senate Bill S7332

Signed By Governor
2013-2014 Legislative Session

Provides that court withdrawal actions must be commenced in the court which had original jurisdiction of the underlying matter

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Sponsored By

Archive: Last Bill Status Via A9577 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Nov 21, 2014 signed chap.453
Nov 10, 2014 delivered to governor
Jun 12, 2014 returned to assembly
passed senate
3rd reading cal.959
substituted for s7332
Jun 12, 2014 substituted by a9577
Jun 02, 2014 advanced to third reading
May 29, 2014 2nd report cal.
May 28, 2014 1st report cal.959
May 13, 2014 referred to finance

Votes

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S7332 - Bill Details

See Assembly Version of this Bill:
A9577
Law Section:
Abandoned Property Law
Laws Affected:
Amd ยง1406, Ab Prop L

S7332 - Bill Texts

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Provides that court withdrawal actions must be commenced in the court which had original jurisdiction of the underlying matter and increases the threshold claim amount.

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BILL NUMBER:S7332

TITLE OF BILL: An act to amend the abandoned property law, in
relation to withdrawal actions

PURPOSE: The purpose of this legislation is to clarify that court
withdrawal actions must be commenced in the court of original
jurisdiction and specifically bars the commencement of court
withdrawal actions as special proceedings against the State
Comptroller.

SUMMARY OF PROVISIONS: Section 1 amends Subdivision 2 of section 1406
of the abandoned property law to increase from five to ten thousand
dollars the amount of a claim for any abandoned property paid to the
State that may be established only on order of the court which had
original jurisdiction of the underlying matter, after service of
notice upon the State Comptroller and upon due notice to all parties
to the action or proceeding which resulted in the monies being paid
into court (court withdrawal action.)

Also, provides that such court withdrawal action must be commenced in
the court which had jurisdiction over the underlying matter using the
court index number of that original action and further provides that
no such withdrawal action shall be brought as a special proceeding
against the State Comptroller.

PRIOR LEGISLATIVE HISTORY: New bill.

JUSTIFICATION: Recently, certain courts have held that court
withdrawal actions to recover moneys paid into court and then
subsequently turned over to the Office of the State Comptroller
pursuant to the Abandoned Property Law should be brought as a special
proceeding against the State Comptroller rather than what it actually
is, simply a reopening of the original underlying action involving the
same parties who were parties in the original action.

Therefore, it is necessary to clarify in statute that the court
withdrawal actions must be commenced in the court of original
jurisdiction and specifically bar the commencement of court withdrawal
actions as special proceedings against the State Comptroller.

The proposal also increases the threshold for such withdrawal actions
from five thousand to ten thousand where the underlying court record
established someone's entitlement to court deposited funds now held by
the State Comptroller (and such amount is below the threshold.) If the
claimant can establish, by means of proof; to the State Comptroller
that the claimant is the person who the court determined is entitled
to the funds, the funds may be paid to such claimant without obtaining
a court order thereby saving legal fees. This almost exclusively would
apply in estate matters where the funds were clearly deposited for a
known but unlocated distributee or legatee who later appears to claim
the inheritance.

FISCAL IMPLICATIONS FOR STATE: This bill has no significant State
fiscal impact.

EFFECTIVE DATE: This act shall take effect immediately.


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

                                  7332

                            I N  S E N A T E

                              May 13, 2014
                               ___________

Introduced  by Sen. DeFRANCISCO -- (at request of the State Comptroller)
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Finance

AN ACT to amend the abandoned property law, in  relation  to  withdrawal
  actions

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

  Section 1. Subdivision 2 of section 1406  of  the  abandoned  property
law,  as  amended  by  section  5 of part P of chapter 62 of the laws of
2003, is amended to read as follows:
  2. (a) Claim in the amount or value of [five] TEN thousand dollars  or
more for any abandoned property heretofore paid to the state pursuant to
section  forty-four  of  chapter  fifty-eight  of  the  laws of nineteen
hundred nine or as such section  was  amended  by  chapter  two  hundred
seventeen  of  the laws of nineteen hundred thirty-three and chapter two
hundred thirty-one of the laws  of  nineteen  hundred  thirty-eight,  or
hereafter  paid  to  the  state comptroller pursuant to paragraph (a) of
subdivision one of section six hundred of this chapter,  may  be  estab-
lished only on order of the court which had original jurisdiction of the
underlying  matter,  after  service of notice upon the state comptroller
and upon due notice to all parties to the  action  or  proceeding  which
resulted  in  the  monies being paid into court. [Any other provision of
law to the contrary notwithstanding] SUCH COURT WITHDRAWAL ACTION  SHALL
BE  COMMENCED IN THE COURT WHICH HAD ORIGINAL JURISDICTION OF THE UNDER-
LYING MATTER USING THE COURT  INDEX  NUMBER  OF  SUCH  ORIGINAL  ACTION.
NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  LAW TO THE CONTRARY, NO SUCH
WITHDRAWAL ACTION SHALL BE BROUGHT AS A SPECIAL PROCEEDING  AGAINST  THE
STATE  COMPTROLLER.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE
CONTRARY, if an order directing payment by the state comptroller is made
by the court, the claimant or the claimant's attorney shall  serve  upon
the state comptroller a copy thereof, duly certified by the clerk of the
court  to  be  a  true copy of the original of such order on file in the
clerk's office.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13690-02-4

S. 7332                             2

  (b) Where the value or amount of the claim is  less  than  [five]  TEN
thousand  dollars, payment may be made by the state comptroller on sworn
application of the claimant when the identity of  the  claimant  as  the
person  entitled  to  payment  is established to the satisfaction of the
state  comptroller. When, in the determination of the state comptroller,
there is insufficient information to enable  the  state  comptroller  to
make  a  determination  of entitlement, any claim, including a claim the
amount of which is less than [five] TEN thousand dollars, must be estab-
lished on order of the court as set  forth  in  paragraph  (a)  of  this
subdivision.  The decision of the state comptroller that the information
is insufficient shall not be deemed a denial of the claim.
  S 2. This act shall take effect immediately.

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