRIN, BARRON, MARKEY, GABRYSZAK,  HOOPER  --  Multi-
  Sponsored  by  --  M. of A. ABINANTI, CAHILL, COLTON, McENENY, REILLY,
  P. RIVERA, ROBINSON, SCHIMEL, WEISENBERG -- read once and referred  to
  the Committee on Tourism, Parks, Arts and Sports Development -- recom-
  mitted to the Committee on Tourism, Parks, Arts and Sports Development
  in  accordance  with  Assembly Rule 3, sec. 2 -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee  --  again  reported  from  said  committee with amendments,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the arts  and  cultural  affairs  law,  in  relation  to
  consignments  of  works  of  art to art merchants by artists and their
  successors in interest

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivisions  20  and 21 of section 11.01 of the arts and
cultural affairs law, subdivision 21 as renumbered by chapter 940 of the
laws of 1990, are renumbered subdivisions 21 and 22 and a  new  subdivi-
sion 20 is added to read as follows:
  20.  "SUCCESSOR  IN  INTEREST" SHALL MEAN A "PERSONAL REPRESENTATIVE",
"TESTAMENTARY BENEFICIARY", TRUSTEE OR BENEFICIARY OF A "LIFETIME TRUST"
OR AN "HEIR" (INCLUDING HEIRS WHO ACQUIRE THE WORK OF FINE ART, CRAFT OR
PRINT FROM THE ARTIST OR CRAFTSPERSON OR FROM ANOTHER HEIR OR  BENEFICI-
ARY  OF  THE  ARTIST  OR  CRAFTSPERSON), WHICH TERMS SHALL HAVE THE SAME
MEANINGS AS SET FORTH IN THE ESTATES, POWERS AND TRUSTS LAW.
  S 2. Section 12.01 of the arts and cultural affairs law, as  added  by
chapter  849  of  the laws of 1984 and paragraph (c) of subdivision 1 as
added by chapter 675 of the laws of 1995, is amended to read as follows:
  S 12.01. Artist-art merchant  relationships.  1.  Notwithstanding  any
custom,  practice  or  usage  of the trade, any provision of the uniform

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13227-03-2

A. 8604--B                          2

commercial code or any other law, statute, requirement or rule,  or  any
agreement, note, memorandum or writing to the contrary:
  (a)  Whenever an artist or craftsperson, [his heirs or personal repre-
sentatives] OR A SUCCESSOR IN INTEREST OF SUCH ARTIST  OR  CRAFTSPERSON,
delivers  or causes to be delivered a work of fine art, craft or a print
of [his] SUCH ARTIST'S OR CRAFTSPERSON'S own creation to an art merchant
for the purpose of exhibition and/or sale on a commission, fee or  other
basis of compensation, the delivery to and acceptance thereof by the art
merchant  establishes a consignor/consignee relationship as between such
artist or craftsperson, OR THE SUCCESSOR IN INTEREST OF SUCH  ARTIST  OR
CRAFTSPERSON, and such art merchant with respect to the said work, and:
  (i)  such consignee shall thereafter be deemed to be the agent of such
consignor with respect to the said work;
  (ii) such work is trust property in the hands of the consignee for the
benefit of the consignor;
  (iii) any proceeds from the sale of such work are trust funds  in  the
hands of the consignee for the benefit of the consignor;
  (iv)  such  work  shall  remain  trust  property  notwithstanding  its
purchase by the consignee for his own account until the price is paid in
full to the consignor; provided that, if such work is resold to  a  bona
fide  third party before the consignor has been paid in full, the resale
proceeds are trust funds in the hands of the consignee for  the  benefit
of the consignor to the extent necessary to pay any balance still due to
the  consignor  and  such trusteeship shall continue until the fiduciary
obligation  of  the  consignee  with  respect  to  such  transaction  is
discharged in full; and
  (v)  SUCH  TRUST PROPERTY AND TRUST FUNDS SHALL BE CONSIDERED PROPERTY
HELD IN STATUTORY TRUST, AND no such trust property or trust funds shall
BECOME THE PROPERTY OF THE CONSIGNEE OR be subject or subordinate to any
claims, liens or security interest of any kind or nature  whatsoever  OF
THE CONSIGNEE'S CREDITORS.
  (b)  Waiver of any provision of this section is absolutely void except
that a consignor may lawfully waive the provisions of  clause  (iii)  of
paragraph (a) of this subdivision, if such waiver is clear, conspicuous,
in  writing, IN WORDS WHICH CLEARLY AND SPECIFICALLY APPRISE THE CONSIG-
NOR THAT THE CONSIGNOR IS WAIVING RIGHTS UNDER THIS SECTION WITH RESPECT
TO PROCEEDS FROM THE SALE OF THE CONSIGNOR'S WORK, and subscribed by the
consignor, provided:
  (i) no such waiver shall be valid with respect to the first two  thou-
sand  five  hundred  dollars  of gross proceeds of sales received in any
twelve-month period commencing with the date of the  execution  of  such
waiver;
  (ii)  no  such waiver shall be valid with respect to the proceeds of a
work initially received on consignment but subsequently purchased by the
consignee directly or indirectly for his own account; and
  (iii) no such waiver shall inure to the  benefit  of  the  consignee's
creditors in any manner which might be inconsistent with the consignor's
rights under this subdivision.
  (c)  [proceeds]  PROCEEDS  from the sale of consigned works covered by
this section shall be deemed to be revenue from  the  sale  of  tangible
goods and not revenue from the provision of services to the consignor or
others,  except that the provisions of this paragraph shall not apply to
proceeds from the sale of consigned works sold at public auction.
  2.  IF A CONSIGNEE FAILS TO TREAT THE TRUST PROPERTY  OR  TRUST  FUNDS
IDENTIFIED  IN  PARAGRAPH  (A)  OF  SUBDIVISION  ONE  OF THIS SECTION IN
ACCORDANCE WITH THE REQUIREMENTS OF FIDUCIARIES IN SECTION 11-1.6 OF THE

A. 8604--B                          3

ESTATES,  POWERS  AND  TRUSTS  LAW,  SUCH  FAILURE  SHALL  CONSTITUTE  A
VIOLATION  OF  THIS ARTICLE AND OF SECTION 11-1.6 OF THE ESTATES, POWERS
AND TRUSTS LAW AND SHALL BE SUBJECT TO THE PENALTIES PROVIDED THEREIN.
  3.  ANY  PERSON  WHO HAS BEEN INJURED BY REASON OF A VIOLATION OF THIS
ARTICLE MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW-
FUL ACT, TO RECOVER HIS OR HER ACTUAL DAMAGES, OR BOTH.  THE  COURT  MAY
AWARD  REASONABLE  ATTORNEYS'  FEES,  COSTS AND EXPENSES TO A PREVAILING
PLAINTIFF IN ANY SUCH ACTION.
  4. Nothing in this section shall be construed to have any effect  upon
any  written  or  oral  contract  or  arrangement  in existence prior to
September first, nineteen hundred sixty-nine or  to  any  extensions  or
renewals  thereof  except  by  the mutual written consent of the parties
thereto.
  S 3. This act shall take effect on the sixtieth  day  after  it  shall
have  become  a  law  and  shall  apply to all contracts or arrangements
entered into, extended or renewed after such effective date.

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