Relates to interest on unclaimed child and spousal support payments by the owner of abandoned properties.
Summary
S08253 amends New York’s Abandoned Property Law to add a specific category of abandoned property: unclaimed spousal and child support payments. Under the bill, when such support payments are turned over to the State Comptroller as abandoned property, the owner generally is not entitled to interest after the transfer date, consistent with existing law for abandoned property. However, the bill creates a limited exception for certain abandoned property categories, including support payments, allowing interest to accrue for the first five years the Comptroller holds the funds at a rate tied to the tax overpayment rate minus one percentage point.
The bill also makes a technical wording change replacing gendered pronouns with neutral language and adds section 1318 of the Abandoned Property Law to the list of provisions covered by the interest rule. It takes effect immediately. In practical terms, the measure affects the treatment of unclaimed child support and spousal support funds held by the state, clarifying how much interest, if any, may be credited while the money remains in state custody.
Impact
The bill modifies section 1405 of the Abandoned Property Law, which governs whether owners of abandoned property may receive interest after the property is remitted to the State Comptroller. It expands the statute’s enumerated exceptions to include property governed by section 1318, thereby extending the five-year limited-interest rule to unclaimed spousal and child support payments. The change affects the State Comptroller’s administration of abandoned property and the rights of recipients or claimants to recover interest on dormant support funds.
Sentiment
The available voting record shows strong, unanimous support in the Senate, with a 19-0 Rules Committee vote and a 58-0 final passage vote. The absence of recorded opposition suggests the bill was viewed as a technical or administrative clarification rather than a controversial policy change. The sponsor’s request from the State Comptroller also indicates executive-branch support for the measure’s approach to abandoned property administration.
Contention
No substantive contention is reflected in the provided materials. The bill appears to be narrowly focused on interest treatment for unclaimed support payments and on conforming language changes, which likely limited debate. If any issue were to arise, it would most likely concern whether unclaimed support recipients should receive interest while funds are held by the state, but the unanimous votes suggest that any such concerns did not generate opposition in the Senate.