S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    723
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by M. of A. WALLACE -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN ACT to amend the abandoned property law, in relation to  setting  the
   statute  of  limitations  at  ten  years and setting a penalty cap for
   small businesses

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1400 of the abandoned property law is amended to
 read as follows:
   § 1400. Statutes of limitations [not a bar]. 1. The expiration [of any
 period of time specified by law] SHALL BE TEN  YEARS,  during  which  an
 action or proceeding may be commenced or enforced to secure payment of a
 claim  for  money  or  recovery of property, AND shall [not] prevent any
 such money or  property  from  being  deemed  abandoned  property,  [nor
 affect] BARRING any duty to file a report required by this chapter or to
 pay  or  deliver  to  the state comptroller any such abandoned property;
 [and] IF ANY ACTION OR PROCEEDING IS COMMENCED BEYOND THE TEN YEAR PERI-
 OD, THIS STATUTE OF LIMITATIONS shall [not] serve as a defense  [in  any
 action  or proceeding by or] on behalf of the [state comptroller] ENTITY
 FOR FAILURE to [compel the filing of] FILE any report or the payment  or
 delivery  of  any  abandoned  property  required  by this chapter [or to
 enforce or collect] AND TO BAR any penalty provided by this chapter.
   2. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS  SECTION,
 THE STATUTE OF LIMITATIONS SET FORTH THEREIN SHALL NOT APPLY WHERE THERE
 IS  EVIDENCE  THE  PROPERTY  WAS WITHHELD WITH THE INTENT TO DEFRAUD THE
 RIGHTFUL OWNER OF THE PROPERTY.
   § 2. Subdivision 1 of section 1412 of the abandoned property  law,  as
 amended  by  chapter  669  of  the  laws  of 1971, is amended to read as
 follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02209-01-1

 A. 723                              2
 
   1. (A) Any person wilfully failing  to  make  any  full  and  complete
 report  or to file any affidavit required by this chapter BEFORE THE TEN
 YEAR PERIOD shall forfeit to the people of the  state  the  sum  of  one
 hundred  dollars for each day such report or affidavit shall be wilfully
 delayed  or  withheld,  except that the state comptroller may extend the
 time for making any such report or filing any  such  affidavit  and  may
 waive  the  payment  of any penalty or part thereof provided for by this
 subdivision.
   (B) THE TOTAL SUM OF SUCH  PENALTY  SHALL  NOT  EXCEED  FIVE  THOUSAND
 DOLLARS  FOR  ENTITIES WITH GROSS REVENUES LESS THAN TEN MILLION DOLLARS
 PER ANNUM.
   § 3. Section 1412 of the abandoned property law is amended by adding a
 new subdivision 5 to read as follows:
   5. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION  ONE
 OF THIS SECTION, THE PENALTY CAP SET FORTH THEREIN SHALL NOT APPLY WHERE
 THERE  IS  EVIDENCE  THAT  SUCH PROPERTY WAS WITHHELD WITH THE INTENT TO
 DEFRAUD THE RIGHTFUL OWNER OF SUCH PROPERTY.
   § 4. This act shall take effect immediately.