Assembly Bill A108D

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

                                   108

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
  tee on Consumer Affairs and 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 UNLESS SUCH INVOLVEMENT IS LIMITED
TO A CONTRACTUAL RELATIONSHIP THAT AUTHORIZES THE USE OF ARBITRATION.
  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.
              

                                                           LBD01435-01-5

A. 108                              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 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:
  (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.

A. 108                              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.

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

                                 108--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced by M. of A. DINOWITZ, COOK, STECK, COLTON, GOTTFRIED, HOOPER,
  ARROYO, GALEF, PICHARDO, MAYER -- Multi-Sponsored by -- M. of A. BREN-
  NAN,  CLARK,  PERRY,  ROBINSON, SIMON -- read once and referred to the
  Committee on Consumer Affairs and Protection  --  recommitted  to  the
  Committee on Consumer Affairs and Protection in accordance with Assem-
  bly  Rule  3,  sec.  2  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

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 UNLESS SUCH INVOLVEMENT  IS  LIMITED
TO A CONTRACTUAL RELATIONSHIP THAT AUTHORIZES THE USE OF ARBITRATION.
  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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01435-02-6
              

A. 108--A                           2

  (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
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 SEVENTEEN.
  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 SEVENTEEN.
  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

A. 108--A                           3

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.
  (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.

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

                                 108--B

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced by M. of A. DINOWITZ, COOK, STECK, COLTON, GOTTFRIED, HOOPER,
  ARROYO,  GALEF, PICHARDO, MAYER, SEAWRIGHT -- Multi-Sponsored by -- M.
  of A.   BRENNAN, CLARK,  PERRY,  ROBINSON,  SIMON  --  read  once  and
  referred to the Committee on Consumer Affairs and Protection -- recom-
  mitted  to the Committee on Consumer Affairs and Protection in accord-
  ance with Assembly Rule  3,  sec.  2  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee -- again reported from said  committee  with  amendments,  ordered
  reprinted as amended and recommitted to said committee

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 UNLESS SUCH INVOLVEMENT IS LIMITED
TO A CONTRACTUAL RELATIONSHIP THAT AUTHORIZES THE USE OF ARBITRATION.
  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01435-03-6
              

A. 108--B                           2

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
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 SEVENTEEN.
  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 SEVENTEEN.
  C. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "FINANCIAL INTEREST"
MEANS  OWNERSHIP  OF MORE THAN A ONE PERCENT LEGAL OR EQUITABLE INTEREST

A. 108--B                           3

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.
  (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.  A.  WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLI-
CATION 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 CONTIN-
UANCE  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.  IN CONNECTION WITH ANY SUCH PROPOSED  APPLICATION,  THE  ATTORNEY
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.
  B. NOTWITHSTANDING ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY GENERAL
PURSUANT TO THIS SECTION, ANY PERSON WHO HAS BEEN INJURED BY REASON OF A
VIOLATION OF THIS SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME  TO
ENJOIN SUCH UNLAWFUL ACT, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES
OR  BOTH SUCH ACTIONS. THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES TO
A PREVAILING PLAINTIFF.
  C.   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.
  D. EACH WRITTEN CONTRACT OFFERED BY A NON-CONSUMER  PARTY  AND  SUBSE-
QUENTLY  ENTERED  INTO  IN  VIOLATION OF SUBDIVISION TWO OF THIS SECTION
SHALL CONSTITUTE A SEPARATE VIOLATION.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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

                                 108--C

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced by M. of A. DINOWITZ, COOK, STECK, COLTON, GOTTFRIED, HOOPER,
  ARROYO,  GALEF, PICHARDO, MAYER, SEAWRIGHT, SIMOTAS -- Multi-Sponsored
  by -- M.   of A. BRENNAN, PERRY, ROBINSON,  SIMON  --  read  once  and
  referred to the Committee on Consumer Affairs and Protection -- recom-
  mitted  to the Committee on Consumer Affairs and Protection in accord-
  ance with Assembly Rule  3,  sec.  2  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee -- again reported from said  committee  with  amendments,  ordered
  reprinted  as  amended  and  recommitted  to  said  committee -- again
  reported from said committee with  amendments,  ordered  reprinted  as
  amended and recommitted to said committee

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 UNLESS SUCH INVOLVEMENT IS LIMITED
TO A CONTRACTUAL RELATIONSHIP THAT AUTHORIZES THE USE OF ARBITRATION.
  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

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

                                                           LBD01435-08-6

A. 108--C                           2

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
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 ANY AWARD OR SETTLEMENT,
AND ANY OTHER RELIEF GRANTED; 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 SEVENTEEN.
  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 SEVENTEEN.

A. 108--C                           3

  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.
  (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. A.  WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN  APPLI-
CATION  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 CONTIN-
UANCE 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.    IN  CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTORNEY
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.
  B. NOTWITHSTANDING ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY GENERAL
PURSUANT TO THIS SECTION, ANY PERSON WHO HAS BEEN INJURED BY REASON OF A
VIOLATION  OF THIS SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO
ENJOIN SUCH UNLAWFUL ACT, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES
OR BOTH SUCH ACTIONS. THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES  TO
A PREVAILING PLAINTIFF.
  C.    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.
  D.  EACH  WRITTEN  CONTRACT OFFERED BY A NON-CONSUMER PARTY AND SUBSE-
QUENTLY ENTERED INTO IN VIOLATION OF SUBDIVISION  TWO  OF  THIS  SECTION
SHALL CONSTITUTE A SEPARATE VIOLATION.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.