NY State Senate Bill 2017-S7074A

Senate Bill S7074A

Signed By Governor

2017-2018 Legislative Session

Increases the monetary exclusion on the requirement of plain language in consumer contracts

download bill text pdf

Archive: Last Bill Status - Signed by Governor

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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 28, 2018	signed chap.484
Dec 18, 2018	delivered to governor
Jun 14, 2018	returned to senate passed assembly ordered to third reading cal.75 substituted for a1085a
Jun 11, 2018	referred to judiciary delivered to assembly passed senate ordered to third reading cal.1669 committee discharged and committed to rules
May 29, 2018	print number 7074a
May 29, 2018	amend and recommit to judiciary
Jan 03, 2018	referred to judiciary

Votes

- Jun 11, 2018 - Floor Vote
  S7074A
  
  60
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 11, 2018
      
      aye (60)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Mayer
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      nay (1)
      
      Lanza
      
      excused (2)
      
      Croci
      
      Sepúlveda
  Jun 11, 2018 - Rules Committee Vote
  S7074A
  
  24
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 11, 2018
      
      aye (24)
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Rivera
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (1)
      
      Lanza

Bill Amendments

Original

A (Active)

2017-S7074 - Details

See Assembly Version of this Bill:: A1085
Law Section:: General Obligations Law
Laws Affected:: Amd §5-702, Gen Ob L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5206, A7777
2015-2016: S3135, S3155, A1152
2019-2020: S2657, A2653
2021-2022: S4211
2023-2024: S2064
2025-2026: S6743

2017-S7074 - Summary

Increases the monetary exclusion on the requirement of plain language in consumer contracts.

2017-S7074 - Sponsor Memo

                                
 
BILL NUMBER: S7074

SPONSOR: KAVANAGH
 
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 OR GENERAL IDEA OF BILL:

Increases the applicability of the plain language law to consumer
contracts involving amounts up to $250,000

 
SUMMARY OF SPECIFIC PROVISIONS:

Section One amends the closing paragraph of subdivision a of section
5-702 of the general business law to increase the threshold for the use
of "plain language" in consumer contracts.

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 statute only applicable to transactions valued at less than $50,000.
In 1977, the $50,000 threshold covered essentially all consumer
contracts. Today the $50,000 threshold may riot even cover the cost of
an automobile. 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.

 
PRIOR LEGISLATIVE HISTORY:

2015-16 - A.1152 - Passed Assembly / S.3135 - Referred to Judiciary
2013-14: A.7777- Passed Assembly / S.5206- Referred to Judiciary

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:;
One hundred eighty days after becoming law.

2017-S7074 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7074
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 3, 2018
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 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:
 
   Section  1. The closing paragraph of subdivision a of section 5-702 of
 the general obligations law, as amended by chapter  1  of  the  laws  of
 1994, is amended to read as follows:
   Any  creditor, seller or lessor who fails to comply with this subdivi-
 sion shall be liable to a consumer who is a party to a written agreement
 governed by this subdivision in an amount equal to  any  actual  damages
 sustained plus a penalty of fifty dollars. The total class action penal-
 ty  against  any  such  creditor,  seller or lessor shall not exceed ten
 thousand dollars in any class action or series of class actions  arising
 out  of  the  use  by a creditor, seller or lessor of an agreement which
 fails to comply with this subdivision.  No action under this subdivision
 may be brought after both parties to the agreement have fully  performed
 their obligation under such agreement, nor shall any creditor, seller or
 lessor  who  attempts  in  good faith to comply with this subdivision be
 liable for such penalties. This subdivision shall not apply  to  a  good
 faith  attempt  to describe the constant yield or other method of deter-
 mining the lease charge and depreciation portions of  each  base  rental
 payment  under  a lease of personal property. It also shall not apply to
 agreements involving amounts in excess of  TWO  HUNDRED  fifty  thousand
 dollars  nor  prohibit the use of words or phrases or forms of agreement
 required by state or federal law, rule or regulation  or  by  a  govern-
 mental instrumentality.
   § 2. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law and shall apply to any contract entered into
 after such effective date.

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

                                                            LBD03570-01-7

2017-S7074A (ACTIVE) - Details

See Assembly Version of this Bill:: A1085
Law Section:: General Obligations Law
Laws Affected:: Amd §5-702, Gen Ob L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5206, A7777
2015-2016: S3135, S3155, A1152
2019-2020: S2657, A2653
2021-2022: S4211
2023-2024: S2064
2025-2026: S6743

2017-S7074A (ACTIVE) - Summary

Increases the monetary exclusion on the requirement of plain language in consumer contracts.

2017-S7074A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7074A

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to requirements
for the use of plain language in consumer transactions

 
PURPOSE OR GENERAL IDEA OF BILL:

Increases the applicability of the plain language law to consumer
contracts involving amounts up to $100,000

 
SUMMARY OF SPECIFIC PROVISIONS:

Section One amends the closing paragraph of subdivision a of section
5-702 of the general business law to increase the threshold for the use
of "plain language" in consumer contracts from $50,000 to $100,000.

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 statute only applicable to transactions valued at less than $50,000.
In 1977, the $50,000 threshold covered essentially all consumer
contracts. Today the $50,000 threshold may riot even cover the cost of
an automobile. This bill proposes to increase the threshold to $100,000.
Since the enactment of this statute, several states have followed New
York's lead and have adopted its own "plain language" statutes.

 
PRIOR LEGISLATIVE HISTORY:

Previous versions of bill:

2015-16: A1152 - Passed Assembly / S3135 - Referred to Judiciary
2013-14: A7777 - Passed Assembly / 55206- Referred to Judiciary

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
One hundred eighty days after becoming law.

2017-S7074A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7074--A
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 3, 2018
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee  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:
 
   Section 1. The closing paragraph of subdivision a of section 5-702  of
 the  general  obligations  law,  as  amended by chapter 1 of the laws of
 1994, is amended to read as follows:
   Any creditor, seller or lessor who fails to comply with this  subdivi-
 sion shall be liable to a consumer who is a party to a written agreement
 governed  by  this  subdivision in an amount equal to any actual damages
 sustained plus a penalty of fifty dollars. The total class action penal-
 ty against any such creditor, seller or  lessor  shall  not  exceed  ten
 thousand  dollars in any class action or series of class actions arising
 out of the use by a creditor, seller or lessor  of  an  agreement  which
 fails to comply with this subdivision.  No action under this subdivision
 may  be brought after both parties to the agreement have fully performed
 their obligation under such agreement, nor shall any creditor, seller or
 lessor who attempts in good faith to comply  with  this  subdivision  be
 liable  for  such  penalties. This subdivision shall not apply to a good
 faith attempt to describe the constant yield or other method  of  deter-
 mining  the  lease  charge and depreciation portions of each base rental
 payment under a lease of personal property. It also shall not  apply  to
 agreements  involving  amounts in excess of [fifty] ONE HUNDRED thousand
 dollars nor prohibit the use of words or phrases or forms  of  agreement
 required  by  state  or  federal law, rule or regulation or by a govern-
 mental instrumentality.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law and shall apply to any contract entered  into
 after such effective date.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03570-02-8

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