S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8314
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 13, 2019
                                ___________
 
 Introduced  by  M.  of  A.  WEINSTEIN  -- (at request of the State Comp-
   troller) -- read once and referred to the Committee on Ways and Means
 
 AN ACT to amend the abandoned property law,  in  relation  to  including
   unclaimed  virtual  currency  within  the scope of property covered by
   such law; reducing the dormancy for wages; and authorizing the promul-
   gation of regulations recognizing electronic communication as  written
   contact
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 103 of the abandoned property  law  is  amended  by
 adding two new subdivisions (h) and (i) to read as follows:
   (H) (I) "VIRTUAL CURRENCY" MEANS ANY TYPE OF DIGITAL UNIT THAT IS USED
 FOR  A  MEDIUM OF EXCHANGE OR A FORM OF DIGITALLY STORED VALUE.  VIRTUAL
 CURRENCY SHALL BE BROADLY CONSTRUED TO INCLUDE DIGITAL UNITS OF EXCHANGE
 THAT (A) HAVE A CENTRAL DEPOSITORY OR ADMINISTRATOR; (B) ARE  DECENTRAL-
 IZED  AND HAVE NO CENTRALIZED REPOSITORY OR ADMINISTRATOR; OR (C) MAY BE
 CREATED OR OBTAINED BY COMPUTING OR MANUFACTURING EFFORT.
   (II) VIRTUAL CURRENCY SHALL NOT INCLUDE DIGITAL  UNITS  THAT  ARE  (A)
 SOLELY  USED  WITHIN  ONLINE  GAMING  PLATFORMS, (B) REDEEMED FOR GOODS,
 SERVICES, DISCOUNTS OR PURCHASES AS PART OF A  REWARD  PROGRAM,  OR  (C)
 USED AS PART OF PREPAID CARDS.
   (I)  "VIRTUAL CURRENCY BUSINESS ACTIVITY" MEANS THE CONDUCT OF ANY ONE
 OF THE FOLLOWING TYPES OF ACTIVITIES INVOLVING NEW YORK OR  A  NEW  YORK
 RESIDENT:
   (I) RECEIVING VIRTUAL CURRENCY FOR TRANSMISSION OR TRANSMITTING VIRTU-
 AL  CURRENCY,  EXCEPT WHERE THE TRANSACTION IS UNDERTAKEN FOR NON-FINAN-
 CIAL PURPOSES AND DOES NOT INVOLVE MORE THAN A NOMINAL AMOUNT OF VIRTUAL
 CURRENCY;
   (II) STORING, HOLDING OR MAINTAINING CUSTODY  OR  CONTROL  OF  VIRTUAL
 CURRENCY ON BEHALF OF OTHERS;
   (III) BUYING AND SELLING VIRTUAL CURRENCY AS A CUSTOMER BUSINESS; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11824-03-9

 A. 8314                             2
 
   (IV) CONTROLLING, ADMINISTERING, OR ISSUING A VIRTUAL CURRENCY.
   §  2.  The  abandoned  property law is amended by adding a new section
 1423 to read as follows:
   § 1423. ELECTRONIC CONTACT. NOTWITHSTANDING  ANY  OTHER  PROVISION  OF
 THIS  CHAPTER,  THE  COMPTROLLER  SHALL PROMULGATE RULES AND REGULATIONS
 ESTABLISHING WHEN AN ELECTRONIC COMMUNICATION FROM THE APPARENT OWNER OF
 AMOUNTS OR SECURITIES AS DEFINED IN THIS CHAPTER SHALL CONSTITUTE "WRIT-
 TEN CONTACT" FOR PURPOSES OF TOLLING THE DORMANCY PERIOD.
   § 3. The opening paragraph of subdivision 3  of  section  501  of  the
 abandoned property law, as amended by chapter 61 of the laws of 1989, is
 amended to read as follows:
   Any wages payable on or after July first, nineteen hundred sixty-three
 by  a  domestic  or  foreign corporation and held for a resident by such
 issuing corporation or held and payable by  a  fiduciary  other  than  a
 broker  or dealer as defined in section five hundred ten of this chapter
 for a resident shall be deemed  to  be  abandoned  property,  where  for
 [three successive years] ONE YEAR:
   § 4. The opening paragraph and paragraphs (b) and (c) of subdivision 5
 of  section 511 of the abandoned property law, as amended by chapter 767
 of the laws of 1983, are amended to read as follows:
   Any wages held and payable on or after July  first,  nineteen  hundred
 sixty-six  by a broker or dealer, as defined in section five hundred ten
 of this article, for the benefit  of  a  person  or  persons,  known  or
 unknown  shall  be  deemed  to  be  abandoned property, where for [three
 successive years] ONE YEAR:
   (b) No written communication has been received from such person by the
 holder[, and
   (c) Notice regarding such wages, if sent by the broker or dealer,  via
 first  class  mail,  to  such  person at his last known address has been
 returned to the broker or dealer by the postal authorities for inability
 to locate such person].
   § 5. The abandoned property law is amended by  adding  a  new  section
 1318 to read as follows:
   §  1318.  UNCLAIMED  VIRTUAL CURRENCY. 1. ANY VIRTUAL CURRENCY HELD OR
 OWING BY ANY BANKING ORGANIZATION, CORPORATION OR OTHER  ENTITY  ENGAGED
 IN   VIRTUAL  CURRENCY  BUSINESS  ACTIVITY  WHICH  SHALL  HAVE  REMAINED
 UNCLAIMED BY THE PERSON ENTITLED THERETO FOR A  PERIOD  OF  THREE  YEARS
 SHALL BE DEEMED ABANDONED PROPERTY IF:
   (A)  THE  LAST  KNOWN  ADDRESS  OF THE PERSON ENTITLED TO SUCH VIRTUAL
 CURRENCY AS SHOWN ON THE BOOKS AND RECORDS OF THE ENTITY ENGAGING IN THE
 VIRTUAL CURRENCY BUSINESS ACTIVITY IS LOCATED IN THE STATE; OR
   (B) THE LAST KNOWN ADDRESS OF THE  PERSON  ENTITLED  TO  SUCH  VIRTUAL
 CURRENCY IS NOT SHOWN ON THE BOOKS AND RECORDS OF THE ENTITY ENGAGING IN
 THE VIRTUAL CURRENCY BUSINESS ACTIVITY AND THE ENTITY IS INCORPORATED IN
 THIS STATE.
   2. (A) ANY VIRTUAL CURRENCY HELD OR OWING BY A BANKING ORGANIZATION, A
 CORPORATION  OR OTHER ENTITY ENGAGED IN VIRTUAL CURRENCY BUSINESS DEEMED
 ABANDONED UNDER THIS SECTION AS OF THE THIRTIETH DAY  OF  THE  PRECEDING
 JUNE  SHALL  BE  PAID  OR  DELIVERED TO THE COMPTROLLER ON OR BEFORE THE
 TENTH DAY OF THE NEXT SUCCEEDING NOVEMBER.
   (B) PAYMENT OR DELIVERY SHALL BE ACCOMPANIED BY A  TRUE  AND  ACCURATE
 REPORT  SETTING FORTH INFORMATION RELATING TO SUCH ABANDONED PROPERTY AS
 THE COMPTROLLER MAY REQUIRE.
   3. VIRTUAL CURRENCY REPORTED  TO  THE  COMPTROLLER  PURSUANT  TO  THIS
 SECTION  SHALL  BE  SOLD  ON  ANY ESTABLISHED EXCHANGE, OR BY SUCH OTHER

 A. 8314                             3
 
 MEANS AS THE COMPTROLLER SHALL DEEM ADVISABLE,  AS  SOON  AS  THE  COMP-
 TROLLER IN HIS OR HER DISCRETION DEEMS PRACTICABLE.
   4.  THE  PROCEEDS  OF  THE  SALE  OF  VIRTUAL CURRENCY, LESS ALL COSTS
 INCURRED IN CONNECTION WITH SUCH SALE, SHALL BE DEPOSITED BY  THE  COMP-
 TROLLER  IN THE ABANDONED PROPERTY FUND AND ANY CLAIMANT TO SUCH VIRTUAL
 CURRENCY SHALL BE ENTITLED ONLY TO THE PROCEEDS  OF  THE  SALE  OF  SUCH
 VIRTUAL CURRENCY BY THE COMPTROLLER.
   § 6. This act shall take effect immediately.