NY State Senate Bill 2017-S8994A

Senate Bill S8994A

2017-2018 Legislative Session

Relates to the transfer of unclaimed support collections and unidentified payments; repealer

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 19, 2018	print number 8994a
Jun 19, 2018	amend and recommit to rules
Jun 12, 2018	referred to rules

Bill Amendments

Original

A (Active)

2017-S8994 - Details

See Assembly Version of this Bill:: A11017
Current Committee:: Senate Rules
Law Section:: Social Services Law
Laws Affected:: Rpld §111-h subs 5 - 7, 12 - 17, amd §111-h, Soc Serv L; rpld §600 sub 1 ¶(c), §602 sub 3, add §1318, Ab Prop L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A7602
2021-2022: A7942

2017-S8994 - Summary

Provides that any funds paid to a support collection unit which have not been disbursed after two years after diligent efforts to locate the person entitled to such funds, and funds which the remitter of such funds has not provided sufficient identifying information to associate the funds with an existing account shall be paid to the state comptroller.

2017-S8994 - Sponsor Memo

                                
 
BILL NUMBER: S8994

SPONSOR: MURPHY
 
TITLE OF BILL:

An act to amend the social services law and the abandoned property law,
in relation to the transfer of unclaimed support collections and uniden-
tified payments; and repealing certain provisions of such laws relating
thereto

 
PURPOSE OF THE BILL:

This bill would clarify and simplify the process by which the support
collection unit (SCU) transfers undisbursed funds to the State Comp-
troller's Office of Unclaimed Funds.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Social Services Law (SSL) § 111-h by
repealing subdivisions 5-7 and 12-17, renumbering existing subdivisions
18-20 as subdivisions 12-14, and adding new subdivisions 5-7 to allow

for a streamlined administrative procedure utilizing the functions and
capabilities of the automated child support system which is compliant
with mandatory federal distribution rules governing the disbursement of
support collections. Additionally, the bill would repeal an obsolete
one-time review and adjustment process for orders issued prior to
September 15, 1989.

Sections 2 and 3 of the bill would repeal Abandoned Property Law (APL)
§§ 600(1)(c) and 602(3), respectively, both of which are obsolete
provisions of the APL which apply to the support bureau of the Family
Court.

Section 4 of the bill would provide for an immediate effective date,
provided that any funds which were previously deposited with the county
treasurer or the Commissioner of Finance of the City of New York prior
to the effective date of this act would be delivered to the Office of
the State Comptroller (OSC) in the first April following enactment, in
accordance with the newly enacted SSL § 111-h(7).

 
JUSTIFICATION:

The bill would remove the requirement to make an application to the
Family Court and would require two years of diligent effort to locate
the individual entitled to the funds collected in cases in which the
funds have been identified with a specific individual's account. In
cases where a payment has been received for which there is inadequate
information to attribute the funds to a specific account, or where the
funds are owed to an individual who is deceased, there would be no
requirement to wait two years before transferring the funds to OSC.
These exceptions to the two-year diligent effort rule would transfer
funds to OSC sooner in these limited situations where additional time
and effort are unlikely to result in greater distribution directly to
the individual entitled to the funds or where the use of additional
resources to distribute the funds is deemed inefficient.

Enactment of this bill would benefit parents by enhancing their abili-
ties to claim child support payments or overpayments due by utilizing
the established public claims process available on the OSC website.
Additionally, for districts that have regularly transferred undistrib-
uted child support as unclaimed funds, the bill would provide adminis-
trative relief through the simplification of the process.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

It is estimated that, in the first April following enactment, a one-time
sum of approximately $5-$7 million of current undistributed collections
may be payable to OSC as unclaimed funds and included in the annual
sweep by OSC to the State General Fund pursuant to State Finance Law §
95. The federal government would receive 66 percent of that amount
because undistributed collections must be claimed as program income at
the time funds are transferred to OSC. This would result in a net one-
time revenue stream for the State of approximately $1.7 - $2.4 million.
If the bill is enacted, it is possible that an estimated $1 million
annually in additional funds could potentially be transferred to OSC as
abandoned funds - and ultimately swept to the State General Fund -
depending upon the number of claims to the funds received from owners
that ultimately succeed. After accounting for the 66 percent federal
share, this would result in a net recurring revenue stream for the State
of approximately $340,000.

 
EFFECTIVE DATE:
The bill would provide for an immediate effective date, provided that
any funds which were previously deposited with the county treasurer or
the Commissioner of Finance of the City of New York prior to the effec-
tive date of this act would be delivered to OSC in the first April
following enactment, in accordance with the newly enacted SSL §
111-h(7).

2017-S8994 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8994
 
                             I N  S E N A T E
 
                               June 12, 2018
                                ___________
 
 Introduced  by Sen. MURPHY -- (at request of the Office of Temporary and
   Disability Assistance) -- read twice and  ordered  printed,  and  when
   printed to be committed to the Committee on Rules
 
 AN  ACT to amend the social services law and the abandoned property law,
   in relation to the  transfer  of  unclaimed  support  collections  and
   unidentified  payments;  and repealing certain provisions of such laws
   relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivisions 5, 6, 7, 12, 13, 14, 15, 16 and 17 of section
 111-h of the social services law are REPEALED and  subdivisions  18,  19
 and 20 are renumbered subdivisions 12, 13, 14 and three new subdivisions
 5, 6 and 7 are added to read as follows:
   5.  EXCEPT  AS  PROVIDED IN SUBDIVISION SIX OF THIS SECTION, ANY FUNDS
 PAID TO A SUPPORT COLLECTION  UNIT  ESTABLISHED  BY  A  SOCIAL  SERVICES
 DISTRICT WHICH HAVE NOT BEEN DISBURSED AFTER AT LEAST TWO YEARS OF DILI-
 GENT  EFFORTS  TO LOCATE THE PERSON ENTITLED TO SUCH FUNDS SHALL BE PAID
 TO THE STATE COMPTROLLER IN ACCORDANCE WITH SUBDIVISION  SEVEN  OF  THIS
 SECTION; PROVIDED, HOWEVER, WHERE THE SUPPORT COLLECTION UNIT DETERMINES
 THAT  THE  PERSON ENTITLED TO THE FUNDS IS DECEASED AND CANNOT LOCATE AN
 ESTATE FOR THE PERSON ENTITLED TO THE FUNDS,  OR  THE  ESTATE  DOES  NOT
 CLAIM  THE  FUNDS,  SUCH  FUNDS  MAY BE PAID TO THE STATE COMPTROLLER IN
 ACCORDANCE WITH SUBDIVISION SEVEN OF THIS SECTION WITHOUT TWO  YEARS  OF
 DILIGENT EFFORTS.
   6. ANY FUNDS PAID TO A SUPPORT COLLECTION UNIT ESTABLISHED BY A SOCIAL
 SERVICES  DISTRICT FOR WHICH THE REMITTER OF SUCH FUNDS HAS NOT PROVIDED
 SUFFICIENT IDENTIFYING INFORMATION TO ASSOCIATE THE FUNDS WITH AN EXIST-
 ING OR PREVIOUSLY EXISTING CHILD SUPPORT ACCOUNT, AND  SUCH  INFORMATION
 CANNOT  BE  DETERMINED  AFTER  REASONABLE  EFFORTS, SHALL BE PAID TO THE
 STATE COMPTROLLER IN ACCORDANCE WITH SUBDIVISION SEVEN OF THIS SECTION.
   7. IN THE MONTH OF APRIL, ON OR BEFORE THE  TENTH  DAY  THEREOF,  SUCH
 PAYMENT  SHALL BE DELIVERED TO THE STATE COMPTROLLER AND SHALL BE ACCOM-
 PANIED BY A WRITTEN REPORT, AFFIRMED AS  TRUE  AND  ACCURATE  UNDER  THE
 PENALTY OF PERJURY, CLASSIFIED AS THE STATE COMPTROLLER SHALL PRESCRIBE,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14412-01-8

 S. 8994                             2
 
 SETTING  FORTH:  (A)  THE NAMES AND LAST KNOWN ADDRESSES, IF ANY, OF THE
 PERSONS ENTITLED TO RECEIVE SUCH ABANDONED PROPERTY; (B)  THE  TITLE  OF
 ANY  PROCEEDING  RELATING TO SUCH ABANDONED PROPERTY; AND (C) SUCH OTHER
 IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY REQUIRE.
   §  2.  Paragraph  (c) of subdivision 1 of section 600 of the abandoned
 property law is REPEALED.
   § 3. Subdivision 3 of section 602 of the  abandoned  property  law  is
 REPEALED.
   §  4.  This act shall take effect immediately; provided, however, that
 any funds which were deposited with the county treasurer or the  commis-
 sioner of finance of the city of New York in accordance with section one
 hundred  eleven-h of the social services law prior to the effective date
 of this act shall be delivered to the state  comptroller  on  the  first
 April  following  the  effective  date  of  this act, in accordance with
 subdivision seven of section one hundred eleven-h of the social services
 law, as set forth in section one of this act.

2017-S8994A (ACTIVE) - Details

See Assembly Version of this Bill:: A11017
Current Committee:: Senate Rules
Law Section:: Social Services Law
Laws Affected:: Rpld §111-h subs 5 - 7, 12 - 17, amd §111-h, Soc Serv L; rpld §600 sub 1 ¶(c), §602 sub 3, add §1318, Ab Prop L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A7602
2021-2022: A7942

2017-S8994A (ACTIVE) - Summary

2017-S8994A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8994A

SPONSOR: MURPHY
 
TITLE OF BILL:  An act to amend the social services law and the aban-
doned property law, in relation to the transfer of unclaimed support
collections and unidentified payments; and repealing certain provisions
of such laws relating thereto

 
PURPOSE OF THE BILL:

This bill would clarify and simplify the process by which the support
collection unit (SCU) transfers undisbursed funds to the State Comp-
troller's Office of Unclaimed Funds.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Social Services Law (SSL) § 111-h by
repealing subdivisions 5-7 and 12-17, renumbering existing subdivisions
18-20 as subdivisions 12-14, and adding new subdivisions 5-7 to allow
for a streamlined administrative procedure utilizing the functions and
capabilities of the automated child support system which is compliant

with mandatory federal distribution rules governing the disbursement of
support collections. Additionally, the bill would repeal an obsolete
one-time review and adjustment process for orders issued prior to
September 15,1989.

Sections 2 and 3 of the bill would repeal Abandoned Property Law (APL)
§§ 600(1)(c) and 602(3), respectively, both of which are obsolete
provisions of the APL which apply to the support bureau of the Family
Court.

Section 4 of the bill would add APL § 1318, which states that funds
delivered to the State Comptroller pursuant to SSL § 111-h (7) would be
deemed abandoned property.

Section 5 of the bill would provide for an immediate effective date,
provided that any funds which were previously deposited with the county
treasurer or the Commissioner of Finance of the City of New York prior
to the effective date of this act would be delivered to the Office of
the State Comptroller (OSC) in the first April following enactment, in
accordance with the newly enacted SSL § 111-h(7).

 
JUSTIFICATION:

The bill would remove the requirement to make an application to the
Family Court and would require two years of diligent effort to locate
the individual entitled to the funds collected in cases in which the
funds have been identified with a specific individual's account. In
cases where a payment has been received for which there is inadequate
information to attribute the funds to a specific account, or where the
funds are owed to an individual who is deceased, there would be no
requirement to wait two years before transferring the funds to OSC.
These exceptions to the two-year diligent effort rule would transfer
funds to OSC sooner in these limited situations where additional time
and effort are unlikely to result in greater distribution directly to
the individual entitled to the funds or where the use of additional
resources to distribute the funds is deemed inefficient.


Enactment of this bill would benefit parents by enhancing their abili-
ties to claim child support payments or overpayments due by utilizing
the established public claims process available on the OSC website.
Additionally, for districts that have regularly transferred undistrib-
uted child support as unclaimed funds, the bill would provide adminis-
trative relief through the simplification of the process.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

It is estimated that, in the first April following enactment, a one-time
sum of approximately $5 $7 million of current undistributed collections
may be payable to OSC as unclaimed funds and included in the annual
sweep by OSC to the State General Fund pursuant to State Finance Law §
95. The federal government would receive 66 percent of that amount
because undistributed collections must be claimed as program income at
the time funds are transferred to OSC. This would result in a net one-
time revenue stream for the State of approximately $1.7 - $2.4 million.
If the bill is enacted, it is possible that an estimated $1 million
annually in additional funds could potentially be transferred to OSC as
abandoned funds - and ultimately swept to the State General Fund -
depending upon the number of claims to the funds received from owners
that ultimately succeed. After accounting for the 66 percent federal
share, this would result in a net recurring revenue stream for the State
of approximately $340,000.

 
EFFECTIVE DATE:
The bill would provide for an immediate effective date, provided that
any funds which were previously deposited with the county treasurer or
the Commissioner of Finance of the City of New York prior to the effec-
tive date of this act would be delivered to OSC in the first April
following enactment, in accordance with the newly enacted SSL § 111-h(7)
and APL § 1318.

2017-S8994A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8994--A
 
                             I N  S E N A T E
 
                               June 12, 2018
                                ___________
 
 Introduced  by Sen. MURPHY -- (at request of the Office of Temporary and
   Disability Assistance) -- read twice and  ordered  printed,  and  when
   printed  to  be  committed  to  the  Committee  on  Rules -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the social services law and the abandoned property  law,
   in  relation  to  the  transfer  of  unclaimed support collections and
   unidentified payments; and repealing certain provisions of  such  laws
   relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 5, 6, 7, 12, 13, 14, 15, 16 and 17 of  section
 111-h  of  the social services law are REPEALED, subdivisions 18, 19 and
 20 are renumbered subdivisions 12, 13 and 14 and three new  subdivisions
 5, 6 and 7 are added to read as follows:
   5.  EXCEPT  AS  PROVIDED IN SUBDIVISION SIX OF THIS SECTION, ANY FUNDS
 PAID TO A SUPPORT COLLECTION  UNIT  ESTABLISHED  BY  A  SOCIAL  SERVICES
 DISTRICT  WHICH  HAVE  NOT  BEEN  DISBURSED  AFTER TWO YEARS OF DILIGENT
 EFFORTS TO LOCATE THE PERSON ENTITLED TO SUCH FUNDS SHALL BE PAID TO THE
 STATE COMPTROLLER IN ACCORDANCE WITH SUBDIVISION SEVEN OF  THIS  SECTION
 UNLESS  INFORMATION  HAS  BEEN  RECEIVED  THAT  IS LIKELY TO LEAD TO THE
 LOCATION OF THE PERSON WHO IS ENTITLED TO SUCH FUNDS; PROVIDED, HOWEVER,
 WHERE THE SUPPORT COLLECTION UNIT DETERMINES THAT THE PERSON ENTITLED TO
 THE FUNDS IS DECEASED AND CANNOT LOCATE AN ESTATE FOR THE  PERSON  ENTI-
 TLED  TO  THE  FUNDS, OR THE ESTATE DOES NOT CLAIM THE FUNDS, SUCH FUNDS
 MAY BE PAID TO THE STATE  COMPTROLLER  IN  ACCORDANCE  WITH  SUBDIVISION
 SEVEN OF THIS SECTION WITHOUT TWO YEARS OF DILIGENT EFFORTS.
   6. ANY FUNDS PAID TO A SUPPORT COLLECTION UNIT ESTABLISHED BY A SOCIAL
 SERVICES  DISTRICT FOR WHICH THE REMITTER OF SUCH FUNDS HAS NOT PROVIDED
 SUFFICIENT IDENTIFYING INFORMATION TO ASSOCIATE THE FUNDS WITH AN EXIST-
 ING OR PREVIOUSLY EXISTING CHILD SUPPORT ACCOUNT, AND  SUCH  INFORMATION
 CANNOT  BE DETERMINED AFTER DILIGENT EFFORTS, SHALL BE PAID TO THE STATE
 COMPTROLLER IN ACCORDANCE WITH SUBDIVISION SEVEN OF THIS SECTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14412-03-8

 S. 8994--A                          2
 
   7. IN THE MONTH OF APRIL, ON OR BEFORE THE  TENTH  DAY  THEREOF,  SUCH
 PAYMENT  SHALL BE DELIVERED TO THE STATE COMPTROLLER AND SHALL BE ACCOM-
 PANIED BY A WRITTEN REPORT, AFFIRMED AS  TRUE  AND  ACCURATE  UNDER  THE
 PENALTY OF PERJURY, CLASSIFIED AS THE STATE COMPTROLLER SHALL PRESCRIBE,
 SETTING  FORTH:  (A)  THE NAMES AND LAST KNOWN ADDRESSES, IF ANY, OF THE
 PERSONS ENTITLED TO RECEIVE SUCH ABANDONED PROPERTY; (B)  THE  TITLE  OF
 ANY  PROCEEDING  RELATING TO SUCH ABANDONED PROPERTY; AND (C) SUCH OTHER
 IDENTIFYING INFORMATION AS THE STATE COMPTROLLER MAY REQUIRE.
   § 2. Paragraph (c) of subdivision 1 of section 600  of  the  abandoned
 property law is REPEALED.
   §  3.  Subdivision  3  of section 602 of the abandoned property law is
 REPEALED.
   § 4.  The abandoned property law is amended by adding  a  new  section
 1318 to read as follows:
   §  1318.  UNCLAIMED SPOUSAL AND CHILD SUPPORT. ANY AMOUNT REPRESENTING
 CHILD SUPPORT OR CHILD AND SPOUSAL SUPPORT PAID TO A SUPPORT  COLLECTION
 UNIT  ESTABLISHED BY A SOCIAL SERVICES DISTRICT WHICH HAS BEEN DELIVERED
 TO THE STATE COMPTROLLER PURSUANT TO SUBDIVISION SEVEN  OF  SECTION  ONE
 HUNDRED  ELEVEN-H  OF  THE SOCIAL SERVICES LAW SHALL BE DEEMED ABANDONED
 PROPERTY. ON OR BEFORE THE TENTH DAY OF APRIL IN EACH YEAR,  SUCH  ABAN-
 DONED  PROPERTY  SHALL  BE  PAID  TO THE STATE COMPTROLLER. SUCH PAYMENT
 SHALL BE ACCOMPANIED BY A VERIFIED WRITTEN REPORT IN SUCH  FORM  AS  THE
 STATE COMPTROLLER MAY PRESCRIBE.
   §  5.  This act shall take effect immediately; provided, however, that
 any funds which were deposited with the county treasurer or the  commis-
 sioner  of  finance  of  the city of New York in accordance with section
 111-h of the social services law prior to the effective date of this act
 shall be delivered to the state comptroller in the first April following
 the effective date of this act, in  accordance  with  subdivision  7  of
 section 111-h of the social services law, as set forth in section one of
 this act.

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