-  This bill is not active in this session.
 

A02653 Summary:

BILL NOA02653A
 
SAME ASSAME AS S03704
 
SPONSORDinowitz (MS)
 
COSPNSRWeprin, Gottfried, Arroyo, Joyner, Reyes, Sayegh, Galef, Epstein, D'Urso, Steck, Cook, Glick, Wright, Frontus
 
MLTSPNSREnglebright, Griffin, Hevesi, Simon
 
Amd §5-702, Gen Ob L
 
Increases the monetary exclusion on the requirement of plain language in consumer contracts from $100,000 to $250,000.
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A02653 Actions:

BILL NOA02653A
 
01/24/2019referred to judiciary
03/06/2019amend and recommit to judiciary
03/06/2019print number 2653a
03/19/2019reported
03/21/2019advanced to third reading cal.151
03/27/2019passed assembly
03/27/2019delivered to senate
03/27/2019REFERRED TO JUDICIARY
06/12/2019SUBSTITUTED FOR S3704
06/12/20193RD READING CAL.699
06/12/2019PASSED SENATE
06/12/2019RETURNED TO ASSEMBLY
10/01/2019delivered to governor
10/11/2019signed chap.363
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A02653 Committee Votes:

JUDICIARY Chair:Dinowitz DATE:03/19/2019AYE/NAY:20/0 Action: Favorable
DinowitzAyePalumboAye
TitusAyeMontesanoAye
LavineAyeGoodellAye
ZebrowskiAyeNorrisAye
WeprinAyeWalshAye
BraunsteinExcusedByrnesAye
SimotasAye
QuartAye
BuchwaldAye
SteckAye
SeawrightAye
JoynerAye
AbinantiAye
WrightAye
WallaceAye

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A02653 Floor Votes:

DATE:03/27/2019Assembly Vote  YEA/NAY: 124/23
Yes
Abbate
Yes
Crespo
ER
Gantt
No
LiPetri
Yes
Perry
Yes
Simon
Yes
Abinanti
Yes
Crouch
Yes
Garbarino
Yes
Lupardo
Yes
Pheffer Amato
Yes
Simotas
ER
Arroyo
Yes
Cruz
Yes
Giglio
ER
Magnarelli
Yes
Pichardo
Yes
Smith
No
Ashby
Yes
Cusick
Yes
Glick
Yes
Malliotakis
Yes
Pretlow
Yes
Smullen
Yes
Aubry
Yes
Cymbrowitz
No
Goodell
No
Manktelow
Yes
Quart
Yes
Solages
No
Barclay
Yes
Davila
Yes
Gottfried
Yes
McDonald
No
Ra
No
Stec
Yes
Barnwell
Yes
De La Rosa
Yes
Griffin
Yes
McDonough
Yes
Raia
Yes
Steck
Yes
Barrett
Yes
DenDekker
Yes
Gunther
Yes
McMahon
Yes
Ramos
Yes
Stern
Yes
Barron
Yes
DeStefano
No
Hawley
Yes
Mikulin
Yes
Raynor
Yes
Stirpe
Yes
Benedetto
Yes
Dickens
Yes
Hevesi
Yes
Miller B
No
Reilly
No
Tague
Yes
Bichotte
Yes
Dilan
Yes
Hunter
Yes
Miller MG
Yes
Reyes
Yes
Taylor
Yes
Blake
Yes
Dinowitz
Yes
Hyndman
Yes
Miller ML
Yes
Richardson
Yes
Thiele
Yes
Blankenbush
No
DiPietro
Yes
Jacobson
Yes
Montesano
Yes
Rivera
Yes
Titus
No
Brabenec
Yes
D'Urso
Yes
Jaffee
No
Morinello
Yes
Rodriguez
Yes
Vanel
Yes
Braunstein
Yes
Eichenstein
Yes
Jean-Pierre
Yes
Mosley
Yes
Romeo
Yes
Walczyk
Yes
Bronson
Yes
Englebright
Yes
Johns
Yes
Niou
Yes
Rosenthal D
Yes
Walker
Yes
Buchwald
Yes
Epstein
Yes
Jones
Yes
Nolan
Yes
Rosenthal L
Yes
Wallace
Yes
Burke
Yes
Fahy
Yes
Joyner
No
Norris
Yes
Rozic
Yes
Walsh
Yes
Buttenschon
Yes
Fall
Yes
Kim
Yes
O'Donnell
Yes
Ryan
Yes
Weinstein
No
Byrne
Yes
Fernandez
No
Kolb
Yes
Ortiz
Yes
Salka
Yes
Weprin
Yes
Byrnes
No
Finch
No
Lalor
Yes
Otis
Yes
Santabarbara
Yes
Williams
Yes
Cahill
No
Fitzpatrick
Yes
Lavine
No
Palmesano
Yes
Sayegh
Yes
Woerner
Yes
Carroll
No
Friend
No
Lawrence
No
Palumbo
Yes
Schimminger
Yes
Wright
Yes
Colton
Yes
Frontus
Yes
Lentol
Yes
Paulin
Yes
Schmitt
Yes
Zebrowski
Yes
Cook
Yes
Galef
Yes
Lifton
Yes
Peoples-Stokes
Yes
Seawright
Yes
Mr. Speaker

‡ Indicates voting via videoconference
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A02653 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2653A
 
SPONSOR: Dinowitz (MS)
  TITLE OF BILL: An act to amend the general obligations law, in relation to requirements for the use of plain language in consumer tran- sactions   PURPOSE: Increases the applicability of the plain language law to consumer contracts involving amounts up to $250,000   SUMMARY OF PROVISIONS: Section One amends the closing paragraph of subdivision a of section 5-702 of the general business law. Section Two is the effective date.   JUSTIFICATION: New York State first enacted the plain language law in 1977. The statute requires "plain language" in certain written agreements to which a consumer is a party, and where the subject money, property or services are primarily used for personal, family, or household purposes. A dollar threshold was placed on the definition of "consumer contracts", making the former statute only applicable to transactions valued at less than $50,000. In 2018, Chapter 484 of the Laws of 2018 increased this thresh- old to $100,000. That legislation was a compromise measure at the time that continues to fall short of a truly pro consumer dollar amount. This bill aims to rectify that compromise. In 1977, the $50,000 threshold covered essentially all consumer contracts. Today the $100,000 threshold still does not go far enough to truly benefit consumers not familiar with legalese. This bill proposes to increase the threshold to $250,000. Since the enactment of this statute, several states have followed New York's lead and have adopted its own "plain language" statutes (Connec- ticut in 1980, Pennsylvania in 1993, Florida in 2003, and Minnesota in 1968). The state of California enacted their plain language law in 1988.   PRIOR LEGISLATIVE HISTORY: Similar to Chapter 484 of the laws of 2018.   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: One hundred eighty days after it shall have become a law and shall apply to any contract entered into after such effective date; provided, howev- er, that if chapter 484 of the laws of 2018 shall not have taken effect on or before such date then section one of this act shall take effect on the same date and in the same manner as such chapter of the laws of 2018 takes effect.
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A02653 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2653--A
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 24, 2019
                                       ___________
 
        Introduced  by  M.  of  A.  DINOWITZ, WEPRIN, GOTTFRIED, ARROYO, JOYNER,
          REYES, SAYEGH, GALEF, EPSTEIN, D'URSO -- Multi-Sponsored by --  M.  of
          A. ENGLEBRIGHT, HEVESI, SIMON -- read once and referred to the Commit-
          tee  on  Judiciary  --  committee  discharged,  bill  amended, ordered
          reprinted as amended and recommitted to said committee

        AN ACT to amend the general obligations law, in relation to requirements
          for the use of plain language in consumer transactions
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. The closing paragraph of subdivision a of section 5-702 of
     2  the general obligations law, as amended by chapter 484 of  the  laws  of
     3  2018, is amended to read as follows:
     4    Any  creditor, seller or lessor who fails to comply with this subdivi-
     5  sion shall be liable to a consumer who is a party to a written agreement
     6  governed by this subdivision in an amount equal to  any  actual  damages
     7  sustained plus a penalty of fifty dollars. The total class action penal-
     8  ty  against  any  such  creditor,  seller or lessor shall not exceed ten
     9  thousand dollars in any class action or series of class actions  arising
    10  out  of  the  use  by a creditor, seller or lessor of an agreement which
    11  fails to comply with this subdivision. No action under this  subdivision
    12  may  be brought after both parties to the agreement have fully performed
    13  their obligation under such agreement, nor shall any creditor, seller or
    14  lessor who attempts in good faith to comply  with  this  subdivision  be
    15  liable  for  such  penalties. This subdivision shall not apply to a good
    16  faith attempt to describe the constant yield or other method  of  deter-
    17  mining  the  lease  charge and depreciation portions of each base rental
    18  payment under a lease of personal property. It also shall not  apply  to
    19  agreements  involving amounts in excess of [one] two hundred fifty thou-
    20  sand dollars nor prohibit the use of words or phrases or forms of agree-
    21  ment required by state or federal  law,  rule  or  regulation  or  by  a
    22  governmental instrumentality.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00635-03-9

        A. 2653--A                          2
 
     1    § 2. This act shall take effect on the one hundred eightieth day after
     2  it  shall have become a law and shall apply to any contract entered into
     3  after such effective date; provided, however, that if chapter 484 of the
     4  laws of 2018 shall not have taken effect on or  before  such  date  then
     5  section  one  of  this act shall take effect on the same date and in the
     6  same manner as such chapter of the laws of 2018 takes effect.
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A02653 LFIN:

 NO LFIN
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A02653 Chamber Video/Transcript:

3-26-19Video (@ 00:23:57)Transcript pdf Transcript html
3-27-19Video (@ 00:51:51)Transcript pdf Transcript html
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