NY State Assembly Bill 2015-A9241C

Archive: Last Bill Status - On Floor Calendar

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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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 17, 2016	ordered to third reading rules cal.540 rules report cal.540 reported
Jun 14, 2016	reported referred to rules reported referred to ways and means
Jun 03, 2016	print number 9241c
Jun 03, 2016	amend and recommit to codes
May 26, 2016	print number 9241b
May 26, 2016	amend and recommit to codes
May 24, 2016	reported referred to codes
Mar 09, 2016	print number 9241a
Mar 09, 2016	amend and recommit to consumer affairs and protection
Feb 04, 2016	referred to consumer affairs and protection

Bill Amendments

Original

C (Active)

co-Sponsors

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multi-Sponsors

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2015-A9241 - Details

See Senate Version of this Bill:: S8006
Law Section:: General Business Law
Laws Affected:: Add Art 39-H §§899-ccc - 899-ggg, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3911
2019-2020: S4478

2015-A9241 - Summary

Establishes contract requirements for third party litigation financing which includes requiring contracts to contain a right of rescission, a written acknowledgement by the attorney retained, a clear outline of the scheduled fee structure and a no penalty provision.

2015-A9241 - Bill Text download pdf

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

                                  9241

                          I N  A S S E M B L Y

                            February 4, 2016
                               ___________

Introduced  by  M.  of  A.  SIMANOWITZ  -- read once and referred to the
  Committee on Consumer Affairs and Protection

AN ACT to amend the general business law, in  relation  to  third  party
  litigation financing

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

  Section 1. The general business law is amended by adding a new article
39-H to read as follows:
                               ARTICLE 39-H
                    THIRD PARTY LITIGATION FINANCING
SECTION 899-CCC. DEFINITIONS.
        899-DDD. CONTRACT REQUIREMENTS.
        899-EEE. PROHIBITIONS.
        899-FFF. REGISTRATION.
        899-GGG. PENALTY FOR VIOLATION.
  S 899-CCC. DEFINITIONS. AS USED IN THIS ARTICLE, THE  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "CHARGES" SHALL MEAN THE AMOUNT OF MONEY TO BE PAID TO THE CONSUMER
LITIGATION  FUNDING  COMPANY THAT EXCEEDS THE FUNDED AMOUNT OF PRINCIPAL
LOAN.
  2. "CONSUMER LITIGATION FUNDING COMPANY" SHALL MEAN A PERSON OR ENTITY
THAT ENTERS INTO A NON-RECOURSE TRANSACTION WHEREIN THE COMPANY PROVIDES
FUNDS TO A CONSUMER ON THE CONTINGENT RIGHT TO RECEIVE THE FUNDED AMOUNT
AND AGREED UPON CHARGES OBTAINED IN THE EVENT OF A SETTLEMENT,  JUDGMENT
OR AWARD.
  3.  "FUNDED  AMOUNT"  SHALL  MEAN  THE AMOUNT OF MONEY PROVIDED TO THE
CONSUMER IN CONSUMER LITIGATION FINANCING.
  4. "RESOLUTION DATE" SHALL MEAN THE DATE THE FUNDED AMOUNT AND  AGREED
UPON CHARGES ARE DELIVERED TO THE CONSUMER LITIGATION FINANCING COMPANY.
  S  899-DDD.  CONTRACT REQUIREMENTS. 1. CONTRACTS SHALL CONTAIN A RIGHT
OF RESCISSION, ALLOWING THE CONSUMER TO CANCEL THE  CONTRACT  WITHOUT  A
PENALTY  IF  THE  CONSUMER RETURNS THE FULL AMOUNT OF DISBURSED FUNDS TO
THE COMPANY WITHIN TEN BUSINESS DAYS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13354-03-6

A. 9241                             2

  2. CONTRACTS SHALL CONTAIN A WRITTEN ACKNOWLEDGEMENT BY  THE  ATTORNEY
RETAINED BY THE CONSUMER THAT ATTESTS:
  (A)  THE  ATTORNEY  IS BEING PAID ON A CONTINGENCY BASIS PURSUANT TO A
WRITTEN FEE AGREEMENT; AND
  (B) THE ATTORNEY IS NOT RECEIVING A REFERRAL FEE FROM  THE  LITIGATION
FUNDING COMPANY IN CONNECTION WITH THE CONSUMER'S FUNDING.
  3.  CONTRACTS  SHALL  CLEARLY  OUTLINE  A SCHEDULED FEE STRUCTURE THAT
OUTLINES REPAYMENT TERMS INCLUDING:
  (A) THE FUNDED AMOUNT PLUS CHARGES WRITTEN OUT AS ITEMIZED AMOUNTS;
  (B) THE CHARGES OUTLINED AS A PERCENTAGE AMOUNT EXCEEDING  THE  FUNDED
AMOUNT; AND
  (C) ITEMIZED ONE-TIME FEES INCLUDING PAPERWORK PROCESSING AND ADMINIS-
TRATIVE FEES.
  4.  CONTRACTS SHALL CONTAIN A NO PENALTY PROVISION FOR THE PRE-PAYMENT
OF THE FUNDED AMOUNT PRIOR TO THE SETTLEMENT OF HIS OR  HER  CASE.  SUCH
PROVISION SHALL RELEASE THE CONSUMER FROM ANY OBLIGATION TO SHARE HIS OR
HER SETTLEMENT OR VERDICT.
  S  899-EEE.  PROHIBITIONS.  1.  CONSUMER  LITIGATION FUNDING COMPANIES
SHALL BE PROHIBITED FROM PAYING, ACCEPTING OR OFFERING REFERRAL FEES  OR
ANY  TYPE  OF  CONSIDERATION TO AND FROM ANY MEDICAL PROVIDERS, LICENSED
THERAPISTS OR ATTORNEYS FOR REFERRING A CONSUMER TO THE COMPANY.
  2. THE COMPANY SHALL BE PROHIBITED FROM MAKING ANY INQUIRIES WITH  THE
CONSUMER'S  REPRESENTATIVE  ATTORNEY THAT WOULD VIOLATE THE TERMS OF THE
ATTORNEY-CLIENT PRIVILEGE AT ANY POINT IN TIME.
  3. NO ATTORNEY OR LAW FIRM RETAINED BY A CONSUMER THAT UTILIZES  LITI-
GATION FINANCING MAY HAVE A FINANCIAL INTEREST IN SAID COMPANY.
  S  899-FFF.  REGISTRATION. 1. EACH CONSUMER LITIGATION FUNDING COMPANY
THAT WISHES TO ENGAGE IN BUSINESS IN THE STATE OF NEW YORK  SHALL  FIRST
REGISTER WITH THE NEW YORK STATE DEPARTMENT OF FINANCE.
  2.  EACH APPLICANT'S REGISTRATION MUST BE FILED IN A MANNER PRESCRIBED
BY THE NEW YORK STATE DEPARTMENT OF FINANCE WITH AN INITIAL  ACCOMPANIED
FEE  OF  FIVE  HUNDRED  DOLLARS. REGISTRATIONS MUST BE RENEWED EVERY TWO
YEARS ON OR BEFORE THE THIRTIETH DAY OF SEPTEMBER.
  3. THE NEW YORK STATE DEPARTMENT OF FINANCE SHALL  ISSUE  CERTIFICATES
OF  REGISTRATION AFTER BOTH UNDERSTANDING AND ATTESTING TO THE CHARACTER
AND FITNESS OF THE APPLICANT COMPANY WITH SUFFICIENT REASON  TO  BELIEVE
THE COMPANY WILL OPERATE HONESTLY AND FAIRLY.
  S  899-GGG.  PENALTY  FOR VIOLATION. ANY COMPANY FOUND IN VIOLATION OF
ANY PROVISIONS OF THIS ARTICLE IN A SPECIFIC FUNDING  CASE,  WAIVES  ITS
RIGHT  TO RECOVER BOTH THE FUNDED AMOUNT AND ANY ADDITIONAL FEES IN THAT
PARTICULAR CASE.
  S 2. This act shall take effect immediately.

co-Sponsors

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multi-Sponsors

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2015-A9241A - Details

See Senate Version of this Bill:: S8006
Law Section:: General Business Law
Laws Affected:: Add Art 39-H §§899-ccc - 899-ggg, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3911
2019-2020: S4478

2015-A9241A - Summary

2015-A9241A - Bill Text download pdf

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

                                 9241--A

                          I N  A S S E M B L Y

                            February 4, 2016
                               ___________

Introduced  by  M.  of  A.  SIMANOWITZ,  GOTTFRIED, ZEBROWSKI, BRINDISI,
  TITONE, SEPULVEDA -- Multi-Sponsored by -- M.  of  A.  BRENNAN,  COOK,
  FRIEND,  ROBINSON, SIMON -- read once and referred to the Committee on
  Consumer Affairs and Protection -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the general business law, in  relation  to  third  party
  litigation financing

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

  Section 1. The general business law is amended by adding a new article
39-H to read as follows:
                               ARTICLE 39-H
                    THIRD PARTY LITIGATION FINANCING
SECTION 899-CCC. DEFINITIONS.
        899-DDD. CONTRACT REQUIREMENTS.
        899-EEE. PROHIBITIONS.
        899-FFF. REGISTRATION.
        899-GGG. PENALTY FOR VIOLATION.
  S 899-CCC. DEFINITIONS. AS USED IN THIS ARTICLE, THE  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "CHARGES" SHALL MEAN THE AMOUNT OF MONEY TO BE PAID TO THE CONSUMER
LITIGATION  FUNDING  COMPANY THAT EXCEEDS THE FUNDED AMOUNT OF PRINCIPAL
LOAN.
  2. "CONSUMER LITIGATION FUNDING COMPANY" SHALL MEAN A PERSON OR ENTITY
THAT ENTERS INTO A NON-RECOURSE TRANSACTION WHEREIN THE COMPANY PROVIDES
FUNDS TO A CONSUMER ON THE CONTINGENT RIGHT TO RECEIVE THE FUNDED AMOUNT
AND AGREED UPON CHARGES OBTAINED IN THE EVENT OF A SETTLEMENT,  JUDGMENT
OR AWARD.
  3.  "FUNDED  AMOUNT"  SHALL  MEAN  THE AMOUNT OF MONEY PROVIDED TO THE
CONSUMER IN CONSUMER LITIGATION FINANCING.
  4. "RESOLUTION DATE" SHALL MEAN THE DATE THE FUNDED AMOUNT AND  AGREED
UPON CHARGES ARE DELIVERED TO THE CONSUMER LITIGATION FINANCING COMPANY.
  S  899-DDD.  CONTRACT REQUIREMENTS. 1. CONTRACTS SHALL CONTAIN A RIGHT
OF RESCISSION, ALLOWING THE CONSUMER TO CANCEL THE  CONTRACT  WITHOUT  A

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

                                                           LBD13354-04-6

A. 9241--A                          2

PENALTY  IF  THE  CONSUMER RETURNS THE FULL AMOUNT OF DISBURSED FUNDS TO
THE COMPANY WITHIN TEN BUSINESS DAYS.
  2.  CONTRACTS  SHALL CONTAIN A WRITTEN ACKNOWLEDGEMENT BY THE ATTORNEY
RETAINED BY THE CONSUMER THAT ATTESTS:
  (A) THE ATTORNEY IS BEING PAID ON A CONTINGENCY BASIS  PURSUANT  TO  A
WRITTEN FEE AGREEMENT; AND
  (B)  THE  ATTORNEY IS NOT RECEIVING A REFERRAL FEE FROM THE LITIGATION
FUNDING COMPANY IN CONNECTION WITH THE CONSUMER'S FUNDING.
  3. CONTRACTS SHALL CLEARLY OUTLINE  A  SCHEDULED  FEE  STRUCTURE  THAT
OUTLINES REPAYMENT TERMS INCLUDING:
  (A) THE FUNDED AMOUNT PLUS CHARGES WRITTEN OUT AS ITEMIZED AMOUNTS;
  (B)  THE  CHARGES OUTLINED AS A PERCENTAGE AMOUNT EXCEEDING THE FUNDED
AMOUNT; AND
  (C) ITEMIZED ONE-TIME FEES INCLUDING PAPERWORK PROCESSING AND ADMINIS-
TRATIVE FEES.
  4. CONTRACTS SHALL CONTAIN A NO PENALTY PROVISION FOR THE  PRE-PAYMENT
OF  THE  FUNDED  AMOUNT PRIOR TO THE SETTLEMENT OF HIS OR HER CASE. SUCH
PROVISION SHALL RELEASE THE CONSUMER FROM ANY OBLIGATION TO SHARE HIS OR
HER SETTLEMENT OR VERDICT.
  S 899-EEE. PROHIBITIONS.  1.  CONSUMER  LITIGATION  FUNDING  COMPANIES
SHALL  BE PROHIBITED FROM PAYING, ACCEPTING OR OFFERING REFERRAL FEES OR
ANY TYPE OF CONSIDERATION TO AND FROM ANY  MEDICAL  PROVIDERS,  LICENSED
THERAPISTS OR ATTORNEYS FOR REFERRING A CONSUMER TO THE COMPANY.
  2.  THE COMPANY SHALL BE PROHIBITED FROM MAKING ANY INQUIRIES WITH THE
CONSUMER'S REPRESENTATIVE ATTORNEY THAT WOULD VIOLATE THE TERMS  OF  THE
ATTORNEY-CLIENT PRIVILEGE AT ANY POINT IN TIME.
  3.  NO ATTORNEY OR LAW FIRM RETAINED BY A CONSUMER THAT UTILIZES LITI-
GATION FINANCING MAY HAVE A FINANCIAL INTEREST IN SAID COMPANY.
  4. CONSUMER LITIGATION FUNDING  COMPANIES  SHALL  BE  PROHIBITED  FROM
ATTEMPTING TO OBTAIN, OR OBTAINING A WAIVER OF ANY REMEDY, INCLUDING BUT
NOT  LIMITED  TO,  COMPENSATORY, STATUTORY OR PUNITIVE DAMAGES, THAT THE
CONSUMER MIGHT OTHERWISE HAVE.
  5. CONSUMER LITIGATION FUNDING  COMPANIES  SHALL  BE  PROHIBITED  FROM
ATTEMPTING TO EFFECT ARBITRATION OR OTHERWISE EFFECT WAIVER OF A CONSUM-
ER'S  RIGHT  TO  TRIAL  BY JURY FOR COMPLAINTS ARISING FROM THE CONSUMER
LITIGATION FUNDING TRANSACTION.
  6. CONSUMER LITIGATION FUNDING  COMPANIES  SHALL  BE  PROHIBITED  FROM
ASSIGNING A CONSUMER LITIGATION FUNDING CONTRACT IN WHOLE OR IN PART.
  7. MAXIMUM AMOUNT OF CHARGES:
  (A)  THE MAXIMUM AMOUNT OF CHARGES WHICH MAY BE ASSESSED PURSUANT TO A
CONSUMER LITIGATION FUNDING CONTRACT SHALL NOT BE IN EXCESS OF THE  RATE
PRESCRIBED IN SECTION FOURTEEN-A OF THE BANKING LAW, WHEN EXPRESSED AS A
PROPORTION OF THE FUNDED AMOUNT; AND
  (B)  ANY  CONSUMER LITIGATION FUNDING CONTRACT WHICH EXCEEDS SUCH RATE
SHALL BE CONSIDERED USURIOUS AS DEFINED BY SECTION 5-501 OF THE  GENERAL
OBLIGATIONS LAW.
  S  899-FFF.  REGISTRATION. 1. EACH CONSUMER LITIGATION FUNDING COMPANY
THAT WISHES TO ENGAGE IN BUSINESS IN THE STATE OF NEW YORK  SHALL  FIRST
REGISTER WITH THE NEW YORK STATE DEPARTMENT OF FINANCE.
  2.  EACH APPLICANT'S REGISTRATION MUST BE FILED IN A MANNER PRESCRIBED
BY THE NEW YORK STATE DEPARTMENT OF FINANCE WITH AN INITIAL  ACCOMPANIED
FEE  OF  FIVE  HUNDRED  DOLLARS. REGISTRATIONS MUST BE RENEWED EVERY TWO
YEARS ON OR BEFORE THE THIRTIETH DAY OF SEPTEMBER.
  3. THE NEW YORK STATE DEPARTMENT OF FINANCE SHALL  ISSUE  CERTIFICATES
OF  REGISTRATION AFTER BOTH UNDERSTANDING AND ATTESTING TO THE CHARACTER

A. 9241--A                          3

AND FITNESS OF THE APPLICANT COMPANY WITH SUFFICIENT REASON  TO  BELIEVE
THE COMPANY WILL OPERATE HONESTLY AND FAIRLY.
  S  899-GGG.  PENALTY  FOR VIOLATION. ANY COMPANY FOUND IN VIOLATION OF
ANY PROVISIONS OF THIS ARTICLE IN A SPECIFIC FUNDING  CASE,  WAIVES  ITS
RIGHT  TO RECOVER BOTH THE FUNDED AMOUNT AND ANY ADDITIONAL FEES IN THAT
PARTICULAR CASE.
  S 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

multi-Sponsors

View additional multi-sponsors

2015-A9241B - Details

See Senate Version of this Bill:: S8006
Law Section:: General Business Law
Laws Affected:: Add Art 39-H §§899-ccc - 899-ggg, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3911
2019-2020: S4478

2015-A9241B - Summary

2015-A9241B - Bill Text download pdf

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

                                 9241--B

                          I N  A S S E M B L Y

                            February 4, 2016
                               ___________

Introduced  by  M.  of  A.  SIMANOWITZ,  GOTTFRIED, ZEBROWSKI, BRINDISI,
  TITONE, SEPULVEDA, HYNDMAN, DILAN -- Multi-Sponsored by --  M.  of  A.
  BRENNAN,  COOK,  FRIEND,  ROBINSON, SIMON -- read once and referred to
  the  Committee  on  Consumer  Affairs  and  Protection  --   committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee -- reported and referred to the Committee on Codes
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and recommitted to said committee

AN  ACT  to  amend  the general business law, in relation to third party
  litigation financing

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

  Section 1. The general business law is amended by adding a new article
39-H to read as follows:
                               ARTICLE 39-H
                    THIRD PARTY LITIGATION FINANCING
SECTION 899-CCC. DEFINITIONS.
        899-DDD. CONTRACT REQUIREMENTS.
        899-EEE. PROHIBITIONS.
        899-FFF. REGISTRATION.
        899-GGG. PENALTY FOR VIOLATION.
  S  899-CCC.  DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "CHARGES" SHALL MEAN THE AMOUNT OF MONEY TO BE PAID TO THE CONSUMER
LITIGATION FUNDING COMPANY THAT EXCEEDS THE FUNDED AMOUNT  OF  PRINCIPAL
LOAN.
  2. "CONSUMER LITIGATION FUNDING COMPANY" SHALL MEAN A PERSON OR ENTITY
THAT ENTERS INTO A NON-RECOURSE TRANSACTION WHEREIN THE COMPANY PROVIDES
FUNDS TO A CONSUMER ON THE CONTINGENT RIGHT TO RECEIVE THE FUNDED AMOUNT
AND  AGREED UPON CHARGES OBTAINED IN THE EVENT OF A SETTLEMENT, JUDGMENT
OR AWARD.
  3. "FUNDED AMOUNT" SHALL MEAN THE AMOUNT  OF  MONEY  PROVIDED  TO  THE
CONSUMER IN CONSUMER LITIGATION FINANCING.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13354-05-6

A. 9241--B                          2

  4.  "RESOLUTION DATE" SHALL MEAN THE DATE THE FUNDED AMOUNT AND AGREED
UPON CHARGES ARE DELIVERED TO THE CONSUMER LITIGATION FINANCING COMPANY.
  S  899-DDD.  CONTRACT REQUIREMENTS. 1. CONTRACTS SHALL CONTAIN A RIGHT
OF RESCISSION, ALLOWING THE CONSUMER TO CANCEL THE  CONTRACT  WITHOUT  A
PENALTY  IF  THE  CONSUMER RETURNS THE FULL AMOUNT OF DISBURSED FUNDS TO
THE COMPANY WITHIN TEN BUSINESS DAYS.
  2. CONTRACTS SHALL CONTAIN A WRITTEN ACKNOWLEDGEMENT BY  THE  ATTORNEY
RETAINED BY THE CONSUMER THAT ATTESTS:
  (A)  THE  ATTORNEY  IS BEING PAID ON A CONTINGENCY BASIS PURSUANT TO A
WRITTEN FEE AGREEMENT; AND
  (B) THE ATTORNEY IS NOT RECEIVING A REFERRAL FEE FROM  THE  LITIGATION
FUNDING COMPANY IN CONNECTION WITH THE CONSUMER'S FUNDING.
  3.  CONTRACTS  SHALL  CLEARLY  OUTLINE  A SCHEDULED FEE STRUCTURE THAT
OUTLINES REPAYMENT TERMS INCLUDING:
  (A) THE FUNDED AMOUNT PLUS CHARGES WRITTEN OUT AS ITEMIZED AMOUNTS;
  (B) THE CHARGES OUTLINED AS A PERCENTAGE AMOUNT EXCEEDING  THE  FUNDED
AMOUNT; AND
  (C) ITEMIZED ONE-TIME FEES INCLUDING PAPERWORK PROCESSING AND ADMINIS-
TRATIVE FEES.
  4.  CONTRACTS SHALL CONTAIN A NO PENALTY PROVISION FOR THE PRE-PAYMENT
OF THE FUNDED AMOUNT PRIOR TO THE SETTLEMENT OF HIS OR  HER  CASE.  SUCH
PROVISION SHALL RELEASE THE CONSUMER FROM ANY OBLIGATION TO SHARE HIS OR
HER SETTLEMENT OR VERDICT.
  S  899-EEE.  PROHIBITIONS.  1.  CONSUMER  LITIGATION FUNDING COMPANIES
SHALL BE PROHIBITED FROM PAYING, ACCEPTING OR OFFERING REFERRAL FEES  OR
ANY  TYPE  OF  CONSIDERATION TO AND FROM ANY MEDICAL PROVIDERS, LICENSED
THERAPISTS OR ATTORNEYS FOR REFERRING A CONSUMER TO THE COMPANY.
  2. THE COMPANY SHALL BE PROHIBITED FROM MAKING ANY INQUIRIES WITH  THE
CONSUMER'S  REPRESENTATIVE  ATTORNEY THAT WOULD VIOLATE THE TERMS OF THE
ATTORNEY-CLIENT PRIVILEGE AT ANY POINT IN TIME.
  3. NO ATTORNEY OR LAW FIRM RETAINED BY A CONSUMER THAT UTILIZES  LITI-
GATION FINANCING MAY HAVE A FINANCIAL INTEREST IN SAID COMPANY.
  4.  CONSUMER  LITIGATION  FUNDING  COMPANIES  SHALL BE PROHIBITED FROM
ATTEMPTING TO OBTAIN, OR OBTAINING A WAIVER OF ANY REMEDY, INCLUDING BUT
NOT LIMITED TO, COMPENSATORY, STATUTORY OR PUNITIVE  DAMAGES,  THAT  THE
CONSUMER MIGHT OTHERWISE HAVE.
  5.  CONSUMER  LITIGATION  FUNDING  COMPANIES  SHALL BE PROHIBITED FROM
ATTEMPTING TO EFFECT ARBITRATION OR OTHERWISE EFFECT WAIVER OF A CONSUM-
ER'S RIGHT TO TRIAL BY JURY FOR COMPLAINTS  ARISING  FROM  THE  CONSUMER
LITIGATION FUNDING TRANSACTION.
  6.  CONSUMER  LITIGATION  FUNDING  COMPANIES  SHALL BE PROHIBITED FROM
ASSIGNING A CONSUMER LITIGATION FUNDING CONTRACT IN WHOLE OR IN PART.
  7. MAXIMUM AMOUNT OF CHARGES:
  (A) THE MAXIMUM AMOUNT OF CHARGES WHICH MAY BE ASSESSED PURSUANT TO  A
CONSUMER  LITIGATION FUNDING CONTRACT SHALL NOT BE IN EXCESS OF THE RATE
PRESCRIBED IN SECTION FOURTEEN-A OF THE BANKING LAW, WHEN EXPRESSED AS A
PROPORTION OF THE FUNDED AMOUNT; AND
  (B) ANY CONSUMER LITIGATION FUNDING CONTRACT WHICH EXCEEDS  SUCH  RATE
SHALL  BE CONSIDERED USURIOUS AS DEFINED BY SECTION 5-501 OF THE GENERAL
OBLIGATIONS LAW.
  S 899-FFF. REGISTRATION. 1. EACH CONSUMER LITIGATION  FUNDING  COMPANY
THAT  WISHES  TO ENGAGE IN BUSINESS IN THE STATE OF NEW YORK SHALL FIRST
REGISTER WITH THE NEW YORK DEPARTMENT OF STATE.
  2. EACH APPLICANT'S REGISTRATION MUST BE FILED IN A MANNER  PRESCRIBED
BY  THE  NEW YORK DEPARTMENT OF STATE WITH AN INITIAL ACCOMPANIED FEE OF

A. 9241--B                          3

FIVE HUNDRED DOLLARS. REGISTRATIONS MUST BE RENEWED EVERY TWO  YEARS  ON
OR BEFORE THE THIRTIETH DAY OF SEPTEMBER.
  3. THE NEW YORK DEPARTMENT OF STATE SHALL ISSUE CERTIFICATES OF REGIS-
TRATION  AFTER  BOTH  UNDERSTANDING  AND  ATTESTING TO THE CHARACTER AND
FITNESS OF THE APPLICANT COMPANY WITH SUFFICIENT REASON TO  BELIEVE  THE
COMPANY WILL OPERATE HONESTLY AND FAIRLY.
  S  899-GGG.  PENALTY  FOR VIOLATION. ANY COMPANY FOUND IN VIOLATION OF
ANY PROVISIONS OF THIS ARTICLE IN A SPECIFIC FUNDING  CASE,  WAIVES  ITS
RIGHT  TO RECOVER BOTH THE FUNDED AMOUNT AND ANY ADDITIONAL FEES IN THAT
PARTICULAR CASE.
  S 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

multi-Sponsors

View additional multi-sponsors

2015-A9241C (ACTIVE) - Details

See Senate Version of this Bill:: S8006
Law Section:: General Business Law
Laws Affected:: Add Art 39-H §§899-ccc - 899-ggg, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3911
2019-2020: S4478

2015-A9241C (ACTIVE) - Summary

2015-A9241C (ACTIVE) - Bill Text download pdf

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

                                 9241--C

                          I N  A S S E M B L Y

                            February 4, 2016
                               ___________

Introduced  by  M.  of  A.  SIMANOWITZ,  GOTTFRIED, ZEBROWSKI, BRINDISI,
  TITONE, SEPULVEDA, HYNDMAN, DILAN -- Multi-Sponsored by --  M.  of  A.
  BRENNAN,  COOK,  FRIEND,  ROBINSON, SIMON -- read once and referred to
  the  Committee  on  Consumer  Affairs  and  Protection  --   committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee -- reported and referred to the Committee on Codes
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and  recommitted to said committee -- again reported from said commit-
  tee with amendments, ordered reprinted as amended and  recommitted  to
  said committee

AN  ACT  to  amend  the general business law, in relation to third party
  litigation financing

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

  Section 1. The general business law is amended by adding a new article
39-H to read as follows:
                               ARTICLE 39-H
                    THIRD PARTY LITIGATION FINANCING
SECTION 899-CCC. DEFINITIONS.
        899-DDD. CONTRACT REQUIREMENTS.
        899-EEE. PROHIBITIONS.
        899-FFF. REGISTRATION.
        899-GGG. PENALTY FOR VIOLATION.
  S  899-CCC.  DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "CHARGES" SHALL MEAN THE AMOUNT OF MONEY TO BE PAID TO THE CONSUMER
LITIGATION FUNDING COMPANY THAT EXCEEDS THE FUNDED AMOUNT  OF  PRINCIPAL
LOAN.
  2. "CONSUMER LITIGATION FUNDING COMPANY" SHALL MEAN A PERSON OR ENTITY
THAT ENTERS INTO A NON-RECOURSE TRANSACTION WHEREIN THE COMPANY PROVIDES
FUNDS TO A CONSUMER ON THE CONTINGENT RIGHT TO RECEIVE THE FUNDED AMOUNT
AND  AGREED UPON CHARGES OBTAINED IN THE EVENT OF A SETTLEMENT, JUDGMENT
OR AWARD.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13354-07-6

A. 9241--C                          2

  3. "FUNDED AMOUNT" SHALL MEAN THE AMOUNT  OF  MONEY  PROVIDED  TO  THE
CONSUMER IN CONSUMER LITIGATION FINANCING.
  4.  "RESOLUTION DATE" SHALL MEAN THE DATE THE FUNDED AMOUNT AND AGREED
UPON CHARGES ARE DELIVERED TO THE CONSUMER LITIGATION FINANCING COMPANY.
  S 899-DDD. CONTRACT REQUIREMENTS. 1. CONTRACTS SHALL CONTAIN  A  RIGHT
OF  RESCISSION,  ALLOWING  THE CONSUMER TO CANCEL THE CONTRACT WITHOUT A
PENALTY IF THE CONSUMER RETURNS THE FULL AMOUNT OF  DISBURSED  FUNDS  TO
THE COMPANY WITHIN TEN BUSINESS DAYS.
  2.  CONTRACTS  SHALL CONTAIN A WRITTEN ACKNOWLEDGEMENT BY THE ATTORNEY
RETAINED BY THE CONSUMER THAT ATTESTS:
  (A) THE ATTORNEY IS BEING PAID ON A CONTINGENCY BASIS  PURSUANT  TO  A
WRITTEN FEE AGREEMENT; AND
  (B)  THE  ATTORNEY IS NOT RECEIVING A REFERRAL FEE FROM THE LITIGATION
FUNDING COMPANY IN CONNECTION WITH THE CONSUMER'S FUNDING.
  3. CONTRACTS SHALL CLEARLY OUTLINE  A  SCHEDULED  FEE  STRUCTURE  THAT
OUTLINES REPAYMENT TERMS INCLUDING:
  (A) THE FUNDED AMOUNT PLUS CHARGES WRITTEN OUT AS ITEMIZED AMOUNTS;
  (B)  THE  CHARGES OUTLINED AS A PERCENTAGE AMOUNT EXCEEDING THE FUNDED
AMOUNT; AND
  (C) ITEMIZED ONE-TIME FEES INCLUDING PAPERWORK PROCESSING AND ADMINIS-
TRATIVE FEES.
  4. CONTRACTS SHALL CONTAIN A NO PENALTY PROVISION FOR THE  PRE-PAYMENT
OF  THE  FUNDED  AMOUNT PRIOR TO THE SETTLEMENT OF HIS OR HER CASE. SUCH
PROVISION SHALL RELEASE THE CONSUMER FROM ANY OBLIGATION TO SHARE HIS OR
HER SETTLEMENT OR VERDICT.
  S 899-EEE. PROHIBITIONS.  1.  CONSUMER  LITIGATION  FUNDING  COMPANIES
SHALL  BE PROHIBITED FROM PAYING, ACCEPTING OR OFFERING REFERRAL FEES OR
ANY TYPE OF CONSIDERATION TO AND FROM ANY  MEDICAL  PROVIDERS,  LICENSED
THERAPISTS OR ATTORNEYS FOR REFERRING A CONSUMER TO THE COMPANY.
  2.  THE COMPANY SHALL BE PROHIBITED FROM MAKING ANY INQUIRIES WITH THE
CONSUMER'S REPRESENTATIVE ATTORNEY THAT WOULD VIOLATE THE TERMS  OF  THE
ATTORNEY-CLIENT PRIVILEGE AT ANY POINT IN TIME.
  3.  NO ATTORNEY OR LAW FIRM RETAINED BY A CONSUMER THAT UTILIZES LITI-
GATION FINANCING MAY HAVE A FINANCIAL INTEREST IN SAID COMPANY.
  4. CONSUMER LITIGATION FUNDING  COMPANIES  SHALL  BE  PROHIBITED  FROM
ATTEMPTING TO OBTAIN, OR OBTAINING A WAIVER OF ANY REMEDY, INCLUDING BUT
NOT  LIMITED  TO,  COMPENSATORY, STATUTORY OR PUNITIVE DAMAGES, THAT THE
CONSUMER MIGHT OTHERWISE HAVE.
  5. CONSUMER LITIGATION FUNDING  COMPANIES  SHALL  BE  PROHIBITED  FROM
ATTEMPTING TO EFFECT ARBITRATION OR OTHERWISE EFFECT WAIVER OF A CONSUM-
ER'S  RIGHT  TO  TRIAL  BY JURY FOR COMPLAINTS ARISING FROM THE CONSUMER
LITIGATION FUNDING TRANSACTION.
  6. CONSUMER LITIGATION FUNDING  COMPANIES  SHALL  BE  PROHIBITED  FROM
ASSIGNING A CONSUMER LITIGATION FUNDING CONTRACT IN WHOLE OR IN PART.
  7. MAXIMUM AMOUNT OF CHARGES:
  (A)  THE MAXIMUM AMOUNT OF CHARGES WHICH MAY BE ASSESSED PURSUANT TO A
CONSUMER LITIGATION FUNDING CONTRACT SHALL NOT BE IN EXCESS OF THE  RATE
PRESCRIBED IN SECTION FOURTEEN-A OF THE BANKING LAW, WHEN EXPRESSED AS A
PROPORTION OF THE FUNDED AMOUNT; AND
  (B)  ANY  CONSUMER LITIGATION FUNDING CONTRACT WHICH EXCEEDS SUCH RATE
SHALL BE CONSIDERED USURIOUS AS DEFINED BY SECTION 5-501 OF THE  GENERAL
OBLIGATIONS LAW.
  S  899-FFF.  REGISTRATION. 1. EACH CONSUMER LITIGATION FUNDING COMPANY
THAT WISHES TO ENGAGE IN BUSINESS IN THE STATE OF NEW YORK  SHALL  FIRST
REGISTER WITH THE NEW YORK DEPARTMENT OF FINANCIAL SERVICES.

A. 9241--C                          3

  2.  EACH APPLICANT'S REGISTRATION MUST BE FILED IN A MANNER PRESCRIBED
BY THE NEW YORK DEPARTMENT OF FINANCIAL SERVICES WITH AN INITIAL  ACCOM-
PANIED  FEE OF FIVE HUNDRED DOLLARS. REGISTRATIONS MUST BE RENEWED EVERY
TWO YEARS ON OR BEFORE THE THIRTIETH DAY OF SEPTEMBER.
  3.  THE  NEW YORK DEPARTMENT OF FINANCIAL SERVICES SHALL ISSUE CERTIF-
ICATES OF REGISTRATION AFTER BOTH UNDERSTANDING  AND  ATTESTING  TO  THE
CHARACTER AND FITNESS OF THE APPLICANT COMPANY WITH SUFFICIENT REASON TO
BELIEVE THE COMPANY WILL OPERATE HONESTLY AND FAIRLY.
  S  899-GGG.  PENALTY  FOR VIOLATION. ANY COMPANY FOUND IN VIOLATION OF
ANY PROVISIONS OF THIS ARTICLE IN A SPECIFIC FUNDING  CASE,  WAIVES  ITS
RIGHT  TO RECOVER BOTH THE FUNDED AMOUNT AND ANY ADDITIONAL FEES IN THAT
PARTICULAR CASE.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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Richard Gottfried

Kenneth Zebrowski

Anthony Brindisi

Matthew Titone

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James F. Brennan

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Christopher Friend

Annette Robinson

2015-A9241 - Details

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Richard Gottfried

Kenneth Zebrowski

Anthony Brindisi

Matthew Titone

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James F. Brennan

Vivian Cook

Christopher Friend

Annette Robinson

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Kenneth Zebrowski

Anthony Brindisi

Matthew Titone

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James F. Brennan

Vivian Cook

Christopher Friend

Annette Robinson

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co-Sponsors

Richard Gottfried

Kenneth Zebrowski

Anthony Brindisi

Matthew Titone

multi-Sponsors

James F. Brennan

Vivian Cook

Christopher Friend

Annette Robinson

2015-A9241C (ACTIVE) - Details

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