NY State Senate Bill 2013-S1839A

Archive: Last Bill Status - In Senate Committee Consumer Protection 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 07, 2014	print number 1839a
Feb 07, 2014	amend and recommit to consumer protection
Jan 08, 2014	referred to consumer protection
Jan 09, 2013	referred to consumer protection

Bill Amendments

Original

A (Active)

co-Sponsors

2013-S1839 - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §399-c, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7270
2011-2012: S1471

2013-S1839 - Summary

Relates to arbitration organizations; requires private arbitration organizations involved in fifty or more consumer arbitrations per year to collect, publish at least quarterly, and make available to the public in a computer-searchable database certain information relating to such arbitrations; prohibits financial conflicts of interest.

2013-S1839 - Sponsor Memo

                                BILL NUMBER:S1839

TITLE OF BILL:
An act
to amend the general business law, in relation to arbitration
organizations

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to ensure fairness and accountability in
arbitration proceedings conducted by private arbitration
organizations and further protect consumers from unfair mandatory
arbitration clauses.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would require private arbitration organizations involved in
consumer arbitration cases to make certain information regarding
those cases available to the public on its website and on paper upon
request.

The information required to be disclosed for each consumer arbitration
would include the name of the non-consumer party; the type of dispute
involved; whether the consumer was the prevailing party; and on how
many occasions, if any, the non-consumer party has previously been a
party in an arbitration administered by the private arbitration
organization, No Private arbitration organization would have any
liability for collecting/publishing, or distributing such information.

The bill would provide for enforcement by the Attorney General of the
arbitration information disclosure provisions, as well as the
existing prohibition against the inclusion of mandatory arbitration
clauses in certain consumer contracts. The Attorney General would be
empowered to seek an injunction against violators and/or a civil
penalty of up to $2/000 for each violation. Each contract offered and
entered into in violation of the mandatory arbitration clause
prohibition would constitute a separate violation.

JUSTIFICATION:
The proliferation of binding mandatory arbitration clauses in consumer
contracts, including contracts for credit cards/ telephone service,
home loans, health care and consumer goods, over the past twenty
years has led to a significant increase in the number of consumer
disputes referred to arbitration. The vast majority of these
proceedings are handled by arbitrators working for private
organizations that administer arbitration programs for private
businesses.

In recent years, consumer advocates have raised concerns regarding the
fairness of private arbitration proceedings. Many advocates maintain
that consumers may not be able to get a fair hearing since arbitrators
have a financial incentive to rule in favor of the businesses paying
for his or her services.

According to a 2007 report issued by Public Citizen, between January
1, 2003, and March 31, 2007, arbitrators working for one of the
largest private arbitration organizations ruled in favor of


businesses in ninety-four percent of the cases involving California
residents that it examined.

The report also found that:

* In one fiscal quarter, an arbitrator working for a large private
arbitration organization handled eighty cases brought by banks
against consumers, and ruled for the bank in all eighty cases. In all
of the cases, except two, she gave the bank one hundred percent of
the amount it claimed;

* Another arbitrator working for a large private arbitration
organization handled sixty-eight cases in a single day - an average
of one every seven minutes, assuming an eight-hour day - and ruled
for the business in every case, awarding one hundred percent of the
claim. According to Public citizen, the same arbitrator is an
attorney with his own practice serving business and corporate clients;

* In several cases, arbitrators from a. large private arbitration
organization entered awards in favor of a large national bank and
other lenders against identity theft victims who did not, in fact,

owe any debts; and
* Arbitrators who rule against businesses and in favor of consumers
have been known to be blackballed from serving as arbitrators in
future cases.

This bill would shed light on the private arbitration industry and
provide for greater accountability for private arbitration
organizations by requiring such organizations to collect and make
available to the public basic data regarding the nature and outcome
of consumer arbitrations. This would ensure that consumers who are
given the choice of pursuing a claim in the courts or in arbitration
are able to obtain access to relevant information, such as the number
of cases a private arbitration organization has handled for a
particular business and whether the business or the consumer won most
of those cases. The bill would also help to improve fairness in
arbitrations for consumer forced into arbitration pursuant to a
contract containing a binding mandatory arbitration clause.

PRIOR LEGISLATIVE HISTORY:
2011-12: S.1471/A.8431 - Referred to Consumer Protection
2009-10: S.7270A/A.79433 - REFERRED TO RULES

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

EFFECTIVE DATE:
180 days after enactment.

2013-S1839 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1839

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens. PARKER, PERALTA -- read twice and ordered printed,
  and when  printed  to  be  committed  to  the  Committee  on  Consumer
  Protection

AN  ACT  to  amend  the general business law, in relation to arbitration
  organizations

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Subdivision 1 of section 399-c of the general business law
is amended by adding a new paragraph e to read as follows:
  E. THE TERM "ARBITRATION  ORGANIZATION"  SHALL  MEAN  AN  ASSOCIATION,
AGENCY,  BOARD,  COMMISSION,  OR OTHER ENTITY THAT IS NEUTRAL AND INITI-
ATES, SPONSORS, OR ADMINISTERS AN ARBITRATION PROCEEDING OR IS  INVOLVED
IN THE APPOINTMENT OF AN ARBITRATOR.
  S  2.  Section  399-c of the general business law is amended by adding
three new subdivisions 3, 4 and 5 to read as follows:
  3. A. ANY PRIVATE ARBITRATION  ORGANIZATION  THAT  ADMINISTERS  OR  IS
OTHERWISE  INVOLVED  IN FIFTY OR MORE CONSUMER ARBITRATIONS A YEAR SHALL
COLLECT, PUBLISH AT LEAST QUARTERLY, AND MAKE AVAILABLE TO THE PUBLIC IN
A COMPUTER-SEARCHABLE DATABASE  THAT  PERMITS  SEARCHING  WITH  MULTIPLE
SEARCH TERMS IN THE SAME SEARCH, WHICH SHALL BE ACCESSIBLE AT THE INTER-
NET  WEBSITE  OF  THE  PRIVATE  ARBITRATION ORGANIZATION, IF ANY, AND ON
PAPER UPON REQUEST, ALL OF  THE  FOLLOWING  INFORMATION  REGARDING  EACH
CONSUMER  ARBITRATION  IT HAS ADMINISTERED OR OTHERWISE BEEN INVOLVED IN
WITHIN THE PRECEDING FIVE YEARS:
  (1) THE NAME OF THE NON-CONSUMER PARTY, IF THE NON-CONSUMER PARTY IS A
CORPORATION OR OTHER BUSINESS ENTITY;
  (2) THE STATE AND ZIP CODE IN WHICH THE CONSUMER PARTY RESIDED AT  THE
TIME OF ARBITRATION;
  (3) THE TYPE OF DISPUTE INVOLVED, INCLUDING GOODS, BANKING, INSURANCE,
HEALTH  CARE,  EMPLOYMENT, AND, IF IT INVOLVES EMPLOYMENT, THE AMOUNT OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD02935-01-3

S. 1839                             2

THE EMPLOYEE'S ANNUAL WAGE DIVIDED INTO THE FOLLOWING RANGES: LESS  THAN
ONE  HUNDRED  THOUSAND  DOLLARS,  ONE  HUNDRED  THOUSAND  DOLLARS TO TWO
HUNDRED FIFTY THOUSAND DOLLARS, INCLUSIVE, AND OVER  TWO  HUNDRED  FIFTY
THOUSAND DOLLARS;
  (4) WHETHER THE CONSUMER WAS THE PREVAILING PARTY;
  (5)  ON  HOW MANY OCCASIONS, IF ANY, THE NON-CONSUMER PARTY HAS PREVI-
OUSLY BEEN A PARTY IN AN ARBITRATION OR MEDIATION  ADMINISTERED  BY  THE
PRIVATE ARBITRATION ORGANIZATION;
  (6)  WHETHER THE CONSUMER PARTY WAS REPRESENTED BY AN ATTORNEY AND, IF
SO, THE IDENTIFYING INFORMATION FOR THAT ATTORNEY, INCLUDING THE  ATTOR-
NEY'S  NAME,  THE NAME OF THE ATTORNEY'S FIRM, AND THE CITY IN WHICH THE
ATTORNEY'S OFFICE IS LOCATED;
  (7) THE DATE THE PRIVATE ARBITRATION ORGANIZATION RECEIVED THE  DEMAND
FOR  ARBITRATION, THE DATE THE ARBITRATOR WAS APPOINTED, AND THE DATE OF
DISPOSITION BY THE ARBITRATOR OR PRIVATE ARBITRATION ORGANIZATION;
  (8) THE TYPE OF DISPOSITION OF THE DISPUTE, IF KNOWN, INCLUDING  WITH-
DRAWAL,  ABANDONMENT,  SETTLEMENT,  AWARD  AFTER  HEARING, AWARD WITHOUT
HEARING, DEFAULT, OR DISMISSAL WITHOUT HEARING;
  (9) THE AMOUNT OF THE CLAIM, THE AMOUNT OF THE AWARD,  AND  ANY  OTHER
RELIEF GRANTED, IF ANY; AND
  (10)  THE  NAME  OF THE ARBITRATOR, THE ARBITRATOR'S TOTAL FEE FOR THE
CASE, AND THE PERCENTAGE OF  THE  ARBITRATOR'S  FEE  ALLOCATED  TO  EACH
PARTY.
  B.  IF  THE INFORMATION REQUIRED BY PARAGRAPH A OF THIS SUBDIVISION IS
PROVIDED BY THE PRIVATE ARBITRATION ORGANIZATION IN A  COMPUTER-SEARCHA-
BLE  FORMAT AT THE ORGANIZATION'S INTERNET WEBSITE AND MAY BE DOWNLOADED
WITHOUT ANY FEE, THE ORGANIZATION MAY CHARGE THE ACTUAL COST OF  COPYING
TO  ANY PERSON WHO REQUESTS THE INFORMATION ON PAPER. IF THE INFORMATION
REQUIRED BY PARAGRAPH A OF THIS SUBDIVISION IS  NOT  ACCESSIBLE  THROUGH
THE USE OF THE INTERNET, THE ORGANIZATION SHALL PROVIDE THAT INFORMATION
WITHOUT CHARGE TO ANY PERSON WHO REQUESTS THE INFORMATION ON PAPER.
  C.  THIS SUBDIVISION SHALL APPLY TO ANY CONSUMER ARBITRATION COMMENCED
ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN.
  D. THIS SUBDIVISION SHALL NOT APPLY TO ARBITRATIONS INVOLVING DISPUTES
BETWEEN CONSUMERS.
  4. A. NO PRIVATE ARBITRATION ORGANIZATION MAY  ADMINISTER  A  CONSUMER
ARBITRATION TO BE CONDUCTED IN THIS STATE, OR PROVIDE ANY OTHER SERVICES
RELATED TO A CONSUMER ARBITRATION, IF:
  (1)  THE  ORGANIZATION  HAS,  OR  WITHIN THE PRECEDING YEAR HAS HAD, A
FINANCIAL INTEREST IN ANY PARTY OR ATTORNEY FOR A PARTY; OR
  (2) ANY PARTY OR ATTORNEY FOR A PARTY HAS,  OR  WITHIN  THE  PRECEDING
YEAR  HAS HAD, ANY TYPE OF FINANCIAL INTEREST IN THE PRIVATE ARBITRATION
ORGANIZATION.
  B. THIS SUBDIVISION SHALL OPERATE ONLY  PROSPECTIVELY  SO  AS  NOT  TO
PROHIBIT  THE  ADMINISTRATION  OF  CONSUMER ARBITRATIONS ON THE BASIS OF
FINANCIAL INTERESTS HELD PRIOR TO JANUARY FIRST, TWO THOUSAND FIFTEEN.
  C. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "FINANCIAL INTEREST"
MEANS OWNERSHIP OF MORE THAN A ONE PERCENT LEGAL OR  EQUITABLE  INTEREST
IN A PARTY, OR A LEGAL OR EQUITABLE INTEREST IN A PARTY OF A FAIR MARKET
VALUE  IN EXCESS OF ONE THOUSAND FIVE HUNDRED DOLLARS, OR A RELATIONSHIP
AS DIRECTOR, ADVISOR OR OTHER ACTIVE PARTICIPANT IN  THE  AFFAIRS  OF  A
PARTY, EXCEPT AS FOLLOWS:
  (1) OWNERSHIP IN A MUTUAL OR COMMON INVESTMENT FUND THAT HOLDS SECURI-
TIES  IS NOT A "FINANCIAL INTEREST" IN THOSE SECURITIES UNLESS THE ARBI-
TRATOR PARTICIPATES IN THE MANAGEMENT OF THE FUND.

S. 1839                             3

  (2) AN OFFICE IN AN EDUCATIONAL, RELIGIOUS, CHARITABLE, FRATERNAL,  OR
CIVIC  ORGANIZATION  IS NOT A "FINANCIAL INTEREST" IN SECURITIES HELD BY
THE ORGANIZATION.
  (3)  THE  PROPRIETARY INTEREST OF A POLICYHOLDER IN A MUTUAL INSURANCE
ORGANIZATION, OR A DEPOSITOR IN A MUTUAL SAVINGS ASSOCIATION, OR A SIMI-
LAR PROPRIETARY INTEREST, IS A "FINANCIAL INTEREST" IN THE  ORGANIZATION
ONLY  IF  THE  OUTCOME  OF THE PROCEEDING COULD SUBSTANTIALLY AFFECT THE
VALUE OF THE INTEREST.
  5. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICATION
MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF  THE  PEOPLE  OF  THE
STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL
PROCEEDING  TO  ISSUE AN INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF
NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF  SUCH
VIOLATION;  AND  IF  IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR
JUSTICE THAT THE DEFENDANT HAS,  IN  FACT,  VIOLATED  THIS  SECTION,  AN
INJUNCTION  MAY  BE  ISSUED  BY  SUCH  COURT  OR  JUSTICE, ENJOINING AND
RESTRAINING ANY FURTHER VIOLATION,  WITHOUT  REQUIRING  PROOF  THAT  ANY
PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR  DAMAGED THEREBY. IN ANY SUCH
PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO  THE  ATTORNEY  GENERAL  AS
PROVIDED  IN  PARAGRAPH  SIX  OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND  DIRECT  RESTITU-
TION.  WHENEVER  THE  COURT  SHALL  DETERMINE  THAT  A VIOLATION OF THIS
SECTION HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF  NOT  MORE
THAN  TWO  THOUSAND  DOLLARS  FOR  SUCH VIOLATION. EACH WRITTEN CONTRACT
OFFERED BY  A  NON-CONSUMER  PARTY  AND  SUBSEQUENTLY  ENTERED  INTO  IN
VIOLATION OF SUBDIVISION TWO OF THIS SECTION SHALL CONSTITUTE A SEPARATE
VIOLATION.  IN CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTOR-
NEY  GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE
RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
TICE LAW AND RULES.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

co-Sponsors

2013-S1839A (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §399-c, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7270
2011-2012: S1471

2013-S1839A (ACTIVE) - Summary

2013-S1839A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1839A

TITLE OF BILL:  An act to amend the general business law, in relation
to arbitration organizations

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to ensure fairness and accountability in
arbitration proceedings conducted by private arbitration organizations
and further protect consumers from unfair mandatory arbitration
clauses.

SUMMARY OF SPECIFIC PROVISIONS:

This bill would require private arbitration organizations involved in
consumer arbitration cases to make certain information regarding those
cases available to the public on its website and on paper upon
request.  The information required to be disclosed for each consumer
arbitration would include the name of the non-consumer party; the type
of dispute involved; whether the consumer was the prevailing party;
and on how many occasions, if any, the non-consumer party has
previously been a party in an arbitration administered by the private
arbitration organization. No Private arbitration organization would
have any liability for collecting/publishing, or distributing such
information.

The bill would provide for enforcement by the Attorney General of the
arbitration information disclosure provisions, as well as the existing
prohibition against the inclusion of mandatory arbitration clauses in
certain consumer contracts. The Attorney General would be empowered to
seek an injunction against violators and/or a civil penalty of up to
$2000 for each violation. Each contract offered and entered into in
violation of the mandatory arbitration clause prohibition would
constitute a separate violation.

JUSTIFICATION:

The proliferation of binding mandatory arbitration clauses in consumer
contracts, including contracts for credit cards/ telephone service,
home loans, health care and consumer goods, over the past twenty years
has led to a significant increase in the number of consumer disputes
referred to arbitration. The vast majority of these proceedings are
handled by arbitrators working for private organizations that
administer arbitration programs for private businesses.

In recent years, consumer advocates have raised concerns regarding the
fairness of private arbitration proceedings. Many advocates maintain
that consumers may not be able to get a fair hearing since arbitrators
have a financial incentive to rule in favor of the businesses paying
for his or her services.

According to a 2007 report issued by Public Citizen, between January
1, 2003, and March 31, 2007, arbitrators working for one of the
largest private arbitration organizations ruled in favor of businesses
in ninety-four percent of the cases involving California residents
that it examined.


The report also found that:

* In one fiscal quarter, an arbitrator working for a large private
arbitration organization handled eighty cases brought by banks against
consumers, and ruled for the bank in all eighty cases. In all of the
cases, except two, she gave the bank one hundred percent of the amount
it claimed;

* Another arbitrator working for a large private arbitration
organization handled sixty-eight cases in a single day - an average of
one every seven minutes, assuming an eight-hour day - and ruled for
the business in every case, awarding one hundred percent of the claim.
According to Public citizen, the same arbitrator is an attorney with
his own practice serving business and corporate clients;

* In several cases, arbitrators from a. large private arbitration
organization entered awards in favor of a large national bank and
other lenders against identity theft victims who did not, in fact, owe
any debts; and

* Arbitrators who rule against businesses and in favor of consumers
have been known to be blackballed from serving as arbitrators in
future cases.

This bill would shed light on the private arbitration industry and
provide for greater accountability for private arbitration
organizations by requiring such organizations to collect and make
available to the public basic data regarding the nature and outcome of
consumer arbitrations. This would ensure that consumers who are given
the choice of pursuing a claim in the courts or in arbitration are
able to obtain access to relevant information, such as the number of
cases a private arbitration organization has handled for a particular
business and whether the business or the consumer won most of those
cases. The bill would also help to improve fairness in arbitrations
for consumer forced into arbitration pursuant to a contract containing
a binding mandatory arbitration clause.

PRIOR LEGISLATIVE HISTORY:

2011-12: S.1471/A.8431 - Referred to Consumer Protection
2009-10: S.7270A/A.7943B - REFERRED TO RULES

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

EFFECTIVE DATE:

180 days after enactment.

2013-S1839A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1839--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens. PARKER, PERALTA -- read twice and ordered printed,
  and when  printed  to  be  committed  to  the  Committee  on  Consumer
  Protection  --  recommitted to the Committee on Consumer Protection in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the general business law,  in  relation  to  arbitration
  organizations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 399-c of the general business  law
is amended by adding a new paragraph e to read as follows:
  E.  THE  TERM  "ARBITRATION  ORGANIZATION"  SHALL MEAN AN ASSOCIATION,
AGENCY, BOARD, COMMISSION, OR OTHER ENTITY THAT IS  NEUTRAL  AND  INITI-
ATES,  SPONSORS, OR ADMINISTERS AN ARBITRATION PROCEEDING OR IS INVOLVED
IN THE APPOINTMENT OF AN ARBITRATOR.
  S 2. Section 399-c of the general business law is  amended  by  adding
three new subdivisions 3, 4 and 5 to read as follows:
  3.  A.  ANY  PRIVATE  ARBITRATION  ORGANIZATION THAT ADMINISTERS OR IS
OTHERWISE INVOLVED IN FIFTY OR MORE CONSUMER ARBITRATIONS A  YEAR  SHALL
COLLECT, PUBLISH AT LEAST QUARTERLY, AND MAKE AVAILABLE TO THE PUBLIC IN
A  COMPUTER-SEARCHABLE  DATABASE  THAT  PERMITS  SEARCHING WITH MULTIPLE
SEARCH TERMS IN THE SAME SEARCH, WHICH SHALL BE ACCESSIBLE AT THE INTER-
NET WEBSITE OF THE PRIVATE ARBITRATION  ORGANIZATION,  IF  ANY,  AND  ON
PAPER  UPON  REQUEST,  ALL  OF  THE FOLLOWING INFORMATION REGARDING EACH
CONSUMER ARBITRATION IT HAS ADMINISTERED OR OTHERWISE BEEN  INVOLVED  IN
WITHIN THE PRECEDING FIVE YEARS:
  (1) THE NAME OF THE NON-CONSUMER PARTY, IF THE NON-CONSUMER PARTY IS A
CORPORATION OR OTHER BUSINESS ENTITY;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02935-03-4

S. 1839--A                          2

  (2)  THE STATE AND ZIP CODE IN WHICH THE CONSUMER PARTY RESIDED AT THE
TIME OF ARBITRATION;
  (3) THE TYPE OF DISPUTE INVOLVED, INCLUDING GOODS, BANKING, INSURANCE,
HEALTH  CARE,  EMPLOYMENT, AND, IF IT INVOLVES EMPLOYMENT, THE AMOUNT OF
THE EMPLOYEE'S ANNUAL WAGE DIVIDED INTO THE FOLLOWING RANGES: LESS  THAN
ONE  HUNDRED  THOUSAND  DOLLARS,  ONE  HUNDRED  THOUSAND  DOLLARS TO TWO
HUNDRED FIFTY THOUSAND DOLLARS, INCLUSIVE, AND OVER  TWO  HUNDRED  FIFTY
THOUSAND DOLLARS;
  (4) WHETHER THE CONSUMER WAS THE PREVAILING PARTY;
  (5)  ON  HOW MANY OCCASIONS, IF ANY, THE NON-CONSUMER PARTY HAS PREVI-
OUSLY BEEN A PARTY IN AN ARBITRATION OR MEDIATION  ADMINISTERED  BY  THE
PRIVATE ARBITRATION ORGANIZATION;
  (6)  WHETHER THE CONSUMER PARTY WAS REPRESENTED BY AN ATTORNEY AND, IF
SO, THE IDENTIFYING INFORMATION FOR THAT ATTORNEY, INCLUDING THE  ATTOR-
NEY'S  NAME,  THE NAME OF THE ATTORNEY'S FIRM, AND THE CITY IN WHICH THE
ATTORNEY'S OFFICE IS LOCATED;
  (7) THE DATE THE PRIVATE ARBITRATION ORGANIZATION RECEIVED THE  DEMAND
FOR  ARBITRATION, THE DATE THE ARBITRATOR WAS APPOINTED, AND THE DATE OF
DISPOSITION BY THE ARBITRATOR OR PRIVATE ARBITRATION ORGANIZATION;
  (8) THE TYPE OF DISPOSITION OF THE DISPUTE, IF KNOWN, INCLUDING  WITH-
DRAWAL,  ABANDONMENT,  SETTLEMENT,  AWARD  AFTER  HEARING, AWARD WITHOUT
HEARING, DEFAULT, OR DISMISSAL WITHOUT HEARING;
  (9) THE AMOUNT OF THE CLAIM, THE AMOUNT OF THE AWARD,  AND  ANY  OTHER
RELIEF GRANTED, IF ANY; AND
  (10)  THE  NAME  OF THE ARBITRATOR, THE ARBITRATOR'S TOTAL FEE FOR THE
CASE, AND THE PERCENTAGE OF  THE  ARBITRATOR'S  FEE  ALLOCATED  TO  EACH
PARTY.
  B.  IF  THE INFORMATION REQUIRED BY PARAGRAPH A OF THIS SUBDIVISION IS
PROVIDED BY THE PRIVATE ARBITRATION ORGANIZATION IN A  COMPUTER-SEARCHA-
BLE  FORMAT AT THE ORGANIZATION'S INTERNET WEBSITE AND MAY BE DOWNLOADED
WITHOUT ANY FEE, THE ORGANIZATION MAY CHARGE THE ACTUAL COST OF  COPYING
TO  ANY PERSON WHO REQUESTS THE INFORMATION ON PAPER. IF THE INFORMATION
REQUIRED BY PARAGRAPH A OF THIS SUBDIVISION IS  NOT  ACCESSIBLE  THROUGH
THE USE OF THE INTERNET, THE ORGANIZATION SHALL PROVIDE THAT INFORMATION
WITHOUT CHARGE TO ANY PERSON WHO REQUESTS THE INFORMATION ON PAPER.
  C.  THIS SUBDIVISION SHALL APPLY TO ANY CONSUMER ARBITRATION COMMENCED
ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
  D. THIS SUBDIVISION SHALL NOT APPLY TO ARBITRATIONS INVOLVING DISPUTES
BETWEEN CONSUMERS.
  4. A. NO PRIVATE ARBITRATION ORGANIZATION MAY  ADMINISTER  A  CONSUMER
ARBITRATION TO BE CONDUCTED IN THIS STATE, OR PROVIDE ANY OTHER SERVICES
RELATED TO A CONSUMER ARBITRATION, IF:
  (1)  THE  ORGANIZATION  HAS,  OR  WITHIN THE PRECEDING YEAR HAS HAD, A
FINANCIAL INTEREST IN ANY PARTY OR ATTORNEY FOR A PARTY; OR
  (2) ANY PARTY OR ATTORNEY FOR A PARTY HAS,  OR  WITHIN  THE  PRECEDING
YEAR  HAS HAD, ANY TYPE OF FINANCIAL INTEREST IN THE PRIVATE ARBITRATION
ORGANIZATION.
  B. THIS SUBDIVISION SHALL OPERATE ONLY  PROSPECTIVELY  SO  AS  NOT  TO
PROHIBIT  THE  ADMINISTRATION  OF  CONSUMER ARBITRATIONS ON THE BASIS OF
FINANCIAL INTERESTS HELD PRIOR TO JANUARY FIRST, TWO THOUSAND SIXTEEN.
  C. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "FINANCIAL INTEREST"
MEANS OWNERSHIP OF MORE THAN A ONE PERCENT LEGAL OR  EQUITABLE  INTEREST
IN A PARTY, OR A LEGAL OR EQUITABLE INTEREST IN A PARTY OF A FAIR MARKET
VALUE  IN EXCESS OF ONE THOUSAND FIVE HUNDRED DOLLARS, OR A RELATIONSHIP
AS DIRECTOR, ADVISOR OR OTHER ACTIVE PARTICIPANT IN  THE  AFFAIRS  OF  A
PARTY, EXCEPT AS FOLLOWS:

S. 1839--A                          3

  (1) OWNERSHIP IN A MUTUAL OR COMMON INVESTMENT FUND THAT HOLDS SECURI-
TIES  IS NOT A "FINANCIAL INTEREST" IN THOSE SECURITIES UNLESS THE ARBI-
TRATOR PARTICIPATES IN THE MANAGEMENT OF THE FUND.
  (2)  AN OFFICE IN AN EDUCATIONAL, RELIGIOUS, CHARITABLE, FRATERNAL, OR
CIVIC ORGANIZATION IS NOT A "FINANCIAL INTEREST" IN SECURITIES  HELD  BY
THE ORGANIZATION.
  (3)  THE  PROPRIETARY INTEREST OF A POLICYHOLDER IN A MUTUAL INSURANCE
ORGANIZATION, OR A DEPOSITOR IN A MUTUAL SAVINGS ASSOCIATION, OR A SIMI-
LAR PROPRIETARY INTEREST, IS A "FINANCIAL INTEREST" IN THE  ORGANIZATION
ONLY  IF  THE  OUTCOME  OF THE PROCEEDING COULD SUBSTANTIALLY AFFECT THE
VALUE OF THE INTEREST.
  5. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICATION
MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF  THE  PEOPLE  OF  THE
STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL
PROCEEDING  TO  ISSUE AN INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF
NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF  SUCH
VIOLATION;  AND  IF  IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR
JUSTICE THAT THE DEFENDANT HAS,  IN  FACT,  VIOLATED  THIS  SECTION,  AN
INJUNCTION  MAY  BE  ISSUED  BY  SUCH  COURT  OR  JUSTICE, ENJOINING AND
RESTRAINING ANY FURTHER VIOLATION,  WITHOUT  REQUIRING  PROOF  THAT  ANY
PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR  DAMAGED THEREBY. IN ANY SUCH
PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO  THE  ATTORNEY  GENERAL  AS
PROVIDED  IN  PARAGRAPH  SIX  OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND  DIRECT  RESTITU-
TION.  WHENEVER  THE  COURT  SHALL  DETERMINE  THAT  A VIOLATION OF THIS
SECTION HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF  NOT  MORE
THAN  TWO  THOUSAND  DOLLARS  FOR  SUCH VIOLATION. EACH WRITTEN CONTRACT
OFFERED BY  A  NON-CONSUMER  PARTY  AND  SUBSEQUENTLY  ENTERED  INTO  IN
VIOLATION OF SUBDIVISION TWO OF THIS SECTION SHALL CONSTITUTE A SEPARATE
VIOLATION.  IN CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTOR-
NEY  GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE
RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
TICE LAW AND RULES.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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Senate Bill S1839A

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Bill Amendments

co-Sponsors

2013-S1839 - Details

2013-S1839 - Summary

2013-S1839 - Sponsor Memo

2013-S1839 - Bill Text download pdf

co-Sponsors

2013-S1839A (ACTIVE) - Details

2013-S1839A (ACTIVE) - Summary

2013-S1839A (ACTIVE) - Sponsor Memo

2013-S1839A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1839A

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Sponsored By

Kevin S. Parker

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Bill Amendments

co-Sponsors

Jose Peralta

2013-S1839 - Details

2013-S1839 - Summary

2013-S1839 - Sponsor Memo

2013-S1839 - Bill Text download pdf

co-Sponsors

Jose Peralta

2013-S1839A (ACTIVE) - Details

2013-S1839A (ACTIVE) - Summary

2013-S1839A (ACTIVE) - Sponsor Memo

2013-S1839A (ACTIVE) - Bill Text download pdf

Comments