S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9784
 
                           I N  A S S E M B L Y
 
                               April 9, 2024
                                ___________
 
 Introduced by M. of A. LAVINE -- read once and referred to the Committee
   on Economic Development
 
 AN  ACT  to amend the general business law, in relation to providing for
   electronic notice for collateral loan brokers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision 1 of section 49 of the general business law, as
 amended  by  chapter  594  of  the  laws  of 1997, is amended to read as
 follows:
   1. [No pledge shall be sold unless written or printed notice of inten-
 tion to sell with a statement of the article or articles to be sold  has
 been  first  mailed  by  letter  addressed to the pledgor at the address
 given at the time of pledging at least thirty days prior to the date  of
 sale]  NOTWITHSTANDING  ANY  GENERAL  OR SPECIAL STATUTES, LOCAL LAW AND
 ORDINANCES TO THE CONTRARY, UPON THE TENDERING OF A PLEDGE, THE  PLEDGOR
 SHALL  PROVIDE A COLLATERAL LOAN BROKER AN EMAIL ADDRESS OR PHONE NUMBER
 TO BE USED IN THE EVENT A PLEDGE IS NOT TIMELY REDEEMED FOR PURPOSES  OF
 PROVIDING A NOTICE OF INTENTION TO SELL.  NO PLEDGE SHALL BE SOLD UNLESS
 A  NOTICE OF INTENTION TO SELL, WITH A STATEMENT OF THE ARTICLE OR ARTI-
 CLES TO BE SOLD, IS FORWARDED ELECTRONICALLY, BY EMAIL OR TEXT  MESSAGE,
 AT  LEAST  THIRTY  DAYS  PRIOR  TO THE DATE OF SALE.  A SECOND NOTICE OF
 INTENTION TO SELL SHALL BE FORWARDED ELECTRONICALLY, BY  EMAIL  OR  TEXT
 MESSAGE, TO THE PLEDGOR AT LEAST FIFTEEN DAYS PRIOR TO THE SALE.  ALTER-
 NATIVELY,  A  PLEDGOR  MAY  AT  THE  TIME OF TENDERING A PLEDGE ELECT TO
 RECEIVE A NOTICE OF INTENTION TO SELL BY UNITED  STATES  POSTAL  SERVICE
 MAIL  WITH A STATEMENT OF THE ARTICLES TO BE SOLD BY LETTER ADDRESSED TO
 THE PLEDGOR AT THE ADDRESS GIVEN AT THE TIME OF PLEDGING AT LEAST THIRTY
 DAYS PRIOR TO THE DATE OF THE SALE.  A PLEDGOR MAY AT ANY TIME PRIOR  TO
 THE  TRANSMISSION OF THE SECOND NOTICE REFERENCED ABOVE, OR MAILING OF A
 LETTER ADDRESSED TO THE PLEDGOR, PROVIDE ONE OR MORE  UPDATED  ADDRESSES
 OR  PHONE NUMBERS TO BE USED FOR PURPOSES OF TRANSMISSION OF A NOTICE OF
 INTENTION TO SELL AND  THE  COLLATERAL  LOAN  BROKER  SHALL  ACCORDINGLY
 EMPLOY  A  SUBSTITUTE  NEW ADDRESS OR PHONE NUMBER. COPIES OF NOTICES OF
 INTENTION TO SELL SENT PURSUANT TO THIS SUBDIVISION SHALL BE RETAINED BY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13655-01-3
 A. 9784                             2
 
 A COLLATERAL LOAN BROKER FOR NOT LESS THAN SIX YEARS. If the sale  shall
 be  by public auction, then notice of every such sale shall be published
 for at least six days previous thereto, in at least  two  of  the  daily
 newspapers  printed  in the city where the business shall be carried on,
 and also in two daily newspapers of the city where the sale is  to  take
 place  and to be designated by said mayor, and such notice shall specify
 the time and place at which such sale is to take place and the  name  of
 the  auctioneers  by  whom  the  same is to be conducted together with a
 statement of the class of pledges to be sold and the inclusive dates and
 numbers of the pawn tickets of the pledges to be sold. If the pledge, at
 such sale, shall be purchased back by the collateral  loan  broker,  the
 pledgor  shall  be entitled to redeem same within ten days thereafter by
 tendering to the collateral loan broker the amount of the loan with  the
 interest  due thereon, the amount of the auctioneer's lawful commission,
 lawful extra care charges, and the expense of the advertisement  of  the
 sale.
   §  2.  Subdivision  2  of  section  50 of the general business law, as
 amended by chapter 321 of the laws  of  1983,  is  amended  to  read  as
 follows:
   2. In the event there is any surplus money due to a pledgor after such
 sale,  the  collateral loan broker shall give the pledgor written notice
 thereof, by mailing to such pledgor, directed  to  him  at  the  address
 given  at the time of pledging or in the event such pledgor has notified
 the collateral loan broker, in writing, of a change of address, to  such
 new  address,  within  thirty days after such sale, a notice which shall
 state the name and address of the collateral loan broker, the number  of
 the  pledge,  the  date  of sale and the amount of any surplus, PROVIDED
 HOWEVER THAT IN THE EVENT THAT THE COLLATERAL LOAN BROKER HAS  TRANSMIT-
 TED A NOTICE OF SALE VIA ELECTRONIC MEANS PURSUANT TO SECTION FORTY-NINE
 OF  THIS ARTICLE, THE NOTICE OF SURPLUS HEREIN SHALL BE TRANSMITTED IN A
 MANNER IDENTICAL TO THE MEANS EMPLOYED WITH  REGARD  TO  THE  NOTICE  OF
 SALE,  PROVIDED FURTHER THAT SUCH ELECTRONIC NOTICE SHALL BE REQUIRED TO
 BE TRANSMITTED ONE TIME TO THE ELECTRONIC ADDRESS PROVIDED BY THE  PLED-
 GOR  AT  THE  TIME  THE  ARTICLE  WAS PLEDGED OR TO AT LEAST ONE OR MORE
 ALTERNATIVE ELECTRONIC ADDRESSES IF PROVIDED, IN WRITING, HARD  COPY  OR
 ELECTRONIC,  TO  THE  COLLATERAL LOAN BROKER BY THE PLEDGOR PRIOR TO THE
 TRANSMITTAL OF THE NOTICE OF SURPLUS AS PRESCRIBED HEREIN. In the  event
 any  person  entitled  to  such surplus fails to make claim for the same
 within one year from the date of such sale, such surplus shall  be  paid
 over, by the collateral loan broker, to the state comptroller in accord-
 ance  with  the  provisions of section one thousand three hundred one of
 the abandoned property law.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.